The California Model for Fighting Global Warming with Energy Efficiency: Accomplishments, Current Status, and Next Steps

Audrey B. Chang, Natural Resources Defense Council

Keywords

Abstract

In June 2005, Governor Schwarzenegger established aggressive greenhouse gas reduction targets for California through 2050. At the cornerstone of the state’s strategies to combat global
warming is energy efficiency, which is anticipated to meet more than 17 percent of the 2020 goals. Largely due to its historical energy efficiency accomplishments, California already outperforms
the rest of nation as a whole in per capita carbon dioxide emissions and electricity consumption, and the state is well-poised to continually improve in both these areas.

This paper describes the model policy framework that has allowed for California’s efficiency success that will also help the state meet its energy savings and greenhouse gas reduction goals. Building on California’s energy efficiency legacy, the California Public Utilities Commission approved in September 2005 the investor-owned utilities’ energy efficiency program plans for 2006 to 2008. Together, these plans represent one of the most aggressive efficiency programs in the history of the utility industry. Over three years, $2 billion will be invested in energy efficiency, generating nearly $3 billion in net benefits for the state, avoiding over three million tons of greenhouse gas emissions, and surpassing even the state’s own remarkable historical efficiency savings. Although this is a landmark accomplishment, the 2006 to 2008 efficiency plans are just the first step in achieving the state’s larger energy savings and climate policy goals. Looking ahead, additional steps will also be necessary for California to capture all cost-effective efficiency potential throughout the state.