The California Legislature emphasized the importance of energy efficiency and established broad goals with the enactment of [http://docs.cpuc.ca.gov/word_pdf/FINAL_DECISION/85995.pdf Assembly Bill 2021] of 2006. The bill calls for a 10% reduction in forecasted electricity consumption within 10 years. The bill also requires the California Energy Commission (CEC), the California Public Utilities Commission (CPUC) and other interested parties to develop a statewide estimate of all cost-effective electricity and natural gas savings and to develop efficiency savings and demand reduction targets for the next 10 years. This study must be updated every three years.
Having already developed interim efficiency goals for each of the utilities from 2004 through 2013, the CPUC developed new goals in 2008 for years 2012 through 2020. The goals consist of separate electricity savings and demand reduction requirements for each of the three investor-owned electrical utilities and energy savings requirements for the state's three gas utilities.
'''Electricity Savings Requirements'''
|PG&E||1,114 GWH||1,277 GWH||793 GWH||765 GWH||787 GWH||797 GWH||814 GWH||816 GWH||817 GWH|
|SCE||1,093 GWH||1,139 GWH||784 GWH||750 GWH||778 GWH||789 GWH||802 GWH||805 GWH||808 GWH|
|SDGE||158 GWH||214 GWH||164 GWH||154 GWH||156 GWH||159 GWH||162 GWH||162 GWH||163 GWH|
|Total||2,365 GWH||2,630 GWH||1,741 GWH||1,669 GWH||1,720 GWH||1,745 GWH||1,778 GWH||1,783 GWH||1,788 GWH|
'''Demand Reduction Requirements'''
|PG&E||251 MW||236 MW||228 MW||241 MW||257 MW||258 MW||270 MW||270 MW||269 MW|
|SCE||239 MW||240 MW||189 MW||193 MW||213 MW||215 MW||222 MW||222 MW||223 MW|
|SDGE||31 MW||41 MW||38 MW||38 MW||40 MW||40 MW||41 MW||42 MW||42 MW|
|Total||521 MW||517 MW||455 MW||472 MW||510 MW||514 MW||533 MW||533 MW||534 MW|
'''Natural Gas Savings Requirements'''
|PG&E||17.1 MTherms||25.1 MTherms||31 MTherms||32 MTherms||32 MTherms||31 MTherms||32 MTherms||32 MTherms||33 MTherms|
|SoCal Gas||32 MTherms||36 MTherms||34 MTherms||35 MTherms||34 MTherms||33 MTherms||34 MTherms||34 MTherms||34 MTherms|
|SDGE||4.1 MTherms||5.7 MTherms||6 MTherms||6 MTherms||6 MTherms||6 MTherms||6 MTherms||6 MTherms||6 MTherms|
|Total||53.2 MTherms||66.8 MTherms||71 MTherms||73 MTherms||73 MTherms||70 MTherms||72 MTherms||73 MTherms||73 MTherms|
The required energy savings will be primarily met through incentive programs for utility customers, but utilities can also count the energy savings resulting from these other policies:
* Sate building code
* Federal and state appliance standards
* Statewide market transformation efforts
Public utilities in California are not regulated by the CPUC. Still, Assembly Bill 2021 requires them to pursue energy efficiency as well. The law required them by June 1, 2007 to identify all cost-effective energy efficiency and demand reduction possibilities, and to establish energy reduction goals for the next 10 years. Public utilities are required to update these studies every three years and to submit them to the CEC.