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

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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.