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# American Energy Efficiency Act of 2024 This bill establishes a federal energy efficiency standard requiring large electricity and natural gas suppliers to achieve increasing levels of energy savings each year from 2025 through 2039. Electricity suppliers must reduce consumption by 1 percent in 2025, scaling up to 22 percent by 2039, while natural gas suppliers follow a similar trajectory from 0.5 percent to 14 percent. The Department of Energy will set the rules, measure results, and enforce compliance through civil penalties ranging from $100 per megawatt-hour for electricity savings to $10 per million BTUs for natural gas savings that suppliers fail to achieve. The bill applies to utility companies and gas distributors that serve large customer bases and allows suppliers to meet requirements through customer facility improvements, distribution system efficiency upgrades, combined heat and power systems, and state building code compliance. Companies can purchase energy savings credits from other suppliers or efficiency providers to help meet their targets. States may request authority to administer the program themselves and can allow suppliers to pay alternative compliance fees instead of meeting savings targets directly, with those fee revenues supporting state energy efficiency programs. The legislation includes protections for low-income households and requires rigorous measurement standards developed with input from the National Academy of Sciences. The bill takes effect in 2025 with no specific appropriation mentioned, relying on penalty revenue and state-administered alternative compliance fees to fund implementation.

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