Over the past 15 years, utility-run energy efficiency programming has produced significant energy savings, customer cost savings and a host of system-wide and societal benefits throughout the Midwest. Unfortunately, these benefits are not fully understood or recognized by many state legislators and other policymakers. As a result, MEEA and other energy efficiency industry experts must recurringly defend EE policies from those who misunderstand how efficiency is funded, its value and impact for utility customers and its widespread benefits within individual states and throughout the region.
On March 31st, Ohio Governor Mike DeWine signed HB 128 into law, formally enacting a partial HB 6 repeal bill that eliminates certain provisions of the law but does nothing to revive statewide utility energy efficiency programs.
MEEA’s mission to support and advance energy efficiency across the Midwest typically takes shape as promoting supportive policies and the positive impact of EE like new jobs, energy savings, economic impacts and environmental benefits. From time to time, though, the Midwest experiences challenges to energy efficiency. New polices in Ohio have become the greatest barrier to energy efficiency in the Midwest right now, essentially ending all EE programs on December 31, 2020. How did we get here when energy efficiency has continuously been recognized for both economic and environmental benefits?
MEEA’s policy team has spent 2019 traveling throughout the Midwest to meet with state legislators, regulators and policymakers. MEEA serves as the region’s trusted source on energy efficiency and promotes how states can maximize energy savings pursuant to their specific policies. We share regional best practices and research with governors’ administrations, legislators and regulatory bodies as they develop energy plans, policy priorities or other state and local policy initiatives. The 2018 state election results presented ample opportunity for MEEA to act as a positive, nonpartisan voice for energy efficiency.
After an extensive four-month debate, on July 23, 2019, the Ohio General Assembly passed H.B. 6, a nuclear subsidy bill which will essentially eliminate energy efficiency programs in the state. Governor DeWine signed the bill into law the same day.
With the conclusion of the 132nd General Assembly Session on December 31, 2018, a bill to significantly curtail Ohio’s energy efficiency resource standard (EERS) officially died, leaving the state’s clean energy economy preserved. This was a victory for Ohio’s many clean energy jobs, its economy, customers’ energy bills and the environment.
But the path to victory was not easy, and a diverse set of stakeholders, including MEEA, spent two years working with policymakers to ensure they understood the benefits of energy efficiency and the potential costs of passing H.B. 114.
The 2018 midterm elections brought significant voter participation, with turnout breaking levels not seen since the 1960s. Nationally, this enthusiasm shifted power in the U.S. House of Representatives back to the Democrats, while Republicans increased their control of the U.S. Senate. A total of nine House seats in the Midwest flipped to Democratic-control—in addition to two seats in Minnesota changing from Democratic to Republican.
Industrial energy efficiency is losing ground in the Midwest. Though it’s one of the most cost-effective energy efficiency measures, states are increasingly allowing industrial customers to opt-out of paying into energy efficiency programs or exempting them from doing so altogether. As a result, overall energy savings and the cost-effectiveness of EE programs are on the edge of decline.