State Advocacy Update

State Issues

NAESCO state advocacy focuses on several states where we have defended the industry against potentially damaging legislation, and two precedent-setting states where we are working to assure that multi-year proceedings to re-vamp energy efficiency programs and utility regulation offer new opportunities for ESCOs.


NAESCO organized a group of ESCOs and their lobbyists to defeat legislation that was sprung on us at the end of the state legislature's 2016 session. We expect the promoters of the 2016 legislation -- the Illinois chapters of national associations of architects and engineers -- to promote new legislation in 2017 arguing that retrofits should be implemented in traditional spec-and-bid projects supervised by architects and engineers. NAESCO has organized a 2017 lobbying campaign to fight the legislation.


NAESCO is organizing the ESCOs that work in Wisconsin to oppose legislation that would change the way that K-12 projects ESPC projects can be financed. The legislation is also opposed by the state associations representing school boards and administrators.

October 2017 Update:

Governor Scott Walker (R-WI), vetoed the provision in the budget bill that would have suspended the Revenue Limit Exemption (RLE) for one year, replacing it with the suspension of the RLE for a millennium, until December 3018.  The text of the Governor's Veto Message is excerpted here.


NAESCO is working with  Texas ESCOs to try to correct what we think is a misunderstanding by the state Water Resources Development Board that is restricting how water and wastewater ESPC projects can be financed.


In California, a multi-year proceeding of the CPUC that is re-working the structure of the ratepayer-funded EE programs has reached a critical phase. Because of the complexity of the issues, and the importance of California as the largest state market for ESCOs, NAESCO has a consultant to assist us in monitoring the proceeding. NAESCO is proposing that the utilities re-instate the statewide Standard Performance Contract programs that were discontinued a decade ago, re-vamp the industrial programs to implement AB 802 and reduce the complexity of the current project reviews and savings calculations, and fully fund innovative new programs in the residential and small C/I sectors.  We think that all of these types of programs are required to produce the volume of comprehensive projects that the state needs to meet its goals.

New York -- Reforming the Energy Vision

The New York State Public Service Commission is in the middle of a proceeding to restructure the state's utility industry to enable customers to implement the full range of Distributed Energy Resources (DERs) -- EE, RE, DR, CHP, DG -- with utility support rather than resistance.

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