FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * OSHMAN M KENNETH   2. Issuer Name and Ticker or Trading Symbol ECHELON CORP [ELON] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director __X__ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Executive Chairman (Last) (First) (Middle) 550 MERIDIAN AVE,  3. Date of Earliest Transaction (Month/Day/Year) 08/11/2010 (Street) SAN JOSE, CA 95126 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) ___ Form filed by One Reporting Person _X_ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 08/11/2010   G V 45,500 D $ 0 2,830,136 I See footnote (1) Common Stock 09/01/2010   M   3,405 A (12) 3,405 D   Common Stock 09/01/2010   F   1,248 D $ 7.87 2,157 D   Common Stock 09/02/2010   G V 2,157 D $ 0 0 D   Common Stock 09/02/2010   G V 2,157 A $ 0 2,832,293 I See footnote (1) Common Stock 09/02/2010   S   2,157 (13) D $ 7.9207 (14) 2,830,136 I See footnote (1) Common Stock               210,492 I See footnote (2) Common Stock               210,492 I See footnote (3) Common Stock               293,220 I See footnote (4) Common Stock               293,220 I See footnote (5) Common Stock               89,508 I See footnote (6) Common Stock               89,508 I See footnote (7) Common Stock               181,558 I See footnote (8) Common Stock               181,558 I See footnote (9) Common Stock               488,428 I See footnote (10)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Performance Shares

(12)

09/01/2010

M

3,405

(11)

03/10/2011

Common Stock

3,405

$ 0

20,425

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
OSHMAN M KENNETH 550 MERIDIAN AVE SAN JOSE, CA 95126	X	X	Executive Chairman
O S VENTURES C/O M KENNETH OSHMAN ECHELON CORP., 550 MERIDIAN AVE SAN JOSE, CA 95126		X
OSHMAN TRUST DATED 7 10 1979 C/O M KENNETH OSHMAN ECHELON CORP., 550 MERIDIAN AVE SAN JOSE, CA 95126		X

Signatures

/s/ Oliver R. Stanfield, attorney-in-fact for M. Kenneth Oshman		09/02/2010
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	These shares are held by the Oshman Trust dated July 10, 1979, of which the Reporting Person and his spouse, Barbara S. Oshman, serve as co-trustees.
(2)	These shares are held by the M. Kenneth Oshman 2010A Annuity Trust dated August 18, 2010 (the "K. Oshman 2010A Annuity Trust"). 119,915 shares previously reported as indirectly beneficially owned by the M. Kenneth Oshman 2008A Annuity Trust dated August 1, 2008 (the "K. Oshman 2008A Annuity Trust") were transferred from the K. Oshman 2008A Annuity Trust to the K. Oshman 2010A Annuity Trust dated August 18, 2010. Additionally, 90,577 shares previously reported as indirectly beneficially owned by the M. Kenneth Oshman 2009A Annuity Trust dated August 4, 2009 (the K. Oshman 2009A Annuity Trust") were transferred from the K. Oshman 2009A Annuity Trust to the K. Oshman 2010A Annuity Trust dated August 18, 2010.
(3)	These shares are held by the Barbara S. Oshman 2010A Annuity Trust dated August 18, 2010 (the "B. Oshman 2010A Annuity Trust"). 119,915 shares previously reported as indirectly beneficially owned by the Barbara S. Oshman 2008A Annuity Trust dated August 1, 2008 (the "B. Oshman 2008A Annuity Trust") were transferred from the B. Oshman 2008A Annuity Trust to the B. Oshman 2010A Annuity Trust dated August 18, 2010. Additionally, 90,577 shares previously reported as indirectly beneficially owned by the Barbara S. Oshman 2009A Annuity Trust dated August 4, 2009 (the B. Oshman 2009A Annuity Trust") were transferred from the B. Oshman 2009A Annuity Trust to the B. Oshman 2010A Annuity Trust dated August 18, 2010.
(4)	These shares are held by the M. Kenneth Oshman 2009 Annuity Trust dated February 20, 2009.
(5)	These shares are held by the Barbara S. Oshman 2009 Annuity Trust dated February 20, 2009.
(6)	These shares are held by the M. Kenneth Oshman 2009A Annuity Trust dated August 4, 2009.
(7)	These shares are held by the Barbara S. Oshman 2009A Annuity Trust dated August 4, 2009.
(8)	These shares are held by the M. Kenneth Oshman 2010 Annuity Trust dated February 23, 2010.
(9)	These shares are held by the Barbara S. Oshman 2010 Annuity Trust dated February 23, 2010.
(10)	These shares are held by O-S Ventures, a general partnership, of which M. Kenneth Oshman is general partner.
(11)	3,405 of the 40,850 shares granted to M. Kenneth Oshman under the Issuer's 1997 Stock Plan were vested and released to M. Kenneth Oshman effective September 1, 2010. Such 40,850 share grant vests at the following rate: 1/12th of such shares on April 1, 2010 and on each one-month anniversary thereafter.
(12)	Each performance share represents the right to receive one share of the Issuer's Common Stock.
(13)	This trade was executed pursuant to a Rule 10b5-1 trading plan that was adopted on May 20, 2010.
(14)	The 2,157 shares were sold through separate trades, with the sale prices ranging from $7.92 to $7.94, and at a weighted average sale price of $7.9207. M. Kenneth Oshman undertakes to provide upon request by the staff of the Securities and Exchange Commission, the issuer, or a security holder of the issuer, full information regarding the number of shares sold at each separate sale price.

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