The New York Times reports today that Massachusetts officials have announced new energy standards to meet the goals set forth by the Green Communities Act of 2008.

The plan specifies statewide goals of 2.4% reduction in electricity use and 1.15% in natural gas use annually for three years, or 7.4% and 3.5% respectively over the designated period. These reductions are expected be reached through $1.6 billion worth of incentives for utility customers who conserve energy. A significant increase in yearly spending on consumer outreach and incentive programs for conservation is also expected, quadrupling the amount of money designated for these purposes from $150 to $600 million per year.

Consumer fees and pollution allowance auctioning via the Regional Greenhouse Gas Initiative will be the main funding sources for the $1 billion plan—80 percent of Massachusetts auction revenue is slated towards achieving these goals.

Some anticipated results of this plan include:

• Creation of about 25,000 jobs in green energy in the state
• $6 billion in eventual energy bill savings for consumers

According to Steve Nadel, the executive director of the American Council for an Energy Efficient Economy, “a little friendly competition” between states—Massachusetts potentially surpassing California in per-person spending on energy conservation efforts.  It will take some time before the effects of these standards are felt, but these goals and funds will be useful in energy conservation and carbon pollution reduction. The annual reduction goal of 2.4 percent is thought to be “close to the upper limit of what can be achieved through such programs.”

Providing financial incentives to consumers will hopefully encourage more residents to take such measures as scheduling audits and following through with the recommended improvements, installing solar panels, purchasing green energy credits, or otherwise conserving energy in their homes and businesses. Consumer outreach and incentive programs will provide opportunities for energy audits and rebates for efficient appliances; definitely steps in the right direction.