The industrial sector accounts for the largest proportion of end-use energy consumption in the U.S. (over 30%), amounting to annual energy costs of $200 billion. Many utilities offer industrial energy efficiency programs, often as part of state-mandated requirements to reduce energy consumption. These programs cut costs for industrial facilities and the overall energy system. But while industrial programs can produce some of the most significant energy savings of any sector, they are currently under threat. Opponents of utility-sponsored efficiency have been increasingly successful at getting legislation passed that allows industrial customers to opt out. These efforts lead to poor sectoral efficiency performance. To stem this rising tide, it is critical to offer industrial customers attractive alternatives. While self-directed efficiency is a viable option, efficiency advocates continue to explore alternatives that provide industrial facilities the flexibility they seek, while ensuring that their efficiency potential is fully captured and the resulting savings are robust and verifiable. This paper explores one such promising alternative that combines elements of ISO 50001 and DOE’s Superior Energy Performance program, to create a middle ground that is flexible, ambitious, and produces verifiable savings. Such a hybrid could permit industrial customers to self-direct their efficiency, and in states where opt-outs are imminent, the hybrid could help prevent complete industrial exodus from efficiency programs.
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