COEUR d'ALENE - Western governors have an idea where energy efficiency policy should be targeted.

Businesses.

Thursday's continued meeting of the Western Governors' Association included a panel discussing steps states can take to reduce energy use in the industrial sector.

It should be a priority, Gov. Butch Otter said, adding that the industrial sector consumes 35 percent of energy produced in the western states.

"If all companies can make even a small reduction in how much they use, it can make a significant impact," he said.

Panelists had a few suggestions.

Don Sturtevant, energy manager at Simplot french fry and fertilizer manufacturer, said the Boise company has saved millions from lowering energy consumption.

That was achieved by setting a rigid reduction goal, he said, as well as researching alternative energy and working with the Department of Energy's industrial energy program.

"I think costs in energy efficiency are really the thing to go after," Sturtevant said.

State governments can spur equal success among local businesses, he added.

He suggested governors prod companies to adopt reduction goals, and maintain that encouragement by celebrating businesses' achievements.

"I love money, but part of it is that pat on the back," Sturtevant said.

Lynda Ziegler with the utility Southern California Edison, said her company saved enough energy in the past five years to power 1.1 million homes for a year.

States can promote the same drive among local companies, Ziegler said, by focusing funding and public policy on energy conservation.

"Create performance incentives for utilities," she said. "If they make goals and achieve them, they can make some investment."

Kathleen Hogan, deputy assistant secretary for energy efficiency at the U.S. Department of Energy, said many companies aren't pursuing energy efficiency because of lack of awareness and technical expertise.

"The DOE is working on a lot of those issues," Hogan said, adding that several federal programs help guide businesses on how to improve energy use.

State governments have the most power to drive energy efficiency policy, though, she said.

"It is in the hands of the state government," she said.

The WGA passed a resolution on Thursday to promote industrial energy efficiency, by following recommendations in a report produced after a WGA nuclear energy workshop this year.

Recommendations include promoting industry-specific energy efficiency goals and outreach to industrial sectors.

Pursuing such measures will both save companies money, Otter said during the WGA meeting, as well as reduce the need for energy production.

"If we don't use it, we don't have to produce it," he said.