Efficiency Programs Spent Well Over $1.1 Billion in 2010 According to ACEEE

States and utilities invested over $811 million in industrial energy efficiency programs in 2010, far exceeding the spending by the federal government and other national-level programs. Nationwide, all industrial energy efficiency programs spent well over $1.1 billion in 2010, according to a new report, Money Well Spent: Industrial Energy Efficiency Program Spending in 2010, released today by the American Council for an Energy-Efficient Economy (ACEEE). The report details a first-time ever estimate of total industrial energy efficiency deployment and technical assistance at the federal, state, and utility levels. States and utilities were responsible for about two-thirds of all industrial energy efficiency program spending in 2010, reflecting a prioritization of industrial energy efficiency by certain state lawmakers and regulators.

The study captures annual spending by a variety of state and utility programs across the country, including utilities and ratepayer-funded public benefit fund organizations, state agencies, public universities, nonprofit organizations, and locally-administered federal programs. Industrial energy efficiency program spending varied considerably from state to state. New York ranked first in overall industrial program spending, bolstered by strong utility spending and the significant impacts of the programs run by the New York State Energy Research and Development Authority (NYSERDA). The next five biggest spenders on industrial energy efficiency were California, Pennsylvania, Washington, Massachusetts, and Oregon.

Industrial energy efficiency program spending in 2010 was enhanced by spending at the state level as part of the American Recovery and Reinvestment Act of 2009 (ARRA), or stimulus. ACEEE's study estimated that ARRA funding to industrial energy efficiency efforts accounted for about $228 million or 20% of the total in 2010. These funds helped to encourage the establishment of new industrial energy efficiency programs around the country, including financing and technical assistance programs that have helped jump-start a cleaner and more energy-efficient economic recovery.