(1) The commission shall establish an energy waste reduction credit certification and tracking program. The certification and tracking program may be contracted to and performed by a third party through a system of competitive bidding. The program shall include all of the following:

    (a) A determination of the date after which energy waste reduction must be achieved to be eligible for an energy waste reduction credit.

    (b) A method for ensuring that each energy waste reduction credit substituted for a renewable energy credit under section 28 or carried forward under section 83 is properly accounted for.

    (c) If the system is established by the commission, allowance for issuance and use of energy waste reduction credits in electronic form.

    (2) One energy waste reduction credit shall be granted to an electric provider for each megawatt hour of annual incremental energy savings achieved through energy waste reduction.