MEEA Policy Insider - April 2023

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The MEEA Policy Insider summarizes the latest state and federal policy activity and provides new resources to aid members in their outreach, education and advocacy initiatives.

In this issue:

Previous MEEA Policy Webinars

Slicing the Pie of EE Funding in IIJA and IRA

On April 18, MEEA Policy Director Jason Liechty presented a rundown of the energy efficiency provisions in the Infrastructure Investment and Jobs Act and Inflation Reduction Act, outlining the major features of each bill and providing an update on their status. Future webinars in this series will follow approximately every two months to check in on the rollout of these EE funding streams and to highlight programs of particular interest.

View the presentation slides here and the webinar recording here.

Efficiency and Resilience in Critical Facilities

On March 15, MEEA explored how energy efficiency enhances the resilience of critical facilities across the Midwest region. Featured presentations were given by Amanda LeMaster of the Office of Energy Policy in the Kentucky Energy and Environment Cabinet, Megan Levy of the Office of Cybersecurity, Energy Security and Emergency Response at the U.S. Department of Energy and Eliza Hotchkiss of the Resilient Systems Design and Engineering Group at the National Renewable Energy Laboratory's Energy Security and Resilience Center. Topics included the definition of “critical facilities,” identifying who has the capacity to research the energy needs of these facilities and examples of funding sources that states are using to further related efforts.

View the presentation slides here and the webinar recording here. 

State Budgets

Most Midwestern states are currently working through their respective budgeting timelines. Many governors released budget proposals over the last few months; they are merely starting points for negotiations. State budgets may ultimately look different after making their way through the legislative process. Notably, in Wisconsin, Governor Evers' budget recommends doubling utility contributions to Focus on Energy from 1.2% to 2.4%. Additionally, Evers recommends that the state’s electric investor-owned utilities begin to submit biennial integrated resource plans, which the state does not currently mandate. In Minnesota, Governor Walz's budget includes funds for a state competitiveness fund and a boost to the weatherization program. 

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Municipal

Earlier this month, Chicagoans elected Brandon Johnson as their new mayor, with his term beginning May 15. Mayor-Elect Johnson’s campaign policy platform includes pledges to make Chicago a leader in sustainability and usher in a Chicago Green New Deal to decarbonize the city through building resiliency, energy-saving programs, lowering energy burdens, while also creating energy efficiency and clean energy jobs.

Legislative

The Illinois legislature took a two-week legislative hiatus at the beginning of April and returned to session on April 18, embarking on a month-long sprint to the end of this year’s legislative session on May 19.

HB 2172, known as the People’s Utility Rate Relief (PURR) Act, was introduced by Rep. Davis on February 7 and currently sits in the House Rules Committee. HB 2172 is intended to serve as an energy rate relief bill that protects low-income customers from utility shutoffs. The bill also includes shutoff protections for customers aged 65 or older, people with children under 6 and customers who provide a medical certification exemption. In addition to preventing utility shutoffs, HB 2172 also prohibits utility companies from terminating gas or electric service for apartment buildings when daytime temperatures reach 85 degrees. Lastly, HB 2172 calls for a discounted utility rate for customers making less than 80% of the area median income.

HB 3141 was introduced by Rep. Blair-Sherlock on March 8 and, most recently, received a second reading and was then re-referred to the House Rules Committee. The bill would have the Illinois Department of Central Management Services establish a maximum acceptable Global Warming Potential standard for state purchases of vehicles, appliances and building materials for use in state-funded infrastructure projects.

SB 1447 was introduced by Sen. Joyce on February 7 and was most recently re-referred to the Senate Committee on Assignments. SB 1447 would amend the Renewable Energy, Energy Efficiency, and Coal Reserves Development Law of 1997 to authorize the Illinois EPA to use up to $4 million collected from the Renewable Energy Resources Coal Technology Assistance Charge to the Illinois Green Economy Network for the purposes of funding renewable energy and energy efficiency training services within their network, up from the current annual funding limit of $2 million.

SB 1842 was introduced by Sen. Sims on February 9 and was most recently re-referred to the Senate Committee on Assignments on March 10. SB 1842 would amend the Energy Assistance Act, authorizing the Department of Commerce and Economic Opportunity to institute a year-round program ensuring availability and affordability of heating and electric services to low-income utility customers. SB 1842 also includes a provision that an energy provider to a potential recipient of the Low-Income Energy Assistance Fund shall ensure that the recipient's utility services are not disconnected while their application is pending.

SB 2368 was introduced by Sen. Koehler on February 10, approved by the Senate on March 30 and received on February 11 by the House, where it is currently assigned to the House Executive Committee. SB 2368 would amend the Illinois Residential Building Code Act to make conforming changes so that no person may occupy a newly constructed commercial building located within a non-building code jurisdiction until that building meets the local energy code (base or stretch). SB 2368 also requires municipalities with a population less than 1 million to meet baseline residential building codes beginning July 1, 2024.

SB 2552 was introduced by Sen. Koehler on March 23 and currently sits in the Senate Committee on Assignments. SB 2552 would authorize the Illinois Power Agency to develop capacity procurement plans and conduct competitive processes for the procurement of environmentally sustainable long-term resource adequacy across Illinois at the lowest cost over time. SB 2552 would change the cumulative persistent annual savings goals for electric utilities serving between 500,000 and 3,000,000 customers for years 2024 through 2030. SB 2552 also adjusts electricity savings goals for those same utilities serving between 500,000 and 3,000,000 customers. Finally, the bill also sets forth provisions regarding the Illinois Commerce Commission’s powers and duties related to residential time-of-use pricing.

Regulatory

Earlier this month, the Illinois Capital Development Board (CDB) held a vote on updating the state’s base energy code. The Board voted 3-0-3, which was not sufficient for approval (4 votes are needed). It will therefore be necessary for the CDB to hold another meeting and take another vote on May 9. Public comments to the CDB concerning the Illinois stretch code are open until May 9 and are strongly encouraged. Public comments for the commercial stretch code can be submitted here and public comments for the residential can be submitted here.

Governor JB Pritzker has announced multiple new appointments to Illinois Boards and Commissions. In early March, Governor Pritzker announced that Illinois Commerce Commission (ICC) Chairman Carrie Zalewski would be stepping down from her position. She had been named to a five-year term as Chair of the ICC in April 2018. Assuming new positions to the ICC will be Conrad Reddick and MEEA’s Executive Director emerita Stacey Paradis. Prior to his appointment to the ICC, Reddick ran a law practice, representing the City of Chicago as a Special Assistant Corporation Counsel. Stacey Paradis previously served as the Executive Director of MEEA, where she led the organization for over 7 years. Reddick and Paradis will be serving full five-year terms ending in 2028.

How to Get Involved

If you have any questions about Illinois, SAG meetings, or want to get more involved, contact Christian Koch. 

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Legislative

The Indiana legislature has passed the halfway point of its session. The following bills that we have been following are still active.

House Enrolled Act 1007 was signed into law by the Governor on April 20. The law provides that it is the continuing policy of the state that decisions concerning Indiana's electric generation resource mix, energy infrastructure and electric service ratemaking constructs must consider the following attributes of electric utility service: reliability, affordability, resiliency, stability and environmental sustainability. The act requires the IURC to take each of these attributes into account when reviewing an integrated resource plan submitted by an electric utility, acting upon a petition for the construction, purchase or lease of an electric generation facility and reviewing whether the public convenience and necessity continues to require the completion of an electric generation facility under construction.

Senate Bill 221, authored by Sen. Zay, would require the Indiana Department of Administration to issue an RFP and award a contract to conduct an energy audit on the Indiana State Capitol building and Indiana Government Center North and South buildings. This bill was amended to delete provisions related to studying the feasibility of creating a strategic coal reserve. The bill passed the Senate and is currently in the House Ways and Means committee.

Regulatory

2023 integrated resource plans are expected from:

  • Investor-owned utilities
    • CenterPoint (Vectren) - 2022 IRP extended to Nov. 2023
      • `The preferred portfolio was presented on April 26, 2023, at the Public Stakeholder Meeting.
  • Publicly-owned utilities (POUs do not have the requirements for stakeholder meetings associated with their IRPs)
    • Hoosier Energy
    • Indiana Municipal Power Agency (IMPA)
    • Wabash Valley
  • Updates from the Commission on IRPs in Indiana will be posted to the IURC’s IRP page.

How to Get Involved

For questions about Indiana, contact Greg Ehrendreich. 

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    Legislative

    Iowa’s legislative session is set to end on April 28. To view Iowa’s 2023 legislative session schedule, please click here.

    SF 514, substituted for HF 662, was signed into law by Governor Reynolds on April 4. It concerns government restructuring, including several provisions regarding the Office of Consumer Advocate (OCA), whose mission is to represent consumers on issues relating to gas and electric utilities. Advocates were concerned the changes will compromise the OCA’s ability to represent the interests of consumers and reduce the officer’s independence.

    HF 605 (formerly HSB 216) would prohibit the state building code commissioner, counties and cities from requiring energy benchmarking requirements for private properties. The bill defines benchmarking as requiring a decrease in the average energy use of a property or requiring the average energy use of a property to be less than the average energy use of similarly situated property. These activities are more typically called “building performance standards,” with “benchmarking” referring only to the reporting of energy usage. MEEA submitted comments supporting energy benchmarking and building energy performance in Iowa. The bill is currently on the Unfinished Business Calendar of the Senate, having passed the House on March 22. In addition, the bill was amended to include provisions from SF 479, allowing jurisdictions to implement energy efficiency requirements that are less restrictive than the state’s existing energy code requirements, which are based on the 2012 IECC.

    SF 479 (formerly SF 334) represents a major potential change in energy efficiency in Iowa. Introduced by Sen. Webster, the bill would freeze Iowa’s current building energy code, the 2012 IECC, and require legislative approval of future code updates (currently considered via an administrative process). In addition, the bill would not only allow jurisdictions to enact energy efficiency requirements less restrictive than the state code but also prohibit them from adopting codes with more restrictive EE requirements. Specific provisions of this bill have been incorporated into HF 605 since this bill is essentially inactive in the current session. MEEA has provided comments on Iowa’s energy code adoption process, which can be viewed here.

    SF 174 (formerly SF 43), also introduced by Sen. Webster in the Local Government Committee, states that government cannot prohibit or limit the use or installation of building products or materials for residential building design elements regarding construction, renovation, maintenance or other alteration of a residential building or structure if the product or material is approved by the national model code. The bill has been amended and recommended for approval by the committee.

    HF 617 orders that the Iowa’s Utilities Board (IUB) and the Department of Commerce initiate an independent review of current Iowa Code provisions and ratemaking procedures to determine whether revised provisions and different procedures would be more cost-effective and would result in rates that more accurately reflect a utility’s cost of providing service to its customers. The Senate voted to pass HF 617; however, on April 17, amendments were added mandating the review to consider policy objectives ensure safe, adequate, reliable and affordable utility services are provided at rates that are nondiscriminatory, just, reasonable and based on the utility’s cost of providing service to its customers within the state.

    HF 601 was substituted for SF 533 which mandates that all public utilities, except those exempted from rate regulation, give written notice of a proposed rate increase or charge to all affected customers no more than thirty days prior to the time the application for the increase is filed with the board. The Senate received unanimous votes and SF 533 was withdrawn from further consideration on March 21.

    Regulatory

    Iowa investor-owned utilities’ (IOUs) Energy Efficiency Portfolio (EEP) planning process is currently underway, with IOUs filing their new five-year plans (2024-2028). Interstate Power and Light Company, a subsidiary of Alliant Energy, filed its plan with the IUB on November 1, 2022, in docket EEP-2022-0150. The IUB issued an order on February 14 setting a procedural schedule and granting intervention for the docket, with a public hearing set for June 8.

    MidAmerican Energy filed its EEP plan on February 1 in docket EEP-2022-0156. The IUB issued an order on March 3 setting a procedural schedule and granting intervention for the docket with a public hearing set for August 24. Moreover, Black Hills Energy filed its EEP plan on March 31 in docket EEP-2022-0225.

    Please reach out to Ashley Taylor from Iowa’s OCA (ashley.taylor@oca.iowa.gov) to be added to the EEP stakeholder list and receive updates and meeting information.

    How to Get Involved

    For more information about Iowa or to get more involved, contact Arlinda Bajrami.

    Legislative

    The Kansas legislature opened its 2023 legislative session on January 9. Turnaround Day, the last day to consider non-exempt bills in the legislative house of origin, was February 24. The legislature is expected to adjourn on May 22.

    HB 2225 was approved by the Governor on April 24. The new law, which will go into effect on July 1, 2023, will limit cost recovery for Kansas Corporation Commission (KCC) regulated utilities' transmission-related costs. The bill would also require public utilities to evaluate the regional rate competitiveness and impact to economic development in rate proceedings.

    SB 88/HB 2154 is sponsored by the Senate Committee on Utilities and recommends reforming the KCC. The bill would require each of the KCC Commissioners to stand for partisan, statewide election, serving four-year terms. Currently, Commissioners are appointed by the Governor. The bill would also establish a new Utilities Regulation Division within the Office of the Attorney General which would be tasked with representing Kansas utility customers in rate case proceedings. The Senate bill was heard by the Committee on Utilities on February 13 and 14, while the House bill was heard by the Committee on Energy, Utilities and Telecommunications on February 14.

    SB 68, sponsored by the Senate Committee on Utilities, provides incumbent electric transmission owners a right of first refusal for the construction of certain electric transmission lines. The Committee heard testimony regarding the bill and now recommends it be passed in its current amended form. The bill was re-referred to the full Senate on March 1.

    Regulatory

    In December 2021, Evergy filed its application for an energy efficiency proposal in Kansas under the Kansas Energy Efficiency Investment Act (KEEIA). The proposal originally included nine programs—four residential, four business and one pilot research program.

    On November 15, 2022, Evergy, in conjunction with KCC staff, filed a revision to its plan and financial recovery mechanisms, with the other stipulating parties not signing on to the agreement. The new plan removes some of the original proposed programs, shrinking total proposed spending from about $135 million to about $45 million. The revised procedural schedule can be found here, and deadline-based amendments to that schedule here. An order is now anticipated this spring.

    KCC Staff and Evergy hosted a workshop to discuss Evergy's Capital Investment plan on December 13, the recording of which can be found here. KCC staff, proponents and opponents submitted Post-Hearing Briefs on February 6, to which Evergy submitted their official Reply Brief on February 27. We will continue to monitor this matter.

    How to Get Involved

    For more information about Kansas or to get more involved, contact Natalie Newman. 

    Legislative

    The 2023 Regular Session of the Kentucky General Assembly adjourned Thursday, March 30, 2023, Sine Die. None of the bills noted in previous editions of the Insider moved out of committee during the regular session, except for SB 4. It prohibits the KY PSC from approving a request by a utility to retire a coal-fired electric generator unless the utility demonstrates that the retirement will not have a negative impact on the reliability or the resilience of the electric grid or the affordability of the customer’s electric utility rate. The bill passed both the House and the Senate and became law without Governor Beshear’s signature on March 29.

    Regulatory

    LG&E and KU, including its subsidiary ODP, are hosting a series of DSM Advisory Group meetings. These are intended to provide a platform for stakeholders to discuss EE and DSM initiatives for existing and new program offerings. Additional details, previous meeting notes and contact information for participating in the group can be found here.

    How to Get Involved

    For more information about Kentucky or to get more involved, contact Greg Ehrendreich.

    Legislative

    The Michigan legislature opened its 2023 legislative session on January 11.

    In conjunction with the MI Healthy Climate Conference, Senate Democrats unveiled their Clean Energy Future Plan on April 12. Among other provisions, the package would:

    • Phase out coal-fired electricity generating plants by 2030 and develop a 100% clean energy standard by 2035.
    • Increase the energy waste reduction requirements to 2% annual energy efficiency savings for electric utilities and restore the energy waste reduction target for municipal and cooperative electric utilities.
    • Allow the MPSC to evaluate climate, health, equity and affordability in the approval of utility Integrated Resource Plans.
    • Reduce emissions related to heating Michigan homes and businesses by 17% by 2030 by developing a Michigan Construction Decarbonization Strategic Plan.

    Regulatory

    Commissioner Tremaine Phillips announced that he will step down from the MPSC, effective April 26. Phillips’ term was set to end on July 2, 2025. The Whitmer administration is currently conducting a search for Phillips’ successor.

    After pausing during the winter to work on its interim report for the Commission, the Energy Affordability and Accessibility Collaborative (EAAC) has regrouped and is set to begin meeting again this month. For more information on the EAAC and to sign up for its subcommittees, go to the EAAC website.

    The Michigan Public Service Commission (MPSC) has announced two half-day technical conferences on resilience and reliability. The conferences are scheduled for May 12 at 1 pm ET and May 26 at 9 am ET. More information, including agendas, is expected to be filed in Docket U-21388 by May 12.

    The MPSC recently released its 2022 Annual Report. The report finds that Michigan utilities spent around $498 million on energy waste reduction programs in 2022.

    The MI Power Grid initiative is set to wrap up in 2023. A final report on the initiative and its workgroups is due this spring.

    DTE Electric filed its IRP on November 3, outlining plans to spend $9 billion on renewable energy and to end coal usage by 2035. On the efficiency side, the utility has proposed energy savings of 2% in 2023, an average of 1.5% annual energy savings in 2024-2028 and 1.2% annual savings in 2028-2032. A public hearing on the plan was held on December 12. Intervenors have been submitting testimony and exhibits throughout the last few months.

    How to Get Involved

    For more information about Michigan or to get more involved, contact Maddie Wazowicz. 

    Legislative

    The Minnesota legislature opened its 2023 legislative session on January 3. Many of the energy-related bills have been included in the committee omnibus packages.

    The House climate and energy omnibus bill, HF2754, was folded into the environment and natural resources omnibus bill, HF2310. HF2310 passed the House on April 17. Among its numerous provisions, the bill would:

    • Create the Minnesota Climate Finance Authority to leverage public and private capital to spur development of clean energy projects.
    • Establish a residential electric panel grant program that would provide funds to low-income homeowners and multifamily building owners to upgrade their electric panels.
    • Modify the definition of low-income household for eligibility in utility conservation programs to 80% of area median income or eligibility for other federal, state or utility programs.
    • Establish a building benchmarking system by requiring owners of buildings 50,000 square feet or larger to report their energy use to the Department of Commerce.
    • Establish a residential heat pump rebate program to provide additional funds to homeowners who access federal rebates for heat pumps from the Inflation Reduction Act.
    • Require the state to adopt each new commercial building code as it is published; the 2036 code and subsequent codes must reduce energy consumption by at least 80% compared with a 2004 baseline.
    • Amend the state’s greenhouse gas emissions reduction goal by requiring a 50% reduction by 2030 (on a 2005 baseline) and a goal of net zero by 2050.
    • Establish the Minnesota state competitiveness fund to provide a state match for federal funding through the Bipartisan Infrastructure Law and the Inflation Reduction Act and assist other eligible entities in applying.
    • Require utilities to submit annual reports on their efforts to increase workforce diversity.

    For more information on the bill’s provisions, see the MN House Research report. The Senate passed an amended version of HF2310 on April 20. Senate amendments can be found in the Senate Journal. The House refused to concur, and a conference committee will be established to resolve the differences between the House and Senate versions of the omnibus bill package.

    HF1656/SF1622 was signed into law by Governor Walz on April 18. The law creates a state competitiveness fund of $115 million that will help the state unlock federal funds from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.

    HF7/SF4 was signed into law by Governor Walz on February 7. The law modifies the state’s current renewable energy standard, as established by the 2007 Next Generation Energy Act. The law institutes a carbon-free standard that mandates the state’s electric utilities generate or procure carbon-free resources at 80% of their portfolio by 2030, 90% by 2035 and 100% by 2040.

    Other provisions in the bill include guidance for the PUC to maximize local benefits, a mandate for the PUC to consider the costs of greenhouse gas emissions in decisions and some tweaks to the PUC’s permitting process. Minnesota joins Illinois as the only two states in the Midwest with laws mandating carbon-free electricity generation by mid-century.

    Regulatory

    Deadlines are approaching for utilities to submit their Conservation Improvement Program (CIP) filings. Status reports outlining program spending and savings are due May 1. Triennial filings outlining CIP program offerings for 2024-26 are due June 1.

    In response to the recent PUC decision to require gas utility integrated resource plans in Docket 23-117 and the ongoing discussions around utility policy structures and gas emissions in Docket 21-565, the Public Utilities Commission and the Great Plains Institute have announced a series of half-day stakeholder meetings on the first Friday of each month, beginning on May 5. The workshops plan to address the content and procedural requirements that would make up a natural gas resource planning framework for Minnesota and additional changes to gas utility regulatory and policy structures that are needed to meet the state’s climate goals. Register for the meetings here.

    Docket 21-566, which was opened in response to the passage of the Natural Gas Innovation Act (NGIA), remains active. Natural gas utilities will have the opportunity to present the Commission with plans to study and use alternative and innovative energy resources, like renewable natural gas, biogas and hydrogen. CenterPoint has been hosting meetings, with the next one set for May 12 at 8:30 a.m. - 12:00 p.m. CDT, to decide what pilots to pursue in its NGIA filing, which they plan to submit later this year. The meeting can be joined here.

    The Department of Commerce Staff’s Proposed Decision in the Matter of 2024-2026 CIP Cost-Effectiveness Methodologies for Electric and Gas Investor-Owned Utilities was filed on eDockets (docket number 23-46). The Proposed Decision provides a summary of the Committee’s activities and presents Staff’s recommended cost-effectiveness methodology updates for the 2024-2026 CIP Triennials. The Deputy Commissioner will issue a decision on March 31.

    Additionally, the Department of Commerce and Minnesota’s Energy Efficiency for All coalition have hosted five virtual Low Income CIP meetings where energy and housing advocates, energy efficiency implementers, utilities and other interested parties learned about CIP, the ongoing triennial utility planning process and ways to get involved and provide recommendations to utilities on their low-income programs ahead of their draft plans, which are due on June 1, 2023. For more information or to participate in future meetings, please contact Arlinda Bajrami.

    How to Get Involved

    For more information about Minnesota or to get more involved, contact Maddie Wazowicz.

    Missouri Header

    Legislative

    The Missouri legislature opened its 2023 session on January 4 and is expected to adjourn on May 12.

    HB 580 would establish a limit on the regulation of construction standards for insulation in new dwellings that political subdivisions may adopt and enforce. This bill, in effect, would limit all jurisdictions from going beyond the 2006 IECC. It would also prohibit jurisdictions from enforcing those currently adopted codes beyond the bill provisions, effectively rolling back energy codes in many Missouri jurisdictions. Additionally, it would require the state and local governments to provide free access to any third-party standards or codes referenced by laws or regulations. MEEA circulated updated testimony in response to the amended bill, which can be found here. The bill has now passed out of committee and is calendared for Perfection in the House, meaning it is awaiting being brought to the floor for debate and potential amendment. The companion bill in the Senate, SB 404, sponsored by Senator Schroer, has been referred to the General Laws Committee.

    HB 625, a similar bill, would prohibit political subdivisions from requiring a private homeowner to obtain a license, certification, or professional registration or to be tested as a condition of applying for a building permit if all work is done by the owner. The bill has now passed two Committees – the Local Government Committee on March 7 and the Rules Committee on April 24.

    HB 184, which passed the House on February 16, requires political subdivisions to pay costs associated with any required electric vehicle charging stations at certain businesses. The bill was since reported to the Senate and heard by the Senate Committee on Commerce, Consumer Protection, Energy and the Environment. The Committee heard and passed the bill on April 11.

    HB 992 modifies provisions for the construction of electric transmission facilities. Under the bill, the only electrical corporations that may file an application with the Public Service Commission to construct electric transmission facilities are those that own in-service electric transmission facilities in Missouri under the functional control of a regional transmission operator and to which such electric transmission facilities will connect once construction is completed. The bill passed the House Committee on Utilities on March 8 and the House Committee on Rules - Legislative Oversight on March 12, and is now eligible to be scheduled for Perfection in the full House. The companion bill in the Senate, SB 568, is sponsored by Senator Black and was referred to the Senate Commerce, Consumer Protection, Energy and the Environment Committee.

    SB 140 would require the Public Service Commission to permit utility companies to recover workforce development investments. The bill passed the Senate Commerce, Consumer Protection, Energy and the Environment Committee on February 21 and is now eligible for Perfection by the full Senate.

    SB 333 would create the "Missouri Nuclear Clean Power Act” and allow for utilities to charge for the costs of construction work in progress related to new nuclear-fueled electric generating facilities. The bill was heard in the Senate Commerce, Consumer Protection, Energy and the Environment Committee on March 28. This bill is the same as HB 225, which passed the House on March 29 and has now been referred to the same Senate Committee – Commerce, Consumer Protection, Energy and the Environment – and was heard on April 25.

    SB 520, which was heard by the Senate Commerce, Consumer Protection, Energy and the Environment Committee on March 18 and passed on March 25, would allow the Public Service Commission to contract counsel, financial advisors or other consultants as necessary for the purpose of reviewing financing orders for energy transition costs.

    SB 635 would require the Office of Administration to perform a mechanical insulation energy audit of every public building within the state by August 2033.

    Regulatory

    Ameren Missouri filed its Cycle 4 Missouri Energy Efficiency Investment Act (MEEIA) plan with the Missouri Public Service Commission on March 27, which is case number EO-2023-0136. MEEIA does not set forth targets for energy efficiency, and program filings under MEEIA are entirely voluntary by the utilities. Ameren submitted its three-year plan (January 1, 2024 - December 31, 2026) and stakeholder groups have registered as interveners in the case. The plan calls for Ameren to spend $367 million in energy efficiency programming over the three years and includes a substantial boost to income-eligible program spending. The Commission convened on April 25 to determine the procedural schedule, which will be publicly reported soon.

    Through Evergy’s Missouri Energy Efficiency Investment Act (MEEIA) Cycle 2 2023 extension year, Evergy agreed to host four working group sessions to identify relevant information, potential partners, outside funding streams and other considerations for a feasibility study and vulnerability study regarding an Urban Heat Island (UHI) Mitigation program for its next MEEIA application, MEEIA Cycle 4. Evergy has since hosted the four working group meetings and initiated planning for the proposed Heat Island Reduction Program. Evergy is working with the Mid-America Regional Council and other experts on program design, including considering available additional funding sources. A draft proposal for the program is expected by mid-May. For more information or to get involved, please contact Natalie Gray, Manager of Energy Efficiency Programs and Services with Evergy, at natalie.gray@evergy.com.

    The MO Public Service Commission, at the motion of the Office of the Public Counsel, opened a Working Case (AW-2023-0156) to investigate how MO’s investor-owned utilities plan to take advantage of federal funding from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. The PSC hosted an initial in-person workshop meeting on April 21 in Jefferson City, the agenda for which can be found here. The recording of the workshop can be found here on the webpage for the Working Case, where you can also find copies of each presentation.

    How to Get Involved

    For more information about Missouri or to get more involved, contact Natalie Newman. 

    Legislative

    The legislative session in Nebraska began on January 9. Despite an ongoing filibuster, a few non-energy related bills were finally passed in the legislature during the week of April 17, but much legislation remains stalled.

    LB 560 declares the intent of the legislature to seek all funds made available to the state through the Inflation Reduction Act (IRA). These funds will be used for energy efficiency in homes and businesses, electric vehicle infrastructure, assisting in transition to cleaner energy, supporting agricultural practices that are drought resistant, decreasing the use of water and fertilizer, creating jobs and stimulating the economy. MEEA submitted supportive comments on the bill. The bill was heard on March 6. On March 14, the Nebraska Department of Environment and Energy (NDEE) put out a press release confirming the state would indeed apply for the first tranche of IRA funds.

    LB 164, sponsored by Sen. McKinney, proposes to update the International Building Code, International Residential Code and International Energy Conservation Code from the 2018 to the 2021 editions. The bill was heard in the Urban Affairs Committee on January 24.

    LB 255, cosponsored by Senators Brewer and Ardman, would prohibit Nebraska public utilities from using their right of eminent domain to acquire privately-owned land to build solar and wind electrical generation facilities. The bill was heard in the Natural Resources Committee on February 22.

    LB 237 would appropriate $1 million to NDEE to assist with administering and implementing weatherization programs. A notice of hearing was set on March 13.

    Regulatory

    Nebraska Public Power District (NPPD), Nebraska’s largest electric utility, is currently working on updating its Integrated Resource Plan (IRP), which is required every five years. NPPD’s current plan covers 2018-2022. The 2023 draft plan includes several energy efficiency measures, seeking to maximize the value of customer energy purchases in a cost-effective manner to improve customer bottom lines, reduce the cost to serve load during peak usage times, and delay or even eliminate the need to build additional resources. See MEEA’s comment on the IRP here.

    NPPD has completed four in-person stakeholder meetings and one virtual meeting, and comments on the draft were due by April 12. NPPD will review feedback and finalize the updated IRP and submit to the board and the Western Area Power Administration for approval in September 2023. To stay up to date, please visit NPPD’s website.

    How to Get Involved

    For more information about Nebraska or to get more involved, contact Arlinda Bajrami. 

    North Dakota

    Legislative

    North Dakota’s 68th Legislative Assembly began January 3. Since then, legislators have introduced several bills state’s laws pertaining to energy issues.

    HB 1234 was signed into law by Governor Burgum on March 15. The law prohibits cities and counties from connecting or reconnecting an electric, natural gas, propane or other energy utility service based on fuel source provided by a public utility, municipal utility, cooperative utility or propane service.

    HB 1315 was signed into law by Governor Burgum on April 12. The law requires applicants of proposed energy facilities to inform the commission that, before facility operations begin, owners/operators have filed interconnection agreements with affected regional transmission organizations or transmission owners.

    SB 2289 was signed into law by Governor Burgum on April 4. The law expands the jurisdiction of the interim Energy Development and Transmission committee to consider resource adequacy of the electric system.

    SB 2165 was signed into law by Governor Burgum on March 22. The law expands the membership of North Dakota’s Clean Sustainable Energy Authority from 16 to 17 voting members. SB 2165 also expands membership voting for non-authority voting members from 8 to 9.

    HB 1429, introduced by Rep. Novak, concerns state business practices with non-governmental companies. Most notably, the bill would prohibit the state from contracting with companies that “boycott” energy, mining and agriculture production efforts within the state of North Dakota. While HB 1429 passed the House by a vote of 93-0 in February, the House most recently refused to concur with the Senate version of the bill. HB 429 currently sits in the Conference Committee to reconcile differences between the House and Senate versions.

    SB 2161, introduced on January 6 by Sen. Sickler, would eliminate a 2027 sunset for funding the state’s Energy and Environmental Research Center. This bill complements the decision of a North Dakota Senate panel to increase the funding cap for the Energy and Environmental Research Center from $5 million to $10 million. While SB 2161 was voted out of the Senate on February 3, the Senate most recently refused to concur with the House version of the bill. Therefore, SB 2161 currently sits in the Conference Committee, awaiting attempts to reconcile the Senate and House versions of the bill.

    HB 1345 was introduced by Rep. Satrom on January 11. HB 1345 would allow the state to give contracting priority to companies that support the state’s agriculture and energy industries. HB 1345 passed in the House (85-8) on February 20 and was received by the Senate on February 21. HB 1345 most recently received a first reading by the Senate Committee on Agriculture and Veterans Affairs on March 16.

    Regulatory

    North Dakota state officials are preparing to sue Minnesota Governor Tim Walz over a February 2023 law that requires Minnesota’s electric utilities to produce 100% clean energy by 2040. Not long after Governor Walz signed the law, the North Dakota Industrial Commission unanimously agreed to consider a lawsuit to challenge Minnesota’s clean energy legislation. While no lawsuit has yet been filed, the Industrial Commission has requested $3 million from the state legislature for legal fees associated with the effort to prepare a lawsuit against Minnesota.

    How to Get Involved

    If you have any questions about North Dakota or want to get more involved, contact Christian Koch. 

    Legislative

    The Ohio legislature opened its 2023 session on January 2. Energy and utility bills that have been introduced in Ohio this session include:

    HB79 would allow utilities to establish limited voluntary EE programs with a target of 0.5% of retail sales and a cost cap at 2.5% of revenue. Favorable provisions include a minimum spend requirement for low-income programs and limitation of lost revenue recovery to the duration of the portfolio. On the other hand, it also includes some problematic features, including an automatic opt-out for all mercantile customers and broad opt-out eligibility for residential customers that would persist for subsequent portfolios until the customer opts back in. Sponsor testimony was heard on April 19 (video).

    HB41 would require that utility bills itemize generation, distribution, transmission and supply, as well as any riders, in utility bills. The bill has not moved in House Public Utilities since its referral on February 16.

    Regulatory

    Ohio’s Office of Consumers’ Counsel (OCC) head Bruce Weston intends to retire in the coming months, although he has yet to pick a departure date. The agency’s nine-member board, appointed by the attorney general, will hire his successor. Read the full announcement from the OCC here. There is not yet any news on an appointment.

    PUCO has granted an application for rehearing in the Columbia Gas of Ohio rate case for the limited purpose of further consideration. The stipulated agreement was modified and approved, cutting all energy efficiency except for $14 million for low-income energy efficiency programs. A stipulated provision in which the utility agreed to not pursue or support customer DSM programs through legislation was eliminated as beyond the authority of the commission to approve or enforce.

    AEP Ohio filed an energy efficiency plan as part of its Standard Service Offer approval in 23-0023-EL-SSO. The energy efficiency plan is part of the utility’s fifth Electric Security Plan (“ESP V”) proposal and would allocate $43 million annually for voluntary efficiency, including $800,000 for R&D and $1.45 million for education and training. The company is proposing using a customized cost-effectiveness test that includes some quantified non-energy impacts (NEIs). The case is ongoing and a virtual public hearing has been scheduled for May 9.

    How to Get Involved

    For more information about Ohio or to get more involved, contact Greg Ehrendreich. 

    South Dakota

    Legislative

    The South Dakota legislature closed its 2023 session on March 27.

    HB 1239/SB 174 was signed into law by Governor Noem on March 14. The law prohibits local ordinances from prohibiting the use, production, manufacture or transport of fuel gas appliances within the state.

    How to Get Involved

    If you have any questions about South Dakota or want to get more involved, contact Christian Koch.

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    Legislative

    The Wisconsin legislature opened its 2023 legislative session on January 3. Little legislation related to energy has been introduced to date, but there are three bills preventing the restriction of fuel sources.

    SB49/AB45 would bar municipalities from restricting certain fuel types, effectively preventing jurisdictions from banning the use or installation of natural gas infrastructure. The bill was referred to committee in both legislative chambers.

    SB212/AB142 would prevent state agencies or local governments from restricting the sale or use of motor vehicles based on the energy source used to power the motor vehicle. The Assembly passed AB142 on April 18. The Senate received the bill and assigned it to committee.

    SB213/AB141 would restrict state agencies or local governments from restricting the sale or use of devices based on the energy source used to power the device. The Assembly passed AB141 on April 18. The Senate received the bill and assigned it to committee.

    Executive

    On April 19, Governor Evers signed Executive Order #195, creating the Green Ribbon Commission on Clean Energy and Environmental Innovation. The Commission will be tasked with advising the creation of the state’s Green Innovation Fund, which will serve as Wisconsin’s first green bank.

    Regulatory

    At the April 13 meeting, the Wisconsin Public Service Commission determined that Focus on Energy shall be the implementer for Inflation Reduction Act funds from the Home Energy Performance-Based, Whole-House Rebates (HOMES) and High-Efficiency Electric Home Rebate (HEEHRA) programs. The Commission also decided that the rebates should be administered as separate programs and not folded into the Focus portfolio.

    Governor Evers has appointed Summer Strand to the Wisconsin Public Service Commission. Strand was appointed to the seat recently vacated by Commissioner Ellen Nowak whose term ended March 1. This appointment is effective March 2, 2023, for a six-year term expiring in 2029.

    In 2022 the Commission held several workshops on performance-based regulation, as set out in the roadmap-to-zero-carbon docket, Docket 5-EI-158. WPSC staff will now work to compile materials from the workshops and stakeholder comments into a report for the Commission in early 2023.

    How to Get Involved

    For more information about Wisconsin or to get more involved, contact Maddie Wazowicz. 

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    Executive

    On April 19, the US EPA released an implementation framework for the Greenhouse Gas Reduction Fund created by the Inflation Reduction Act. A total of $27B will be competitively awarded through three separately administered programs:

    • The National Clean Investment Fund program will award a total of $14B to “two or three national nonprofits that will partner with private capital to deliver financing at scale” to private, public and community-based partners for clean energy projects.

    • The Clean Communities Investment Accelerator Program will award a total of $6B two to seven “hub” nonprofits to rapidly build clean energy financing capacity “for specific networks of public, quasi-public, and community lenders,” including Community Development Financial Institutions (CDFIs), housing lenders, green banks, credit unions and others. This financing will focus on educational and community institutions, households and small businesses in low-income and disadvantaged communities.
    • The $7B Solar for All competition will award up to 60 grants to states, tribes, local governments and nonprofits to expand residential and community solar investment in low-income and disadvantaged communities.

    These programs align with the Biden Administration’s Justice40 Initiative, which seeks to direct 40% of federal investments to disadvantaged communities - underserved or marginalized communities or those burdened by pollution.

    EPA has opened a comment period for technical and programmatic feedback through May 12. A number of public listening sessions will also be held before that date. EPA expects to open the competition for funding in summer 2023. For more information about the GGRF, visit its website.

    On March 1, the U.S. Environmental Protection Agency (EPA) announced the first phase of the new $5 billion Climate Pollution Reduction Grants (CPRG) Program. Established under the Inflation Reduction Act (IRA), the CPRG provides an initial $250 million funding to states, local governments, tribes and territories to develop plans for reducing greenhouse emissions and other harmful air pollution. Funds can be used to update existing climate, energy or sustainability plans or for the development of new plans. The remaining $4.75 billion in CPRG funding will be competitively awarded to implement projects identified in these plans. In the Midwest, the states of Iowa, Kentucky and South Dakota declined CPRG funding, having failed to file notices of intent to participate by a March 31 deadline. However, eligible metropolitan areas, including some in those three states, can still apply for $1 million planning grants. The deadline for metro areas to file notices of intent to participate is April 28.

    On April 4, the governors of Iowa, Nebraska and Missouri signed a memorandum of understanding to establish the Mid-Continent Clean Hydrogen Hub. This joint effort aims to secure federal funding of up to $1 billion towards the creation of a regional clean hydrogen hub. Similarly, on April 17, the governors of Illinois, Indiana and Michigan announced that they have also taken steps to partner and obtain up to $1.25 billion in federal funding for a regional clean hydrogen hub. These funding opportunities are made available through IIJA, which has allocated $8 billion to create four or more regional hydrogen hubs, complete with networks of hydrogen producers and users.

    On March 23, the Department of Energy finalized new energy efficiency standards for window air conditioners and portable air cleaners. DOE expects the standards to save Americans $1.5 billion per year and decrease CO2 emissions by 106 million metric tons over 30 years. The rules will come into effect in 2024 for air cleaners and 2026 for room air conditioners.

    The US Department of Energy (DOE) issued a Request for Information regarding the Home Energy Performance-Based, Whole-House Rebates (HOMES) and High-Efficiency Electric Home Rebate Act (HEEHRA), with the comment period ending on March 3. MEEA submitted a comment responding to the DOE’s request for input regarding equitable and efficient program design, tools, metrics and sustainability. You can read MEEA’s comments here. MEEA also signed onto collective comments submitted by the Energy Efficiency Strategy Group and the Illinois Clean Jobs Coalition.

    On November 22, the Biden-Harris Administration released a Notice of Intent announcing $550 million to support community-based clean energy in state, tribal and local governments through the Energy Efficiency and Conservation Block Grant Program. This funding is made available through IIJA. Pre-application information checklists for formula grant funding are open now and due on April 28.

    How to Get Involved

    For more information about federal issues, contact Jason Liechty. 

    resources

    Recent Blogs:

    Recent Testimony and Comments: