,i #aag? ,,congress #a/ ,session ,h4 ,r4 #ehhi ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,novemb] #d1 #bjba,mr4 ,wel* 7= himself & ,ms4 ,cl>ke ( ,new ,york7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,en]gy & ,comm]ce ,a ,,bill ,to am5d title ,,vi ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh to e/abli% a ,f$]al en]gy effici5cy res\rce /&>d = retail electricity suppli]s & retail natural gas suppli]s1 & = o!r purposes4 #a4 ,%ort title2 f9d+s 7a7 ,%ort title ,?is ,act may be cit$ z ! ,am]ican ,en]gy ,effici5cy ,act4 7b7 ,f9d+s ,congress f9ds t-- 7#a7 ! ,f$]al en]gy effici5cy res\rce /&>d e/abli%$ by section #faj ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh 7z add$ by ?is ,act7-- 7,a7 e/abli%es nationwide m9imum levels ( electricity & natural gas sav+s to be a*iev$ ?r\gh utility effici5cy programs1 build+ en]gy codes1 appliance /&>ds1 & relat$ effici5cy measures2 & 7,b7 rew>ds en]gy-sav+ improvem5ts a*iev$ ?r\gh-- 7i7 end-use en]gy effici5cy upgrades2 7ii7 r$uc$ losses 9 transmission & di/ribution ( en]gy2 & 7iii7 fuel swit*+1 to ! ext5t t ! swit*+ results 9 r$uc$ prim>y en]gy use2 & 7#b7 9 light ( ! co/-effective en]gy effici5cy opportunities t exi/ across ! ,unit$ ,/ates 9 e sector ( ! economy1 retail electricity suppli]s1 retail natural gas suppli]s1 & ,/ates %\ld-- 7,a7 include en]gy effici5cy z a res\rce 9 utility plann+ & procurem5t activities2 & 7,b7 seek to a*ieve all en]gy effici5cy measures t are available at l[] co/ ?an o!r en]gy supply options4 #b4 ,en]gy effici5cy res\rce /&>d = retail electricity & natural gas suppli]s ,title ,,vi ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh 7#af ,u4,s4,c4 #bfja et seq47 is am5d$ by add+ at ! end ! foll[+3 #faj4 ,f$]al en]gy effici5cy res\rce /&>d = retail electricity & natural gas suppli]s 7a7 ,def9itions ,9 ?is section3 7#a7 ,affiliate ,! t]m affiliate :5 us$ 9 relation to a p]son1 means ano!r p]son t owns or controls1 is own$ or controll$ by1 or is "u common own]%ip control )1 t p]son1 z det]m9$ "u regulations promulgat$ by ! ,secret>y4 7#b7 ,,a%rae1 ,,ansi1 & ,,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#c7 ,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 specifi$ or e/abli%$ "u subsection 7c71 ! av]age annual quantity ( electricity deliv]$ by ! retail electricity suppli] to electric consum]s1 or ! av]age annual quantity ( natural gas deliv]$ by ! retail natural gas suppli] to gas consum]s1 dur+ ! #c cal5d> ye>s imm$iately prec$+ ! 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#d7 ,,*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#e7 ,,*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#f7 ,codes & /&>ds sav+s ,! t]m codes & /&>ds sav+s means a r$uction 9 electricity or natural gas consumption z a result ( ! adoption & implem5tation1 aft] ! date ( enactm5t ( ?is section1 ( new or revis$ appliance & equipm5t effici5cy /&>ds or build+ en]gy codes4 7#g7 ,comb9$ heat & p[] sy/em ,! t]m comb9$ heat & p[] sy/em means a sy/em t uses ! same en]gy s\rce bo? = ! g5]ation ( electrical or me*anical p[] & ! production ( /eam or ano!r =m ( useful !rmal en]gy1 if-- 7,a7 ! sy/em meets any requirem5ts relat+ to effici5cy & o!r op]at+ *>act]i/ics t ! ,secret>y promulgates by regulation2 & 7,b7 ! net :olesale sales ( electricity by ! applicable facility d n exce$ #ej p]c5t ( total annual electric g5]ation by ! facility4 7#h7 ,co/-effective ,! t]m co/-effective means1 ) respect to an en]gy effici5cy program1 t ! program a*ieves a net pres5t value ( economic b5efits ov] ! life ( ! implem5t$ measures1 bo? directly to ! en]gy consum] & to ! economy1 t is great] ?an ! net pres5t value ( ! co/ ( ! program ov] ! life ( ! program1 bo? directly to ! en]gy consum] & to ! economy4 ,! co/-effectiv5ess ( an en]gy effici5cy program %all be calculat$ us+ a societal b5efit-co/ te/ t uses ! l[] ( a utility weight$ av]age co/ ( capital or a social disc\nt rate ( #c p]c5t4 7#i7 ,cu/om] facility sav+s ,! t]m cu/om] facility sav+s means a r$uction 9 electricity or natural gas consumption1 includ+ wa/e heat en]gy sav+s1 at a facility ( an electricity consum] s]v$ by a retail electricity suppli] or a gas consum] s]v$ by a natural gas suppli]1 z comp>$ to-- 7,a7 9 ! case ( new equipm5t t replaces exi/+ equipm5t ) rema9+ useful life-- 7i7 consumption ( ! exi/+ equipm5t = ! rema9+ useful life ( ! equipm5t2 & 7ii7 !reaft]1 consumption by new equipm5t ( av]age effici5cy ( ! same equipm5t type2 7,b7 9 ! case ( new equipm5t o!r ?an new equipm5t describ$ 9 subp>agraph 7,a71 consumption by new equipm5t ( av]age effici5cy ( ! same equipm5t type2 7,c7 9 ! case ( consumption1 o!r ?an consumption describ$ 9 subp>agraphs 7,a7 & 7,b71 at an exi/+ facility1 consumption at ! facility dur+ a base p]iod ( n less ?an #a ye>2 & 7,d7 9 ! case ( consumption1 o!r ?an consumption describ$ 9 subp>agraphs 7,a7 & 7,b71 at a new facility1 consumption at a ref]5ce new facility ( av]age effici5cy = new facilities ( ! same type4 7#aj7 ,electricity sav+s ,! t]m electricity sav+s means r$uctions 9 electricity consumption or losses1 z det]m9$ 9 accordance ) regulations promulgat$ by ! ,secret>y1 t-- 7,a7 are a*iev$ ?r\gh measures implem5t$ aft] ! date ( enactm5t ( ?is section2 7,b7 are additional to bus9ess-z-usual-- 7i7 cu/om] pur*ase practices2 & 7ii7 di/ribution sy/em effici5cy2 7,c7 ! retail electricity suppli] claim+ or transf]r+ ! electricity sav+s has play$ a significant role 9 a*iev+2 7,d7 occur 9 ! s]vice t]ritory ( ! retail electricity suppli] claim+ or transf]r+ ! electricity sav+s2 & 7,e7 are limit$ to-- 7i7 cu/om] facility sav+s ( electricity1 adju/$ to reflect any associat$ increase 9 fuel consumption at ! facility2 7ii7 r$uctions 9 di/ribution sy/em losses ( electricity a*iev$ by a retail electricity suppli]1 z comp>$ to losses t w\ld occur ) new di/ribution sy/em equipm5t ( av]age effici5cy2 7iii7 ,,*p sav+s2 7iv7 codes & /&>ds sav+s ( electricity2 & 7v7 fuel-swit*+ en]gy sav+s t result 9 net sav+s ( electricity4 7#aa7 ,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 consum] swit*es f "o en]gy s\rce to ano!r1 z det]m9$ 9 accordance ) regulations promulgat$ by ! ,secret>y4 7,b7 ,calculation ,= purposes ( calculat+ net en]gy sav+s "u subp>agraph 7,a7-- 7i7 electricity consumption %all be evaluat$ bas$ on ! av]age additional quantity ( fuel burn$ at p[] plants to supply ea* additional kil[att-h\r ( electricity consumption 9 ! region2 7ii7 electricity & natural gas consumption %all include losses 9 ! transmission & di/ribution sy/ems2 & 7iii7 fuel-swit*+ t does n result 9 net co/ sav+s to ! consum] %all n be c\nt$4 7#ab7 ,gas consum] ,! t]m gas consum] has ! mean+ giv5 su* t]m 9 section #cjb4 7#ac7 ,natural gas sav+s ,! t]m natural gas sav+s means r$uctions 9 natural gas consumption or losses1 z det]m9$ 9 accordance ) regulations promulgat$ by ! ,secret>y1 t-- 7,a7 are a*iev$ ?r\gh measures implem5t$ aft] ! date ( enactm5t ( ?is section2 7,b7 are additional to bus9ess-z-usual-- 7i7 cu/om] pur*ase practices2 & 7ii7 di/ribution sy/em effici5cy2 7,c7 ! retail natural gas suppli] claim+ or transf]r+ ! natural gas sav+s has play$ a significant role 9 a*iev+2 7,d7 occur 9 ! s]vice t]ritory ( ! retail natural gas suppli] claim+ or transf]r+ ! natural gas sav+s2 & 7,e7 are limit$ to-- 7i7 cu/om] facility sav+s ( natural gas1 adju/$ to reflect any associat$ increase 9 electricity consumption or consumption ( o!r fuels at ! facility2 7ii7 r$uctions 9 leakage1 op]ational losses1 & consumption ( natural gas to op]ate a gas di/ribution sy/em1 a*iev$ 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 7iii7 codes & /&>ds sav+s ( natural gas2 & 7iv7 fuel-swit*+ en]gy sav+s t results 9 net sav+s ( natural gas4 7#ad7 ,p]=mance /&>d ,! t]m p]=mance /&>d means a /&>d-- 7,a7 e/abli%$ = a cal5d> ye> = cumulative electricity sav+s or cumulative natural gas sav+s t is express$ z a p]c5tage ( base quantity2 & 7,b7 = ea* ( cal5d> ye>s #bjba ?r\gh #bjce1 t is label$ z cumulative electricity sav+s p]c5tage or cumulative natural gas sav+s p]c5tage1 z applicable1 9 ! table "u subsection 7c77#b74 7#ae7 ,p[] pool ,! t]m p[] pool means an association ( two or m int]connect$ electric sy/ems t h ent]$ into an agreem5t to coord9ate op]ations & plann+ = improv$ reliability & effici5cies1 includ+ a ,regional ,transmission ,organization or an ,indep5d5t ,sy/em ,op]ator1 z det]m9$ by ! ,secret>y4 7#af7 ,report+ p]iod ,! t]m report+ p]iod means-- 7,a7 cal5d> ye>s #bjba ?r\gh #bjbc2 & 7,b7 ea* successive #b-;cal5d>-ye> p]iod !reaft]4 7#ag7 ,retail electricity suppli] 7,a7 ,9 g5]al ,! t]m retail electricity suppli] means1 = any cal5d> ye>1 an electric utility t deliv]$ n few] ?an #a1jjj1jjj megawatt h\rs ( electricity to electric consum]s = purposes o!r ?an resale dur+ ! prec$+ cal5d> ye>4 7,b7 ,inclusions & limitations ,= purposes ( det]m9+ :e!r an electric utility qualifies z a retail electricity suppli] "u subp>agraph 7,a7-- 7i7 deliv]ies by any affiliate ( ! electric utility to electric consum]s = purposes o!r ?an resale %all be consid]$ 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#ah7 ,retail natural gas suppli] 7,a7 ,9 g5]al ,! t]m retail natural gas suppli] means1 = any cal5d> ye>1 a local di/ribution company 7z def9$ 9 section #b ( ! ,natural ,gas ,policy ,act ( #aigh71 t deliv]$ to gas consum]s m ?an #e1jjj1jjj1jjj cubic feet ( natural gas = purposes o!r ?an resale dur+ ! prec$+ cal5d> ye>4 7,b7 ,inclusions & limitations ,= purposes ( det]m9+ :e!r a local di/ribution company qualifies z a retail natural gas suppli] "u subp>agraph 7,a7-- 7i7 deliv]ies ( natural gas by any affiliate ( a local di/ribution company to consum]s = purposes o!r ?an resale %all be consid]$ 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 gas consum]s4 7#ai7 ,/ate regulatory au?ority ,! t]m ,/ate regulatory au?ority means any ,/ate ag5cy :i* has ratemak+ au?ority ) respect to-- 7,a7 ! sale ( natural gas by any gas utility 7o!r ?an by su* ,/ate ag5cy72 or 7,b7 ! sale ( electric en]gy by any electric utility 7o!r ?an su* ,/ate ag5cy71 & 9 ! case ( an electric utility ) respect to :i* ! ,t5nessee ,valley ,au?ority has ratemak+ au?ority1 su* t]m means ! ,t5nessee ,valley ,au?ority4 7#bj7 ,?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 ) subsections 7d7 & 7e74 7#ba7 ,wa/e heat en]gy sav+s 7,a7 ,9 g5]al ,! t]m wa/e heat en]gy sav+s means a r$uction 9 electricity or natural gas consumption t results f a modification ( an indu/rial or comm]cial sy/em t comm5c$ op]ation be=e ! date ( enactm5t ( ?is section1 9 ord] to recapture electrical1 me*anical1 or !rmal en]gy t w\ld o!rwise be wa/$1 z det]m9$ 9 accordance ) regulations promulgat$ by ! ,secret>y4 7,b7 ,inclusion ,wa/e heat en]gy sav+s %all be includ$ z "p ( cu/om] facility sav+s4 7b7 ,e/abli%m5t 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+ by-- 7,a7 e/abli%+ measurem5t & v]ification proc$ures & /&>ds "u subsection 7e72 7,b7 e/abli%+ requirem5ts "u :i* retail electricity suppli]s & retail natural gas suppli]s %all-- 7i7 demon/rate1 docum5t1 & report ! compliance ( ! retail electricity suppli]s & retail natural gas suppli]s ) ! p]=mance /&>ds "u subsection 7c72 & 7ii7 e/imate ! impact ( ! p]=mance /&>ds on curr5t & future electricity & natural gas consumption 9 ! s]vice t]ritories ( ! suppli]s2 & 7,c7 e/abli%+ requirem5ts gov]n+ applications =1 & implem5tation (1 ,/ate programs "u subsection 7g74 7#b7 ,coord9ation ) ,/ate programs ,9 e/abli%+ & implem5t+ ?is section1 ! ,secret>y %all1 to ! maximum ext5t practicable1 pres]ve ! integrity & incorporate be/ practices ( exi/+ ,/ate en]gy effici5cy programs4 7c7 ,p]=mance /&>ds 7#a7 ,compliance obligation ,n lat] ?an ,may #a ( ! cal5d> ye> imm$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 su* retail electricity suppli] has a*iev$ cumulative electricity sav+s 7adju/$ to acc\nt = any attrition ( sav+s f measures implem5t$ 9 prior ye>s7 9 ea* cal5d> ye> ( su* report+ p]iod t are equal to or great] ?an ! applicable p]=mance /&>d2 & 7,b7 ea* retail natural gas suppli] %all submit to ! ,secret>y a report1 9 accordance ) regulations promulgat$ by ! ,secret>y1 demon/rat+ t su* retail natural gas suppli] has a*iev$ cumulative natural gas sav+s 7adju/$ to acc\nt = any attrition ( sav+s f measures implem5t$ 9 prior ye>s7 9 ea* cal5d> ye> ( su* report+ p]iod t are equal to or great] ?an ! applicable p]=mance /&>d4 7#b7 ,p]=mance /&>ds = #bjba ?r\gh #bjce ,= ea* ( cal5d> ye>s #bjba ?r\gh #bjce1 ! p]=mance /&>ds are z foll[s3 ,cal5d> ,year,cumulative ,electricity ,sav+s ,percentage,cumulative ,natural ,gas ,sav+s ,p]c5tage#bjbaa4jjj4ejbjbb #b4be #a4bebjbc #c4ge #b4jjbjbd #e4be #c4jjbjbe #g4jj #d4jjbjbf #i4jj #e4jjbjbg #aa4jj #e4ejbjbh #ac4jj #g4jjbjbi #ae4jj #h4ejbjcj #ag4jj #aj4jjbjca #ai4jjab4jjbjcbba4jjad4jjbjccbc4jjaf4jjb jcdbe4jjah4jjbjcebg4jjbj4jj 7#c7 ,subsequ5t ye>s 7,a7 ,cal5d> ye>s #bjcf ?r\gh #bjde ,n lat] ?an ,decemb] #ca1 #bjcc1 ! ,secret>y %all promulgate regulations e/abli%+ p]=mance /&>ds = ea* ( cal5d> ye>s #bjcf ?r\gh #bjde4 7,b7 ,subsequ5t ext5sions ,except z provid$ 9 subp>agraph 7,a71 n lat] ?an ! la/ day ( ! p5ultimate report+ p]iod = :i* p]=mance /&>ds h be5 e/abli%$ "u ?is p>agraph1 ! ,secret>y %all promulgate regulations e/abli%+ p]=mance /&>ds = ! #aj-;cal5d>-ye> p]iod foll[+ ! la/ cal5d> ye> = :i* p]=mance /&>ds previ\sly 7 e/abli%$4 7,c7 ,requirem5ts ,! ,secret>y %all e/abli% p]=mance /&>ds "u ?is p>agraph at levels reflect+ ! maximum a*ievable level ( co/-effective en]gy effici5cy pot5tial1 tak+ into acc\nt-- 7i7 co/-effective en]gy sav+s a*iev$ by lead+ retail electricity suppli]s & retail natural gas suppli]s2 7ii7 opportunities = new codes & /&>ds sav+s2 7iii7 te*nology improvem5ts2 & 7iv7 o!r indicators ( co/-effective en]gy effici5cy pot5tial4 7,d7 ,m9imum p]c5tage ,9 no case %all a p]=mance /&>d e/abli%$ "u ?is p>agraph = any cal5d> ye> be less ?an ! applicable p]=mance /&>d = cal5d> ye> #bjce 7includ+ any increase 9 ! /&>d = cal5d> ye> #bjce e/abli%$ pursuant to p>agraph 7#d774 7#d7 ,midc\rse review & adju/m5t ( p]=mance /&>ds 7,a7 ,9 g5]al ,n lat] ?an ,decemb] #ca1 #bjbi1 & at #aj-ye> int]vals !reaft]1 ! ,secret>y %all-- 7i7 review ! mo/ rec5t p]=mance /&>ds e/abli%$ "u p>agraph 7#b7 or 7#c72 & 7ii7 increase ! p]=mance /&>ds by regulation if ! ,secret>y det]m9es t additional co/-effective en]gy effici5cy pot5tial is a*ievable1 tak+ into acc\nt ! requirem5ts describ$ 9 p>agraph 7#c77;,c74 7,b7 ,lead "t ,if ! ,secret>y revises p]=mance /&>ds "u ?is p>agraph1 ! regulations %all provide adequate lead "t to ensure t compliance ) ! increas$ p]=mance /&>ds is feasible4 7#e7 ,delay ( submission = fir/ report+ p]iod 7,a7 ,9 g5]al ,not)/&+ p>agraphs 7#a7 & 7#b71 = ! fir/ 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 ( ! second report+ p]iod4 7#f7 ,apply+ unus$ sav+s to future ye>s ,if electricity sav+s or natural gas sav+s a*iev$ by a retail electricity suppli] or retail natural gas suppli] 9 a ye> exce$ ! applicable p]=mance /&>d specifi$ or e/abli%$ "u ?is subsection1 any sav+s 9 excess ( ! p]=mance /&>d may be appli$ t[>d p]=mance /&>ds specifi$ or e/abli%$ = any ( ! #b imm$iately subsequ5t compliance ye>s4 7d7 ,transf]s ( electricity or natural gas sav+s 7#a7 ,bilat]al contracts = sav+s transf]s ,subject to ! limitations ( ?is subsection1 a retail electricity suppli] or retail natural gas suppli] may use electricity sav+s or natural gas sav+s pur*as$ pursuant to a bilat]al contract f ano!r retail electricity suppli] or retail natural gas suppli]1 a ,/ate1 or a ?ird-p>ty effici5cy provid] to meet ! applicable p]=mance /&>d "u subsection 7c74 7#b7 ,requirem5ts ,electricity sav+s or natural gas sav+s pur*as$ & us$ = compliance "u ?is subsection %all be-- 7,a7 measur$ & v]ifi$ 9 accordance ) subsection 7e72 7,b7 report$ 9 accordance ) subsection 7c72 & 7,c7 a*iev$ )9 ! same ,/ate z is s]v$ by ! retail electricity suppli] or retail natural gas suppli]4 7#c7 ,exception ,not)/&+ p>agraph 7#b77;,c71 a ,/ate regulatory au?ority may au?orize a retail electricity suppli] or a retail natural gas suppli] regulat$ by ! ,/ate regulatory au?ority to pur*ase sav+s a*iev$ 9 a diff]5t ,/ate1 if-- 7,a7 ! sav+s are a*iev$ )9 ! same p[] pool2 & 7,b7 ! ,/ate regulatory au?ority t regulates ! pur*as] ov]sees ! measurem5t & v]ification ( ! sav+s pursuant to ! proc$ures & /&>ds applicable 9 ! ,/ate 9 :i* ! pur*as] is locat$4 7#d7 ,regulatory approval ,no?+ 9 ?is subsection limits or affects ! au?ority ( a ,/ate regulatory au?ority to require a retail electricity suppli] or retail natural gas suppli] t is regulat$ by ! ,/ate regulatory au?ority to obta9 ! au?orization or approval ( ! ,/ate regulatory au?ority ( a contract = transf] ( electricity sav+s or natural gas sav+s "u ?is subsection4 7#e7 ,limitations ,to optimize ! a*ievem5t ( co/-effective en]gy effici5cy pot5tial1 ! ,secret>y may prescribe su* limitations z ! ,secret>y det]m9es appropriate ) respect to ! proportion ( ! compliance obligation ( a retail electricity or natural gas suppli] "u ! applicable p]=mance /&>ds "u subsection 7c7 t may be met us+ electricity sav+s or natural gas sav+s t are pur*as$ "u ?is subsection4 7e7 ,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 "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$ures = calculat+ & docum5t+ ,,*p sav+s1 fuel-swit*+ en]gy sav+s1 & wa/e heat en]gy sav+s2 7,,vii7 e/abli% me?ods = calculat+ codes & /&>ds sav+s1 includ+-- 7aa7 ! use ( v]ifi$ compliance rates2 7bb7 requir+ t ! basel9e = calculat+ sav+s f build+ en]gy codes %all be ! m /r+5t (-- 7,,aa7 ! #bjba ,int]national ,en]gy ,cons]vation ,code = resid5tial build+s1 or ! ,,a%rae_/,,ansi_/,,iesna ,/&>d #ij4a-bjai = comm]cial build+s2 or 7,,bb7 ! applicable ,/ate build+ code 9 effect on ! date ( enactm5t ( ?is section2 & 7cc7 requir+ t ! basel9e = calculat+ sav+s f appliance & equipm5t /&>ds %all be ! av]age effici5cy ( new appliances & equipm5t 9 ! applicable "o or m categories prior to ! adoption & implem5tation ( ! new /&>d2 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 ( #bjjg2 & 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]72 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$]al1 ,/ate1 or o!r s\rces1 unless ! fund+ s\rce specifies o!rwise2 7,,xiii7 cr$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$uce on-site en]gy consumption2 7,,xvi7 include proc$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$ "o 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 me?ods ( 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 seek 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 7f7 ,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 ?is section4 7#b7 ,p5alty = failure to demon/rate ,if a retail electricity suppli] or a retail natural gas suppli] t is subject to ! requirem5ts ( ! ,f$]al program e/abli%$ "u ?is section fails to demon/rate compliance ) an applicable p]=mance /&>d "u subsection 7c71 or a retail electricity suppli] or a retail natural gas suppli] t is subject to ! requirem5ts ( a ,/ate program approv$ pursuant to subsection 7g7 fails to comply ) a requirem5t to a*ieve electricity sav+s or natural gas sav+s "u su* ,/ate program1 ! ,secret>y %all assess aga9/ ! retail electricity suppli] or retail natural gas suppli] a civil p5alty 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$uce ! am\nt ( any p5alty "u p>agraph 7#b7 by ! am\nt paid by ! relevant retail electricity suppli] or retail natural gas suppli] to a ,/ate = failure to comply ) ! requirem5ts ( a ,/ate en]gy effici5cy res\rce /&>d dur+ ! same compliance p]iod1 if ! ,/ate /&>d-- 7,a7 is comp>able 9 type to p]=mance /&>ds "u subsection 7c72 & 7,b7 is m /r+5t ?an ! applicable p]=mance /&>d "u subsection 7c74 7#d7 ,use ( paym5ts 7,a7 ,def9ition ( cov]$ 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 are measur$ & v]ifi$ 9 accordance ) ! applicable proc$ures & /&>ds e/abli%$ "u subsection 7e74 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 ,act4 7#f7 ,judicial review 7,a7 ,9 g5]al ,any p]son adv]sely affect$ by a f9al action tak5 by ! ,secret>y "u ?is section1 o!r ?an ! assessm5t ( a civil p5alty1 may use ! proc$ures = review describ$ 9 section #ccf7;b7 ( ! ,en]gy ,policy & ,cons]vation ,act4 7,b7 ,ref]5ce ,9 ?is p>agraph1 ref]5ces to a rule 9 section #ccf7;b7 ( ! ,en]gy ,policy & ,cons]vation ,act %all be consid]$ to ref] also to all o!r f9al actions ( ! ,secret>y "u ?is section o!r ?an ! assessm5t ( a civil p5alty4 7g7 ,/ate programs 7#a7 ,9 g5]al ,^u receipt ( an application f ! ,gov]nor ( a ,/ate 7includ+ ! ,mayor ( ! ,di/rict ( ,columbia71 ! ,secret>y may au?orize ! ,/ate to implem5t a ,/ate en]gy effici5cy program 9 lieu ( ! ,f$]al program e/abli%$ "u subsection 7b7 if ! ,secret>y det]m9es t ! requirem5ts ( su* ,/ate program meet or exce$ ! requirem5ts ( su* ,f$]al program1 includ+-- 7,a7 a*iev+ electricity sav+s & natural gas sav+s t are equal to or great] ?an sav+s requir$ "u ! applicable p]=mance /&>ds "u subsection 7c72 7,b7 review+ reports & v]ify+ electricity sav+s & natural gas sav+s a*iev$ 9 ! ,/ate 7includ+ sav+s transf]r$ f outside ! ,/ate72 & 7,c7 if applicable1 collect+ any alt]native compliance paym5ts "u p>agraph 7#d7 & us+ ! paym5ts to implem5t co/-effective en]gy effici5cy programs4 7#b7 ,secret>ial det]m9ation ,n lat] ?an #ahj days aft] ! date on :i* a complete application is receiv$ by ! ,secret>y "u ?is subsection1 ! ,secret>y1 aft] public notice & opportunity = comm5t1 %all approve or disapprove su* application4 7#c7 ,alt]native measurem5t & v]ification proc$ures & /&>ds ,z "p ( an application pursuant to p>agraph 7#a71 a ,/ate may reque/ to use alt]native measurem5t & v]ification proc$ures & /&>ds f ! proc$ures & /&>ds describ$ 9 subsection 7e71 if ! ,/ate demon/rates t ! alt]native proc$ures & /&>ds provide a level ( accuracy ( measurem5t & v]ification t are at lea/ equival5t to ! ,f$]al proc$ures & /&>ds "u subsection 7e74 7#d7 ,alt]native compliance paym5ts 7,a7 ,9 g5]al ,z "p ( an application submitt$ "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$$ to make up any deficit 9 a*iev+ electricity sav+s requir$ "u ! applicable ,/ate program2 or 7ii7 #e p] million ,btu ( natural gas sav+s ne$$ to make up any deficit 9 a*iev+ natural gas sav+s requir$ "u ! applicable ,/ate program4 7,b7 ,use ( paym5ts ,alt]native compliance paym5ts collect$ by a ,/ate "u subp>agraph 7,a7 %all be us$ by ! ,/ate to implem5t ! ,/ate program au?oriz$ "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$ures & /&>ds "u subsection 7e7 or p>agraph 7#c71 z applicable4 7#e7 ,review ( ,/ate program 7,a7 ,p]iodic review ,e #b ye>s1 ! ,secret>y %all review ,/ate programs au?oriz$ "u ?is section 9 approximately #ab ( ! ,/ates ) su* au?oriz$ ,/ate programs1 s t ea* su* ,/ate program %all be review$ at lea/ e #d ye>s4 7,b7 ,report ,to facilitate review "u subp>agraph 7,a71 ! ,secret>y may require a ,/ate to submit a report demon/rat+ ! ,/ate program au?oriz$ "u ?is section meets ! requirem5ts ( ?is section1 includ+-- 7i7 reports submitt$ by retail electricity suppli]s & retail natural gas suppli]s to ! ,/ate demon/rat+ compliance ) applicable requirem5ts2 7ii7 ! impact ( applicable requirem5ts on project$ electricity & natural gas dem& )9 ! ,/ate2 7iii7 an acc\nt+ ( ! use ( alt]native compliance paym5ts by ! ,/ate & ! result+ electricity sav+s & natural gas sav+s a*iev$2 & 7iv7 any o!r in=mation t ! ,secret>y det]m9es appropriate4 7,c7 ,review ^u petition ,not)/&+ subp>agraph 7,a71 ^u receipt ( a public petition conta9+ cr$ible allegation ( sub/antial defici5cies ( a ,/ate program au?oriz$ "u ?is section1 ! ,secret>y %all promptly re-review ! ,/ate program4 7,d7 ,defici5cies 7i7 ,9 g5]al ,9 complet+ a review ( a ,/ate program au?oriz$ "u ?is section1 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 program #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?orization = ! ,/ate to implem5t a ,/ate program "u ?is section4 7#f7 ,calls = revision ( ,/ate applications ,z a condition ( ma9ta9+ ! au?orization to implem5t a ,/ate program "u ?is section1 ! ,secret>y may require ! ,/ate to submit a revis$ application "u p>agraph 7#a7 if ! ,secret>y has-- 7,a7 e/abli%$ new or revis$ p]=mance /&>ds "u subsection 7c72 7,b7 promulgat$ new or sub/antially revis$ measurem5t & v]ification proc$ures & /&>ds "u subsection 7e72 or 7,c7 o!rwise sub/antially revis$ ! ,f$]al program e/abli%$ "u ?is section4 7h7 ,in=mation & reports ,9 accordance ) section #ac ( ! ,f$]al ,en]gy ,adm9i/ration ,act ( #aigd1 ! ,secret>y may require any retail electricity suppli]1 retail natural gas suppli]1 ?ird-p>ty effici5cy provid]1 or any o!r entity t ! ,secret>y det]m9es appropriate1 to provide any in=mation ! ,secret>y det]m9es appropriate to c>ry out ?is section4 7i7 ,/ate law ,no?+ 9 ?is section dim9i%es or qualifies any au?ority ( a ,/ate or political subdivision ( a ,/ate to adopt or en=ce any law or regulation respect+ electricity sav+s or natural gas sav+s1 includ+ any law or regulation e/abli%+ en]gy effici5cy requirem5ts t are m /r+5t ?an ^? "u ?is section4 7j7 ,s5se ( ,congress reg>d+ co/ recov]y1 fix$ co/ recov]y1 & %>ehold] inc5tives ,x is ! s5se ( ,congress t ea* ,/ate regulatory au?ority is enc\rag$ to review ! rules & regulations ( ! ,/ate regulatory au?ority to ensure t retail electric suppli]s & retail natural gas suppli]s "u its jurisdiction c-- 7#a7 recov] ! direct co/s ( en]gy effici5cy programs2 7#b7 fully recov] au?oriz$ fix$ co/s1 includ+ lo/ m>g9s f l[] annual sales due to en]gy effici5cy programs2 & 7#c7 e>n an inc5tive = %>ehold]s if ! en]gy effici5cy /&>ds are a*iev$4 4 #c4 ,con=m+ am5dm5t ,! table ( cont5ts ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh 7#af ,u4,s4,c4 prec4 #bfja7 is am5d$ 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