On Tuesday, Governor Tim Walz held a ceremonial bill signing for Senator Jason Rarick’s (R-Pine City) bipartisan Energy Conservation and Optimization Act (ECO). The energy-focused legislation expands Minnesota’s existing Conservation Improvement Program (CIP) to increase consumer choice, save Minnesotans money and energy while also supporting local businesses.
“ECO will help move Minnesota energy priorities in the right direction,” said Senator Rarick. “By expanding consumer choice, we can lower energy bills and our overall energy demand statewide while also increasing our efficiency. This innovative policy change is good for consumers, small businesses, and energy providers and prepares Minnesota’s energy utilization for future technological advancements without picking winners or losers. I am happy that we could get this bipartisan legislation done for Minnesota.”
The current Conservation Improvement Program (CIP) is a statewide program that requires all electric and natural gas utilities to provide energy savings opportunities, primarily through financial incentives and rebates, to their customers. Those activities include; efficient lighting and control systems, efficient water heaters, low-flow showerheads, A/C recycling programs, and home energy audits. The CIP incentives and rebates make energy efficiencies more affordable for households and helps them cut their utility bills while also preventing energy waste and lowering harmful gas emissions.
Research has also shown it is 80% cheaper to save energy than to generate more energy. Since the program began in the 1980s, the CIP program has saved Minnesotans around $6 billion. In fact, all those savings added up are equal to about 14% of Minnesota’s energy generation. In addition, the hiring of contractors to do efficiency-related work has led to about 50,000 jobs and support around 500 electrical contractor businesses statewide.
Lastly, ECO will move Minnesota ahead of the market and prepare utilities for continuing technological advancements as society continues to move towards efficient electric energy systems and away from fossil fuels. The legislation also ensures energy providers will not have to scramble to apply for statutory relief each year as these changes occur.