MEEA Policy Insider - November 2020

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

In this issue:

Elections Update

MEEA has tracked state and local election results throughout the Midwest region and will present an Elections Recap webinar on December 17 to highlight key developments. The three gubernatorial elections in MEEA’s territory (ND, MO and IN) all resulted in incumbent victories, meaning no change in partisan control or leadership occurred. There were also no flips in partisan control in state legislatures across the region. Nevertheless, legislative majorities did expand in several states. MEEA will also be tracking energy policy development at the federal level, since the President-elect has made several nominal commitments to revamping clean energy policy and promoting energy efficiency.

COVID-19

While some states have resumed economic activity, others are implementing new restrictions to confront the latest surge in infections, encouraging or requiring safety measures against the spread of COVID-19. Legislative sessions have either adjourned, are in special session or are convening on a limited basis. Some state public service commissions have opened cases to understand and address the financial impacts to customers and/or utilities. The efficiency workforce has not fully recovered from the economic slowdown and social distancing in late spring that carried into the summer. Impacted utility programs have resumed, some with alterations including virtual elements or limited direct customer interaction.

MEEA is tracking impacts, program responses and recovery from COVID-19 and sharing resources as the situation evolves. For consolidated information, see MEEA’s COVID-19 resources page. Members who are able to share information about utility program and energy service impacts or have any resource needs, please contact Policy Director Nick Dreher.

Webinar: Election Recap Webinar

Thursday, December 17 | 10 a.m – 11 a.m. CST

What do the election results mean for energy efficiency in the Midwest? Join MEEA’s Policy team for a recap of the election, including analysis on how federal and state elections will affect the region’s energy efficiency industry. Register here.

Webinar Series: Roadmap to Resilience

Webinar 5: Wednesday, December 2 | 1 – 2 p.m. CST

The Roadmap to Resilience is a toolkit with action steps developed by the MoDNR-DE to assist small cities and towns across the Midwest and country in their resilience planning efforts. Join the Missouri Division of Energy and MEEA for the fifth and last webinar of the series, which will feature a panel of experts and community leaders prepared to share their insights into effective implementation of a resilience plan. Register here and see the recordings and slides from previous webinars here.

Webinar Recording: The NSPM for DERs

On October 29, MEEA held a webinar that reviewed the changes and additions to the National Standard Practice Manual for Benefit-Cost Analysis of Distributed Energy Resources (NSPM for DERs). The new NSPM updates the framework for examining benefit-cost analysis from the previous edition to cover a broad range of DERs including energy efficiency and demand response, to guide regulatory understanding and resource acquisition decisions.

The webinar featured co-authors of the NSPM as well as Midwest state representatives to share their perspective on the application of the resource. View the recording here.

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Executive

On August 21, Governor Pritzker’s office announced Eight Principles for a Clean and Renewable Economy. The eighth principle is “Enhance Energy Efficiency in Illinois” and lays out numerous policy proposals the Governor would like to pursue. The Governor’s office held working groups focusing on the power sector, transportation, equity and commercial/industrial/buildings-related energy efficiency issues throughout the month of October. MEEA attended all three commercial/industrial/buildings EE working group meetings (October 13, 20 and 22), which focused on principle number eight. There has been no formal announcement regarding the results of the working groups’ efforts.

Legislative

Illinois’ legislative session adjourned on May 31. The legislature originally planned to reconvene for a fall special session, November 17-19 and December 1-3, where clean energy legislation was anticipated to be considered; however, the special session was cancelled. There is still a possibility that clean energy legislation could be discussed in the lame duck session that occurs before the new General Assembly convenes in January 2021, but it is uncertain. The Clean Energy Jobs Act (CEJA), previously introduced as SB 2132 / HB 3624 was amended extensively, including new or expanded electrification, workforce development and utility accountability provisions. Topic-specific excerpts of CEJA are available on the pro-CEJA Illinois Clean Job Coalition website.

At the end of the year, unpassed/unsigned legislation will be wiped clean and will need to be re-introduced when the next 2-year legislative session begins in 2021.

Regulatory

The Illinois Commerce Commission closed the comment submission period for Notice of Inquiry 20-NOI-01, which contained specific questions for utilities and interested parties to weigh in on energy assistance and energy efficiency programs as they relate to energy affordability. Reply comments were due October 30. MEEA’s response to the NOI can be found here.

How to Get Involved

Due to COVID-19, large group and working group meetings will be held via teleconference until further notice. Meeting information, COVID-19 updates and documents can be found on the SAG website.

For more information about Illinois or to get more involved, contact Nick Dreher.

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Legislative

The 21st Century Energy Policy Development Task Force will have concluded its meetings. A record of those meetings is on the legislature website. The Task Force’s report to the legislature is due on December 1 (public draft available here).

Regulatory

Integrated resource planning is ongoing for Indiana utilities. The two publicly-owned utilities (Hoosier Energy & IMPA) have submitted their IRPs to the Commission, and those are available for review or comment at the IURC website. Wabash Valley requested and was approved for a one-year extension to Nov. 1, 2021 to file their IRP. Duke Energy Indiana has begun its IRP stakeholder process, and more information can be found at their website.

The utility filing deadline for the next IRP is:

  • NIPSCO: November 1, 2021
  • Wabash Valley: November 1, 2021
  • Duke Energy Indiana: November 1, 2021

Utility stakeholder meetings will continue during the planning period. Updates from the commission on IRPs in Indiana will be posted to the IURC’s IRP page.

How to Get Involved

IRP meetings are all open to the public. Anyone interested is encouraged to attend. They are typically announced through utility mailing lists. If you need help finding the list sign-up or registration, we can help you get on the list.

If you have any questions about Indiana or want to get more involved, contact Greg Ehrendreich.  

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Regulatory

The Iowa Energy Efficiency Stakeholder Collaborative met on November 5 to provide feedback on Alliant Energy’s, MidAmerican Energy’s and Black Hills Energy’s 2019 annual reports, 2020 programs performance and 2021 outlook.

On October 29, Alliant Energy announced their Clean Energy Blueprint, a plan for accelerating renewable energy technology adoption. The plan includes a focus on smart thermostats and leveraging their demand response potential.

How to Get Involved

If you have any questions about Iowa or want to get more involved, contact Samarth Medakkar.

Executive

On September 23, Governor Whitmer announced a goal of carbon neutrality by 2050 through an executive order and an executive directive. In the order, Michigan will work towards carbon neutrality by reducing emissions from public buildings, emphasizing carbon neutrality in utility IRPs and adding renewable energy in state facilities and lands. The MPSC is currently studying its role in executive order implementation.

Legislative

Michigan’s legislature continues to meet, with session dates scheduled in December. Recently, four Property Assessed Clean Energy (PACE) bills were introduced. While PACE is statutorily allowed in Michigan, HB 6036 and 6037 would expand measures allowed under commercial PACE and would enable PACE to be used by residential customers. In addition, HB 6038 would let customers pair PACE with funds available through the Water Pollution Control Act to implement water measures. Lastly, HB 6039 would let customers use PACE funds for environmental hazard projects.

Regulatory

The MPSC continues to work on Case No. U-20757, which seeks to understand COVID-19’s impact on utilities, energy efficiency programs and utility customers. On July 23, 2020, the Commission issued an order describing utility information, impact analysis and recommendations. In this order the MPSC said they will not consider recovery costs related to COVID-19 until 2021. In addition, the Commission held stakeholder meetings this fall to study possible ways to better link existing EWR programs and energy assistance to reach more customers who are struggling with energy affordability.

MI Power Grid work groups continue to meet. Recently, the MPSC released a one-year status report on the MI Power Grid initiative, which summarizes the workgroup activity that has occurred since the initiative’s inception. The Energy Programs and Technology Pilots Work group submitted its final report on September 30. The Grid Security & Reliability Standards Work Group submitted its draft report and is aiming to publish the final report in December. Lastly, MI Power Grid announced the newly-formed New Technologies and Business Models Work Group.

How to Get Involved

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

Legislative

The Minnesota legislature convened for a sixth special session on November 12, following five special sessions in June, July, August, September and October. In the October special session, lawmakers agreed to a bonding package that has been a main focus of many of these special sessions.

No energy legislation has been heard in any of these special sessions, as much of the legislature’s attention was on police reform, public safety and COVID-19.

The Minnesota legislature closed its 2020 regularly scheduled session on May 17. Much attention this session was on the Clean Energy First Act (HF1405; SF1456), but the bill was laid on the table without a vote in either the House or the Senate. Additionally, the Energy Conservation and Optimization Act (ECO) (HF4502; SF4409) passed the House on May 11, but was not voted on by the Senate prior to session adjournment.

Regulatory

The state’s investor-owned utilities submitted their Conservation Improvement Program triennial plans on July 1. These plans outline the utilities’ proposed energy efficiency portfolio for 2021-2023. The CIP plans provide program-level detail, outlining each energy efficiency program’s proposed budget, targeted customer class and estimated energy savings. A final PUC decision was pushed back and is expected in late November.

The PUC has opened dockets (20-425, 20-427) at the request of the state’s investor-owned utilities to study potential avenues for cost recovery of costs and debts incurred through COVID-19. The PUC also opened a docket (20-492) to ask utilities how they and their future infrastructure investments can contribute to the state’s economic recovery.

Additionally, the PUC held a hearing on its shared-savings financial mechanism (08-133). This long-running docket seeks to determine if and how the Commission should modify its shared-savings mechanism for utilities in the upcoming 2021-23 triennial. The PUC agreed that discussions on the topic should move forward.

MEEA is participating in the Department of Commerce’s Electrification Action Plan Technical Advisory Committee. The DOE-funded project aims to study electrification’s opportunities and challenges. Additionally, the project is looking to understand the various policy considerations and equity implications of an electrified Minnesota. More information on the project can be found here.

How to Get Involved

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

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Executive

The Missouri Department of Natural Resources has initiated a State Energy Planning (MoSEP) process. The planning process will include an ongoing series of stakeholder engagement workshops to identify and address topics critical to Missouri’s current and future energy needs. The process began with a Virtual Energy Stakeholder Kickoff Workshop on October 29, and the recording and slides are now available. A follow-up workshop has yet to be scheduled.

Regulatory

Evidentiary hearings in EU-2020-0350, Evergy’s request for an Accounting Authority Order (AAO) to track and defer financial impacts due to COVID-19 as a regulatory asset, took place November 12-13. Initial briefs are due December 4, while reply briefs are due December 14.

On September 27, Ameren Missouri filed their 2020 Integrated Resource Plan in which they establish a net-zero carbon emissions goal by 2050. Their forecasting incorporates various levels of achievable potential savings from demand side programs, including those from MEEIA programs. The IRP report is due by March 1, 2021.

On August 5, Evergy announced their Sustainability Transformation Plan, a strategic five-year (2020-2024) plan designed to deliver additional benefits to stakeholders and achieve clean energy goals, following the merger which created the company. On August 13, the PSC opened an investigatory docket to determine if the plan will raise rates or diminish the quality of service. A report from staff is expected by January 29, 2021.

In working case AW-2020-0356, the PSC staff filed an updated report on Utility Data Request Responses—various data related to disconnections. Updates are expected by the 22nd of each month, through at least December 2020.

How to Get Involved

For more information about Missouri or to get more involved, contact Samarth Medakkar. 

Legislative

The city of Lincoln recently released its Climate Action Plan. The city hopes to improve its resiliency and reduce its greenhouse gas emissions by 80% by 2050. The report concludes that increasing energy efficiency of its residential and commercial buildings and its municipal utility, the Lincoln Electric System, will be the most important factor in reducing city emissions. In addition to dramatically ramping up energy efficiency through incentives, programs and municipal action, the report mentions benchmarking, electrification, energy disclosures and building energy code updates as possible near-term solutions.

How to Get Involved

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

Legislative

There are currently four bills in the legislature that would partially or completely repeal HB 6—the 2019 law that directed funding to extend coal and nuclear plant viability and repealed the energy efficiency and renewable energy resource standards. House Democrats introduced HB 738 and House Republicans introduced HB 746. Bipartisan bill SB 346 was introduced in the Senate. All three bills would repeal HB 6 and allow the pre-HB 6 energy efficiency resource standard to resume at a 2% annual savings requirement for electric utility energy efficiency programs beginning in 2021 with a utility-specific cumulative savings target of at least 22% by 2027. HB 772, an alternative partial repeal bill, would retain the EERS repeal but restore a modified RPS, end the nuclear and coal subsidies and repeal decoupling provisions.

There have been five hearings in the House Select Committee on Energy Policy and Oversight on the status of HB 6. Testimony from all of the hearings can be found here on the Committee website. The first was September 10th and covered the two proposed repeal and revive bills, HB 738 and 746, in addition to H.B. 740, a bill that addresses the significantly excessive earnings determination for an electric distribution utility’s electric security plan. The successive three hearings were held on September 16th, 23rd and 30th respectively and all discussed HB 738 and HB 746, both full repeal bills. A fifth hearing was held on November 19th on H.B. 772, the partial repeal bill that would not revive the EERS. On the Senate side, there have been opportunities for both proponents and opponents of the proposed bipartisan repeal and revive bill—S.B.346—to testify, in addition to the alternative partial repeal bill, HB 772. A hearing in the Senate Energy and Public Utilities Committee is scheduled for December 1. MEEA submitted testimony as an interested party, which will be linked when publicly available. All testimony can be accessed here.

Regulatory

On November 20, Public Utility of Ohio (PUCO) Chairman Sam Randazzo resigned effective immediately.

How to Get Involved

For more information about Ohio or to get more involved, contact Reine Rambert.

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Executive

Governor Evers’ Task Force on Climate Change, chaired by Lieutenant Governor Mandela Barnes, submitted its final report of policy recommendations to Governor Evers on October 31. MEEA’s comments to the Energy, Housing and Infrastructure subcommittee can be found here.

Governor Evers recently unveiled an executive order that aims to address climate concerns in the state. The order mandates the Department of Administration to create the Office of Sustainability and Clean Energy. This newly-formed office will be tasked with developing a clean energy plan that will help Wisconsin adapt to future changes in the climate. Additionally, this plan will outline ways for the state to achieve its goal of carbon neutrality by 2050. The office will also be asked to promote clean energy workforce trainings, increase research and development of energy efficiency and renewable energy technology and develop energy standards for state-owned buildings.

Legislative

The Wisconsin legislature has adjourned for the year. Committees may continue to meet in the coming months. 

How to Get Involved

Additional information on the Governor’s Task Force on Climate Change can be found here. For more information about Wisconsin or to get more involved, contact Maddie Wazowicz.

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Executive

On November 23, the American Council for an Energy-Efficient Economy released a letter to President-elect Biden, urging him to use existing authorities to revive appliance standards and cut energy waste in various building sectors. MEEA is a signatory to this letter.

Legislative

On September 25, the House passed a 900-page energy bill—the Clean Energy Jobs and Innovation Act (H.R. 4447)—which includes much of the “Portman-Shaheen” energy efficiency bill that has been pending in Congress for several years. Among other efficiency pieces, the bill would expand funding authorizations for the Weatherization Assistance Program and authorize funding for a new public private partnership program for retrofitting critical public facilities. On October 19, H.R. 4447 was referred to the Senate Energy and Natural Resources Committee.

Simultaneous to the House push for H.R. 4447, the Senate Energy and Natural Resources Committee leaders are pursuing the bipartisan American Energy Innovation Act (S. 2657), which includes a number of similar provisions to those in H.R. 4447. The effort to quickly pass S.2657, led by Chairman Lisa Murkowski (R-Alaska) and Ranking Member Joe Manchin (D-W.Va.), may pave the way for informal conference negotiations in the fall/winter, where the House and Senate would attempt to reconcile differences between H.R. 4447 and S. 2657 and agree on a final package. If negotiations are successful, a final bill could be sent to the President in the lame duck session following the election. (Alliance to Save Energy)

How to Get Involved

To sign on to ACEEE’s letter to President-elect Biden or for more information about federal issues, contact Stacey Paradis.

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