MEEA Policy Insider - February 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:

Policy Webinar Recording: 2020 Midwest Spotlight

On February 7, MEEA staff held a webinar to walk through our 2020 Midwest Spotlight. The webinar featured presentations from PACE administrators Bali Kumar, Lean and Green Michigan and Josh Campbell, Missouri Energy Initiative. Click here to access the presentation slides and here for the webinar recording.

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Legislative

The General Assembly reconvened its 2020 session on January 28. The Clean Energy Jobs Act (H.B. 3624) and other energy-related legislation will likely receive further consideration, including subject-matter hearings which began in February.

Regulatory

On January 31, 2020 Governor Pritzker appointed Michael Carrigan to the Illinois Commerce Commission (ICC) for a five-year term. Commissioner Carrigan, the former president of the Illinois AFL-CIO, assumes the seat held by Brien Sheehan.

The Illinois Energy Efficiency Stakeholder Advisory Group (SAG) will spend most of 2020 facilitating an EE portfolio planning process between utilities and stakeholders. The objective is for consensus to be reached prior to utilities filing plans for approval with the Illinois Commerce Commission on March 1, 2021. Interested parties are encouraged to participate. Meeting information and documents can be found on the SAG website.

How to Get Involved

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

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Executive

On January 6, Governor Holcomb named Jennifer Richardson as the executive director of the Indiana Office of Energy Development, effective December 30, 2019. This appointment fills the vacancy left by former energy office Director Tristan Vance.

Legislative

2020 is a short session year for Indiana. The legislative session will adjourn by March 14.

House Bill 1414, while not directly related to energy efficiency, may affect the outcomes of Indiana IRPs by postponing some capacity retirements that could otherwise be partially replaced by additional DSM. It is currently in the Senate Utilities committee.

Regulatory

Integrated resource planning is ongoing for Indiana utilities.

Hoosier Energy has announced its IRP, though the submitted plan has not yet been published at the IURC at the time of writing.

Current filing deadlines for the next IRPs are:

  • Vectren: May 1, 2020
  • NIPSCO: Nov 1, 2021

Utility stakeholder meetings will continue during the planning period and will be posted on the utility IRP page linked above. 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.

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

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Legislative

Iowa’s 2020 short legislative session began on January 13 and runs through April 21.

On February 5, HSB 635 was introduced in the State Government subcommittee. The bill would require landlords to disclose annual energy costs to a prospective tenant prior to them signing a lease. The next opportunity for this bill to move out of subcommittee will be February 21.

How to Get Involved

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

​Executive

On January 28, Governor Kelly announced she would be moving the State Energy Office from under the Kansas Corporation Commission (KCC) to a separate, independent office. This change occurred when the Governor submitted an executive reorganization order (ERO) to the Kansas Legislature, and is set to take effect July 1. However, on February 12, the House Committee on Energy, Utilities and Telecommunications filed a disapproval resolution. If either chamber of the Legislature passes a disapproval resolution within 60 days of the ERO being filed, then the ERO is void.

Legislative

On February 13, legislation to amend the Kansas Energy Efficiency Investment Act (KEEIA), HB 2679 was introduced by the House Committee on Energy, Utilities and Telecommunications. The bill makes changes to several definitions and creates clear guidance for EE programs run by utilities to receive cost recovery, lost revenue and incentive payments. The bill also prohibits fuel-switching and proscribes the Total Resource Cost (TRC) test as the primary test for cost-effectiveness, among other provisions.

How to Get Involved

For more information about Kansas or to get more involved, contact Nick Hromalik.

Executive

On October 17, 2019, Governor Whitmer announced the launch of MI Power Grid to guide Michigan through the transition to clean energy. Find individual updates on working group progress here:

Legislative

Michigan’s 2020 legislative session kicked off on January 8 and is expected to conclude June 11 (with tentative dates scheduled the weeks of June 16 and June 23).

How to Get Involved

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

Executive

On December 2, Governor Walz signed Executive Order 19-37, establishing both the Climate Change Subcabinet and the Governor’s Advisory Council on Climate Change. The subcabinet, which will consist of members from fifteen cabinet-level agencies, will come up with recommendations to help the state to meet its greenhouse gas reduction goals. The appointed members of the citizens’ advisory council will advise the cabinet and the Walz administration on ways to mitigate climate change, improve resiliency and increase interagency collaboration. As of February 17, members of the subcabinet and advisory council had not yet been appointed.

Legislative

Minnesota’s 2020 legislative session began on February 11. Lawmakers and Governor Walz administration officials continue to discuss the Clean Energy First Act (HF 1956), which would prioritize clean energy, energy efficiency and renewable energy prior to building new fossil fuel generation. Senate Republicans have released their version of the bill (SF 1456), which was introduced and assigned to the Senate Committee on Energy and Utilities for a hearing on February 13. Minor amendments were made to the bill during this hearing, and an additional committee hearing was scheduled for February 20. Discussions continue on the Energy Conservation and Optimization Act, the second portion of the three-part Clean Energy First legislative package. The third act would transition Minnesota to exclusively carbon-free by 2050.

Regulatory

Commissioner Dan Lipschultz’s term expired on January 6. Applications are open for the position, as Lipschultz has decided not to reapply for the posting.

How to Get Involved

Public comments will be allowed at the next Senate Committee on Energy and Utilities hearing on Clean Energy First on February 20. For more information about Minnesota or to get more involved, contact Maddie Wazowicz.

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Legislative

 Missouri’s 2020 legislative session began on January 8 and runs through May 15th.

Regulatory

On January 16, Governor Parson appointed Senator Jason Holsman to the Missouri Public Service Commission. Commissioner Holsman appointment fills the seat of former Commissioner Daniel Hall.

How to Get Involved

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

Legislative

Nebraska’s 2020 legislative session began on January 8. A renewable portfolio standard (including efficiency requirements) is one piece of legislation MEEA is monitoring, but most energy-related bills have not yet been assigned committee hearings.

Municipal

Nebraska adopted legislation in 2019 to strengthen the state’s building energy codes to the unamended 2018 IECC code, but the legislation also gives municipalities a two-year window to make customizations to the code for municipal adoption. The Omaha City Council voted on January 14 to enact new building energy codes that are weaker than the passed state code. The exact modifications to the code can be found here. MEEA’s building energy codes team will monitor other municipalities’ potential code adjustments.

How to Get Involved

If you have questions about Iowa or want to get more involved, contact Maddie Wazowicz.

Legislative

The General Assembly resumed session on January 28. There are several energy-related bills that could move forward in 2020. MEEA will continue to update its members as additional information becomes known.

Regulatory

On February 6, Governor DeWine reappointed Commissioner Lawrence Friedeman to the Public Utilities Commission of Ohio (PUCO) for a five-year term that begins on April 11, 2020.

The PUCO has yet to rule on the 2020 EE portfolios, although PUCO staff continue to post reports documenting how much energy savings utilities have reached to date. On November 25, 2019, MEEA and other interested parties submitted public comments to the PUCO as part of the EE docketed proceedings. The PUCO had requested public comment on whether it should allow EE portfolios to continue once the 17.5% cumulative energy savings—as outlined in HB 6—has been met, including part way through 2020.

How to Get Involved

For more information about Ohio or to get more involved, contact Nick Hromalik.

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Executive

On December 19 Governor Evers’ Task Force on Climate Change met for the first time, with the next meeting likely in March in Stevens Point. The Task Force is chaired by Lieutenant Governor Mandela Barnes and includes members from across Wisconsin. The Task Force is charged with issuing recommendations by August 31, 2020 and plans to conduct additional meetings in 2020.

Legislative

The State Legislature began its 2020 session on January 15. Senator LeMahieu and Representative Kuglitsch, chairmen of the House and Senate energy and utilities committees, introduced SB 689, a bill that makes technical changes to the Public Service Commission (PSC) and Citizens Utility Board (CUB). The bill provides $900,000 in funding for CUB from electric and natural gas investor-owned utilities. The bill also changes the threshold at which certain natural gas projects must receive PSC-issued certificates and eliminates the requirement that the PSC prepare an environmental assessment on its biennial strategic energy assessment, among other changes.

Regulatory

Former Commissioner Mike Huebsch has retired from the PSC; his last day was February 3. Governor Evers has yet to appoint a replacement commissioner, leaving the PSC with only two commissioners at this time. Commissioners are appointed by the Governor and confirmed by the State Senate for staggered, six-year terms.

How to Get Involved

For more information about Wisconsin or to get more involved, contact Nick Hromalik.

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Legislative

On January 28, the House Committee on Energy & Commerce released their legislative draft text  for their Climate Leadership and Environmental Action for our Nation’s (CLEAN) Future Act. This follows the Committee’s release of the legislative framework earlier this year. The proposal calls for increased investment in building energy efficiency, energy efficiency programs, grid modernization and financing mechanisms. The Committee is requesting feedback, which can be submitted to CleanFuture@mail.house.gov.

Regulatory

On December 19, 2019 the Federal Energy Regulatory Commission (FERC) voted 2 to 1 to issue an order making changes to PJM’s capacity market and Minimum Offer Price Rule (MOPR). In short, all new resources, including energy efficiency and demand response, will need to meet higher price floors. This will likely negatively impact renewable resources, EE and DR. For a good summary on the complexities of the MOPR and capacity market you can read this Vox article. PJM has 90 days to issue their next auction plan to FERC and interested parties can file a request for rehearing.

How to Get Involved

For more information about how this federal activity will impact the region or to get more involved, contact Nick Hromalik.

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