OVERARCHING POLICY GOAL:

All residents and businesses should have easy access to robust energy efficiency programs that:

1. allow them to achieve energy affordability, comfort, health and safety, and systems resilience
2. help to decarbonize the built environment.

ENERGY EFFICIENCY DEFINITION

Energy efficiency means using less energy to complete the same task or achieve the same result. While energy efficiency is critical in all sectors that use energy, EEA/KEEA/EEA-NJ focus our efforts on usage on-site in the built environment and in the systems that support delivery of energy within the built environment. Hence, in our work, “energy efficiency” generally is construed as actions and technologies that drive reductions in energy use including:

• Permanent, baseline reductions of building energy use, whether through enhanced insulation and air sealing, more efficient equipment and appliances, software solutions and smart devices, behavioral changes, or other approaches.
• Management of on-site energy use in coordination with grid needs through grid-interactive “smart” technologies, behavioral incentives, virtual power plants, or other approaches.
• Increased distributed energy resources that reduce the amount of energy that buildings draw from the utility system and increase resilience.

POLICY PRINCIPLES

1. Energy efficiency is a distinct clean energy resource, on par with clean energy “supply” resources as part of a comprehensive strategy towards decarbonizing our energy system and maintaining and improving grid reliability. 
2. Governments, utilities, and the private sector should prioritize energy efficiency investments that address all types of buildings and cumulatively achieve ample savings.
3. Energy efficiency programs should:
   
   1. Embrace comprehensive measures rooted in building science that support healthy and comfortable buildings
   2. Provide predictable and sustained incentives so that the market can react accordingly
   3. Allow flexible approaches that support innovation and new technologies
   4. Consider integration of smart building management with grid operation through planning and market participation.
   5. Take account of all energy efficiency benefits, including non-energy benefits (footnote 1)
   6. Serve customers of all incomes, rate classes, and sizes.
4. Low- and moderate-income households should be prioritized for energy efficiency investments, with a focus on reducing energy burden (see footnote 2). Programs should ensure efficiency is accessible by addressing barriers such as health and safety needs. 
5. Energy efficiency investments must include efforts by government, utilities, and the private sector to expand the energy efficiency workforce and ensure energy efficiency employers provide career-oriented, family-sustaining jobs; showcase upward career mobility; and provide opportunities for continuing education.
6. A key component of energy efficiency is building electrification with high-efficiency equipment. Programs should ensure that electrification is paired with building envelope improvements and other measures that minimize heating and cooling loads. 
7. Energy efficiency will play an important role in the transition from carbon-emitting energy to clean energy. We believe this transition should be guided by the following principles:
   
   1. The clean energy transition must prioritize equity and ensure that low- and moderate-income ratepayers do not bear an undue burden of stranded asset costs.
   2. Utilities must appropriately plan for the clean energy transition to avoid stranded costs.
   3. All utilities should be given the opportunity to benefit from the clean energy transition by pursuing energy efficiency policies that focus on both greenhouse gas emission reductions and energy savings.
8. Energy data is owned by customers. Therefore, customers have the right to access and share their data in an easy, simple, and secure manner.
9. Building benchmarking should be used to increase awareness of energy efficiency opportunities and drive adoption. 
10. Demand side management should be included in energy efficiency programs, energy markets, capacity markets, and integrated resource planning.   
11. Energy efficiency policy should include scientifically sound building energy codes and building performance standards.