MEEA Policy Insider - June 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:

Upcoming MEEA Webinars

IIJA Weatherization Implementation 

June 22 | 12 – 1:00 p.m. CDT 

The Infrastructure Investment and Jobs Act (IIJA) includes a historic $3.5 billion investment in the Weatherization Assistance Program to reduce energy burdens, improve housing quality and create jobs. Join MEEA for a deep dive on the weatherization initiatives within IIJA, including how funds will be allocated, meeting workforce development needs, the Justice40 initiative and opportunities for stakeholders to support implementation. Register here >>

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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) held its first Equitable Energy Upgrade Program (EEUP) workshop on June 7. The ICC is anticipated to hold monthly workshop meetings beginning in August, though the schedule may remain flexible. The next workshop is scheduled on August 10 and will focus on consumer protections. Workshops are open to all interested stakeholders. To be added to the distribution list, reach out to Jennifer.Morris@illinois.gov with the subject line “Illinois EEUP Workshop Series Invitation.”   

EEUP is a financing tool created by CEJA and modeled based 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.  

 In June, the Stakeholder Advisory Group held its first Equity Subcommittee meeting, a Market Transformations Savings Working Group meeting and its first Policy Manual Update Subcommittee meeting. Below are upcoming SAG meetings in July. Follow the link to the SAG calendar for meeting details and registration.   

  • Policy Manual Subcommittee (July 13)   
  • Market Transformation Savings Working Group Meeting (July 25)  
  • Network Lighting Controls Subcommittee (July 27)

In May and early June, Illinois utilities filed their 2022 Quarter 1 reports.  

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 the approved plans. Both ComEd and Ameren Illinois' revised stipulated agreements were approved. Follow the links below to see revised plans and stipulations. 

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 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

On May 31, Commissioner David Ober departed the IURC to serve as vice-president of taxation and public finance at the Indiana Chamber of Commerce. The Nominating Committee is accepting applications through June 30 from eligible Hoosiers who would like to be considered for the Commission. 

2022 integrated resource planning continues for Indiana utilities:  

  • AES Indiana (formerly IP&L) continues its IRP public advisory meeting sequence. Meeting #3 is scheduled for June 27, 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. 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. They 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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    Legislative

    Iowa’s legislative session continued through its scheduled end date of April 19 and adjourned on May 25.   

    • SF 2383 & HF 2569: The Senate version of Governor Reynolds’ Workforce Development Omnibus passed both chambers. Previously, the bill 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. This provision was struck from the final version of the bill.  
    • 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 was 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 did not receive a vote this session.   

    Regulatory

    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 2022. Stakeholder proposals were due June 1.   

    On May 1, Iowa utilities filed their annual energy efficiency reports for 2021. Follow the links below for each utility’s respective report. On June 20, Iowa utilities held their annual meeting to address stakeholder questions regarding 2021 program performance and 2022 program progress. Stakeholders can still submit questions for utilities to address to Kristine.Koch@oca.iowa.gov.    

    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. Direct testimony and responses to testimony were filed on June 17 and June 24, respectively, and a public hearing was held on June 27. The public comment period closes on July 8.  

    In testimony, Commission Staff recommended approval of residential and business demand response, market-rate and hard-to-reach programs, with some alterations. Staff recommended rejecting Evergy’s proposed Market Based Demand Response program and suggested a scaled-down Pilot Incubator program to parallel Evergy’s Missouri program. Staff also rejected Evergy’s request for the ability to make major program changes, recommending that any budget changes that exceed 10% be approved by the Commission. 

    On March 23, Chairman Dwight D. Keen of the Kansas Corporation Commission was reappointed by Governor Kelly to a second four-year term as Commissioner.   

    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 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 adjourned the 2022 regular session on April 14. Governor Beshear vetoed HCR 138 in its entirety. This resolution was set to begin the process of studying and designing an alternative rate mechanism for public utilities regulated by the Public Service Commission, allowing for increased rates and less Commission oversight. 

    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. The Governor advised that the sole Commissioner is considered the majority of the Commission, and as a result, is able to make decisions, like approving the $2.8 billion sale of Kentucky Power to Liberty Utilities on May 4. 

    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. There will be a hearing held for the case on July 12 at 9 a.m. ET. The hearing will be streamed live and may be viewed on the PSC’s website. 

    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 the final MI Healthy Climate Plan on April 21.  

    Legislative

    The legislature continues to meet, though much of the focus remains on the state budget.  

    Representative Outman introduced HB 5619, which would extend the energy waste reduction standard. The standard was 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. The Interconnection Standards and Worker Safety Workgroup met in April. In Docket U-20890, Staff released their proposed Interconnection and Distributed Generation Standards (MIXDG Rules), which were discussed at the workgroup’s June 22 meeting. 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. And lastly, the Advanced Planning Process workgroup Phase III-Integrated Resource Plan 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 of 2021 with the MPSC. DTE and Consumers have both reached settlements with intervenors this spring. Their final EWR plans saw substantial increases to the EWR portfolios, along with increased spending in the income-qualified and multifamily sectors. More information on the Consumers Energy and DTE plans can be found on MEEA’s blog.  

    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 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 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

    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. All of these guidelines are in Docket 21-837, except for the multifamily guidance, which is in Docket 22-41.    

    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.   Great Plains Institute led stakeholder meetings  to help Commerce understand how to evaluate the cost effectiveness of renewable natural gas and other resources, including energy efficiency.  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. Utilities will be asked to use the GREET model to calculate emissions. The order outlined many other requirements on cost-effectiveness and reporting, which can be found here. The Commission is also requesting comment on what energy efficiency and strategic electrification measures are eligible for inclusion in natural gas utility innovation plans. Comments are due July 1 and reply comments are due July 15. 

    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. CEE filed its complete META application in mid-April. Comments on the proposal were due May 19.  

    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 May 12, Evergy’s stipulated agreement extending its Cycle 3 energy efficiency programs under the Missouri Energy Efficiency Investment Act (MEEIA) was approved by the Commission. Evergy proposed extending programs to allow for a potential study to inform their Cycle 4 filing and provide clarity from their 2021 IRP filing.  

    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. 

    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 House Public Utilities Committee held its first hearing on this legislation on May 10, with proponent testimony from the bill’s sponsors.  

    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 the written comments from the initial and follow-up rounds of comments are available from the link above. MEEA shared testimony during the Energy Efficiency - Environmental workshop. 

    How to Get Involved

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

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    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 order, the Commission directed Staff to continue facilitating further action on performance-based regulation, which could include further analysis, request for public comment or additional workshops. Following this order, Staff held a second in-person workshop on performance-based regulation on June 7. At that meeting, Staff announced their intention to hold an additional three workshops on PBR throughout the remainder of 2022. 

    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 4th Quadrennial Planning (Quad IV) process. PSC Staff released their memo on March 8 on the following macro policies:   

    • Alignment of Focus on Energy 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   

    The Commission met on April 7 to discuss these macro policies. Overall, the Commission decided to use this Quad IV plan 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. The Staff memo on the next phase, Micro Focus Implementation Decisions, is expected in late June or early July.  

    How to Get Involved

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

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    Executive

    The 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, the 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 of 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. See this Utility Dive article for more details. 

    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.   

    How to Get Involved 

    For more information about federal issues, contact Stacey Paradis. 

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