The Clean Power Plan (CPP) supports the use of demand-side energy efficiency (EE) as a proven, cost-effective, and widely-available emission reduction measure for the power sector. States, private firms, and other entities around the country have already made substantial investments in EE programs and projects, resulting in lower electricity costs, reduced air emissions, and cleaner air. EPA expects such investments to continue, and has established provisions in the CPP for crediting the resulting EE savings in certain state plans that demonstrate compliance in terms of an emission rate.

To ensure that EE savings in rate-based plans are properly quantified and verified, the EPA is releasing draft evaluation, measurement, and verification (EM&V) guidance. This draft guidance is not a regulatory document; rather, it provides supplemental information to help states and EE providers successfully implement the EM&V provisions in the emission guidelines and proposed model rule. Contents include baseline definitions, applicable EM&V methods, options for using industry-standard protocols and guidelines, and other topics necessary for successfully quantifying and verifying savings.

The scope of the draft guidance is limited to EM&V for demand-side EE. With renewable energy and other zero- and low-emitting measures that generate electricity, all applicable requirements for quantification and verification are provided in the emission guidelines and proposed model rule, and no further guidance is offered at this time. For mass-based state plans - in which compliance is demonstrated by measuring emissions at the power plant - this guidance has limited applicability, though it may be of use in the design of allowance set-aside programs.

Public Comment Opportunity:

EPA invited the public to comment on the draft EM&V guidance and make recommendations for how it can be improved for the purpose of implementing the applicable CPP requirements. Comments closed on January 21, 2016. All comments received by the EPA will be considered as the EPA works to finalize the EM&V guidance. ​Any further questions should be submitted to: emvinput@epa.gov