Critcs skeptical as Indiana governor signs efficiency law

Dive Brief:

Indiana Gov. Mike Pence (R) has signed into law a new energy efficiency program which allows utilities to set their own targets, but advocates worry that without mandatory goals, energy savings from the program will be minimal.
The efficiency law replaces the Energizing Indiana program that was defunded in 2014, which made Indiana among the first states to roll back efficiency targets.
Pence issued a statement saying the bill, included in a package of measures he signed, would boost the state's economy and provide cheaper energy with less regulation.

Dive Insight:

A year after defunding its Energizing Indiana efficiency program, Gov. Pence has signed a new law which allows utilities to set their own targets every three years. But as WISHTV reports, environmental advocates are worried that leaving the goals up to energy providers could jeopardize how successful the program is.

Rebecca Stanfield, with the Natural Resources Defense Council, told the local news station that the program is unlikely to result in significant energy savings because it lacks hard targets and mandates to require utilities to pursue efficiency improvements instead of building new plants. She also doubted that utilities would pass on cost savings to their customers.

Some lawmakers questioned the program as well.

“The utility makes money selling energy and now they’re in charge of reducing energy,” Rep. Matt Pierce, D-Bloomington, told WISHTV. “That doesn’t make sense."

Pence's office described SEA 412 as an order to "ensure more affordable and reliable energy for Hoosiers."

“As we look to the future of Indiana, it is imperative that we advance innovative ways to strengthen our state,” Pence said in a statement. “The bills I signed today continue our work in this regard through less regulation, a simpler tax code, and more affordable energy for both Hoosiers and the businesses that operate in Indiana. I am grateful to the Indiana General Assembly for authoring and supporting these bills which will go far in growing Indiana’s economy.”