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:
- COVID-19 Update
- Policy Webinar: Dynamic Pricing
- State Updates: IL / IN / IA / KS / MI / MN / NE / OH / WI
- Federal Update
- New Resources & Blog Posts
COVID-19
Given the coronavirus pandemic, the federal government, state governments, local governments, institutions, utilities and other organizations are taking actions to promote or require degrees of social distancing. As a result, utility commissions, state legislatures and state energy offices have been impacted, including delay or suspension of state legislative sessions and other state activities. Additionally, utilities throughout the Midwest have taken steps to delay, suspend or cancel parts of their energy efficiency programs.
MEEA is tracking impacts from COVID-19, including any federal or state economic stimulus bills. MEEA’s policy team will analyze the implications of these stimulus bills on energy efficiency in our region. Members who are able to share information about utility program and energy service impacts, please contact Policy Director Nick Dreher.
Policy Webinar: Dynamic Pricing
SAVE THE DATE: Friday, March 27 1-2 PM CT
On March 27, MEEA’s Policy team will hold a webinar on dynamic rate design, including time-of-use rates. This webinar will provide an introduction to real-time pricing, including a review of regional and national practices, a walk-through of some programs and pilots in the Midwest and a consumer advocate’s perspective. Register here.
Legislative
The Illinois legislature has cancelled session through March 27. The next session date is March 31, when it may resume or be further suspended.
The General Assembly reconvened its 2020 session on January 28. The Clean Energy Jobs Act (H.B. 3624) has received subject-matter hearings in both the House and Senate. The bill still faces committee and floor votes in both chambers before reaching the governor’s desk. It currently has 59 cosponsors, nearly half of the House of Representatives.
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.
Due to COVID-19, large group and working group meetings will be held via teleconference until further notice. The deadline for submitting energy efficiency ideas via template was extended, with a new deadline to be announced. Meeting information, COVID-19 updates 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 Dreher.
Legislative
2020 is a short session year for Indiana. The legislative session adjourned sine die on March 11.
House Bill 1414 passed both House and Senate on March 10th. While not directly related to energy efficiency, it postpones coal capacity retirements from recent IRPs, which could affect the amount of forecast DSM from those plans that is actually implemented. HB 1414 is now headed to the Governor’s desk.
Regulatory
Integrated resource planning is ongoing for Indiana utilities.
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.
Legislative
On March 15, the legislature suspended session for a minimum of 30 days (until April 15), due to concerns over COVID-19. Iowa’s 2020 short legislative session began on January 13 and runs through April 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
Due to concerns over COVID-19, the Kansas Legislature is adjourned through April 27.
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 Senate version, SB 492, was introduced in the Committee on Utilities. 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. The bill has yet to receive a hearing in committee.
How to Get Involved
For more information about Kansas or to get more involved, contact Samarth Medakkar.
Regulatory
On February 20, 2020, the Michigan Public Service Commission released an order regarding DTE’s integrated resource plan (IRP) (Case U-20471), directing DTE to revise the IRP within 30 days of the order to address informational and analytical requests the Commission found were absent from the initial filing.
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). Due to COVID-19 concerns, the House and Senate have adjourned until March 25.
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 March, members of the subcabinet and advisory council had not yet been appointed.
Legislative
All committee hearings and legislative sessions are cancelled through April 14 due to COVID-19, though the House Speaker and Senate President reserve the right to call lawmakers back to St. Paul sooner.
Minnesota’s 2020 legislative session began on February 11. Numerous energy-related bills have been introduced this session. HF3436 would allocate $131.5 million to renewable and energy efficiency projects, HF3955 would alter the low-income Conservation Improvement Program and SF4219 would alter the procedure for adopting new energy building codes. Although there are many more energy bills to discuss, the legislature has focused much of its attention on the Clean Energy First Act. Both a House version (HF1405) and a Senate version (SF1456) are making their way through committees. Since the bills do have some major differences, a conference committee may be needed in the event the two chambers pass their respective bills.
Regulatory
On March 10 Governor Walz appointed State Commerce Department Deputy Commissioner of Energy Resources Joseph Sullivan to the Public Utilities Commission. Sullivan will begin his six-year term on April 6, though the appointment will be reviewed by the Minnesota Senate.
How to Get Involved
For more information about Minnesota or to get more involved, contact Maddie Wazowicz.
Legislative
Nebraska has suspended its legislative session in light of COVID-19. Session will remain adjourned until the Speaker calls Senators back to the capitol.
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.
How to Get Involved
If you have questions about Iowa or want to get more involved, contact Maddie Wazowicz.
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.
On February 26, the PUCO ruled that the 2020 EE portfolios shall run through September 30, 2020, and then ramp-down and terminate on December 31, 2020. On November 25, 2019, MEEA and other interested parties submitted public comments to the PUCO as part of the EE docketed proceedings. It is unclear what EE plans will look like post-2020, although it is likely utilities will file voluntary EE plans for next year.
How to Get Involved
For more information about Ohio or to get more involved, contact Nick Dreher.
Executive
On March 10 Governor Evers’ Task Force on Climate Change met in Stevens Point. The Task Force on Climate Change, chaired by Lieutenant Governor Mandela Barnes, will continues to meet over the spring and summer. The Task Force is charged with issuing recommendations by August 31, 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. The bill passed out of the Senate Committee on Utilities and Housing unanimously on February 10.
Regulatory
Governor Evers has appointed Tyler Huebner to the PSC, effective March 17. Prior to the appointment, Commissioner Huebner served as the executive director for RENEW Wisconsin. Former Commissioner Mike Huebsch retired from the PSC, creating the vacancy. Commissioner Huebner will complete former Commissioner Huebsch’s term that expires March 1, 2021.
How to Get Involved
For more information about Wisconsin or to get more involved, contact Nick Dreher.
Legislative
On March 10, S.2657, the American Energy Innovation Act of 2020 (AEIA) sponsored by Sens. Murkowski (R-AR) and Manchin (D-WV) was considered in the Senate. The bill provides incentives for encouraging development in energy efficiency and energy storage, among other critical energy resources and measures. More specifically, the bill would extend federal programs to weatherize homes, extend the federal government’s energy savings targets and offer rebates for consumers to buy more energy-efficient appliances. The bill stalled due to disagreements over proposed amendments that would phase out HFCs and increase residential energy efficiency. For a deeper breakdown of the bill, see this article from JD Supra.
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
The Senate voted to confirm James Danly to the Federal Energy Regulatory Commission. Commissioner Danly’s term runs through June 30, 2023.
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 comprehensive summary on the complexities of the MOPR and capacity markets 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. In early March, Democratic senators filed amendments to AEIA that would have prevented the MOPR order, but the amendments were not adopted.
How to Get Involved
For more information about how this federal activity will impact the region or to get more involved, contact Nick Dreher.
