,,ii #aaf? ,,congress #a/ ,session ,s4 #bbhh ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #be1 #bjai,ms4 ,smi? 7= h]self1 ,mr4 ,k+1 & ,mr4 ,m]kley7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,en]gy & ,natural ,res\rces ,a ,,bill ,to am5d title ,,vi ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh to e/abli% a ,f$]al en]gy effici5cy res\rce /&>d = electricity & natural gas suppli]s1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,am]ican ,en]gy ,effici5cy ,act ( #bjai4 #b4 ,en]gy effici5cy res\rce /&>d = retail electricity & natural gas suppli]s 7a7 ,9 g5]al ,title ,,vi ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh is am5d$ by add+ aft] section #fji 7#g ,u4,s4,c4 #iah;c7 ! foll[+3 #faj4 ,f$]al en]gy effici5cy res\rce /&>d = retail electricity & natural gas suppli]s 7a7 ,def9itions ,9 ?is section3 7#a7 ,,a%rae2 ,,ansi2 ,,iesna ,! t]ms ,,a%rae1 ,,ansi1 & ,,iesna mean ! ,am]ican ,society ( ,heat+1 ,refrig]at+ & ,air-,condition+ ,eng9e]s1 ! ,am]ican ,national ,/&>ds ,in/itute1 & ! ,illum9at+ ,eng9e]+ ,society ( ,nor? ,am]ica1 respectively4 7#b7 ,base quantity 7,a7 ,9 g5]al ,! t]m base quantity1 ) respect to a retail electricity suppli] or retail natural gas suppli]1 means1 = ea* cal5d> ye> = :i* a p]=mance /&>d is e/abli%$ "u subsection 7c71 ! av]age annual quantity ( electricity or natural gas deliv]$ by ! retail electricity suppli] or retail natural gas suppli] to retail cu/om]s dur+ ! #c cal5d> ye>s imm$iately prec$+ ! fir/ ye> t compliance is requir$ "u subsection 7c77#a74 7,b7 ,exclusion ,! t]m base quantity1 ) respect to a retail natural gas suppli]1 does n include natural gas deliv]$ = purposes ( electricity g5]ation4 7#c7 ,,*p ,sav+s ,! t]m ,,*p sav+s means-- 7,a7 ,,*p sy/em sav+s f a comb9$ heat & p[] sy/em t comm5ces op]ation aft] ! date ( enactm5t ( ?is section2 & 7,b7 ! increase 9 ,,*p sy/em sav+s f upgrad+ or replac+1 aft] ! date ( enactm5t ( ?is section1 a comb9$ heat & p[] sy/em t comm5c$ op]ation on or be=e ! date ( enactm5t ( ?is section4 7#d7 ,,*p sy/em sav+s ,! t]m ,,*p sy/em sav+s means ! electric output1 & ! electricity sav$ due to ! me*anical output1 ( a comb9$ heat & p[] sy/em1 adju/$ to reflect any increase 9 fuel consumption by t sy/em z comp>$ to ! fuel t w\ld h be5 requir$ to produce an equival5t useful !rmal en]gy output 9 a sep>ate !rmal-only sy/em1 z det]m9$ 9 accordance ) regulations promulgat$ by ! ,secret>y4 7#e7 ,comb9$ heat & p[] sy/em ,! t]m comb9$ heat & p[] sy/em means a sy/em t uses ! same en]gy s\rce = ! g5]ation ( electrical or me*anical p[] & ! production ( /eam or ano!r =m ( useful !rmal en]gy1 if-- 7,a7 ! sy/em meets all applicable requirem5ts relat+ to effici5cy & o!r op]at+ *>act]i/ics t ! ,secret>y promulgates by regulation2 & 7,b7 ! net quantity ( electricity sold :olesale by ! facility us+ ! sy/em does n exce$ #ej p]c5t ( ! total quantity ( electricity g5]at$ annually by ! sy/em4 7#f7 ,co/-effective ,! t]m co/-effective means1 ) respect to an en]gy effici5cy measure1 t ! measure a*ieves1 directly to ! en]gy consum] & to ! economy1 a net pres5t value ( economic b5efits ov] ! life ( ! measure t is great] ?an ! net pres5t value ( ! co/ ( ! measure ov] ! life ( ! measure1 us+ a societal b5efit-co/ te/ calculat$ us+ ! l[] (-- 7,a7 a utility weight$ av]age co/ ( capital2 or 7,b7 a social disc\nt rate ( #c p]c5t4 7#g7 ,cu/om] facility sav+s ,! t]m cu/om] facility sav+s means a r$uction 9 end-use electricity or natural gas consumption 7includ+ wa/e heat en]gy sav+s7 at a facility ( an end-use consum] ( electricity or natural gas s]v$ by a retail electricity suppli] or natural gas suppli]1 z comp>$ to-- 7,a7 9 ! case ( a new facility1 consumption at a ref]5ce facility ( av]age effici5cy2 7,b7 9 ! case ( an exi/+ facility1 consumption at ! facility dur+ a base p]iod ( n less ?an #a ye>2 7,c7 9 ! case ( new equipm5t t replaces exi/+ equipm5t at ! end ( ! useful life ( ! exi/+ equipm5t1 consumption by new equipm5t ( av]age effici5cy ( ! same equipm5t type1 except t cu/om] sav+s "u ?is subp>agraph %all n be c\nt$ t[>ds cu/om] sav+s "u subp>agraph 7,a7 or 7,b72 & 7,d7 9 ! case ( new equipm5t t replaces exi/+ equipm5t ) rema9+ useful life-- 7i7 consumption ( ! exi/+ equipm5t = ! rema9+ useful life ( ! equipm5t2 & 7ii7 !reaft]1 consumption ( new equipm5t ( av]age effici5cy4 7#h7 ,electricity sav+s ,! t]m electricity sav+s means r$uctions 9 electricity consumption a*iev$ ?r\gh measures implem5t$ aft] ! date ( enactm5t ( ?is section1 z det]m9$ 9 accordance ) regulations promulgat$ by ! ,secret>y1 t are limit$ to-- 7,a7 cu/om] facility sav+s ( electricity1 adju/$ to reflect any associat$ increase 9 fuel consumption at ! facility2 7,b7 r$uctions 9 di/ribution sy/em losses ( electricity a*iev$ by a retail electricity suppli]1 z comp>$ to losses attributable to new or replacem5t di/ribution sy/em equipm5t ( av]age effici5cy1 z def9$ 9 regulations promulgat$ by ! ,secret>y2 7,c7 ,,*p sav+s2 7,d7 ,/ate & local codes & /&>ds sav+s ( electricity2 & 7,e7 fuel swit*+ en]gy sav+s t results 9 net sav+s ( s\rce en]gy1 z def9$ 9 regulations promulgat$ by ! ,secret>y4 7#i7 ,fuel swit*+ en]gy sav+s 7,a7 ,9 g5]al ,! t]m fuel-swit*+ en]gy sav+s means net en]gy sav+s1 calculat$ 9 accordance ) subp>agraph 7,b71 f end-us] swit*es f #a en]gy s\rce to ano!r1 z det]m9$ 9 accordance ) regulations promulgat$ by ! ,secret>y4 7,b7 ,calculation ,= purposes ( calculat+ fuel-swit*+ net en]gy sav+s-- 7i7 electricity use %all be evaluat$ bas$ on ! av]age quantity ( fuel burn$ at a new p[] plant1 tak+ into acc\nt exi/+ & plann$ r5ewable en]gy g5]ators to provide ea* kil[att h\r ( electricity2 7ii7 electricity & natural gas use %all include losses 9 ! transmission & di/ribution sy/em2 & 7iii7 fuel-swit*+ t is n co/-effective to ! end-us] %all n be c\nt$4 7#aj7 ,natural gas sav+s ,! t]m natural gas sav+s means r$uctions 9 natural gas consumption f measures implem5t$ aft] ! date ( enactm5t ( ?is section1 z det]m9$ 9 accordance ) regulations promulgat$ by ! ,secret>y1 t are limit$ to-- 7,a7 cu/om] facility sav+s ( natural gas1 adju/$ to reflect any associat$ increase 9 electricity consumption or consumption ( o!r fuels at ! facility2 7,b7 r$uctions 9 leakage1 op]ational losses1 & consumption ( natural gas fuel to op]ate a gas di/ribution sy/em1 a*iev$ by a retail natural gas suppli]1 z comp>$ to simil> leakage1 losses1 & consumption dur+ a base p]iod ( n less ?an #a ye>2 7,c7 ,/ate & local codes & /&>ds sav+s ( natural gas2 & 7,d7 fuel swit*+ en]gy sav+s t result 9 net sav+s ( s\rce en]gy1 z def9$ 9 regulations promulgat$ by ! ,secret>y4 7#aa7 ,report+ p]iod ,! t]m report+ p]iod means-- 7,a7 cal5d> ye> #bjba2 & 7,b7 ea* successive #b-;cal5d>-ye> p]iod !reaft]4 7#ab7 ,retail electricity suppli] 7,a7 ,9 g5]al ,! t]m retail electricity suppli] means1 = any giv5 cal5d> ye>1 an electric utility t deliv]s n less ?an #b1jjj1jjj megawatt h\rs ( electric en]gy to electric consum]s = purposes o!r ?an resale dur+ ! prec$+ cal5d> ye>4 7,b7 ,inclusions & limitations ,= purposes ( det]m9+ :e!r an electric utility qualifies z a retail electricity suppli] "u subp>agraph 7,a7-- 7i7 deliv]ies by any affiliate ( an electric utility to electric consum]s = purposes o!r ?an resale %all be consid]$ to be deliv]ies by ! electric utility2 & 7ii7 deliv]ies by any electric utility to a lessee1 t5ant1 or affiliate ( ! electric utility %all n be consid]$ to be deliv]ies to electric consum]s4 7#ac7 ,retail natural gas suppli] 7,a7 ,9 g5]al ,! t]m retail natural gas suppli] means1 = any giv5 cal5d> ye>1 a local di/ribution company 7z def9$ 9 section #b ( ! ,natural ,gas ,policy ,act ( #aigh 7#ae ,u4,s4,c4 #ccja771 t deliv]$ to natural gas consum]s m ?an #e1jjj1jjj1jjj cubic feet ( natural gas = purposes o!r ?an resale dur+ ! prec$+ cal5d> ye>4 7,b7 ,inclusions & limitations ,= purposes ( det]m9+ :e!r a p]son qualifies z a retail natural gas suppli] "u subp>agraph 7,a7-- 7i7 deliv]ies ( natural gas by any affiliate ( a local di/ribution company to consum]s = purposes o!r ?an resale %all be consid]$ to be deliv]ies by ! local di/ribution company2 & 7ii7 deliv]ies ( natural gas to a lessee1 t5ant1 or affiliate ( a local di/ribution company %all n be consid]$ to be deliv]ies to natural gas consum]s4 7#ad7 ,/ate & local codes & /&>ds sav+s 7,a7 ,9 g5]al ,! t]m ,/ate & local codes & /&>ds sav+s means a r$uction1 due to ! adoption & implem5tation1 aft] ! date ( enactm5t ( ?is section1 ( new or revis$ appliance & equipm5t effici5cy /&>ds or build+ en]gy codes1 9-- 7i7 end-use electricity consumption = a retail electricity suppli]2 or 7ii7 natural gas consumption 9 ! s]vice t]ritory ( a retail natural gas suppli]4 7,b7 ,basel9es ,9 calculat+ ,/ate & local codes & /&>ds sav+s "u subp>agraph 7,a7-- 7i7 ! basel9e = calculat+ sav+s f a new or revis$ build+ code %all be ! m /r+5t (-- 7,i7 7aa7 ! #bjae ,int]national ,en]gy ,cons]vation ,code = resid5tial build+s2 or 7bb7 ! ,,a%rae_/,,ansi_/,,iesna ,/&>d #ij4a-bjac = comm]cial build+s2 or 7,,ii7 ! applicable ,/ate build+ code 9 effect on ! date ( enactm5t ( ?is section2 & 7ii7 ! basel9e = calculat+ sav+s f a new or revis$ appliance /&>d %all be ! e/imat$ av]age effici5cy ( new appliances 9 ! applicable #a or m categories dur+ ! #a-ye> p]iod prec$+ ! date on :i* ! new or revis$ /&>d is adopt$4 7#ae7 ,?ird-p>ty effici5cy provid] ,! t]m ?ird-p>ty effici5cy provid] means any retail]1 build+ own]1 en]gy s]vice company1 f9ancial in/itution1 or o!r comm]cial1 indu/rial1 or nonpr(it entity t is capable ( provid+ electricity sav+s or natural gas sav+s 9 accordance ) any proc$ures1 /&>ds1 & rules e/abli%$ by ! ,secret>y "u subsections 7b77#a77;,d7 & 7d74 7#af7 ,wa/e heat en]gy sav+s ,! t]m wa/e heat en]gy sav+s means ! me*anical or !rmal en]gy us$ at a facility or ! electric output ( a facility1 adju/$ to reflect any associat$ increase 9 fuel consumption1 t results f a modification ( an indu/rial1 comm]cial1 or in/itutional sy/em t comm5c$ op]ation be=e ! date ( enactm5t ( ?is section1 9 ord] to recapture me*anical or !rmal en]gy t w\ld o!rwise be wa/$1 z det]m9$ 9 accordance ) regulations promulgat$ by ! ,secret>y4 7b7 ,e/abli%m5t ( program 7#a7 ,regulations ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is section1 ! ,secret>y %all1 by regulation1 e/abli% a program to implem5t & en=ce ! requirem5ts ( ?is section1 includ+-- 7,a7 by e/abli%+ evaluation1 measurem5t1 & v]ification proc$ures & /&>ds "u subsection 7d72 7,b7 by e/abli%+ requirem5ts "u :i* retail electricity suppli]s & retail natural gas suppli]s %all-- 7i7 demon/rate1 docum5t1 & report ! compliance ( ! retail electricity suppli]s & retail natural gas suppli]s ) ! p]=mance /&>ds "u subsection 7c72 & 7ii7 e/imate ! impact ( ! /&>ds on curr5t & future electricity & natural gas use 9 ! s]vice t]ritories ( ! suppli]s2 7,c7 by e/abli%+ requirem5ts gov]n+ applications =1 & implem5tation (1 delegat$ ,/ate adm9i/ration "u subsection 7f72 & 7,d7 by e/abli%+ rules to gov]n transf]s ( electricity or natural gas sav+s-- 7i7 betwe5 suppli]s & ?ird-p>ty effici5cy provid]s s]v+ ! same ,/ate2 & 7ii7 betwe5 suppli]s & ?ird-p>ty effici5cy provid]s s]v+ diff]5t ,/ates4 7#b7 ,national ,academy ( ,sci5ces /udy ,9 e/abli%+ & implem5t+ ?is section1 ! ,secret>y %all take into consid]ation a report publi%$ "u subsection 7d77#b77;,c74 7#c7 ,coord9ation ) ,/ate programs ,9 e/abli%+ & implem5t+ ?is section1 ! ,secret>y %all1 to ! maximum ext5t practicable1 pres]ve ! integrity & incorporate be/ practices ( exi/+ ,/ate en]gy effici5cy programs4 7#d7 ,sav+s programs = l[-income cu/om]s ,9 implem5t+ ?is section1 ! ,secret>y %all enc\rage retail electricity suppli]s & retail natural gas suppli]s to ensure t a portion ( ! cu/om] facility sav+s a*iev$ = a cal5d> ye> %all result f programs t t>get h\seholds t are at or bel[ #bjj p]c5t ( ! pov]ty l9e 7z def9$ 9 section #fgc ( ! ,community ,s]vices ,block ,grant ,act 7#db ,u4,s4,c4 #iijb774 7c7 ,p]=mance /&>ds 7#a7 ,compliance obligation ,n lat] ?an ,may #a ( ! cal5d> ye> imm$iately foll[+ ea* report+ p]iod-- 7,a7 ea* retail electricity suppli] %all submit to ! ,secret>y a report1 9 accordance ) regulations promulgat$ by ! ,secret>y1 demon/rat+ t ! retail electricity suppli] has a*iev$ cumulative consi/5t electricity sav+s 7adju/$ to acc\nt = any attrition ( sav+s measures implem5t$ 9 prior ye>s7 9 ea* cal5d> ye> t are equal to ! applicable p]c5tage ( ! base quantity ( ! retail electricity suppli]2 & 7,b7 ea* retail natural gas suppli] %all submit to ! ,secret>y a report1 9 accordance ) regulations promulgat$ by ! ,secret>y1 demon/rat+ t x has a*iev$ cumulative consi/5t natural gas sav+s 7adju/$ to acc\nt = any attrition ( sav+s measures implem5t$ 9 prior ye>s7 9 ea* cal5d> ye> t are equal to ! applicable p]c5tage ( ! base quantity ( su* retail natural gas suppli]4 7#b7 ,/&>ds = #bjba ?r\gh #bjce ,= ea* ( cal5d> ye>s #bjba ?r\gh #bjce1 ! applicable p]c5tages are z foll[s3 ,cal5d> ,year,cumulative ,electricity ,sav+s ,percentage,cumulative ,natural ,gas ,sav+s ,p]c5tage#bjba #a4jj #j4ejbjbb #b4jj #a4bebjbc #c4jj #b4jjbjbd #d4be #c4jjbjbe #e4ej #d4jjbjbf #g4jj #e4jjbjbg #h4ej #f4jjbjbhaj4jj #g4jjbjbiaa4ej #h4jjbjcjac4jj #i4jjbjcaad4geaj4jjbjcbaf4ejaa4jjbjccah4 beab4jjbjcdbj4jjac4jjbjcebb4jjad4jj 7#c7 ,subsequ5t ye>s 7,a7 ,cal5d> ye>s #bjcf ?r\gh #bjde ,n lat] ?an ,decemb] #ca1 #bjcj1 ! ,secret>y %all promulgate regulations e/abli%+ p]=mance /&>ds 7express$ z applicable p]c5tages ( base quantity = bo? cumulative electricity sav+s & cumulative natural gas sav+s7 = ea* ( cal5d> ye>s #bjcf ?r\gh #bjde4 7,b7 ,requirem5ts ,! ,secret>y %all e/abli% /&>ds "u ?is p>agraph at levels reflect+ ! maximum a*ievable level ( co/-effective en]gy effici5cy pot5tial1 tak+ into acc\nt-- 7i7 co/-effective en]gy sav+s a*iev$ by lead+ retail electricity suppli]s & retail natural gas suppli]s2 7ii7 opportunities = new ,/ate & local codes & /&>ds sav+s2 7iii7 te*nology improvem5ts2 & 7iv7 o!r indicators ( co/-effective en]gy effici5cy pot5tial includ+ diff]5ces betwe5 ,/ates4 7,c7 ,m9imum p]c5tage ,9 no case %all ! applicable p]c5tages = any cal5d> ye> be less ?an ! applicable p]c5tages = cal5d> ye> #bjce4 7#d7 ,delay ( submission = fir/ report+ p]iod 7,a7 ,9 g5]al ,not)/&+ p>agraphs 7#a7 & 7#b71 = ! #bjba report+ p]iod1 ! ,secret>y may accept a reque/ f a retail electricity suppli] or a retail natural gas suppli] to delay ! requir$ submission ( docum5tation ( all or "p ( ! requir$ sav+s = up to #b ye>s4 7,b7 ,plan = compliance ,! reque/ = delay "u subp>agraph 7,a7 %all include a plan = com+ into full compliance by ! end ( ! #bjbb-bjbc report+ p]iod4 7#e7 ,apply+ unus$ sav+s to future ye>s ,if sav+s a*iev$ 9 a ye> exce$ ! p]=mance /&>ds specifi$ 9 ?is subsection1 any sav+s 9 excess ( ! p]=mance /&>ds may be appli$ t[>d p]=mance /&>ds specifi$ = ! fir/ #c ye>s foll[+ ! ye> 9 :i* ! excess sav+s are a*iev$4 7d7 ,evaluation1 measurem5t1 & v]ification ( sav+s 7#a7 ,regulations ,! regulations promulgat$ pursuant to subsection 7b7 %all-- 7,a7 be bas$ on-- 7i7 ! ,uni=m ,me?ods ,project ( ! ,dep>tm5t ( ,en]gy2 7ii7 ! ,national ,/&>d ,practice ,manual = ,assess+ ! ,co/-,effectiv5ess ( ,en]gy ,effici5cy ,res\rces1 develop$ by ! ,national ,effici5cy ,scre5+ ,project2 & 7iii7 o!r be/ practices recogniz$ 9 ! en]gy effici5cy indu/ry2 & 7,b7 include-- 7i7 proc$ures & /&>ds = evaluat+1 measur+1 & v]ify+ electricity sav+s & natural gas sav+s t c\nt t[>ds ! p]=mance /&>ds e/abli%$ "u subsection 7c7 t-- 7,i7 specify ! types ( en]gy effici5cy & en]gy cons]vation measures t may be c\nt$2 7,,ii7 require t en]gy consumption e/imates = cu/om] facilities or portions ( facilities 9 ! applicable base & curr5t ye>s be adju/$1 z appropriate1 to acc\nt = *anges 9 wea!r1 level ( production1 & build+ area2 7,,iii7 d n prev5t ov]all load gr[? due to b5eficial electrification2 7,,iv7 acc\nt = ! useful life ( en]gy effici5cy & en]gy cons]vation measures2 7,v7 all[ = sav+s f a program to be e/imat$ bas$ on extrapolation f a repres5tative sample ( p>ticipat+ cu/om]s2 7,,vi7 include proc$ures = calculat+ & docum5t+ ,,*p sav+s1 fuel-swit*+ en]gy sav+s1 & wa/e heat en]gy sav+s2 7,,vii7 e/abli% me?ods = calculat+ codes & /&>ds en]gy sav+s1 includ+ ! use ( v]ifi$ compliance rates2 7,,viii7 include proc$ures = calculat+ & docum5t+-- 7aa7 cu/om] facility sav+s & r$uctions 9 di/ribution sy/em losses ( electricity & natural gas t are a*iev$ z a result ( sm>t grid deploym5t1 z describ$ 9 section #acja ( ! ,en]gy ,indep5d5ce & ,security ,act ( #bjjg 7#db ,u4,s4,c4 #agcha72 & 7bb7 r$uctions 9 natural gas di/ribution sy/em losses attributable to pipel9e repair & replacem5t programs2 7,,ix7 c\nt only measures & sav+s t are additional to bus9ess-z-usual cu/om] pur*ase practices2 7,x7 ensure t ! retail electricity suppli] or retail natural gas suppli] claim+ ! electricity sav+s or natural gas sav+s1 includ+ ,/ate & local codes & /&>ds sav+s1 has play$ a significant role 9 a*iev+ ! sav+s 7includ+ ?r\gh ! activities ( a designat$ ag5t ( ! suppli] or ?r\gh ! pur*ase ( transf]r$ electricity sav+s or natural gas sav+s72 7,,xi7 avoid d\ble-c\nt+ ( sav+s us$ = compliance ) ?is section1 includ+ transf]r$ sav+s2 7,,xii7 include electricity sav+s or natural gas sav+s f programs adm9i/]$ by retail electricity suppli]s or natural gas suppli]s t are fund$ by ,f$]al1 ,/ate1 or o!r s\rces2 7,,xiii7 cr$it l>ge cu/om] self-direct$ electricity sav+s or natural gas sav+s to ! retail electricity suppli] or retail natural gas suppli] if ! l>ge cu/om] receives inc5tives or rate r$uctions f ! retail electricity suppli] or retail natural gas suppli] = self-direct$ en]gy effici5cy improvem5ts2 7,,xiv7 include guidance1 z appropriate1 = additional alt]native approa*es to evaluate electricity sav+s & natural gas sav+s = l>ge comm]cial & indu/rial cu/om]s 9 en]gy-int5sive indu/ries t are subject to int]national competition2 7,,xv7 include proc$ures = c\nt+ electricity sav+s & natural gas sav+s a*iev$ by sol> heat+ & cool+ te*nologies1 sol> light pipe te*nology1 geo!rmal heat pumps1 & o!r te*nologies utiliz+ r5ewable res\rces t d n produce electricity or gase\s fuel & r$uce on-site en]gy use2 7,,xvi7 include proc$ures = c\nt+ electricity sav+s & natural gas sav+s a*iev$ by wea!rization measures1 su* z in/all+ me*anical insulation1 repair+ or replac+ heat+ & cool+ sy/ems1 repair+ or replac+ w9d[s & doors1 p]=m+ air seal+1 & replac+ lights & appliances ) m en]gy effici5t models2 7,,xvii7 include proc$ures = c\nt+ electricity sav+s & natural gas sav+s a*iev$ f increas$ utilization ( me*anical insulation = new1 retr(it1 & ma9t5ance con/ruction = comm]cial1 indu/rial1 public1 & nonpr(it build+s & facilities2 7,,xviii7 9 any ,/ate 9 :i* ! ,/ate regulatory au?ority has designat$ #a or m entities to adm9i/] electric ratepay]-fund$ effici5cy programs approv$ by ! ,/ate regulatory au?ority1 provide t electricity sav+s & natural gas sav+s a*iev$ ?r\gh ^? programs %all be di/ribut$ proportionally among retail electricity suppli]s & retail natural gas suppli]s2 7,,xix7 include guidance = retail electricity suppli]s & retail natural gas suppli]s to calculate & docum5t bus9ess-z-usual consumption projections2 7,,xx7 include guidance = e/imat+ sav+s us+ in=mation f ! database e/abli%$ "u p>agraph 7#c7 bas$ on simil> measures & programs 9 o!r sett+s ) appropriate adju/m5ts1 z necess>y2 & 7,,xxi7 incorporate advances 9 ! sci5ce ( policy evaluation1 su* z ! use (-- 7aa7 r&omiz$ control trials2 7bb7 o!r exp]im5tal & quasi-exp]im5tal approa*es2 & 7cc7 l>ge data sets & ma*9e le>n+ te*niques2 & 7ii7 proc$ures & /&>ds = ?ird-p>ty v]ification ( report$ electricity sav+s or natural gas sav+s4 7#b7 ,national ,academy ( ,sci5ces /udy ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is section1 ! ,secret>y %all (f] to ent] into an agreem5t ) ! ,national ,academy ( ,sci5ces1 "u :i* ! ,academy %all-- 7,a7 evaluate exi/+ /ate-(-!-art me?ods = evaluat+ en]gy effici5cy policies & measures2 7,b7 id5tify approa*es 9 program evaluation lit]ature t may be br\ght into ! en]gy effici5cy doma91 includ+-- 7i7 r&omiz$ control trials & o!r exp]im5tal or quasi-exp]im5tal approa*es2 7ii7 control ( conf\nd+ factors2 7iii7 longitud9al /udies2 7iv7 assessm5ts by neutral arbit]s2 & 7v7 disclosure ( data = replication2 & 7,c7 n lat] ?an #ah mon?s aft] ! date ( enactm5t ( ?is section1 publi% a report t includes-- 7i7 a description ( ! evaluation "u subp>agraph 7,a72 7ii7 a description ( ! approa*es id5tifi$ "u subp>agraph 7,b72 & 7iii7 recomm5dations = advanc+ & adopt+ rigor\s /ate-(-!-art me?ods = evaluat+ en]gy effici5cy policies & measures4 7#c7 ,en]gy effici5cy program evaluation database 7,a7 ,9 g5]al ,! ,secret>y %all e/abli% & ma9ta9 a se>*able public database1 accessible on ! website ( ! ,dep>tm5t ( ,en]gy1 t conta9s a li/ ( r&omiz$ control trials & o!r exp]im5tal or quasi-exp]im5tal evaluations ( en]gy effici5cy programs4 7,b7 ,requirem5ts ,ea* trial or evaluation on ! li/ describ$ 9 subp>agraph 7,a7 %all include1 at a m9imum-- 7i7 ! ,/ate 9 :i* ! trial or evaluation 0 conduct$2 7ii7 ! type ( trial or evaluation conduct$2 7iii7 ! type ( program evaluat$2 7iv7 an ab/ract or summ>y ( ! program evaluat$2 7v7 a summ>y ( ! trial or evaluation me?odology2 7vi7 ! reveal$ en]gy sav+s f ! trial or evaluation2 & 7vii7 to ! ext5t practicable1 ! und]ly+ data us$ to conduct ! trial or evaluation4 7e7 ,en=cem5t & judicial review 7#a7 ,review ( retail suppli] reports 7,a7 ,9 g5]al ,! ,secret>y %all review ea* report submitt$ to ! ,secret>y by a retail electricity suppli] or retail natural gas suppli] "u subsection 7c7 to v]ify t ! applicable p]=mance /&>ds "u subsection 7c7 h be5 met4 7,b7 ,exclusion ,9 det]m9+ compliance ) ! applicable p]=mance /&>ds "u subsection 7c71 ! ,secret>y %all exclude report$ electricity sav+s or natural gas sav+s t are n adequately demon/rat$ & docum5t$1 9 accordance ) ! regulations promulgat$ "u subsections 7b7 & 7c74 7#b7 ,p5alty = failure to docum5t adequate sav+s ,if a retail electricity suppli] or a retail natural gas suppli] fails to demon/rate compliance ) an applicable p]=mance /&>d "u subsection 7c71 or to pay to ! ,/ate an applicable alt]native compliance paym5t "u subsection 7f77#c71 ! ,secret>y %all assess aga9/ ! retail electricity suppli] or retail natural gas suppli] a civil p5alty = ea* failure 9 an am\nt equal to1 z adju/$ = inflation 9 accordance ) su* regulations z ! ,secret>y may promulgate-- 7,a7 #ajj p] megawatt h\r ( electricity sav+s or alt]native compliance paym5t t ! retail electricity suppli] fail$ to a*ieve or make1 respectively2 or 7,b7 #aj p] million ,btu ( natural gas sav+s or alt]native compliance paym5t t ! retail natural gas suppli] fail$ to a*ieve or make1 respectively4 7#c7 ,(fsett+ /ate p5alties ,! ,secret>y %all r$uce ! am\nt ( any p5alty "u p>agraph 7#b7 by ! am\nt paid by ! relevant retail electricity suppli] or retail natural gas suppli] to a ,/ate = failure to comply ) ! requirem5ts ( a ,/ate en]gy effici5cy res\rce /&>d dur+ ! same compliance p]iod4 7#d7 ,use ( paym5ts 7,a7 ,def9ition ( cov]$ rate ,9 ?is p>agraph1 ! t]m cov]$ rate means ! proportion t-- 7i7 ! am\nt ( p5alty paym5ts made by retail electricity suppli]s & natural gas suppli]s 9 a ,/ate "u p>agraph 7#b72 be>s to 7ii7 ! total am\nt ( p5alty paym5ts collect$ by ! ,secret>y "u t p>agraph4 7,b7 ,use ( paym5ts ,p5alty paym5ts collect$ "u p>agraph 7#b7 by ! ,secret>y %all be-- 7i7 provid$ to ea* ,/ate at ! cov]$ rate = ! ,/ate2 & 7ii7 us$ by ! ,/ate to implem5t co/-effective en]gy effici5cy programs t-- 7,i7 to ! maximum ext5t practicable1 a*ieve electricity sav+s & natural gas sav+s 9 ! ,/ate suffici5t to make up ! deficit associat$ ) ! p5alty paym5ts2 & 7,,ii7 c be measur$ & v]ifi$ 9 accordance ) ! applicable proc$ures & /&>ds e/abli%$ "u subsection 7d74 7#e7 ,en=cem5t proc$ures ,! ,secret>y %all assess a civil p5alty1 z provid$ "u p>agraph 7#b71 9 accordance ) ! proc$ures describ$ 9 section #ccc7;d7 ( ! ,en]gy ,policy & ,cons]vation ,act 7#db ,u4,s4,c4 #fcjc7;d774 7f7 ,/ate adm9i/ration 7#a7 ,9 g5]al ,on receipt ( an application f ! ,gov]nor ( a ,/ate 7includ+ ! ,mayor ( ! ,di/rict ( ,columbia71 ! ,secret>y may delegate to ! ,/ate responsibility = adm9i/]+ ?is section )9 ! t]ritory ( ! ,/ate if ! ,secret>y det]m9es t ! ,/ate w implem5t an en]gy effici5cy program t meets or exce$s ! requirem5ts ( ?is section4 7#b7 ,secret>ial det]m9ation ,n lat] ?an #ahj days aft] ! date on :i* a complete application is receiv$ by ! ,secret>y1 ! ,secret>y %all make a sub/antive det]m9ation approv+ or disapprov+ a ,/ate application1 aft] public notice & comm5t4 7#c7 ,alt]native compliance paym5ts 7,a7 ,9 g5]al ,z "p ( an application submitt$ "u p>agraph 7#a71 a ,/ate may p]mit retail electricity suppli]s or retail natural gas suppli]s to pay to ! ,/ate1 by n lat] ?an ,may #a ( ! cal5d> ye> imm$iately foll[+ ! applicable report+ p]iod1 an alt]native compliance paym5t 9 an am\nt equal to1 z adju/$ = inflation 9 accordance ) su* regulations z ! ,secret>y may promulgate1 n less ?an-- 7i7 #ej p] megawatt h\r ( electricity sav+s ne$$ to make up any deficit ) reg>d to a compliance obligation "u ! applicable p]=mance /&>d2 or 7ii7 #e p] million ,btu ( natural gas sav+s ne$$ to make up any deficit ) reg>d to a compliance obligation "u ! applicable p]=mance /&>d4 7,b7 ,use ( paym5ts ,alt]native compliance paym5ts collect$ by a ,/ate "u subp>agraph 7,a7 %all be us$ by ! ,/ate to adm9i/] ! delegat$ au?ority ( ! ,/ate "u ?is section & to implem5t co/-effective en]gy effici5cy programs t-- 7i7 to ! maximum ext5t practicable1 a*ieve electricity sav+s & natural gas sav+s 9 ! ,/ate suffici5t to make up ! deficit associat$ ) ! alt]native compliance paym5ts2 & 7ii7 c be measur$ & v]ifi$ 9 accordance ) ! applicable proc$ures & /&>ds e/abli%$ "u subsection 7d74 7#d7 ,review ( /ate implem5tation 7,a7 ,p]iodic review ,e #b ye>s1 ! ,secret>y %all review ,/ate implem5tation ( ?is section = con=mance ) ! requirem5ts ( ?is section 9 approximately #a_/b ( ! ,/ates t h receiv$ approval "u ?is subsection to adm9i/] ! program1 s t ea* ,/ate %all be review$ n less frequ5tly ?an once e #d ye>s4 7,b7 ,report ,to facilitate ! review "u subp>agraph 7,a71 ! ,secret>y may require ! ,/ate to submit a report demon/rat+ ! con=mance ( ! ,/ate ) ! requirem5ts ( ?is section4 7,c7 ,defici5cies 7i7 ,9 g5]al ,9 complet+ a review "u ?is p>agraph1 if ! ,secret>y f9ds defici5cies1 ! ,secret>y %all-- 7,i7 notify ! ,/ate ( ! defici5cies2 7,,ii7 direct ! ,/ate to correct ! defici5cies2 & 7,,iii7 require ! ,/ate to report to ! ,secret>y on progress made by n lat] ?an #ahj days aft] ! date on :i* ! ,/ate receives notice "u subclause 7,i74 7ii7 ,sub/antial defici5cies ,if ! defici5cies are sub/antial1 ! ,secret>y %all-- 7,i7 disall[ ! report$ electricity sav+s or natural gas sav+s t ! ,secret>y det]m9es are n cr$ible due to defici5cies2 7,,ii7 re-review ! ,/ate n lat] ?an #b ye>s aft] ! date on :i* ! orig9al review 0 complet$2 & 7,,iii7 if sub/antial defici5cies rema9 uncorrect$ aft] ! review provid$ = "u subclause 7,,ii71 revoke ! au?ority ( ! ,/ate to adm9i/] ! program e/abli%$ "u ?is section4 7#e7 ,co/ recov]y1 fix$ co/ recov]y1 & %>ehold] inc5tives ,! ,secret>y %all enc\rage ,/ate utility regulatory commissions to review ! rules & regulations ( ! ,commission to ensure t utilities "u ! jurisdiction ( ! ,commission may-- 7,a7 recov] ! direct co/s ( en]gy effici5cy programs2 7,b7 7i7 fully recov] au?oriz$ fix$ co/s f cu/om]s1 includ+ recov]y ( rev5ue associat$ ) fix$ co/s t 0 lo/ due to annual sales t 7 l[] ?an =eca/$2 b 7ii7 return to cu/om]s ! rev5ue associat$ ) fix$ co/s collect$ 9 excess ( ! au?oriz$ am\nt "u clause 7i72 & 7,c7 e>n a p]=mance-bas$ inc5tive = %>ehold]s = ! a*ievem5t ( en]gy effici5cy /&>ds4 7#f7 ,evaluation1 measurem5t1 & v]ification inc5tives ,! ,secret>y %all enc\rage ,/ates t h delegat$ au?ority to adm9i/] ?is section to provide inc5tives to retail electricity suppli]s1 retail natural gas suppli]s1 & ?ird-p>ty effici5cy provid]s to use r&omiz$ control trials & o!r exp]im5tal or quasi-exp]im5tal approa*es to evaluate en]gy effici5cy measures & programs )9 ! ,/ate4 7g7 ,in=mation & reports ,9 accordance ) section #ac ( ! ,f$]al ,en]gy ,adm9i/ration ,act ( #aigd 7#ae ,u4,s4,c4 #ggb71 ! ,secret>y may require any retail electricity suppli]1 retail natural gas suppli]1 ?ird-p>ty effici5cy provid]1 or any o!r entity t ! ,secret>y det]m9es appropriate1 to provide any in=mation ! ,secret>y det]m9es appropriate to c>ry out ?is section4 7h7 ,/ate law ,no?+ 9 ?is section dim9i%es or qualifies any au?ority ( a ,/ate or political subdivision ( a ,/ate to adopt or en=ce any law or regulation respect+ electricity sav+s or natural gas sav+s1 includ+ any law or regulation e/abli%+ en]gy effici5cy requirem5ts t are m /r+5t ?an ^? "u ?is section1 except t no ,/ate law or regulation %all relieve any p]son ( any requirem5t o!rwise applicable "u ?is section4 4 7b7 ,con=m+ am5dm5t ,! table ( cont5ts ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh 7#af ,u4,s4,c4 prec4 #bfja7 is am5d$ by add+ at ! end ( ! items relat+ to title ,,vi ! foll[+3 ,sec4 #fji4 ,rural & remote communities electrification grants4,sec4 #faj4 ,f$]al en]gy effici5cy res\rce /&>d = retail electricity & natural gas suppli]s4 4