MEEA Policy Insider - August 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

On May 27, the Governor signed SB 3866, a bill that amends the Energy Transition Act of the Climate and Equitable Jobs Act. 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

The Illinois Commerce Commission (ICC) Equitable Energy Upgrade Program (EEUP) workshops are ongoing and will convene monthly until consensus on the ICC’s staff’s proposed guidelines is reached. The next workshop is scheduled on September 20 and stakeholders can propose topics or questions for discussion. Additionally, the ICC is requesting comments on its draft guidelines by September 9. If you would like to be involved in the Illinois EEUP Workshop Series, please reach out to MEEA. 

EEUP is a financing tool created by CEJA and modeled on Pay As You Save®. The program allows customers to finance energy projects through a tariff on their utility bill and is to be designed for immediate energy savings. CEJA requires the ICC to establish guidelines for EEUP through these workshops.  

On August 18, the Low-Income Energy Efficiency Accountability Committee (LIEEAC) – North held its kickoff, a re-launch following CEJA’s reorganization of the North and South Income Qualified Committees. A joint Stakeholder Advisory Group (SAG) and Income Qualified Committee meeting will be held on September 8. A website which will house meeting materials and resources is expected to launch in the coming weeks. Reach out to LIEEAC facilitator Annette Beitel to be added to the group’s distribution list. Follow the link to the SAG calendar for meeting details and registration for upcoming SAG meetings. 

On March 1, 2021, Illinois investor-owned utilities filed their energy efficiency programs for 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 their approved plans. Both ComEd’s (Ex. 1.02R) and Ameren’s (Ex. 1.1 Exhibit J) revised stipulated agreements were approved.  

How to Get Involved

SAG meeting information and documents can be found on the SAG website. If you have any questions about Illinois, SAG meetings or want to get more involved, contact Samarth Medakkar. 

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Legislative

The 21st Century Energy Policy Development Task Force has begun meeting. Energy efficiency is going to be discussed at the September 13 meeting, and MEEA is working to formally present. Agendas for upcoming meetings and previous meetings from this summer are on the Task Force page.  

Regulatory

2022 integrated resource planning continues for Indiana utilities:  

  • AES Indiana (formerly IP&L) continues its IRP public advisory meeting sequence. Meeting #4 is scheduled for September 19, with materials and registration at the preceding link. 
  • NIPSCO's expected 2022 IRP has been extended to 2024. Its most recent IRP was filed in November 2021.   
  • CenterPoint Energy's due date for its IRP has been extended to November 1, 2023. 

Updates from the Commission on IRPs in Indiana will be posted to the IURC’s IRP page.  

How to Get Involved

IRP meetings are open to the public and are typically announced through utility mailing lists. Comment periods for recently filed IRPs are ongoing. See the IURC page for comment deadlines. 

For questions about Indiana, contact Greg Ehrendreich.

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    Regulatory

    On July 27, Alliant Energy held an energy efficiency collaborative meeting to discuss program proposals submitted by stakeholders and new measures for their next cycle of programs. Iowa investor-owned utilities’ Energy Efficiency Portfolio (EEP) planning process is currently underway. Utilities will file new five-year plans (2024-2028) with the Iowa Utilities Board in November and December 2022. 

    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 (see the updated plan filing here). The proposal includes nine programs—four residential, four business and a pilot research program. See the procedural schedule here. Following settlement negotiations in July, Evergy and advocates in the docket filed two non-unanimous agreements on Evergy’s proposed programs and financial recovery. However, Kansas Corporation Commission Staff opposed Evergy’s proposed throughput disincentive and earnings opportunity, resulting in Evergy filing a motion to stay this docket to allow for continued negotiations with KCC Staff. If the stay is granted, parties will file a modified agreement or status update by September 15. 

    How to Get Involved

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

    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. A hearing was held for the case on July 12. Post-hearing data requests had to be filed on or before July 18, and were made by Kentucky Industrial Utility Customers, Sierra Club and the following joint intervenors: Metropolitan Housing Coalition, Kentuckians for the Commonwealth, Kentucky Solar Energy Society and Mountain Association. 

    On Wednesday, August 31, the KY Energy and Environmental Cabinet Office of Energy Policy hosted a public meeting for the Energy Security Plan. The meeting consisted of an overview of Kentucky’s energy emergency support functions and the state’s energy security plan. The office will also be holding a virtual public hearing session on September 6 to receive comments on the draft proposed state program narrative for the U.S. Department of Energy Funding - Section 40101(d) Preventing Outages and Enhancing the Resilience of the Electric Grid. Find more information about submitting comments by September 2 and event registration here.

    How to Get Involved

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

    Executive

    The Department of Environment, Great Lakes and Energy is hosting five ideation sessions to identify next steps in implementing the MI Healthy Climate Plan. The five topics are zoning, permitting and renewable energy; repairing and weatherizing homes and buildings; securing climate-related federal funding; driving more investments in disadvantaged communities to achieve Justice40; and creating a Michigan-wide greenhouse gas inventory. See EGLE’s website for more information. 

    Legislative

    The Whitmer administration and legislative leaders recently reached a compromise on the state budget, with the Senate and House both voting to pass the appropriations bill, HB 5783. The Governor signed the bill on July 20 with limited line-item vetoes. Some notable energy provisions are: 

    • Low Carbon Energy Infrastructure Enhancement and Development (ongoing, $25 million) 
    • Michigan Saves Green Bank (additional one-time $1 million) 
    • Public Service Commission Community Education and Outreach ($282,600) 
    • Utility Energy Efficiency Revolving Fund (appropriation of $7.2 million from federal Infrastructure law) 

    More details can be found at the House Fiscal Agency summaries for the Department of Licensing and Regulatory Affairs and the Department of Environment, Great Lakes, and Energy.  

    Regulatory

    MI Power Grid workgroups continue to meet. The Distribution System Data Access Workgroup met on August 16 to engage members of the distributed generation community and on August 22 to speak with electric vehicle stakeholders. The MPSC and its contractor, ICF, released its draft Michigan Renewable Natural Gas Study for the Renewable Natural Gas Study Workgroup. The workgroup met on June 29 to discuss the draft, and a final report is expected later this summer. Lastly, the Advanced Planning Process Workgroup Phase III-Integrated Resource Plan has been meeting the last few months update the integrated resource plan filing requirements.   

    Consumers Energy’s Integrated Resource Plan was approved by the MPSC on June 23. The settlement agreement between Consumers, intervenors and the Michigan Attorney General will make Consumers one of the first investor-owned utilities in the country to stop burning coal.  

    The PSC also recently approved the settlement between intervenors and the  

    Upper Michigan Energy Resources Corporation (UMERC) for its IRP. The IRP commits UMERC to an energy waste reduction goal of 1.5% for the next three years.  

    DTE Electric is expected to file its next IRP in October 2022. DTE 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 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. A final version of the Framework is expected this summer.

    Legislative

    The legislature ended its session on May 23 as it was statutorily required. While many energy-related bills were introduced this session, most were laid over for consideration in the committee omnibus bill. SF 4091 was the combined Senate and House energy omnibus bill, and a conference committee was formed to find agreement between the two chambers. The legislature failed to reach agreements on several omnibus bills, including SF 4091. 

    While many were hoping that lawmakers would agree to a special session, it seems that this will not happen per recent comments from the Governor and legislative leadership. Without a special session, many omnibus bills, including the energy omnibus, will not be passed this session. Additionally, Minnesota runs the risk of not qualifying for certain projects under the Infrastructure Investment and Jobs Act as the bills that allocated required matching dollars were among the bills that did not pass. 

    Regulatory

    Docket 21-566, which was opened in response to the passage of the Natural Gas Innovation Act, remains active. 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. The Commission released an order on June 1 outlining specifics on lifecycle analysis of greenhouse gas emissions and cost-benefit analysis for natural gas innovation plans. The order outlined many other requirements on cost-effectiveness and reporting, which can be found here. After a recent commenting period, the Commission is considering which energy efficiency and strategic electrification measures are eligible for inclusion in natural gas utility innovation plans.  

    Docket 21-548 was opened in response to the passage of the Minnesota Efficient Technology Accelerator (META) program. META seeks nonprofits to apply to run the accelerator, which will accelerate the deployment and reduce cost of efficient technologies. The Department of Commerce recently announced that CEE’s META application has been approved and they will be tasked with running the accelerator.  

    The Department of Commerce’s CIP Cost-Effectiveness Advisory Group has been ongoing throughout the summer. The group has provided comments on a straw proposal on which utility and non-utility impacts should be included in Minnesota’s primary cost-effectiveness test. Upcoming work includes reviewing the final report of that phase of the process and beginning discussion on quantification of priority impacts. 

    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.   

    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)   

    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

    On July 19, the Missouri Energy Efficiency Advisory Collaborative (MEEAC) convened its first meeting this year. The meeting focused on an update of the state’s investor-owned utilities' Pay As You Save ® programs. Specifically, the group discussed challenges and solutions to low participation rates. A recording will be posted within EFIS in docket EW-2013-0519. 

    On July 1, the MEEAC Low-Income Work Group held its second meeting, focused on updates to state weatherization policy, initiatives to prepare the state for incoming funding and barriers to weatherization implementation. See the recording. 

    How to Get Involved

    To join specific workgroups in the MoSEP process, email mostateenergyplan@dnr.mo.gov. Interested parties are encouraged to engage through meetings and the project’s Basecamp, which can be accessed by reaching out to staff email. 

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

    Legislative

    House Bill 690 (Lanese, Manning) would amend the makeup of the PUCO, such that one of the five members would have to come from a separate nomination pool submitted by the Office of Consumers’ Counsel, while the rest would be filled by the traditional nominating council process. 

    • Status: The bill was introduced on May 31, 2022. No new updates. 

    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 2021. No new updates.  

    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 remains in Committee. No new updates.  

    Regulatory

    In remarks at the July 7 Commission meeting (timestamp 18:30) discussing the series of energy efficiency workshops held earlier this year, PUCO Chair French supported filing energy efficiency cases for consideration – “The commission encourages jurisdictional and non-jurisdictional interested parties to work collaboratively and cooperatively to propose energy efficiency initiatives. In accordance with the commission's statutory authority, parties interested in pursuing these energy efficiency initiatives are also encouraged to incorporate these into either comprehensive or standalone proceedings before the commission for its consideration.” 

    How to Get Involved

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

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    Legislative

    Building on 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 Wisconsin Democrats announced in July that they intend on reintroduce several of these bills in the 2023 legislative session.  

    Regulatory

    In Docket 5-FE-104, PSC Staff recently released their Quadrennial Planning Process IV Phase II memo, which outlines possibilities for the Commission to consider Micro Focus Implementation Decisions. The memo contains several topics for the Commission to consider, including: 

    • Overall vs. Fuel-Specific Savings Goals 
    • Lifecycle vs. First-Year Savings Goals 
    • Emphasis between Energy and Demand 
    • Time-Varying Value of Energy Efficiency and Renewable Energy Resources 
    • Low-Income and Income-Qualified Programs and Offerings in Cost-Effectiveness Tests 
    • Value of Carbon 
    • Behavioral Programs 

    The Commission made 24 decisions on this phase, which can be found in the meeting minutes. Among the decisions, the PSC decided to maintain Focus’ funding ratio (60% to business, 40% to residential), continue with the TRC test for cost-effectiveness scoring and directed Focus and the Evaluation Workgroup to study a variety of issues, like winter peak and time-varying value of efficiency. 

    This phase builds on the previous decisions the Commission made on Phase I, Macro Policy Decisions, in April. Overall, the Commission decided to use this Quadrennial 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.  

    In Docket 5-EI-158, Commissioners voted to hold a workshop on performance-based regulation. The initial workshop was held on January 11. Presentations from the meeting (including MEEA’s) can be found in the docket. In an April order, the Commission directed Staff to continue facilitating further action on performance-based regulation. Staff held a second in-person workshop on June 7 and a third on August 16. A fourth workshop is scheduled for October 13. 

    How to Get Involved

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

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    Executive

    On August 16, President Biden signed the Inflation Reduction Act (IRA) into law. This legislation places emphasis on lowering energy costs, advancing environmental justice and developing the clean energy economy. IRA builds on investments within the Infrastructure Investment and Jobs Act (IIJA) and the current administration’s Justice40 Initiative. IRA has the overarching goals to reduce pollution, improve clean transit, make clean energy more affordable and accessible and strengthen resilience to climate change. Specific to efficiency, IRA includes  tax credits for energy efficiency improvements, a new $4.3 billion rebate program, incentives for space and water heat pumps and contractor training. The bill also includes Environmental and Climate Justice Block grants, as well as other programs pertinent to energy efficiency. See this summary of Energy and Climate Provisions within IRA.  

    U.S. Department of Energy has issued its regulatory agenda for Spring 2022. The agenda outlines the schedule and status on rulemaking on efficiency standards for a variety of appliances. 

    On June 13, DOE proposed new energy efficiency standards for residential gas furnaces. If DOE’s tentative agenda is adhered to, this would go into effect in 2029 and require gas furnaces to be 95% fuel efficient. According to DOE, older, less efficient and non-condensing style furnaces can have efficiency rates as low as 56%. The phasing out these older furnaces is expected to save consumers $30.3 billion over 30 years. While many replacement systems would remain fueled by natural gas, the American Gas Association is reviewing the rule and plans to object if determined to have a significant impact on the gas industry. 

    On May 16, the Administration finalized rules on efficiency standards for manufactured homes. The new rules require significantly more insulation for non-single-wide manufactured homes, though the efficiency standard is weaker than that for homes built on-site in states with the 2021 IECC. For single-wide manufactured homes, which comprise about 45% of the manufactured housing stock today, the efficiency standard is slightly higher than the previous standard, formerly in place since 1994. 

    The Energy Independence and Security Act of 2007 (EISA) contains stages of increasing efficiency standards for lighting. The Department of Energy finalized the “backstop” minimum efficiency standard of 45 lumens/Watt for screw-based lightbulbs (general service lamps) sold in the marketplace. The backstop effectively phases out virtually all sales of non-LED bulbs (i.e., incandescent, halogen) by July 2023. The import of non-compliant bulbs is permitted until January 2023, and their sale through July 2023, upon which fines would be imparted to retailers.   

    Legislative

    U.S. Senator Martin Heinrich (D-NM) introduced the Clean Energy Jobs Act, which aims to meet the growing energy workforce needs and create a comprehensive strategy at the DOE to increase participation among historically marginalized groups throughout the industry. This Act is a response to the anticipated increase in demand for trained workers, particularly in renewable energy, energy storage and electrification. Among other specific items, the Clean Energy Jobs Act creates an Energy Workforce Program at DOE and establishes a resource center for schools, workforce development programs and industry organizations to guide the development of energy-related training programs. 

    The Blue Collar and Green Collar Jobs Development Act, sponsored by Energy Subcommittee Chairman Bobby Rush (D-IL), reauthorizes DOE’s Office of Minority Economic Impact to implement training programs for jobs in energy-related industries and act as a resource for organizations that seek to develop and implement training programs for such jobs. Further, the office shall establish and carry out a program to provide grants to certain businesses, labor organizations, nonprofit organizations or qualified youth or conservation corps to pay the eligible wages or stipends for individuals receiving training in renewable electric energy generation and energy efficiency.  

    If interested in signing on to this letter and supporting these two acts, please contact Skip Wiltshire-Gordon, Policy Associate at AnnDyl Policy Group LLC, by August 12. 

    How to Get Involved 

    For more information about federal issues, contact Stacey Paradis. 

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