American Energy Efficiency Act of 2024

The American Energy Efficiency Act of 2024 establishes a federal energy efficiency standard requiring retail electricity suppliers (electric utilities delivering over 2 million megawatt hours annually) and retail natural gas suppliers (local distribution companies delivering over 5 billion cubic feet annually) to achieve specific annual cumulative savings targets. The bill sets increasing performance standards from 2025 through 2039, starting with 1.00% cumulative electricity savings and 0.50% natural gas savings in 2025, rising to 22.00% and 14.00% respectively by 2039. Retail suppliers must report on their progress annually, with flexibility to transfer savings between providers or use alternative compliance payments, while the law includes provisions to ensure low-income customer programs benefit from efficiency initiatives. The bill establishes standardized measurement and verification procedures to track savings, with enforcement through civil penalties for non-compliance. It also allows states to administer the program if they meet federal requirements, with the federal government maintaining oversight authority.