MEEA Policy Insider - April 2022

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:

 

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Legislative

SB 3866, a bill that amends the Energy Transition Act of the Climate and Equitable Jobs Act passed both chambers and awaits approval from the Governor. The bill includes several provisions, which are summarized on the bill page linked above. The bill does not contain any provisions that impact energy efficiency.  

The Climate and Equitable Jobs Act was signed by Governor Pritzker in September 2021. CEJA establishes a power sector decarbonization target of 2045, creates clean energy workforce development pathways and expands commitments to energy efficiency.  

In-depth analysis of key energy efficiency pieces of the bill is detailed in MEEA’s blog posts on CEJA and the energy stretch code.

Regulatory

Stakeholder Advisory Group meetings have begun with working groups and subcommittee meetings scheduled over the next few months. Follow the link to the SAG calendar for meeting details and registration.  

  • Quarter 2 Meetings (May 4 - 5) 
  • First SAG Reporting Workgroup Meeting (May 11) 
  • First SAG Equity Subcommittee Meeting (May 18) 
  • First Policy Manual Subcommittee Meeting (June 23) 

On March 1, 2021, Illinois investor-owned utilities filed their energy efficiency programs for program years 2022-2025, which were approved in August 2021. As a result of CEJA’s passage, utilities worked with the ICC and advocates to incorporate CEJA requirements into the approved plans. Both ComEd and Ameren Illinois’ revised stipulated agreements and plans have been filed (linked below) as of April 2022.  

How to Get Involved

All Illinois EE Stakeholder Advisory Group (SAG) large group and working group meetings will be held via teleconference until further notice. SAG 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 Samarth Medakkar.

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Legislative

The Indiana legislature has adjourned, but it is reported that they will be returning on May 24 to address technical corrections and vetoes. 

The 21st Century Energy Policy Development Task Force will schedule additional meetings this summer with its final report on the two-year process due in Fall 2022. The agendas, speaker lists and recordings are available for all past sessions on the Task Force page. 

Regulatory

2022 integrated resource planning has kicked off for Indiana utilities.  

  • The public comment period for Duke Energy Indiana’s 2021 IRP was extended through May 10, 2022 at the IURC IRP Page. 
  • I&M's 2021 IRP comment period ends on May 2 at the IURC IRP page. 
  • AES Indiana (formerly IP&L) continues its IRP public advisory meeting sequence, but Meeting #2 slated for March/April 2022 has not been scheduled. 
  • NIPSCO's expected 2022 IRP has been extended to 2024. Its most recent IRP was filed in November 2021. 

Updates from the Commission on IRPs in Indiana will be posted to the IURC’s IRP page. The Draft Directors Reports on the 2021 IRPs are expected in Spring 2022. 

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. For help finding the utility mailing list sign-up and IRP meeting registration, or for other questions about Indiana, contact Greg Ehrendreich.

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Legislative

Legislative 

Iowa’s legislative session has continued to convene past the official end date for session (April 19). Among the priorities is Governor Reynolds’ Workforce Development Omnibus. 

  • SF 2383 & HF 2569: These bills are the Senate and House versions of Governor Reynolds’ Workforce Development Omnibus. Previously, both bills included language which would codify the IECC 2012 building energy code (with 2009 amendments), and in doing so, shift authority for building energy code updates to the legislature, making it more difficult to update. The Senate version, which no longer includes a provision related to building energy codes, passed both chambers and is expected to be sent to the Governor.  
  • SF 2325: This bill extends authorization of the Iowa Energy Center within the Iowa Economic Development Authority (IEDA) through July 1, 2027, and, related to eligibility for the IEDA’s high-quality jobs program and workforce housing tax incentive program, changes the criteria for designating an “economically distressed area.” The bill has passed the House and Senate and is waiting to be signed by the Governor.  
  • SF 2224: This bill would require landlords to disclose utility costs to prospective renters, including an average unit over the previous year, the cost of similar units in the case of new construction or the cost of similar units owned by the landlord. The bill also requires utilities to share the necessary utility cost information with landlords. The bill has yet to receive a full vote in the Senate.  

How to Get Involved

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

Regulatory

On December 17, Evergy filed its application for an energy efficiency proposal in Kansas under the Kansas Energy Efficiency Investment Act. Testimony in this case was due on April 8. Additionally, the procedural schedule was modified to include a public comment and public hearing period in late June/early July to solicit views from Evergy customers. Below are key upcoming dates in this case: 

  • June 17: Staff/Intervenor Direct Testimony Due  
  • June 24: Staff/Intervenor Cross-Answering Testimony Due 
  • June 27: Public Hearing via Zoom 
  • July 8: Public Comment Period Ends 

How to Get Involved

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

Executive

In October 2021, Governor Beshear and the state’s Energy and Environment Cabinet recently released a new state energy plan, Kentucky Energy, Environment & Economic Development: Designs for a Resilient Economy. The plan outlines community-centric initiatives and design goals for the future of Kentucky’s energy economy. A guiding principle for the plan is to address the energy sector holistically and promote the utilization of all the state’s energy resources, namely energy efficiency and conservation. 

The plan also highlights more specific components, including future incentivization of advanced manufacturing opportunities in key sectors like EVs, rapid apprenticeships and certifications for a skilled workforce and encouragement of resilient, grid-connected buildings.

Legislative

The Kentucky legislature convened for the 2022 regular session on January 4. Representative Gooch introduced HB 470 relating to the reliability and resiliency of the electric grid. Included in the bill is a requirement for the Public Service Commission to develop rules and procedures to ensure the Commonwealth’s electric grid is reliable and resilient, and to coordinate with regional transmission organizations to institute consistent policies. This bill was not taken up this session.    

On the last day of session, the legislature failed to confirm Governor Beshear’s appointee to the Kentucky Public Service Commission, Amy Cubbage. This follows the events of a few months ago, when the legislature also did not confirm Beshear’s other pick, Marianne Butler. There is now only one commissioner at the PSC, Chairman Kent Chandler. As a result, a lack of quorum has prevented the Commission from making final rulings, including voting on the $2.8 billion sale of Kentucky Power to Liberty Utilities. 

Regulatory

LG&E and KU’s 2021 IRP process is ongoing. Updates can be found through the KY PSC. Comments can be submitted by email to psc.comment@ky.gov including the case number (2021-00393) in the subject line and full name and place of residence in the body. Case-related comments submitted online or by other means while a case is in progress become a part of the official case record and are publicly available online. 

How to Get Involved

For more information about Kansas or to get more involved, contact Amanda Caloras.

Executive

The Council on Climate Solutions, created by Governor Whitmer’s fall 2020 executive order, has been working to implement the Governor’s goal of reaching carbon neutrality by mid-century. The Council has created five workgroups to help inform the state’s climate plan: Buildings and Housing; Energy Intensive Industries; Energy Production, Transmission, Distribution and Storage; Natural Working Lands and Forest Products; and Transportation and Mobility.  

After the release of a draft plan in January, the Council on Climate Solutions released its final MI Healthy Climate Plan on April 21. 

Legislative

Representative Outman introduced HB 5619, which would extend the energy waste reduction standard. The standard sunset for municipal and cooperative utilities at the end of 2021, but this bill would extend the standard to 2026. The bill was referred to committee. 

Additionally, House Democrats introduced HB 5578 (SB 749 in the Senate), which deals with weatherization. Current law states that Michigan must use at least $6 million but no more than 15% of its federal low-income home energy assistance program (LIHEAP) funds for weatherization. The bill mandates that the state spends at least 10% of LIHEAP dollars on weatherization. Because Michigan has spent near the 15% cap, this would effectively increase the amount of LIHEAP funds the state spends on weatherization. The bill was referred to committee. 

Regulatory

MI Power Grid workgroups continue to meet. MPSC Staff released their revised final report for the New Technologies and Business Models workgroup in docket U-20898. After a two-year hiatus, the Interconnection Standards and Worker Safety workgroup has meetings scheduled this spring. More information on the scheduled meetings and workgroup charge can be found here. Additionally, MPSC Staff released its report for the Customer Education and Participation workgroup. The report summarizes workgroup actions thus far, provides recommendations for Commission action and identifies other potential next steps. And lastly, Phase III-Integrated Resource Plan of the Advanced Planning Process workgroup has been meeting the last few months to work on updating the integrated resource plan filing requirements. 

Energy Waste Reduction plans were filed in the fall 2021 with the MPSC. DTE and Consumers have both recently reached settlements with intervenors. Their final EWR plans saw substantial increases to the EWR portfolios, along with increased spending in the income-qualified and multifamily sectors. The dockets for the EWR plans can be found here: 

  • U-20874: Alpena Power Company 
  • U-20875: Consumers Energy Company 
  • U-20876: DTE Electric 
  • U-20877: Indiana Michigan Power Company 
  • U-20878: Northern States Power Company 
  • U-20879: Upper Peninsula Power Company (UPPCO) 
  • U-20880: Upper Michigan Energy Resources Corporation (UMERC) 
  • U-20881: DTE Gas 
  • U-20882: Michigan Gas Utilities Corporation 
  • U-20883: SEMCO Energy Gas Company 

Consumers Energy is in the final stages of its IRP process. Consumers, intervenors and the Michigan Attorney General have recently agreed to a settlement that is awaiting approval by the PSC. The settlement would make Consumers one of the first investor-owned utilities in the country to stop burning coal. Comments on the proposed settlement are due by May 4 in Docket U-21090. 

DTE Electric is expected to file its next IRP in October 2022. DTE has held a series of customer workshops on its CleanVision Plan. Recordings of the meetings can be found on DTE’s website. 

How to Get Involved

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

Executive

The Minnesota Climate Change Subcabinet has released its draft Climate Action Framework. The Subcabinet also announced that there will be six workgroups to refine the framework. The six groups are clean transportation, climate-smart natural and working lands, resilient communities, clean energy and efficient buildings, healthy lives and communities and clean economy. MEEA is participating in the clean energy and efficient buildings workgroup. More information on these workgroups can be found here. 

Legislative

The Minnesota legislature reconvened on January 31st. Several bills that touch on energy efficiency have been introduced, with some having hearings: 

  • HF 831: This bill was introduced last year but was recently amended. It would now allow municipalities to adopt the newest commercial model building energy code, ASHRAE 90.1, while the state goes through its lengthy process to update its code.  
  • HF 3320/SF 3397: This bill would allow Minnesotans to qualify for tax credits on qualified climate action expenditures, including heat pump water heaters, smart thermostats and induction ranges. 
  • HF 3897: This bill would make a one-time appropriation (amount to be determined) to fund electric panel upgrades, with an emphasis on low-income households. Electric panel upgrades are often needed prior to installing electric vehicle chargers or other electrified appliances. 
  • HF 3905: This bill would make a one-time appropriation of $60 million from the federal recovery fund to provide grants for pre-weatherization measures for low-income households. 10% of the funds can be used for workforce recruitment and training. 

The Senate Energy and Utilities Committee and House Climate and Energy Committee have recently unveiled their omnibus energy bills. Both HF 3337 and SF 4269 are working through various committees. The bills have substantial differences, and it’s possible that these differences will require a conference committee to find a compromise. 

Regulatory

The ECO Act tasked the Department of Commerce with forming several pieces of guidance. Commerce convened a stakeholder process to help determine energy efficiency program eligibility for low-income customers in multifamily buildings. It also created the ECO Act Implementation Coordinating Committee and three workgroups—electric vehicle sales, load management and efficient fuel-switching—where stakeholders provided ideas for consideration. The electric vehicle sales group submitted its draft proposal in early December, and Commerce has since finalized its decision. Commerce submitted its final decision on the remaining statutory requirements—multifamily housing low-income eligibility, pre-weatherization measures, load management and efficient fuel-switching—on March 15. All of these guidelines are in Docket 21-837, except for the multifamily guidance, which is in Docket 22-41.  

The investor-owned utilities have also submitted modifications to their triennial CIP plans to comply with the new low-income spending requirements of the ECO Act. These modifications were finalized in mid-February. 

The PUC has opened a few dockets to fulfil requirements in legislation that passed this session. 

  • Docket 21-565- The PUC will evaluate changes to natural gas utility regulatory and policy structures needed to meet or exceed Minnesota’s greenhouse gas emissions reductions goals. 
  • Docket 21-566- Natural gas utilities will have the opportunity to present the commission with plans to study and utilize alternative and innovative energy resources, like renewable natural gas, biogas and hydrogen.  
  • Great Plains Institute led stakeholder meetings on this docket. The meetings aimed to help Commerce understand how to evaluate the cost effectiveness of renewable natural gas and other resources, including energy efficiency. 
  • CenterPoint Energy submitted its proposed Natural Gas Innovation Act framework.  
  • This docket is on the agenda for the 5/3 Commission meeting. Commissioners are set to decide what frameworks should be established for lifecycle analysis of greenhouse gas emissions and what cost-benefit analysis should be used for natural gas innovation plans. 
  • Docket 21-548- The Minnesota Efficient Technology Accelerator (META) program seeks nonprofits to apply to run the accelerator, which will accelerate the deployment and reduce cost of efficient technologies. CEE filed its intent to apply in this docket.    
    • CEE filed its complete META application in mid-April. 

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 – Division of Energy (MoDNR-DE) announced workgroups for initiatives that will move forward in the Missouri State Energy Planning (MoSEP) process. Formal workgroups will work toward summary and action reports for Cycle 1 while exploratory workgroups will further develop initiatives for consideration during Cycle 2. Meetings focused on refining proposed initiatives and identifying champions. In the early part of 2022, MoDNR will develop work groups based on priorities shared during meetings. Email mostateenergyplan@dnr.mo.gov to join specific workgroups listed below. Interested parties are encouraged to engage through meetings and the project’s Basecamp, which can be accessed by reaching out to staff email. 

Formal Workgroups:  

  • Streamlining Solar Permitting (All Regions) 
  • Electric Vehicles (Southwest, Kansas City) 
  • Residential Energy Efficiency Real Estate Valuation/Energy Efficiency on the Multiple Listing Service (Central, Kansas City) 
  • Energy Training and Installation at Schools (Southeast) 
  • Missouri Metals and Battery Storage (Southwest, Southeast) 
  • Knowledge Exchange (Southwest, Kansas City Regions) 

Exploratory Workgroups: 

  • Biofuels (Central, Southeast, North) 
  • Renewable Natural Gas and Hydrogen Hub (North) 
  • Commercial Building Energy Efficiency Education (Kansas City) 
  • Combined Heat and Power (Central, Southwest, St. Louis) 
  • Industrial Assessment Center Outreach, Awareness and Education (Southwest, St. Louis, Kansas City) 
  • Pay As You Save ® Financing Outreach and Education (North) 

Regulatory

Evergy filed an application to extend its Cycle 3 energy efficiency programs under the Missouri Energy Efficiency Investment Act (MEEIA) through 2023. Evergy proposes extending programs to allow for a potential study to inform their Cycle 4 filing and provide clarity from their 2021 IRP filing. Staff objected to the application for extension of programs to provide for more time to analyze the application and address concerns. Those concerns include the establishment of a new income-eligible single-family program, continuation of pilot programs (PAYS® and Urban Heat Island), transitioning pilots to permanent programs, streamlining EM&V and Evergy’s earnings opportunity. A settlement agreement or procedural schedule was expected to be filed on April 28.  

    How to Get Involved

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

    Legislative

    House Bill 389 (Leland, Seitz) would permit voluntary EE portfolios by the electric distribution utilities, allowing for cost recovery and for the proposal of incentives and lost revenues. It contains provisions for low-income program funding, a 0.5% annual electric energy savings target, a cost cap and an all customer opt-out provision. 

    • Status: Sub HB 389 was reported out of committee in November. There has been no movement on this bill, and it is unclear if/when it will come to a floor vote. 

    The Ohio Energy Jobs & Justice Act (House Bill 429) would renew the repealed EE standard as an Energy Waste Reduction (EWR) standard that ramps up to the previous target of 22% cumulative savings. It would also create a statewide collaborative to facilitate the EWR planning process, a cabinet-level Office of Energy Justice and a carbon reduction plan for the state, among other provisions. 

    • Status: The bill is in committee. There has been no movement on this bill since October. 

    Regulatory

    PUCO has concluded its series of energy efficiency workshops to “solicit the views of stakeholders on whether cost-effective energy efficiency programs are an appropriate tool to manage electric generation costs, and how those fit into Ohio’s competitive electric and natural gas marketplaces.”  

    The five workshops are viewable on the PUCO YouTube Channel and you can find MEEA’s testimony presentation here.  

    How to Get Involved

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

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    Executive

    The Office of Sustainability and Clean Energy recently released its clean energy plan which will help Wisconsin adapt to future changes in the climate as mandated by Governor Evers’ executive order. The plan emphasizes the role of energy efficiency in meeting the state’s carbon reduction goals. MEEA participated on the plan’s advisory council.  

    Legislative

    SB 692 passed both legislative chambers and was signed by Governor Evers on March 11. The law expands the Property Assessed Clean Energy (PACE) program in Wisconsin by allowing energy reliability improvements, electric vehicle charging infrastructure, weather-related resiliency projects and stormwater control measures to access commercial PACE financing. The law also streamlines some application processes and expands building eligibility. 

    Building off the Governor’s Task Force on Climate Change, a coalition of Wisconsin legislators unveiled a package of 22 bills pertaining to energy and the environment this session. Many of these bills would impact energy efficiency and Focus on Energy, including: 

    • AB 798: School weatherization and energy efficiency grants 
    • AB 795: On-bill financing 
    • AB 793: Focus on Energy funding increase 
    • AB 792: Focus on Energy low-income program 
    • AB 789: Climate change local planning 
    • AB 786: Commercial and residential stretch codes 
    • AB 784: Green jobs training grants 
    • AB 782: Energy innovation grant program 

    The majority of these 22 bills did not receive a hearing this legislative session, though it’s possible some could resurface later. 

    Regulatory

    The Wisconsin PSC issued a Notice of Investigation in Docket 5-EI-158 to consider the commission’s role in the state’s transition to zero-carbon electricity generation. MEEA’s response to this docket can be found here. At the PSC’s September 2 meeting, the commissioners voted to consider some of the recommendations on resource planning and energy efficiency in the upcoming Strategic Energy Assessment and Quadrennial Planning process. 

    The commissioners also voted to hold a workshop on performance-based regulation, which included discussions on energy affordability. The workshop was held on January 11. Presentations from the meeting (including MEEA’s) can be found in the docket. In an April meeting, the Commission directed Staff to continue to facilitate further action on performance-based regulation, which could include further analysis, request for public comment or additional workshops. 

    The Commission ruled on the initial scope for the Quadrennial Planning process in Docket 5-FE-104 on December 2. In that ruling, the PSC outlined which policy topics will be covered in each phase of the Quad Plan process. PSC Staff released their memo on March 8 on the following macro policies: 

    • Alignment of Focus performance goals and program offerings with decarbonization goals 
    • Electrification programs and offerings 
    • Programs and offerings for low-income customers 
    • Collaboration between Focus and Utility Demand Response Programs 
    • Utility Voluntary Programs 

    Comments on this phase of the Quad Plan were due March 31 in Docket 5-FE-104. The Commission met on April 7 to discuss these macro policies. Overall, the Commission decided to use this Quad IV as a transitional period to understand how the Focus on Energy program can play a bigger role in reducing carbon emissions and encouraging electrification. A summary of all the Commission decisions can be found here. 

    How to Get Involved

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

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