Energy Efficiency Standards
North Dakota does not have a statewide energy efficiency resource standard (EERS) or voluntary energy saving goals for electric or natural gas utilities.
North Dakota electric utilities engage in least cost planning to meet forecast demand with generated supply. There is no requirement in statute for the consideration of demand-side resources, but the administrative rules call for a 15-year planning horizon for both supply- and demand-side resources. However, the rules also forbid, unless otherwise required by law or order, selection of resources based on carbon cost, greenhouse gas reduction, renewable standards, emission goals or "other externalities."
Rate Structures & Incentives
Utilities in North Dakota can recover costs on a case-by-case basis in their rate case proceedings.
Lost Revenue Recovery
Decoupling was approved for a natural gas rate design case for Xcel Energy.
There are no policies identified to support performance incentives for utility energy efficiency programs in North Dakota.
Because there is not a requirement for energy efficiency in North Dakota, there are no penalties for noncompliance.
There is no formal stakeholder collaboration process for utility energy efficiency planning identified in the state of North Dakota.
No energy efficiency program reporting has been identified for North Dakota, and there are no statutory or regulatory requirements for program evaluation. Utilities in North Dakota that run energy efficiency programs may, however, use cost-effectiveness testing internally for program screening, especially in the case of multi-state utilities that are accustomed to running efficiency programs in other service territories.
State Energy Plan or Vision
North Dakota's state energy plan, EmPower North Dakota, sets a long-term energy policy plan for the state, through 2025. As an energy resource-rich state, North Dakota's plan is very supply-oriented but includes energy efficiency as one plank of the energy platform. It encourages and supports energy efficiency in state agencies and buildings without setting forth any specific criteria.
State Agency Energy Reduction Requirement
North Dakota does not have a specific requirement for the reduction in energy use by state agencies.
EE in State Buildings
New or rehabbed government buildings in North Dakota, including schools, are required to follow the North Dakota State Building Code, which includes the 2015 IECC. North Dakota political subdivisions that are making energy efficiency improvements to public buildings can use Energy Conservation Grants from a legislature-approved continuing appropriation ($1.2 million per biennium) to receive up to $100,000 on qualifying projects. Recipients are required to benchmark using EPA’s ENERGY STAR Portfolio Manager.