Applying Non-Energy Impacts from Other Jurisdictions in Cost-Benefit Analyses of Energy Efficiency Programs: Resources for States for Utility Customer-Funded Programs

Avoided energy and capacity costs are the primary yardstick utilities use to determine which energy efficiency programs are cost-effective for their customers. But sometimes "non-energy impacts" — not commonly recognized as directly associated with energy generation, transmission and distribution — represent substantial benefits, such as improving comfort, air quality and public health.Considering whether and how to include non-energy impacts is an important part of cost-benefit analyses for these programs. This report offers practical considerations for deciding which non-energy impacts to include and how to apply values or methods from other jurisdictions.Researchers reviewed studies quantifying non-energy impacts used in 30 states and applied a five-point system to indicate transferability of a value or method from each study for 16 categories of non-energy impacts:Water resource costs and benefitsOther fuels costs and benefitsAvoided environmental compliance costsEnvironmental impactsProductivityHealth and safety Asset valueEnergy and/or capacity price suppression effectsAvoided costs of compliance with Renewable Portfolio Standard requirementsAvoided credit and collection costsAvoided ancillary servicesComfortEconomic development and job impactsPublic health impactsEnergy security impactsIncreased reliabilityThe U.S. Department of Energy’s Building Technologies Office supported this work