MEEA Policy Insider - November 2023

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 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. 

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Municipal

On November 15, the Chicago City Council voted to approve Mayor Johnson’s $16.6 billion city budget for 2024. The budget includes nearly $2 million to re-establish the city’s Department of Environment, $15 million for the electrification of low-income residential homes and $4 million for Chicago’s Climate Infrastructure Grant Program.

Legislative

On November 9, the Illinois legislature concluded its 2023 fall veto session. Notable bills that passed during the veto session include:

  • 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.

Each of these bills now await Governor Pritzker’s signature for final approval. The General Assembly will reconvene for a regular legislative session on January 16, 2024. See the Senate 2024 calendar here and the House 2024 calendar here.

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 Energy Efficiency Stakeholder Advisory Group (SAG) received updates from investor-owned utilities during its meetings on November 14 and 15. The November 14 meeting included updates on joint multi-family energy efficiency programs from ComEd, Nicor Gas, Peoples Gas and North Shore Gas. ComEd and Nicor Gas also presented their mid-year progress update on energy efficiency programs. The November 15 meeting included updates on Ameren and ComEd’s voltage optimization programs, as well as mid-year progress updates on Peoples Gas and North Shore Gas and Ameren’s energy efficiency portfolio. Quarterly utility reports can be found on the SAG website.

How to Get Involved

For more information about Illinois or to get more involved, contact Christian Koch. 

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Legislative

The Indiana legislature has adjourned Sine Die in 2023. The next regular session, beginning on January 2, 2024, will be a short session, as is normal for even-numbered years.

Regulatory

The Indiana Utility Regulatory Commission (IURC) hosted the 2023 IRP Contemporary Issues Technical Conference on October 20, and the archive is available online. Email Beth Heline to be added to the distribution list for updates.

2023 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. 

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Regulatory

The Iowa Utilities Board (IUB) hired an independent consultant to guide the review process required by HF 617, which was enacted into law earlier this year. This legislation requires the IUB to lead an independent review (identified as docket NOI-2023-0001) of current Iowa Code provisions and utility ratemaking procedures. The goal is to evaluate cost-effectiveness and ensure utility services are safe, adequate, reliable and affordable.

As part of this process, the IUB held three policy charrettes and offered the opportunity for various interested parties to submit comments before and after each charrette. MEEA submitted comments for all three charrettes, which are available here.

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 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.

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Regulatory

On September 1, the Kansas Corporation Commission (KCC) delivered an order approving Evergy’s Kansas Energy Efficiency Investment Act (KEEIA) plan filing, which confirmed the utility’s 2023-2026 Demand-Side Management (DSM) Portfolio and associated cost recovery mechanisms. Commissioners approved the “Initial Program Settlement” and “Initial Financial Settlement” with certain modifications and conditions, rather than the more recently discussed and less robust “Alternative Settlement.” For a more detailed look at the order and approved programs, read our recent blog post.

Most recently, Evergy filed an update regarding relevant federal funding opportunities, as was ordered by the Commission on September 1. KCC Staff, the Kansas State Energy Office and Evergy are not recommending any changes or modifications to the conditionally-approved KEEIA portfolio at this time based on the available federal funding, but they will continue to monitor program development.

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. Staff published additional comments on August 31, recommending the Commission find that the 2023 IRP Filing meets the required framework. 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.

How to Get Involved

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

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Legislative

The 2023 Regular Session of the Kentucky General Assembly has adjourned Sine Die. The Interim Committee on Natural Resources and Energy continued to meet throughout the summer and fall but has not discussed energy efficiency in any meetings.

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.

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. 

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Legislative

The Michigan legislature adjourned Sine Die on November 14. 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. 

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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 state’s investor-owned utilities have submitted their triennial Conservation Improvement Program (CIP) plans. Plans 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

Staff’s proposed decisions were issued on October 23, with comments on these proposals due November 6. The Deputy Commissioner’s final decisions on the plans are now expected December 1.

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 has revised its initial commenting notice and is now asking for comments on an October 24 filing from the Citizens Utility Board. Comments are due November 30, with reply comments due December 29.

Work continues in docket 08-133, where the Commission has asked for feedback on a potential change to the demand-side management financial incentive mechanism. The original proposal from the Department of Commerce can be found here. Reply comments were due November 2. The Commission is now set to make a decision this fall or winter.

How to Get Involved

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

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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 September 27, the Missouri Public Service Commission (PSC) approved Evergy’s request to change customers’ default plan under the state’s new time-of-use (TOU) rates in docket ET-2024-0061. The new default plan has a smaller difference between peak and off-peak rates. Evergy withdrew its previous request to make the TOU rates optional on September 18. These new rates began rolling out to customers in Evergy service territory starting in October and are expected to be fully implemented by the end of 2023. TOU rates will be rolled out for the other investor-owned electric utilities – Ameren Missouri and Empire Electric – in 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.

Through Evergy’s previous MEEIA Plan extension, the company agreed to conduct a feasibility and vulnerability study regarding an Urban Heat Island Mitigation program for its next MEEIA application. Evergy has now contracted the Mid-America Regional Council (MARC) 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 in the Urban Heat Island Work Group for their review and feedback in preparation for submission to the Missouri Public Service Commission. The work group most recently met on October 24 to discuss the pilot program and specific community engagement plans, as well as examples of other UHI mitigation programs. Please reach out to Ryan Umberger at MARC if you are interested in getting involved in the work group.

How to Get Involved

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

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Regulatory

Nebraska Public Power District (NPPD), Nebraska’s largest electric utility, received approval for their updated IRP from their board and the Western Area Power Administration on September 14. You can view NPPD’s 2023 IRP here.

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. 

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Legislative

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. 

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Legislative

On November 9, the Chairman of South Dakota’s Energy Development and Transmission Committee called for an interim committee meeting to be held December 18. The meeting will include presentations on the committee’s recent studies on sustainable energy policies and natural gas accessibility in small communities. The tentative agenda can be found here.

How to Get Involved

For more information about South Dakota or to get more involved, contact Christian Koch. 

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Legislative

Senators Cowles and Stroebel have introduced a suite of bills (SB646 - SB651) that would alter Wisconsin Public Service Commission rules. Most of the bills do not directly impact energy efficiency. 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 could have a significant impact on energy efficiency, as it 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.

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 restrict 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. 

Federal updates

Legislative

Congress has again postponed action on Fiscal Year 2024 appropriations, instead approving a temporary extension of existing federal spending levels by wide bipartisan margins in both the House and Senate. President Biden signed the legislation on the evening of November 16. Funding will now expire for some federal agencies on January 19, 2024, and the remainder on February 2. New House Speaker Mike Johnson has indicated that he would not endorse any more temporary spending extensions.

Earlier work on FY 2024 appropriation bills highlighted significant differences between energy efficiency funding levels proposed by the Democratic-controlled Senate and GOP-controlled House.

Executive

Federal agencies continue to roll out programs funded under the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA).

The Department of Energy (DOE) Office of State and Community Energy Programs has awarded the first two rounds of Energy Efficiency and Conservation Block Grant formula funds to states and local governments. In the Midwest, Iowa, Illinois, Indiana, Ohio, Wisconsin, Ann Arbor (MI) and Minneapolis (MN), have received their formula funds, which become available following submission of a complete application. States must distribute at least 60% of their EECBG funds to local governments that did not receive direct formula grants. In addition, DOE also selected 12 winners of competitive EECBG funding, including a $1.1 million award to Decorah, Iowa, to provide technical assistance to local governments across 7 counties in Iowa and one in Wisconsin.

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.

DOE has also announced its intention to release a Funding Opportunity Announcement for the Energy Auditor Training Program established by the Infrastructure Investment and Jobs Act.

On October 11, 45 teams were announced as winners of the Buildings Upgrade Prize (Buildings UP), offering more than $22 million in cash prizes and technical assistance nationwide. This prize is designed to assist teams in transforming existing U.S. buildings into more energy-efficient and clean energy-ready homes, commercial spaces and communities. MEEA has joined forces with its five fellow Regional Energy Efficiency Organizations (REEOs) to serve as Regional Navigators providing technical assistance to the winning teams. To learn more about this opportunity and the winning teams, visit DOE’s website.

DOE has released updated guidance to states and territories on how to design and implement the Home Efficiency Rebates and the Home Electrification and Appliance Rebates programs created by the Inflation Reduction Act. Most significantly, the guidance directs that states must allow retroactive rebates for the Home Efficiency program for projects started on or after the passage of the IRA on August 16, 2022. The Home Electrification program does not allow retroactive rebates, however. In addition, DOE has begun approving states’ applications for early administrative funds to help set up state programs for disbursement of the home energy rebates, with some states already receiving the funds.

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 Jason Liechty. 

resources

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