MEEA Policy Insider - May 2021

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

States and cities are in various stages of resuming economic activity and reopening businesses. There are ongoing cases in public service commissions to address or understand utility service impacts and most investor-owned utilities have implemented moratoria on shut-offs. The efficiency workforce has not fully recovered from the economic slowdown and social distancing in late spring of 2020 that carried into the summer. However, most utility programs and state weatherization programs have resumed, some with alterations including virtual elements or limited direct customer interaction.

MEEA is tracking impacts, program responses and recovery from COVID-19 and sharing resources as the situation evolves. For consolidated information, see MEEA’s COVID-19 resources page. Members who are able to share information about utility program and energy service impacts or have any resource needs, please contact Policy Director Nick Dreher.

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Executive

On August 21, Governor Pritzker’s office announced Eight Principles for a Clean and Renewable Economy. The eighth principle is “Enhance Energy Efficiency in Illinois” and lays out numerous policy proposals the Governor would like to pursue. The Governor’s office held working groups focusing on the power sector, transportation, equity and commercial/industrial/buildings-related energy efficiency issues in October. MEEA attended all three commercial/industrial/buildings EE working group meetings, which focused on principle eight. On March 15, MEEA attended a working group meeting convened by the Governor’s office to discuss the customer EE exemption in Illinois. The Governor has since integrated information gathered through the working groups and stakeholder consultation into a clean energy bill called the Consumers and Climate First Act, which is further discussed in the legislative section.

Legislative

The Illinois legislative session ends May 31st and the legislature is still debating the future of the state’s clean energy strategy. There are several clean energy bills under consideration, including: Clean Energy Jobs Act or CEJA (HB 804), Climate Union Jobs Act or CUJA (SB 1100), Path to 100 (SB 1601) and the Consumers and Climate First Act (SB 2896 / HB 4074).

CEJA, previously introduced as SB 2132 / HB 3624, was re-introduced on February 9th as HB 804. It has been amended extensively since its first introduction, including new or expanded electrification, workforce development and utility accountability provisions. Topic-specific excerpts of CEJA are available on the pro-CEJA Illinois Clean Jobs Coalition website. CEJA (HB 804) passed out of committee on March 15th and moved to the full Illinois House of Representatives for debate.

HB 2640, known as Path to 100 Act, also passed out of committee on March 15th in the House. If passed, it would increase the cap on energy bills from about 2 to 4 percent to fund renewable energy projects. HB 1734 was introduced on March 9th and heard on March 22nd. It would, among other things, alter the definition of energy efficiency, allow certain public utilities to recover natural gas delivery services costs through a performance-based rate and authorize utilities to plan for, construct and operate electric vehicle charging infrastructure.

The labor group Climate Jobs Illinois is promoting CUJA or (HB 1472 / SB 1100), which would get Illinois to 100% clean energy by 2050. In terms of major differences to CEJA, CUJA would preserve the state’s nuclear fleet; emphasize utility-scale solar, rather than distributed generation; use union jobs administered through the Illinois Works Jobs Program, rather than equity-focused workforce development hubs around the state; and finance a Just Transition Fund through ratepayer contributions rather than the pollution fee policy under CEJA.

The Consumers and Climate First Act, SB 2896 / HB 4074, is the bill backed by the governor. It would commit Illinois to phasing out coal by 2030 and natural gas by 2045, while maintaining nuclear energy and increasing both renewable energy and energy efficiency. It uses declining GHG emission caps and an $8/ton price on carbon emissions from fossil fuel-fired plants to help facilitate this transition. The bill includes many of the same components of the CEJA bill, related to Just Transition, workforce development, electrification and utility accountability reforms.

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 Nick Dreher.

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Legislative

HB 1191, now Public Law 180, prohibits local units of government from banning specific energy sources, restricting natural gas end-use, requiring or prohibiting construction materials on the basis of energy conservation or production standards and restricting the purchase of vehicles on the basis of energy source. It goes into effect July 1.

Regulatory

Integrated resource planning is ongoing for Indiana utilities.

  • Duke Energy Indiana has begun its 2021 IRP stakeholder process
    • The fourth workshop is expected in June and registration will be available at the link above
  • Indiana Michigan Power is engaged in its 2021 IRP process
    • Workshop 3 is scheduled for July 27 and registration is available at the link above
  • NIPSCO has begun its 2021 IRP process
    • Registration for the next meeting on July 13 will be available soon at the link above

The utility filing deadline for 2021 IRPs are as follows:

  • Duke Energy Indiana: November 1, 2021
  • NIPSCO: November 1, 2021
  • Wabash Valley: November 1, 2021
  • Indiana Michigan Power: December 15, 2021

Utility stakeholder meetings will continue during the planning period. 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. 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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Regulatory

Iowa utilities filed their 2020 energy efficiency portfolio annual reports according to the May 1 deadline. Reports can be found here:

Legislative

Iowa’s legislative session adjourned on May 19.

SF 619 / HF 893, a state and local revenue and finance omnibus bill, was approved by both chambers and awaits signage from the Governor. Division 14 of the bill creates a new Energy Infrastructure Revolving Loan Program (EIRLP) to be administered by the Iowa Energy Center. The EIRLP replaces the current Alternative Energy Revolving Loan Fund and would support development of projects for electric/gas generation, transmission, storage or distribution, grid modernization, energy sector workforce development, emergency preparedness for rural/underserved areas, expansion of biogas and renewable natural gas, AFV infrastructure and other innovative technologies. The bill also ties outcomes for funded projects to Iowa’s Energy Plan and the Iowa Energy Center’s priorities.

On April 12, Governor Reynolds signed into law HF 555, a bill that prohibits counties and cities from regulating the sale of natural gas or propane. 

Representative Isenhart introduced several bills related to energy efficiency, though they did not receive hearings this session.  

  • HF 305 would require utilities with energy efficiency plans approved by the Iowa Utilities Board to carry over unspent budgets from the previous program year to the following program year.
  • HF 351 would add encouragement of energy efficiency investments in public school facilities as a purpose of the Iowa Energy Center’s alternative energy revolving loan fund.  
  • HF 669 requires the Iowa Energy Center to conduct outreach and provide education to utility customers regarding energy efficiency and financing opportunities. The bill also requires the Office of the Consumer Advocate to develop a standard energy cost disclosure statement for landlords.
  • HF 695 requires rate-regulated gas and electric utilities with energy efficiency plans filed to or approved by the Iowa Utilities Board to hold public meetings with community action agencies within their service territories to coordinate prior to energy efficiency plan filing and during implementation.
  • HF 355 would allow counties or cities to create energy investment districts to finance energy investments—including energy efficiency measures—for private properties, excluding residential property with fewer than three units.

How to Get Involved

If you have any questions about Iowa or want to get more involved, contact Samarth Medakkar.

Regulatory

On April 4, the Kansas Corporation Commission (KCC) convened a work study to hear and discuss the findings from research on residential customers’ understanding and attitudes towards energy efficiency and utility-sponsored programs. KCC staff issued their conclusions and recommendations, which include a stakeholder process to determine an approach to residential customer education and a focus on energy efficiency for the low-income sector. The recording of the work study can be found here.

On May 6, the KCC opened a public comment period through July 7 to allow the public to weigh in on Evergy’s STP (Docket No. 21-EKME-088-GIE). On May 24, the KCC convened the final of four workshops (recording) regarding Evergy’s Sustainability Transformation Plan ordered by the Commission in November in the aforementioned docket. The workshop was held for Evergy to update its STP, incorporate feedback from earlier workshops and comments, discuss its integrated resource plan and address questions from stakeholders.

Legislative

Kansas legislature adjourned on May 26.

On April 9, SB 24, the Kansas Energy Choice Act, became law. The bill prohibits a municipality from enacting any local policies that would prevent a customer from using natural gas or propane end uses. Also on April 9, HB 2072 was signed into law. This bill allows utilities to issue securitized bonds and refinance debt on certain generation facilities and qualified extraordinary costs to receive a return of investments.

HB 2381, a bill that would establish a state energy plan task force and require the development of a plan, did not receive a vote and died in committee following its hearing. The bill can still be considered next year.  

On February 10, HB 2320 was introduced and referred to the House Committee on Financial Institutions and Rural Development. The bill would enact a Commercial Property Assessed Clean Energy (PACE) act. It has not received a hearing.

On January 26, SB 81 (HB 2181) was introduced and referred to the Committee on Utilities in the House and Senate. The bill requires the KCC to provide an annual report on the electric rates of KS public utilities by sector, and those of utilities in surrounding states. The stated purpose is to inform electric policy that would lead to competitive rates. The bill received a hearing in the House Utilities Committee on February 9 and in the Senate Utilities Committee on February 11.

How to Get Involved

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

Executive

Last fall, Governor Whitmer announced a goal of carbon neutrality by 2050 through an executive order and an executive directive. Through the order, Michigan will work towards carbon neutrality by reducing emissions from public buildings, emphasizing carbon neutrality in utility IRPs and adding renewable energy in state facilities and lands.

The executive order created the Council on Climate Solutions. The Council has created five workgroups: Buildings and Housing, Energy Intensive Industries, Energy Production, Transmission, Distribution and Storage, Natural Working Lands and Forest Products, and Transportation and Mobility. These workgroups will help the Council identify and recommend strategies to reduce the state’s emissions and help communities most impacted by climate change. More information on the Council and the workgroups can be found here. MEEA is participating on both the Buildings and Housing and Energy Intensive Industries working groups.

Regulatory

On February 18, the Michigan PSC directed commission staff to convene the Energy Affordability and Accessibility Collaborative in coordination with the Energy Waste Reduction and Low-Income Workgroup. This collaborative will focus on the commission’s ongoing COVID-19 response, affordable payment plans, affordable energy bills and more. The collaborative’s first meeting was held on April 8. More information on the collaborative’s scope and future meeting times can be found here.

MI Power Grid workgroups continue to meet. The Integration of Resource, Distribution and Transmission Planning workgroup has released its draft report. The newest workgroup, Customer Data Accessibility, held its first meeting on May 25. The Upper Peninsula Energy Task Force submitted its second of two reports to Governor Whitmer. This report, Committee Recommendations: Part II—Energy Supply, provides details on the region’s unique energy considerations and makes 16 recommendations to improve affordability and reliability, including expanding energy waste reduction opportunities, improving the accessibility of energy efficiency financing and allowing for EWR programs to be accessed by propane users.

Additionally, the MPSC is working on its energy waste reduction and demand response potential study. Guidehouse is contracted to run the study, which will examine the period of 2021-2040. The MPSC and Guidehouse will hold a series of stakeholder meetings before the research begins. The third and final meeting will be on June 17.

How to Get Involved

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

Legislative

Minnesota’s legislative session ended on May 17, but work continues behind the scenes on the budget and omnibus bills. A special session is expected in the next several weeks.

Prior to the close of session, the Energy Optimization and Conservation (ECO) Act passed both the House and Senate after a conference committee reached a compromise on the remaining areas of disagreement between the two chambers. The Act was signed by Governor Walz. ECO will expand and modernize the state’s Conservation Improvement Program by increasing utilities’ energy savings goals, allowing beneficial electrification and expanding low-income energy efficiency, among other things. ECO was sponsored by Sen. Rarick and Rep. Stephenson, and the bill ultimately passed with bipartisan support in both chambers.

Both the Senate Energy and Utilities and the House Climate and Energy committees released their committee omnibus bills in early April. Prior to the close of session, a conference committee formed to hammer out the differences on the combined omnibus commerce and energy bill, SF 972. The conference committee will continue to seek a compromise in hopes of having agreed-upon language to vote on during the upcoming special session.

There were several energy-related bills introduced this session, some of which may be included in the final commerce and energy bill. HF 70 / SF 543 would create a $15 million revolving loan fund for state facilities to pay for energy efficiency improvements. HF 751 would allow the state’s utilities to submit a report to the PUC demonstrating their efforts and progress on building electrification. Additionally, HF 831 would require the state to adopt a more efficient commercial energy building code and continue to update that code until all new commercial buildings are required to be net zero by 2036. Additional proposals would require the state to reach carbon neutrality by 2050, require utilities to submit annual reports on their workforce and supplier diversity, create a goal for emissions reduction in the state’s existing buildings and establish the Minnesota Innovation Finance Authority to fund clean energy and conservation improvement projects.

Regulatory

Commissioner John Tuma was reappointed by Governor Walz for another six-year term beginning on March 25 and ending in January 2027.

MEEA participated in the Department of Commerce’s Electrification Action Plan Technical Advisory Committee. The DOE-funded project aims to study electrification’s opportunities and challenges. Additionally, the project looks to understand the various policy considerations and equity implications of an electrified Minnesota. The TAC presented its findings to stakeholders on February 4. More information on the project can be found here.

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 initiated a State Energy Planning (MoSEP) process with a Virtual Energy Stakeholder Kickoff Workshop last fall. The ongoing process will include a series of regionally-focused initiatives and workshops targeting regional energy opportunities and issues. Stakeholders were identified by MoDNR and the Department of Economic Development’s Regional Engagement Teams. See the plan page to join MoDNR’s mailing list or to submit inquiries.

Legislative

Missouri’s legislative session ended on May 14.

On May 13, HB 734 passed out of the legislture. The securitization bill allows investor-owned utilities to issue securitized bonds that finance "energy transition costs".

On May 12, Senate Substitute for HB 697 passed the House and has been sent to the Governor for signage. The bill adds requirements for submittal and approval of PACE assessment contracts, including through expanded regulatory authority of the Division of Finance, and codifies formal consumer protections.

Regulatory

Governor Parson appointed former representative Glen Kolkmeyer (R) to the Public Service Commission. Kolkmeyer replaces outgoing Commissioner Kenney. Kolkmeyer is the former President of the MO Propane Gas Association, a member of the Propane Safety Commission and is CEO of Energy Transport Solutions, Inc., a fuel transport service.

On April 30, Evergy filed its triennial integrated resource plan. The plan has a 20-year scope and restates their intent to achieve net-zero emissions by 2045, with an interim 70% emissions reduction target for 2030, consistent with their Sustainability Transformation Plan. A procedural schedule has not been filed by the Commission.

The MPSC held a virtual evidentiary hearing April 21-22 for case EO-2020-0227, a prudence review of costs from Evergy’s Missouri Energy Efficiency Investment Act Cycle 2 programs. Initial post-hearing briefs were due May 24.

On April 14, the Commission approved an agreement between the Office of Public Counsel and Ameren MO that redirects $3.5 million earmarked for the weatherization assistance program to the low-income energy assistance program (LIHEAP), including Ameren’s Clean Slate program, and to fund a low-income energy efficiency program to be launched in 2021.

Comments on Ameren’s 2020 Integrated Resource Plan (EO-2021-0021) from intervening parties were filed on March 31.

How to Get Involved

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

Municipal

The city of Lincoln recently released its Climate Action Plan. The city hopes to improve its resiliency and reduce its greenhouse gas emissions by 80% by 2050. The report concludes that increasing energy efficiency of its residential and commercial buildings and its municipal utility, the Lincoln Electric System, will be the most important factor in reducing city emissions. In addition to dramatically ramping up energy efficiency through incentives, programs and municipal action, the report mentions benchmarking, electrification, energy disclosures and building energy code updates as possible near-term solutions.

Legislative

The Nebraska Unicameral is scheduled to wrap up its legislative session by early June. LB 306, introduced by Sen. Brandt, passed on a 38-6 vote. Despite this, Governor Ricketts vetoed LB 306 on May 25th. Sen. Brandt plans to pursue a veto override in the coming weeks. The bill will expand eligibility requirements for LIHEAP (previously capped at 130% of federal poverty level, now increased to 150%) and dedicate 10% of LIHEAP funds to weatherization.

How to Get Involved

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

Legislative

There have been various HB 6-related bills introduced in the House and Senate during this legislative session, including: HB 18, HB 57, HB 58, HB 10, HB 128, SB 44 and SB 10. For reference, HB 6 was the 2019 law that directed funding extending coal and nuclear plant viability and repealed the energy efficiency and renewable energy resource standards.  

Most recently, HB 128, a partial HB 6 repeal bill that would eliminate the nuclear bailout but restore solar funding, successfully passed out of both the House and Senate; differences were concurred on March 25th and Gov. DeWine signed the final version of the bill into law on March 31st. For more information on HB 128, please see the following blog.

A different HB 6 COVID relief bill that would allow “leftover” funding from the terminated electric utility efficiency programs to be used for low-income efficiency solely for 2021 successfully passed both chambers and is effective as of May 14th .

There have been some noteworthy legislative developments related to electric vehicles in Ohio. SB 32 (Rulli) and HB 47 (Loychik) would establish a rebate program for EV chargers run by ODOT, funded with $10 million each in FY 2022 and 2023. The House Transportation Committee heard proponent testimony on May 11th.  

There are also several bills that preempt local government authority on energy in Ohio, including HB 192 and HB 201 / SB 127. HB 192 stops local government from being able to pursue clean energy aggregation. HB 201 / SB 127 would potentially prevent cities from denying natural gas hook-ups. SB 127 had its first hearing before the Senate Energy Committee on May 12th.

In the last legislative session, there were opportunities for proponents, opponents and interested parties of the proposed bipartisan repeal and revive bill of HB 6—SB 346—to testify, in addition to the alternative partial repeal bill, HB 772. MEEA submitted testimony to the Senate Energy and Public Utilities Committee on November 30th in advance of a Dec. 1st hearing on HB 346. All testimony can be accessed here.

Regulatory

On November 20, Public Utility of Ohio (PUCO) Chairman Sam Randazzo resigned effective immediately. After two lists of candidates from the nominating council, Governor DeWine chose Jenifer French, a former county judge, to be the next PUCO Chair. She was confirmed by the Senate this month.

Recently, PUCO approved a FirstEnergy request to set the decoupling rider to zero per the FirstEnergy settlement with AG Yost (21-0101-EL-ATA). For context, Ohio AG Yost has filed lawsuits, alongside Cincinnati and Cleveland, to block FirstEnergy from receiving the profit rider and bailout included in HB 6. The PUCO decision to eliminate the rider is a result of the settlement with AG Yost. On February 8th, there was a virtual public hearing regarding AEP’s application to increase its rates (20-0585-EL-AIR). Settlement discussions are ongoing.

How to Get Involved

For more information about Ohio or to get more involved, contact Reine Rambert.

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Executive

The Office of Sustainability and Clean Energy is currently working on developing a clean energy plan that will help Wisconsin adapt to future changes in the climate as mandated by Governor Evers’ August executive order. Additionally, this plan will outline ways for the state to achieve its goal of carbon neutrality by 2050. MEEA is participating on the plan’s advisory council.

Legislative

AB27 / SB47, which would require the state’s IOUs to fund a consumer advocate, was passed by both chambers and signed into law. Unlike many other Midwestern states, Wisconsin does not have a government agency dedicated to consumer protection in utility matters. This law will direct $900,000 of ratepayer dollars annually to the state’s Citizens Utility Board, enabling it to expand its staff and better represent the state’s customers in utility cases.

Regulatory

The Wisconsin PSC has 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. There have been several planning processes that have considered this transition in the state, like the Governor’s Task Force on Climate Change, the WEDTI Report and the state’s Clean Energy Plan formation. Many of the recommendations in these reports depend on legislative action. Comments were due May 14; MEEA’s response to this docket can be found here. Organizations’ comments can be found here.

How to Get Involved

Additional information on the Governor’s Task Force on Climate Change can be found here. For more information about Wisconsin or to get more involved, contact Maddie Wazowicz.

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Regulatory

PJM Interconnection issued an initial proposal striking the expanded minimum offer price rule (MOPR), a ruling in late 2019 that would raise the price floor for state-subsidized energy resources, like new energy efficiency/demand-side management and renewables, in PJM’s wholesale capacity power auctions. Instead, PJM proposes that FERC determine whether MOPR should apply to certain resources in granting a 206 complaint. This proposal was part of Stage 1 of the critical issue fast path (CIFP) accelerated stakeholder process. The process will conclude in July with a final proposal filing by PJM.

Legislative

On March 11, Democrat lawmakers of the House Energy and Commerce Committee introduced the Leading Infrastructure for Tomorrow’s America Act, the LIFT America Act (HR 1848). The infrastructure bill would invest $69.9 billion in clean energy and energy efficiency for public and critical facilities, homes, schools and through conservation block grants. The bill received hearing time on March 22. 

On March 2, House Chairs in energy and environment-related committees and subcommittees introduced the Climate Leadership and Environmental Action for our Nation’s Future Act, the CLEAN Future Act (HR 1512). The legislation aims to achieve net-zero GHG emissions across the economy no later than 2050. The bill received hearings on industrial decarbonization elements and on system resilience. In the latter hearing, Chairman Pallone (D-NJ) emphasized the importance of energy efficiency for job creation, reduced energy demand and system reliability.

Democrat Lawmakers reintroduced the Clean Energy and Sustainability Accelerator Act that would establish a National Climate Bank and fund $100 billion towards financing clean energy infrastructure investments, including energy efficiency.

How to Get Involved

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

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