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:
- MEEA Policy Steering Committee
- State Updates: IL / IN / IA / KS / KY / MI / MN / MO / NE / ND / OH / SD / WI
- Federal Update
- New Resources & Blog Posts
MEEA Policy Steering Committee
Are you interested in learning more about energy efficiency policy and getting involved in MEEA’s policy work? Join the Policy Steering Committee! You will attend and engage in our quarterly meetings, with a direct line to our staff policy experts.
Please reach out to Senior Policy Associate Christian Koch with your interest or questions.
Legislative
The Illinois 103rd General Assembly is scheduled to reconvene for its 2024 session on January 16, 2024. A calendar of 2024 House and Senate legislative sessions can be found here and here.
On December 8, Governor Pritzker signed a series of bills that made their way through the legislature’s 2023 veto session. Newly enacted legislation includes:
- SB 1699, which includes the same language as this year’s energy omnibus bill (HB 3445) without language that would have allowed downstate utilities a right of first refusal for the construction of new transmission lines.
- SB 1769, which requires state agencies to transition to a zero-emissions vehicle fleet by January 1, 2030, and establishes a requirement for all newly constructed single-family homes and multi-unit residential buildings to be EV-capable.
- SB 384, which includes language clarifying the EV Charging Act to require both prospective and existing multi-family residential buildings and condo associations to install EV charging stations on their properties.
Regulatory
The Illinois Commerce Commission issued a decision on rate cases for the state’s gas IOUs (Nicor Gas, Peoples Gas, North Shore Gas and Ameren Illinois), approving rate increases, though at a lower rate than initially proposed. Notably, the ICC voted to institute low-income discounts that will reduce bills for those with incomes three times above the federal poverty limit and below. Starting in October 2024, bills could be discounted by 80% for the state’s most impoverished residents. The ICC also initiated a future of gas proceeding that will study utilities’ future infrastructure investments and consider how the gas system will be impacted by increased decarbonization and electrification programs.
The Illinois Environmental Protection Agency’s Office of Energy announced a Notice of Funding Opportunity from the state’s Energy Efficiency Trust Fund – a state funding program created in 1997 intended to benefit residential electric customers through energy efficiency. Project funding from $25,000 to $50,000 is currently available to public housing authorities, local governments and nonprofit organizations that are implementing energy efficiency improvements for the benefit of residents receiving housing assistance from a state or federal program and are also located in an area of environmental justice concern. See more information about the Energy Efficiency Trust Fund here.
During a December 8 meeting, the Illinois Energy Efficiency Stakeholder Advisory Group (SAG) received presentations from independent evaluators on Nicor Gas, Peoples Gas and North Shore Gas’ 2024 Evaluation Measurement & Verification (EM&V) plans, as well as updates on their 2024-2025 EM&V evaluation plans. Materials from this meeting are posted on the SAG website. The next full SAG meeting is scheduled for January 17 and will include an overview of the 2024 SAG Plan and will kick-off the SAG Portfolio Planning Process. More information on SAG’s next meeting can be found here.
How to Get Involved
For more information about Illinois or to get more involved, contact Christian Koch.
Legislative
The 2024 Indiana legislature will hold a short session, as is normal in even-numbered years. A calendar of 2024 House and Senate legislative sessions can be found here and here.
- Session opens: 1/8/2024
- Senate Bill filing deadline: 1/9/2024
- House Bill filing deadline: 1/11/2024
- House Committee report deadline: 1/30/2024
- Senate Committee report deadline: 2/1/2024
- Last day to adjourn sine die: 3/14/2024
Regulatory
2024 Integrated Resource Plans (IRPs) are expected from:
- Publicly-owned utilities – expected filing date has been extended for all the utilities.
- Hoosier Energy – extended to April 1, 2024
- Indiana Municipal Power Agency (IMPA) – extended to February 1, 2024
- Wabash Valley – extended to May 1, 2024
Updates from the Commission on IRPs in Indiana will be posted to the IURC’s IRP page.
How to Get Involved
For more information about Indiana or to get more involved, contact Greg Ehrendreich.
Legislative
Iowa’s legislative session is set to commence on January 8.
Regulatory
The Iowa Utilities Board held three policy charrettes in response to the passage of HF 617, which required the IUB to review utility ratemaking procedures. MEEA actively participated and submitted comments for all three charrettes, which are available here. The consultants managing the process are working towards compiling a legislative report, which is expected to be completed by January 1, 2024.
Iowa investor-owned utilities’ Energy Efficiency Portfolio (EEP) planning processes are currently underway, with IOUs filing their new five-year plans (2024-2028). The IUB concluded that MidAmerican Energy (docket EEP-2022-0156) and Black Hills Energy (docket EEP-2022-0225) plans meet the requirements set forth in the Iowa Code and contain programs tailored to all customer classes and low-income customers.
The IUB also approved the plan of Interstate Power and Light, a subsidiary of Alliant Energy, and endorsed the company’s proposed decision on interruptible credits (docket EEP-2022-0150). To be added to the EPP stakeholder list and receive updates and meeting information, please email Jennifer Easler.
How to Get Involved
For more information about Iowa or to get more involved, contact Arlinda Bajrami.
Legislative
The Kansas Legislature convenes its annual session starting on January 8. The 2024 session deadlines for introduction and consideration of bills have also been established.
Regulatory
The update to Evergy’s Five Year Capital Investment Plan (CIP) was filed under docket 19-KCPE-096-CPL. After months of proceedings and comments, KCC Staff released their initial Report and Recommendations on July 10. Evergy published its response to recent comments by Staff and interveners on October 2, notably responding to Staff’s recommendation on the increasing importance of energy efficiency measures as electrification activities increase. On November 21, the KCC ruled that Evergy’s CIP and IRP meet the required framework and are approved.
How to Get Involved
For more information about Kansas or to get more involved, contact Natalie Newman.
Legislative
The 2024 legislative session convenes on January 2. See the calendar here.
- Session convenes: 1/2/2024
- House bill filing deadline: 2/26/2024
- Senate bill filing deadline: 2/28/2024
- Veto session: 3/29-4/9/2024
- Session adjourns sine die: 4/15/2024
Regulatory
LG&E/KU’s 2024-2030 DSM-EE plan was approved in Case 2022-00402. The approved plan will spend $45-50 million/year, about triple the annual spending for existing programs. It will include an expanded suite of cost-effective programs, with an Income-Qualified program designed to reach 5,400 customers a year.
How to Get Involved
For more information about Kentucky or to get more involved, contact Greg Ehrendreich.
Legislative
The Michigan legislature adjourned Sine Die on November 14 and is set to return on January 10. Before session adjournment, and after months of debate and negotiations, Michigan passed and enacted several energy laws. Collectively, SB271, SB273 and SB502 dramatically alter the state’s energy framework. See below for details of the laws.
SB 271 (Sen. Geiss): Sets renewable energy and clean energy goals
- Mandates electric investor-owned utilities generate or acquire renewable energy of at least 15% through 2027, 50% by 2030 and 60% by 2035
- Requires electric providers achieve a clean energy portfolio of 80% by 2035 and 100% by 2040
- Defines which resources count as renewable and which are considered clean
SB 273 (Sen. Singh): Modifies EWR program
- Raises the EWR standard for electric utilities to 1.5% in annual savings, with an incentive structure to encourage utilities to reach 2.17%
- Raises the EWR standard for gas utilities to .875% in annual savings, with an incentive structure to encourage utilities to reach 1.25%
- Encourages gas utilities to direct at least 67% of their EWR program spend on measures that reduce heating load
- Adds municipal and cooperative utilities back into the EWR standard
- Defines efficient electrification and allows it within the EWR program
- Allows municipal and cooperative electric utilities and all gas utilities to claim savings from efficient electrification measures toward their EWR goals
- Mandates electric utilities direct at least 25% of their EWR portfolio spending on low-income EWR programs; gas utilities must spend 35%
SB 502 (Sen. Shink): Expands the charge of the MPSC
- Requires utilities in IRPs to assess the potential of electrification, include environmental justice impacts, include affordability impacts and project greenhouse gas emissions and pollutants from power generated or purchased by the electric utility
- Allows the MPSC to consider affordability, environmental impacts and health impacts in IRP decisions
- Increases funding for the utility consumer representation board
- Mandates that the MPSC study how to better expand opportunities for public engagement in its decision-making processes
Read our new blog post for additional details on the legislation.
Before the close of session, the Michigan House also passed HB5028. The bill would prohibit homeowners’ associations from preventing Michigan homeowners from installing, replacing or maintaining energy-saving improvements, like heat pumps, insulation, energy efficient appliances and more. The bill then landed in the Senate, where it was assigned to the Committee on Energy and Environment on November 2.
Regulatory
The MPSC has approved a settlement agreement for DTE’s 2024-25 EWR plan in Docket U-21322. The settlement maintains much of the original programming and funding levels, though it does add a few stipulations. Among them, DTE will:
- Increase its efforts to reach low-income customers with building shell improvements like air-sealing and insulation
- Limit behavioral EWR savings to 10% of portfolio savings
- Increase its data collection and reporting
- Bolster its partnership with the Department of Environment, Great Lakes and Energy to ensure its EWR efforts align with the state’s Inflation Reduction Act implementation
Consumers Energy filed its 2024-25 EWR plan in Docket U-21321. Consumers sets a target of 1.90% annual electric savings and 1.00% annual gas savings, planning to spend $190.9 million in 2024 and $180.0 million in 2025 on the electric side and $95 million annually on the gas side.
The MPSC has directed Commission Staff to convene a two-day technical conference on electric vehicle issues. The conference is scheduled for January 24-25 and is set to explore a variety of issues, including managed charging to lessen grid strain, utility charging pilots and programs and the role of utilities in expanding the state’s charging network. More information can be found in Docket U-21492.
Expanding on previous work in the MI Power Grid collaborative, the MPSC has directed Staff to launch a collaborative to develop a new platform for benefit-cost analysis that utilities will use for pilot projects going forward. The goal is to increase transparency by demonstrating what inputs, outputs and equity considerations go into determining pilot cost-effectiveness. More information can be found in Docket U-20898.
How to Get Involved
For more information about Michigan or to get more involved, contact Maddie Wazowicz.
Legislative
The Minnesota legislature returns to session on February 12. The 2024 session will end by May 20.
Regulatory
Commissioner Matt Schuerger has announced his resignation from the Minnesota Public Utilities Commission (PUC). Governor Walz is currently accepting applications for the position here. The term is set to expire in January 2028.
The Deputy Commissioner of Commerce has issued decisions on the investor-owned utilities’ triennial energy conservation and optimization plans. The final decisions did not substantially vary from the Staff decisions issued in late October. Plans and decisions can be found in the following dockets:
- Xcel Energy: 23-92
- CenterPoint Energy: 23-95
- Minnesota Power: 23-93
- Minnesota Energy Resources Corporation: 23-98
- Otter Tail Power Company: 23-94
The PUC continues its work in docket 23-117 to determine the scope of natural gas integrated resource plans (IRPs). In February 2023, the PUC ordered that the state’s IRP process be expanded to include gas utilities. Since that order, the Great Plains Institute has been holding an ongoing workshop series to determine the parameters for gas IRPs. The PUC is asking for reply comments by December 29 on original comments regarding an October 24 filing from the Citizens Utility Board.
How to Get Involved
For more information about Minnesota or to get more involved, contact Maddie Wazowicz.
Legislative
The Legislative sessions for the Missouri House of Representatives and Senate will convene on January 3 and are scheduled to conclude on May 17, 2024.
Regulatory
Missouri’s triennial Integrated Resource Planning (IRP) process was initiated, with Ameren Missouri releasing its 20-year IRP in late September. The proceedings can be monitored at docket EO-2024-0020. Applications to intervene were approved by the Commission on November 16. Commission Staff and other interveners must file reports on the filing by February 28, 2024.
On November 16, the PSC approved the Stipulation and Agreement to extend Evergy Missouri’s Missouri Energy Efficiency Investment Act (MEEIA) Cycle 3 plan into 2024, which were both filed in docket EO-2019-0132. The Stipulation goes into effect on December 16, 2023, and includes the continuation of Evergy’s Urban Heat Island pilot project, as well as a $2,000,000 spending floor for Income-Eligible programs. A new procedural schedule for Evergy’s MEEIA Cycle 4 filing is due by January 1, 2024.
Previously, on August 23, the PSC approved the Plan Year 2024 Stipulation for Ameren Missouri’s MEEIA Cycle 3 extension in an order, which took effect on September 2. The parties filed a Joint Status Report and Joint Motion to Adopt Procedural Schedule in docket EO-2023-0136, which the Commission approved in an order adopting the updated procedural schedule on October 4. The amended MEEIA 4 Plan Application date is set for January 16, 2024.
Evergy is working with the Mid-America Regional Council (MARC) on an Urban Heat Island Mitigation pilot program. A draft proposal for the program - Kansas City Urban Heat Island Analysis and Mitigation Proposal - was shared with previously involved stakeholders in the Urban Heat Island Work Group for their review and feedback in preparation for submission to the Missouri Public Service Commission. MARC will be establishing a stakeholder group to guide the pilot in early 2024. Please reach out to Ryan Umberger at MARC if you are interested in getting involved.
How to Get Involved
For more information about Missouri or to get more involved, contact Natalie Newman.
Legislative
Nebraska’s 2024 legislative session is slated to run from January 3, 2024, through mid-April 2024. One notable bill to keep an eye on is LB164, currently under review by the Urban Affairs Committee. LB164 aims to adopt the 2021 International Energy Conservation Code (IECC) to ensure that minimum energy efficiency standard is maintained throughout the state.
Executive
The Nebraska Department of Environment and Energy (NDEE) is set to receive a $3 million grant through the Environmental Protection Agency (EPA) Climate Pollution Reduction Grant (CPRG) program. This grant will support the development of a Priority Climate Action Plan by March 1, 2024, and a Comprehensive Climate Action Plan by late summer 2025.
NDEE has established five stakeholder working groups to consider greenhouse gas emission reduction measures, including transportation, agriculture/natural and working lands, industry/waste and wastewater, energy production and buildings/housing communities. Interested parties and the public will be engaged over the next two years. To participate in a stakeholder working group and register for the upcoming sessions, visit the program web page. For further information about the stakeholder working group sessions and the program, contact NDEE via email at NDEE.climatepollution@nebraska.gov.
How to Get Involved
For more information about Nebraska or to get more involved, contact Arlinda Bajrami.
Legislative
The North Dakota legislature meets biennially in odd-numbered years and is therefore not scheduled to convene until January 7, 2025.
On November 9, the Chairman of North Dakota’s Energy Development and Transmission Committee called for an interim committee meeting for December 18. The meeting included presentations on the committee’s recent studies on sustainable energy policies and natural gas accessibility in small communities. The meeting agenda can be found here.
Regulatory
During the National Association of Regulatory Commissioners’ (NARUC) Annual Meeting and Education Conference in November, Commissioner Fedorchak was elected President of the organization. More information about this announcement can be found in NARUC’s press release.
How to Get Involved
For more information about North Dakota or to get more involved, contact Christian Koch.
Legislative
The 2024 session convenes on January 2 as a carryover session. See the calendar here. Session runs the full calendar year and is currently scheduled through June.
- Session convenes: 1/2/2024
- Session adjourns: 12/31/2024
Energy efficiency bill HB79 would allow utilities to establish limited voluntary EE programs. Most observers do not expect the bill to make it to the House floor until after the March primary election.
Regulatory
First Energy has applied for a $72.1 million / 4-year energy efficiency and demand response program as part of its Standard Service Offer (SSO) case in docket 23-0301-EL-SSO. Summary of current EE testimony: Under its new leadership, the Office of Consumer Counsel opposes the inclusion of any non-low-income EE, consistent with its position in past cases. Ohio Partners for Affordable Energy supports low-income EE. The Retail Energy Supply Association believes its members can meet all of the market need without utility programs. PUCO Staff supports only the inclusion of low-income programs and demand response.
How to Get Involved
For more information about Ohio or to get more involved, contact Greg Ehrendreich.
Legislative
The South Dakota legislature will convene January 9, 2024 and is expected to conclude in early March 2024.
How to Get Involved
For more information about South Dakota or to get more involved, contact Christian Koch.
Legislative
Wisconsin legislators will return on January 16. Prior to the end of their 2023 session Senators Cowles and Stroebel introduced a suite of bills (SB646 - SB651) that would alter Wisconsin Public Service Commission rules. Among other tweaks, the bills would mandate utilities alert customers of potential rate increases, require the PSC to produce year-end reports summarizing docketed activity and adjust PSC complaint procedures.
SB651 would require electric utilities and cooperative associations to submit integrated resource and reliability plans. The plans would outline future construction, project future energy demand and assess whether a utility has sufficient capacity to meet demand at a reasonable price. The plan would also describe programs and policies for discouraging “inefficient” energy usage. A mandate for utilities to submit these plans would replace the requirement that the PSC prepare a biennial strategic energy assessment. The bill was referred to the Senate Committee on Utilities and Technology on November 9.
Additionally, Wisconsin Democrats have released a suite of climate and energy related bills. Among the bills are:
- SB795: would double the mandated amount utilities must pay into the Focus program, from 1.2% of its annual retail sales revenue to 2.4%
- SB806: would add a mandate that the Focus on Energy program promote energy efficiency and renewable energy measures for low-income households
- SB775: would create a $20 million appropriation to the PSC Energy Innovation Grant Program, which would fund energy efficiency innovation
- SB777: would require the Department of Safety and Professional Services to establish a stretch energy code
- SB784: would require the PSC to establish an on-bill financing program to finance energy improvements at residences
The bills have been assigned to committee.
The Senate Committee on Utilities and Technology held a hearing to consider the appointments of Public Service Commissioners Summer Strand and Tyler Huebner. On October 6, the Committee voted unanimously to approve the appointment of Commissioner Strand, sending the appointment to the floor for a full Senate vote. Commissioner Huebner’s appointment is still being considered by the Committee.
Three bills preventing the restriction of fuel sources passed both chambers and were subsequently vetoed by Governor Evers on August 4.
- SB49/AB45 would bar municipalities from restricting certain fuel types, effectively preventing jurisdictions from banning the use or installation of natural gas infrastructure.
- 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.
- SB213/AB141 would prohibit state agencies or local governments from restricting the sale or use of devices based on the energy source used to power the device.
On September 14, the Senate overrode the veto of SB49/AB45. The bill now goes to the Assembly where the chamber will also vote to override the veto. It is unclear if the Legislature will attempt to override the vetoes of the other two bills.
How to Get Involved
For more information about Wisconsin or to get more involved, contact Maddie Wazowicz.
Executive
Federal agencies continue to roll out programs funded under the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA).
EPA recently announced The Community Change Grants Program – a funding opportunity under the IRA Environmental and Climate Justice Program – which aims to fund environmental and climate justice activities for local community organizations that benefit disadvantaged communities. Approximately $2 billion will be allocated towards projects that reduce pollution, increase community climate resilience and build community capacity to address environmental and climate justice challenges. The Notice of Funding Opportunity is now open, with rolling applications accepted and a final deadline of November 21, 2024.
DOE extended the deadline for state energy offices to apply for Training for Residential Energy Contractors (TREC) grants (formerly known as Home Energy Efficiency Contractor Training Grants) to January 31, 2024. DOE will award $150 million in formula grants to states and up to $40 million in competitive grants to educate, test and certify contractors to perform residential energy efficiency and electrification upgrades like those funded by the Home Energy Rebates program. State energy offices must apply to DOE to receive this funding (even for the formula grants), and MEEA can provide assistance with applications. Please contact us for more information.
The Climate Pollution Reduction Grants program will be accepting applications from states and metro areas until April 1, 2024, and from Tribes and territories until May 1, 2024. The EPA will award $4.6 billion to implement climate pollution reduction plans developed by states and metro areas. Those plans were seeded by $250 million in planning funds awarded earlier this year. EPA has emphasized that it will prioritize awards for “measures that achieve the greatest amount of GHG reductions.”
How to Get Involved
Information about a number of federal funding opportunities can be found on the Funding Roundup page of MEEA’s website.
For more information about federal matters, contact Maddie Wazowicz.
Recent Publications:
- Ohio State Fact Sheet
- Non-Energy Impacts of Energy Efficiency Fact Sheet
- Integrated Resource Planning Fact Sheet
- White Paper: Assessment of Combined Heat and Power Systems in the Midwest’s Top Manufacturing Industries
Recent Blogs:
- Unpacking CA's Total System Benefits Metric and the NSPM
- Detroit Passes Benchmarking Ordinance as Part of City’s Climate Strategy
- Michigan Passes Transformative Energy Efficiency Legislation
- The Future of Energy Efficient Building Construction
- ICJC and Chicagoland Chamber of Commerce Host the Illinois Clean Energy Champion Awards
- Looking Back on 100 Issues of the Policy Insider
Recent Testimony and Comments:
- MEEA Comments on a Minnesota Gas Integrated Resource Planning Structure
- MEEA Post-Comments for Policy Charette #3
- MEEA Comments on Homeowner Association Restrictions on Energy-Saving Improvements - Michigan
- MEEA Pre-comments for Iowa Policy Charette #2
- MEEA Comments on Wisconsin Quad Plan IV Cost-Effectiveness Memo