MEEA Policy Insider - July 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:

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 at our quarterly meetings, with a direct line to our staff policy experts.

Please reach out to Policy Associate Christian Koch with your interest or questions. 

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Legislative

The Illinois General Assembly adjourned for its Summer 2023 recess on May 27 and will reconvene in the fall for a two-week veto session.

Regulatory

On June 20, Doug Scott officially started his tenure as Chair of the Illinois Commerce Commission (ICC), following his appointment to the ICC earlier this year to serve out the remainder of outgoing Chair Carrie Zalewski’s term.

On July 19, the ICC released a draft rule for the Equitable Energy Upgrade Program (EEUP). The rule update includes new information on consumer protections, cost recovery and other information regarding financial structures associated with EEUP. The ICC will hold its next EEUP virtual workshop on July 31 to review the draft rule, followed by another workshop on August 24, after which a final draft rule will be released for comment. It is expected that the ICC will hold one last EEUP workshop in October to resolve any outstanding matters before issuing a final EEUP rule.

How to Get Involved

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

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Legislative

The Indiana legislature has adjourned Sine Die. The Energy, Utilities, and Telecommunications Interim Study Committee does not have any scheduled meetings.

Regulatory

2023 Integrated Resource Plans (IRPs) are expected from:

  • Investor-owned utilities
  • Publicly-owned utilities - expected filing date November 1.
    • 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 or to get more involved, contact Greg Ehrendreich. 

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    Legislative

    Iowa’s legislative session ended on May 4.

    Regulatory

    The Iowa Utilities Board (IUB) has hired an independent consultant to guide the review process required by HF 617, which was enacted into law earlier this year. Under this legislation, the IUB must initiate and coordinate an independent review of current Iowa Code provisions and utility ratemaking procedures. The review aims to assess cost-effectiveness and ensure utility rates accurately reflect service costs, aligning with policy goals of ensuring safe, adequate, reliable and affordable utility services provided at rates that are at nondiscriminatory, just and reasonable based on the utility’s cost of service within the state.

    To participate and share input, individuals and organizations must submit an intent to participate letter to the IUB’s docket, identified as NOI-2023-0001, by July 31.

    Iowa investor-owned utilities’ (IOUs) Energy Efficiency Portfolio (EEP) planning process is currently underway, with IOUs filing their new five-year plans (2024-2028). The IUB has set procedural schedules and public hearings for all IOUs.

    • Interstate Power and Light Company, a subsidiary of Alliant Energy, filed its plan on November 1, 2022, in docket EEP-2022-0150. A public hearing was held on June 8, 2023, and a transcript of the hearing can be found here. The hearing concluded with mutually agreed-upon initial briefs scheduled for 14 days after the hearing.
    • MidAmerican Energy filed its plan on February 1 in docket EEP-2022-0156, with a public hearing set for August 24.
    • Black Hills Energy filed its plan on March 31 in docket EEP-2022-0225, with a public hearing set for October 17.

    Jennifer Easler is now the point of contact for the EEP process. To be added to the EPP stakeholder list and receive updates and meeting information, please email jennifer.easler@oca.iowa.gov.

    How to Get Involved

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

    Legislative

    The Kansas legislature adjourned Sine Die on April 28.

    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 Kansas Corporation Commission (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 was anticipated this spring, but nothing has been published to date.

    This may be due to the Commission’s recent focus on the update to Evergy’s Five Year Capital Investment Plan, filed under docket 19-KCPE-096-CPL. Evergy released its 2023-2027 Capital Investment Plans for Kansas Central and Kansas Metro regions in February 2023 and its 2022 annual update in June 2023. After months of proceedings and comments, KCC staff released their Report and Recommendations on July 10. Although staff noted their concern with the continued growth of the plan to $7.6 billion, they concluded that Evergy customers would likely see only moderate rate increases and that spending would be below the average of other electric-only investor-owned utilities. Staff requested an extension to file comments by August 31, which the Commission approved in an order on July 20.

    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 has adjourned Sine Die. The Interim Committee on Natural Resources and Energy met in early June and will most likely continue to do so monthly through November, per previous schedules.

    Regulatory

    LG&E and KU, including its subsidiary ODP, are hosting a series of Demand-Side Management (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. All bills were heard at the Senate Committee on Energy and Environment on June 22.

    The package includes the following seven bills:

    • SB271 (Sen. Geiss)- amends the state’s renewable standard by mandating that electric utilities reach 100% renewable generation by 2035.
    • SB272 (Sen. Shink)- expands the purview of the Michigan Public Service Commission (MPSC) by allowing commissioners to consider climate, health, equity and affordability when analyzing utility plans.
    • SB273 (Sen. Singh)- expands the existing energy waste reduction (EWR) framework by adding municipal and cooperative utilities back into the EWR standard and mandating that electric utilities now reach 2% in annual savings.
    • SB274 (Sen. Shink)- requires the development of a plan to reduce greenhouse gas emissions from buildings.
    • SB275 (Sen. Singh)- establishes a standard to reduce the carbon intensity of transportation fuels.
    • SB276 (Sen. Bayer)- requires utilities to retire coal-fired generation by preventing them from including the resource in their integrated resource planning process.
    • SB277 (Sen. McDonald Rivet)- allows farmers to lease land for solar energy production.

    House Democrats unveiled their energy package on June 14. The bills touch on similar issues as the Senate package but differ in language and timelines. This package was heard on June 21 by the House Committee on Energy, Communications and Technology.

    The package includes the following three bills:

    • HB4759 (Rep. Coffia)- amends the state’s renewable standard by mandating that electric utilities reach 60% renewable generation by 2030 and 100% carbon-free generation by 2035, which excludes hydrogen, nuclear and some other resources.
    • HB4760 (Rep. Pohutsky)- expands the purview of the MPSC by allowing commissioners to consider climate, health, equity and affordability when analyzing utility plans.
    • HB4761 (Rep. Aiyash)- expands the existing EWR framework by mandating that electric utilities now reach 2.0% in annual savings and natural gas utilities reach 1.5%. The bill also amends EWR filing timelines, prioritizes EWR programs for low-income customers and legalizes electrification within the EWR program.

    SB288 (Sen. Singh) passed the Senate on May 24 and the House on June 21. The Governor is expected to sign it. The bill would repeal the sunset date of September 30, 2023, for the Michigan Energy Assistance Program, which provides energy assistance to low-income customers. The original sunset had been extended twice; this bill would eliminate it altogether.

    The Commercial Property Assessed Clean Energy (C-PACE) bill package of SB 302 (Sen. Camilleri) and SB 303 (Sen. McDonald Rivet) passed both the House and Senate. Together, these bills amend Michigan's PACE Act to allow commercial property owners the option to waive a currently existing energy saving guarantee for PACE financing above $250,000, as required in the Michigan PACE Act, and expand the qualifying energy conservation measures under the Michigan PACE Act to include financing to remediate certain environmental hazards and outlines specifications for new construction PACE energy projects.

    In response to outages and reliability concerns that occurred earlier this year, the Chair of the Energy, Communications and Technology Committee, Representative Helena Scott, announced the Energy Reliability, Resiliency and Accountability Task Force. The bipartisan Task Force will hear from impacted stakeholders at sessions throughout the state. The Task Force kicked off in June with meetings in Lansing, Detroit and Flint, with additional meetings scheduled this summer in Marquette, Lansing, Grand Rapids, Benton Harbor and Ferndale.

    Executive

    Governor Whitmer has named Phil Roos as the new Director of the Department of Environment, Great Lakes and Energy (EGLE), replacing Dan Eichinger.

    Regulatory

    Governor Whitmer has appointed Alessandra Carreon to the MPSC, succeeding Commissioner Tremaine Phillips. Carreon previously worked on the carbon-free transportation team at RMI. Carreon’s term began on July 23 and expires on July 2, 2025. Additionally, Whitmer reappointed Chair Dan Scripps to a second term, which began July 3 and will expire on July 2, 2029.

    DTE filed its 2024-25 energy waste reduction plan in docket U-21322. DTE sets a target of 2.00% annual electric savings and 1.05% annual gas savings. DTE plans to spend $197.9 million in 2024 and $209.4 million in 2025 on the electric side and $50.6 million in 2024 and $50.7 million in 2025 on the gas side. The plan increases the company’s spending on low-income programs and maintains a level of targeted energy savings similar to what DTE achieved in 2022, as evidenced by the recent release of DTE’s 2022 reconciliation filing in docket U-21313.

    DTE Electric submitted its IRP settlement agreement on July 12 to the MPSC for approval in docket U-21193. The revised plan accelerates the retirement of the company’s coal plants, ending DTE’s coal usage by 2032. On the energy waste reduction side, the plan commits DTE to achieving 2% annual energy savings through 2027 while increasing the annual amount spent on income-qualified EWR programs to $44 million in 2024 and $54 million in 2025-2027. DTE will file its next IRP by December 2026.

    In a recent order, the MPSC voted to establish a new Financial Incentives and Disincentives workgroup. The workgroup will mostly focus on what rate structures and financial incentives or disincentives could assist in improving distribution reliability in the wake of recent outages. The workgroup is required to submit a report to the commission on its findings by December 31, 2023.

    How to Get Involved

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

    Legislative

    The Minnesota legislature has wrapped up its 2023 session.

    The House climate and energy omnibus bill, HF2310, passed the House and Senate and was signed into law by Governor Walz. Among its numerous provisions, the bill:

    • Creates the Minnesota Climate Finance Authority to leverage public and private capital to spur development of clean energy projects.
    • Establishes a residential electric panel grant program that would provide funds to low-income homeowners and multifamily building owners to upgrade their electric panels.
    • Modifies 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.
    • Establishes 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.
    • Establishes a residential heat pump rebate program to provide additional funds to homeowners who access federal rebates for heat pumps from the Inflation Reduction Act.
    • Requires 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.
    • Amends the state’s greenhouse gas emissions reduction goal by requiring a 50% reduction by 2030 (on a 2005 baseline) and net zero by 2050.
    • Requires utilities to submit annual reports on their efforts to increase workforce diversity.

    Regulatory

    The state’s investor-owned utilities have submitted their triennial Conservation Improvement Program (CIP) plans. Plans can be found in the following dockets:

    Comments on CIP plans are due August 9 with reply comments due August 24. A final decision on the plans is expected on November 9, though it’s possible this timeline may be amended.

    CenterPoint has submitted its first Natural Gas Innovation Plan in docket 21-566. The plan details proposed pilots, research and development programs, budgets, energy savings, job impacts and more. Among the eighteen pilots are a few that touch on efficiency, like:

    • Residential deep energy retrofits and electric air source heat pumps- would fund significant energy efficiency improvements and install heat pumps with gas backup.
    • Residential and commercial gas heat pumps- would fund the development and testing of gas heat pumps.
    • Small/medium business GHG audit; industrial and large commercial GHG audit – would expand CIP offerings to include additional GHG-reducing opportunities.

    The plan also includes seven research and development projects. These include testing marketing and outreach strategies for weatherization blitzes and testing a multi-prong approach to integrate high-preforming building envelopes in new commercial construction.

    How to Get Involved

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

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    Legislative

    The Missouri legislature adjourned its 2023 session on May 12.

    Regulatory

    Ameren Missouri filed its Cycle 4 Missouri Energy Efficiency Investment Act (MEEIA) plan with the Missouri Public Service Commission on March 27, at 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 registered as interveners in the case. The plan calls for Ameren to spend $367 million for energy efficiency initiatives, including increased spending on income-eligible programs. Discussions between Ameren Missouri, PSC Staff, the Office of Public Counsel and other parties have produced a plan that continues Ameren’s current MEEIA Plan into 2024.

    On July 10, the involved parties released a joint status report and indicated they are close to reaching a Stipulation and Settlement to extend the current MEEIA 3 Plan for 2024 and on July 12 the Commission extended the filing deadline to August 16.

    Last year, the Missouri PSC approved time-of-use (TOU) rates as the default for the state’s electric investor-owned utilities. The mandatory TOU pricing will only apply to residential customers of these regulated utilities who have smart meters, allowing for the usage. All Evergy Missouri customers will be switched to TOU rates this fall; the new rate structure will take effect next year in the Ameren Missouri and Liberty service territories, with staggered implementation.

    Through Evergy Missouri’s MEEIA Cycle 2 plan 2023 extension year, Evergy hosted four working group sessions and identified relevant information, potential partners, outside funding streams and other considerations for a feasibility and vulnerability study regarding an Urban Heat Island (UHI) Mitigation program for its next MEEIA application, MEEIA Cycle 4. Evergy has now contracted the Mid-America Regional Council and other experts on program design. A draft proposal for the program - Kansas City Urban Heat Island Analysis and Mitigation Proposal - was shared with previously involved stakeholders for their review and feedback in preparation for submission to the Missouri Public Service Commission.

    How to Get Involved

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

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    Legislative

    Nebraska’s legislative session concluded on June 1. All energy-related bills mentioned in previous editions of the Insider failed to pass during the 2023 legislative session.

    Regulatory

    Nebraska Public Power District (NPPD), Nebraska’s largest electric utility, is updating its IRP, as is required every five years. The 2023 draft plan includes several energy efficiency measures which seek to maximize the value of customer energy purchases in a cost-effective manner, improving customer bottom lines, reducing the cost to serve load during peak usage times, and delaying or even eliminating the need to build additional resources. See MEEA’s comments on the IRP here.

    NPPD will review and finalize the updated IRP and seek approval from the board and the Western Area Power Administration in September 2023. For updates, visit NPPD’s website.

    How to Get Involved

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

    Legislative

    Energy efficiency bill HB79 would allow utilities to establish limited voluntary EE programs. The fourth hearing on the bill was held on June 21, with both proponent and opponent testimony, and the bill was passed out of committee. It was not heard on the floor before the summer break, but it is expected to be put on the House floor for a vote in the fall session.

    Regulatory

    Maureen Willis, acting legal director of the Ohio Office of Consumers’ Counsel (OCC) has been tapped to succeed Bruce Weston as the head of that agency. She has been at the OCC since 1982. She will begin her new position on October 1.

    The Public Utilities Commission of Ohio (PUCO) granted an application for rehearing in the Columbia Gas of Ohio rate case for the limited purpose of further consideration. The stipulated agreement was previously modified and approved, cutting all energy efficiency except for $14 million for low-income energy efficiency programs. The case is ongoing.

    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. The company is proposing using a customized cost-effectiveness test that includes some quantified non-energy impacts (NEIs). The case is ongoing.

    How to Get Involved

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

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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 Senate passed the bill on June 7 and sent the bill to the Assembly, where it passed out of committee on June 14. 

    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 passed the bill out of committee on June 2, and it awaits further scheduling. 

    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 passed the bill out of committee on June 2. It awaits further scheduling.

    Executive

    The Office of Sustainability and Clean Energy recently issued its Clean Energy Plan Progress Report. The report outlines efforts taken to advance the goals outlined in the state’s first-ever Clean Energy Plan, which was released a year ago.

    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. The Governor recently announced the commission’s members.

    How to Get Involved

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

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    Legislative

    The US Senate and US House have begun work on FY 2024 appropriation bills, but the different partisan control of each house means significant differences exist between the proposed amounts for energy efficiency programs. The House GOP bill would slash funding for the Weatherization Assistance Program (WAP), DOE Building Technologies Office, DOE Office of Clean Energy Demonstrations, DOE Advanced Manufacturing & Industrial Decarbonization Offices and Federal Energy Management Program. The Senate proposal maintains or slightly increases funding levels for these programs (although flat funding is effectively a cut, given inflation).

    Senator Peter Welch (D-VT) reintroduced the Access to Consumer Energy Information (or E-Access Act) in the current Congress. This bill would direct DOE to establish best practices and specific data-access protocols for state policymakers, with the goal of ensuring that all electric and gas customers have the ability to access and “port” their time-of-use energy data. 

    Senator Welch and Senator Roger Marshall (R-KS) have recently introduced the Heat Pump Energy Assistance and Training (HEAT) Act. The bipartisan HEAT Act would encourage the adoption of industrial heat pumps in rural areas and unlock funding for the US Department of Agriculture to offer technical assistance on heat pump installation and usage.

    Executive

    The Buildings Upgrade Prize (Buildings UP), announced by the Department of Energy, offers over $22 million in cash prizes and technical assistance support for transforming existing U.S. buildings into more energy-efficient and clean energy-ready homes, commercial spaces and communities. In Phase 1, participating teams submitted innovative concepts for building upgrades, selecting one of two pathways: equity-centered innovation or open innovation. Winners from both pathways will receive expert technical assistance and coaching to bring their ideas to fruition. Phase 1 submissions were due on July 18, and prize winners will be announced in September. For more details, please click here. 

    DOE is currently accepting applications for the Renew America’s Nonprofits grant program. Nonprofit organizations (those registered as 501(c)(3) entities) are eligible to receive funds to make energy efficiency upgrades to facilities they own, but the program will be administered through an aggregation model. This means intermediate organizations will apply to administer portfolios of nonprofit efficiency projects, providing technical support, project management and grant management services that would otherwise fall on the nonprofit organizations. 

    The US EPA has released Notices of Funding Availability (NOFAs) for the $27B Greenhouse Gas Reduction Fund (GGRF) created by the Inflation Reduction Act.

    • 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. The NOFA was released on June 28, and applications are due September 26, 2023.
    • 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. This NOFA was released on July 14, with applications due October 12, 2023.
    • The NOFA for the Clean Communities Investment Accelerator program was released on July 14 in conjunction with the National Clean Investment Fund. This 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. Applications are due October 12, 2023.

    All three GGRF 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 conducted a series of public engagement workshops and offered additional opportunities for feedback prior to releasing the NOFAs. Details of these efforts are available here.

    The US Environmental Protection Agency released the list of states and metropolitan areas that submitted a notice of intent to participate in the Climate Pollution Reduction Grant – Planning Grants Program. States will receive $3 million each in planning grants; metro areas will receive $1 million each. These plans will enable states and metro areas to compete for $4.75 billion in implementation grants for climate pollution reduction efforts.

    All states in the MEEA region expressed their intent to participate, except for Iowa, South Dakota and Kentucky. Midwestern metro areas that intend to participate include:

    • Cedar Rapids, IA
    • Des Moines, IA
    • Iowa City, IA
    • Chicago, IL
    • Indianapolis, IN
    • Bowling Green, KY
    • Lexington, KY
    • Louisville/Jefferson County, KY
    • Detroit, MI
    • Grand Rapids, MI
    • Minneapolis-St. Paul, MN
    • Kansas City, MO/KS
    • St. Louis, MO
    • Omaha, NE
    • Cincinnati, OH
    • Columbus, OH
    • Cleveland, OH
    • Rapid City, SD
    • Milwaukee, WI

    How to Get Involved

    For more information about federal matters, contact Jason Liechty. 

     

    Upcoming Events

    2023 Midwest Building Energy Codes Conference

    September 13-14 in Indianapolis

    Join MEEA for the 14th Annual Midwest Building Energy Codes Conference in Indianapolis, Indiana. This in-person conference brings together stakeholders from across the Midwest to discuss energy codes and building energy policies. Network, engage in building science and policy discussions and learn from leading experts. Agenda and speakers coming soon.

    Learn more and register today.

     

    2023 Clean Energy Champion Awards

    October 19 in Chicago

    The Illinois Clean Energy Champion Awards will celebrate private companies, nonprofit organizations and governmental units from across Illinois that have seized the opportunity to make Illinois a leader in the clean energy future. These awards will recognize what it takes to retain and create good-paying jobs, with a special eye toward creating and retaining equitable jobs in communities historically left behind.

    Learn more and register here!

     

    2024 Midwest Energy Solutions Conference

    January 30-February 1 in Chicago

    MEEA is organizing our annual Midwest Solutions Conference, uniting energy efficiency stakeholders in the region. MEEA members are invited to join the Conference Advisory Committee and share ideas for the agenda, evening events and other aspects of the conference by emailing conference@mwalliance.org. Committee meetings will begin in early August.

    Can’t join the committee? Members can submit suggestions for keynote addresses, plenary sessions, workshops and breakout sessions here by August 29. Save the date and plan to attend! 

    resources

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