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The Shifting Landscape of Ratepayer-Funded Energy Efficiency in the U.S.

Over the last two decades, utility ratepayer funding for energy efficiency programs has seen both booms and busts. Currently, roughly 35 states implement some set of ratepayer-funded electric and/or natural gas energy efficiency programs, with a total U.S. budget of $3.1 billion in 2008 (CEE 2008).1 The top 10 states account for about 80% of this total, each of which planned to spend $100 million or more in 2008. California, the undisputed heavyweight in terms of the absolute magnitude of its spending on energy efficiency, represented one-third of the total U.S. energy efficiency program budget in 2008.