MEEA Policy Insider - May 2023

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The MEEA Policy Insider summarizes the latest state and federal policy activity and provides new resources to aid members in their outreach, education and advocacy initiatives.

In this issue:

MEEA Policy Steering Committee

Are you interested in learning more about energy efficiency policy and getting involved in MEEA’s policy work? Join the Policy Steering Committee! You will attend and engage at our quarterly meetings, with a direct line to our staff policy experts.

Please reach out to Policy Associate Christian Koch with your interest or questions. 

Upcoming MEEA Policy Webinars

Building Capacity for Equity: How Buildings UP Can Transform the Midwest

Thursday, June 8 at 12:30 PM CT

Developed by the U.S. Department of Energy Building Technologies Office (BTO), the Buildings Upgrade Prize (Buildings UP) aims to build capacity to rapidly and equitably transform U.S. buildings through energy efficiency and efficient electrification updates, with a particular focus on frontline communities. During this webinar, we will delve into how Buildings UP can specifically benefit the Midwest region, how it can support sustainable and equitable building practices and guidance on how to apply successfully. Join MEEA and ACEEE in learning more about this important federal funding opportunity.

Register here.  

Previous MEEA Policy Webinars

Slicing the Pie of EE Funding in IIJA and IRA

On April 18, MEEA Policy Director Jason Liechty presented a rundown of the energy efficiency provisions in the Infrastructure Investment and Jobs Act and Inflation Reduction Act, outlining the major features of each bill and providing an update on their status. Future webinars in this series will follow approximately every two months to check in on the rollout of these EE funding streams and to highlight programs of particular interest.

View the presentation slides here and the webinar recording here.  

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Legislative

The Illinois legislature is taking longer than expected to conclude its legislative session, but democrats reached a budget agreement on May 24, signaling the near-end of session.

Both chambers of the legislature have approved SB 2368, which now makes its way to the Governor. The bill creates the State Building and Residential Codes Act and requires the Capital Development Board to establish new base and stretch code requirements for the construction and renovation of commercial and residential buildings.

HB 3445, which was introduced in February and voted out of the House in March, recently received an amendment in the Senate after its second reading. The new amendment would require the Illinois Power Agency to study energy policies that may impact electric rates before a policy can be implemented. HB 3445 is expected to receive a third reading in the Senate on May 25.

All other bills MEEA has been tracking in Illinois have not received third readings and therefore will not be moving forward in the legislative process for this calendar year.

Regulatory

On May 9, the Illinois Capital Development Board voted to update the state’s energy code, after an attempt to approve the update failed in April. The proposal now makes its way to the Illinois Joint Committee on Administrative Rules, a bipartisan oversight panel composed of both House and Senate members, for review and possible approval.

How to Get Involved

If you have any questions about Illinois or want to get more involved, contact Christian Koch. 

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Legislative

The Indiana legislature has adjourned Sine Die.

House Enrolled Act 1007 was signed into law as Public Law 292 on April 20. It continues the status quo policy of the state that the IURC must consider reliability, affordability, resiliency, stability and environmental sustainability in decision making about electric generation. The act requires the commission to take these attributes into account when reviewing an IRP, a petition for construction, purchase or lease of electric generation or whether the public convenience and necessity continues to require the completion of electric generation under construction.

House Enrolled Act 1575, signed as Public Law 155 on May 1, expands the building safety commission to 12 members, increases the quorum to 7 and changes requirements for professions of members (including removal of references to professionals with expertise in energy efficiency). It also precludes local jurisdictions from adopting codes more stringent than the state building codes.

Regulatory

2023 integrated resource plans are expected from:

  • Investor-owned utilities
    • CenterPoint (Vectren) - 2022 IRP extended to June 1, 2023
      • The preferred portfolio was presented on April 26, 2023. It includes a suite of demand-side management (DSM) programs that will achieve about 1.2% savings based on eligible (not opted-out) load. The utility intends to extend their 2021-2023 DSM plan through 2024 and then file a 2025-2027 plan next year.

    • The Director’s Final Report was issued for the following 2021 IRPs
  • Publicly-owned utilities
    • Hoosier Energy
    • Indiana Municipal Power Agency (IMPA)
    • Wabash Valley
  • Updates from the Commission on IRPs in Indiana will be posted to the IURC’s IRP page.

How to Get Involved

For questions about Indiana or to get more involved, contact Greg Ehrendreich. 

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    Legislative

    Iowa’s legislative session ended on May 4.

    HF 605 (formerly HSB 216) passed both the House and Senate and is expected to be signed by the Governor. This bill prohibits what it calls “energy benchmarking” requirements for private properties. However, what the bill defines as “benchmarking” is more accurately described as “building performance standards.” MEEA submitted comments supporting energy benchmarking and building performance standards in Iowa.

    SF 514, signed into law by Governor Reynolds, restructures Iowa’s government, including the Office of Consumer Advocate (OCA), which advocates for consumers regarding gas and electric utilities, including proceedings before the Iowa Utilities Board (IUB). This allows the Attorney General, not the Consumer Advocate, to have responsibility over hiring employees for the OCA, and they would be at-will employees rather than merit-based. Additionally, while the Consumer Advocate would still be subject to Senate confirmation every four years, they will now serve at the discretion of the attorney general rather than for a fixed term. Concerns have been raised that these changes may jeopardize the OCA’s ability to effectively represent consumer interests and diminish its independence.

    HF 617, which passed both the House and Senate and is expected to be signed by the Governor, mandates an independent review of Iowa’s Utilities Board (IUB) and the Department of Commerce to assess current Iowa Code provisions and ratemaking procedures. The objective is to determine if revised provisions and procedures would be more cost-effective and result in rates that accurately reflect a utility’s service costs. Amendments were added to consider policy objectives of providing safe, adequate, reliable and affordable utility services at nondiscriminatory, just and reasonable rates based on the utility’s cost of service within the state.

    HF 601 was signed by the Governor and mandates that all public utilities, except those exempted from rate regulation, give written notice of a proposed rate increase or charge to all affected customers no more than thirty days prior to the time the application for the increase is filed with the board.

    All other bills mentioned in previous editions of the Insider did not pass in the 2023 legislative session.

    Regulatory

    The IUB recently welcomed two newly appointed board members. Erik Helland, a lawyer and former state representative, has been confirmed as the new Chairperson of the IUB. Sarah Martz, the engineering director of utilities at Iowa State University, has also been confirmed by the Senate to join the board.

    Iowa investor-owned utilities’ (IOUs) Energy Efficiency Portfolio (EEP) planning process is currently underway, with IOUs filing their new five-year plans (2024-2028). The IUB has set procedural schedules and public hearings for all IOUs.

    • Interstate Power and Light Company, a subsidiary of Alliant Energy, filed its plan on November 1, 2022, in docket EEP-2022-0150 with a public hearing set for June 8.
    • MidAmerican Energy filed its plan on February 1 in docket EEP-2022-0156 with a public hearing set for August 24.
    • Black Hills Energy filed its plan on March 31 in docket EEP-2022-0225 with a public hearing set for October 17.

    Please reach out to Ashley Taylor from Iowa’s OCA (ashley.taylor@oca.iowa.gov) to be added to the EEP stakeholder list and receive updates and meeting information.

    How to Get Involved

    For more information about Iowa or to get more involved, contact Arlinda Bajrami.

    Legislative

    The Kansas legislature adjourned Sine Die on April 28.

    A notable bill that passed this session is HB 2225. The new law, effective July 1, 2023, will limit cost recovery for Kansas Corporation Commission (KCC) regulated utilities' transmission-related costs. The law also requires public utilities to evaluate the regional rate competitiveness and impact to economic development in rate proceedings.

    All other bills mentioned in previous editions of the Insider did not pass in the 2023 legislative session.

    Regulatory

    In December 2021, Evergy filed its application for an energy efficiency proposal in Kansas under the Kansas Energy Efficiency Investment Act (KEEIA). The proposal originally included nine programs — four residential, four business and one pilot research program.

    On November 15, 2022, Evergy, in conjunction with KCC staff, filed a revision to its plan and financial recovery mechanisms, with the other stipulating parties not signing on to the agreement. The new plan removes some of the original proposed programs, shrinking total proposed spending from about $135 million to about $45 million. The revised procedural schedule can be found here, and deadline-based amendments to that schedule here. An order is now anticipated this spring.

    How to Get Involved

    For more information about Kansas or to get more involved, contact Natalie Newman. 

    Legislative

    The 2023 Regular Session of the Kentucky General Assembly has adjourned Sine Die.

    Regulatory

    LG&E and KU, including its subsidiary ODP, are hosting a series of DSM Advisory Group meetings. These are intended to provide a platform for stakeholders to discuss EE and DSM initiatives for existing and new program offerings. Additional details, previous meeting notes and contact information for participating in the group can be found here.

    How to Get Involved

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

    Legislative

    The Michigan legislature opened its 2023 legislative session on January 11.

    In conjunction with the MI Healthy Climate Conference, Senate Democrats unveiled their Clean Energy Future Plan on April 12. The package includes the following seven bills:

    • SB271 (Sen. Geiss)- would amend the state’s renewable standard by mandating that electric utilities reach 100% renewable generation by 2035.
    • SB272 (Sen. Shink)- would expand the purview of the Michigan Public Service Commission (MPSC) by allowing commissioners to consider climate, health, equity and affordability when analyzing utility plans.
    • SB273 (Sen. Singh)- would expand the existing energy waste reduction (EWR) framework by adding municipal and cooperative utilities back into the EWR standard and mandating that electric utilities now reach 2% in annual savings.
    • SB274 (Sen. Shink)- would require the development of a plan to reduce greenhouse gas emissions from buildings.
    • SB275 (Sen. Singh)- would establish a standard to reduce the carbon intensity of transportation fuels.
    • SB276 (Sen. Bayer)- would require utilities to retire coal-fired generation by preventing them from including the resource in their integrated resource planning process.
    • SB277 (Sen. McDonald Rivet)- would allow farmers to lease land for solar energy production.

    The Commercial Property Assessed Clean Energy (C-PACE) bill package of SB 302 (Sen. Camilleri) and SB 303 (Sen. McDonald Rivet) was introduced on April 27 and then referred to the Senate Committee on Energy and Environment. Both bills received a hearing on May 18. Together, these bills amend Michigan's PACE Act to allow commercial property owners the option to waive a currently existing energy saving guarantee for PACE financings above $250,000, as required in the Michigan PACE Act, and expand the qualifying energy conservation measures under the Michigan PACE Act to include financings to remediate certain environmental hazards and outlines specifications for new construction PACE energy projects.

    Executive

    Dan Eichinger has stepped down as the head of the Department of Environment, Great Lakes and Energy (EGLE). Aaron Keatley will now serve as acting director. He was previously the chief deputy director at EGLE.

    Regulatory

    Commissioner Tremaine Phillips stepped down from the MPSC, effective April 26. Phillips’ term was set to end on July 2, 2025. The Whitmer administration is currently conducting a search for Phillips’ successor.

    In a recent order, the MPSC voted to establish a new Financial Incentives and Disincentives workgroup. The workgroup will mostly focus on what rate structures and financial incentives or disincentives could assist in improving distribution reliability in the wake of recent outages. The workgroup is required to submit a report to the commission on its findings by December 31, 2023.

    After pausing during the winter to work on its interim report for the Commission, the Energy Affordability and Accessibility Collaborative (EAAC) has regrouped and is set to begin meeting again this month. For more information on the EAAC and to sign up for its subcommittees, go to the EAAC website.

    The Michigan Public Service Commission (MPSC) has announced two half-day technical conferences on resilience and reliability. The conferences are scheduled for May 12 at 1:00 PM ET and May 26 at 9:00 AM ET. More information, including agendas, is expected to be filed in Docket U-21388.

    The MI Power Grid initiative has wrapped up. A final report on the initiative and its workgroups can be found here. The three-year effort resulted in 17 workgroups, 70 stakeholder meetings and 75 commission orders.

    DTE Electric filed its IRP on November 3, outlining plans to spend $9 billion on renewable energy and to end coal usage by 2035. On the efficiency side, the utility has proposed energy savings of 2% in 2023, an average of 1.5% annual energy savings in 2024-2028 and 1.2% annual savings in 2028-2032. A public hearing on the plan was held on December 12. Intervenors have been submitting testimony and exhibits throughout the last few months.

    How to Get Involved

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

    Legislative

    The Minnesota legislature has wrapped up its 2023 session. Many of the energy-related bills were included in the committee omnibus packages.

    The House climate and energy omnibus bill, HF2310, has passed the House and Senate and is expected to be signed by Governor Walz. Among its numerous provisions, the bill will:

    • Create the Minnesota Climate Finance Authority to leverage public and private capital to spur development of clean energy projects.
    • Establish a residential electric panel grant program that would provide funds to low-income homeowners and multifamily building owners to upgrade their electric panels.
    • Modify the definition of "low-income household" for eligibility in utility conservation programs to 80% of area median income or eligibility for other federal, state or utility programs.
    • Establish a building benchmarking system by requiring owners of buildings 50,000 square feet or larger to report their energy use to the Department of Commerce.
    • Establish a residential heat pump rebate program to provide additional funds to homeowners who access federal rebates for heat pumps from the Inflation Reduction Act.
    • Require the state to adopt each new commercial building code as it is published; the 2036 code and subsequent codes must reduce energy consumption by at least 80% compared with a 2004 baseline.
    • Amend the state’s greenhouse gas emissions reduction goal by requiring a 50% reduction by 2030 (on a 2005 baseline) and net zero by 2050.
    • Require utilities to submit annual reports on their efforts to increase workforce diversity.

     

    HF1656/SF1622 was signed into law by Governor Walz on April 18. The law creates a state competitiveness fund of $115 million that will help the state unlock federal funds from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. HF2310 added an additional $75 million to the fund, bringing the total allocation to $190 million.

    HF7/SF4 was signed into law by Governor Walz on February 7. The law modifies the state’s current renewable energy standard, as established by the 2007 Next Generation Energy Act. The law institutes a carbon-free standard that mandates the state’s electric utilities generate or procure carbon-free resources at 80% of their portfolio by 2030, 90% by 2035 and 100% by 2040. Other provisions in the bill include guidance for the PUC to maximize local benefits, a mandate for the PUC to consider the costs of greenhouse gas emissions in decisions and some tweaks to the PUC’s permitting process. Minnesota joins Illinois as the only two states in the Midwest with laws mandating carbon-free electricity generation by mid-century.

    Regulatory

    Deadlines are approaching for utilities to submit their Conservation Improvement Program (CIP) filings. Status reports outlining program spending and savings were due May 1. The deadline for triennial filings outlining CIP program offerings for 2024-26 was recently pushed back to June 30.

    In response to the recent PUC decision to require gas utility integrated resource plans in Docket 23-117 and the ongoing discussions around utility policy structures and gas emissions in Docket 21-565, the Public Utilities Commission and the Great Plains Institute have announced a series of half-day stakeholder meetings on the first Friday of each month, beginning on May 5. The workshops plan to address the content and procedural requirements that would make up a natural gas resource planning framework for Minnesota and additional changes to gas utility regulatory and policy structures that are needed to meet the state’s climate goals. Register for the meetings here.

    Docket 21-566, which was opened in response to the passage of the Natural Gas Innovation Act (NGIA), remains active. Natural gas utilities will have the opportunity to present the Commission with plans to study and use alternative and innovative energy resources, like renewable natural gas, biogas and hydrogen. CenterPoint is nearing a decision on what pilots it will include in its Natural Gas Innovation Plan, which is expected to be filed this summer.

    The Department of Commerce and Minnesota’s Energy Efficiency for All coalition hosted five virtual Low Income CIP meetings where energy and housing advocates, energy efficiency implementers, utilities and other interested parties learned about CIP, the utility planning process and opportunities for involvement. For more information or to participate in future meetings, please contact Arlinda Bajrami.

    How to Get Involved

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

    Missouri Header

    Legislative

    The Missouri legislature adjourned its 2023 session on May 12, apart from a Technical Session on May 30.

    Approval of the state operating budget, signed by Governor Parsons on May 15, was arguably the legislature’s most significant action this session. All bills mentioned in previous editions of the Insider did not pass during the 2023 legislative session. This includes the notable HB 580/SB 404, which would have limited cities and counties from adopting and enforcing standards for insulation in new dwellings. This bill would have effectively limited all jurisdictions from going beyond the 2006 IECC. It would also prohibit jurisdictions from enforcing currently adopted codes beyond the bill provisions, effectively rolling back energy codes in many Missouri jurisdictions.

    Regulatory

    Ameren Missouri filed its Cycle 4 Missouri Energy Efficiency Investment Act (MEEIA) plan with the Missouri Public Service Commission on March 27, at case number EO-2023-0136. MEEIA does not set forth targets for energy efficiency, and program filings under MEEIA are entirely voluntary by the utilities. Ameren submitted its three-year plan (January 1, 2024 - December 31, 2026) and stakeholder groups have registered as interveners in the case. The plan calls for Ameren to spend $367 million for energy efficiency initiatives, including increased spending on income-eligible programs. On May 22 the involved parties submitted a Joint Status Report proposing an extension to file a procedural schedule and requirements for approval by the Commission on June 20. Discussions between Ameren Missouri, PSC Staff and the Office of Public Counsel have included avenues to continue Ameren’s current MEEIA Plan into 2024. We will continue to follow this matter closely.

    Through Evergy’s MEEIA Cycle 2 plan 2023 extension year, Evergy hosted four working group sessions and identified relevant information, potential partners, outside funding streams and other considerations for a feasibility and vulnerability study regarding an Urban Heat Island Mitigation program for its next MEEIA application, MEEIA Cycle 4.  Evergy is working with the Mid-America Regional Council and other experts on program design. A draft proposal for the program is expected in May. For more information or to get involved, please contact Natalie Gray, Manager of Energy Efficiency Programs and Services with Evergy, at natalie.gray@evergy.com.

    The MO Public Service Commission (PSC), at the motion of the Office of the Public Counsel, opened a Working Case (AW-2023-0156) to investigate how MO’s investor-owned utilities plan to take advantage of federal funding from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. The PSC hosted an initial in-person workshop meeting on April 21 in Jefferson City, the agenda for which can be found here. The recording of the workshop can be found here on the webpage for the Working Case, where you can also find copies of each presentation.

    How to Get Involved

    For more information about Missouri or to get more involved, contact Natalie Newman. 

    Legislative

    Despite an on-going filibuster, the legislature has approved an array of non-energy bills, with the legislative session slated to end on June 9. A few energy-related bills are technically still alive but are unlikely to pass this session.

    LB 560 would declare that the state intends to seek all funds made available through the Inflation Reduction Act (IRA) which would support energy efficiency, EV infrastructure and the clean energy economy. MEEA submitted supportive comments on the bill. On March 14, the Nebraska Department of Environment and Energy (NDEE) put out a press release confirming the state would indeed apply for the first tranche of IRA funds.

    LB 164 would update the state’s building energy codes from the 2018 International Energy Conservation Code to the 2021 edition.

    LB 255 would prohibit Nebraska public utilities from using their right of eminent domain to acquire privately-owned land to build solar and wind electrical generation facilities.

    LB 237 would appropriate $1 million to NDEE to assist with administering and implementing weatherization programs.

    Regulatory

    Nebraska Public Power District (NPPD), Nebraska’s largest electric utility, is updating its Integrated Resource Plan (IRP), as is required every five years. The 2023 draft plan includes several energy efficiency measures which seek to maximize the value of customer energy purchases in a cost-effective manner, improving customer bottom lines, reducing the cost to serve load during peak usage times, and delaying or even eliminating the need to build additional resources. See MEEA’s comments on the IRP here.

    NPPD will review and finalize the updated IRP and seek approval from the board and the Western Area Power Administration in September 2023. For updates, visit NPPD’s website.

    How to Get Involved

    For more information about Nebraska or to get more involved, contact Arlinda Bajrami. 

    North Dakota

    Legislative

    North Dakota’s 68th Legislative Assembly adjourned its 2023 session on April 30. Before its adjournment, Governor Burgum signed two bills that MEEA has been monitoring.

    SB 2161 was signed into law on April 26. The bill will extend funding for the state’s Energy and Environmental Research Center into 2029 from 2027 and increases the center’s funding cap from $5 million to $7.5 million per biennium. The funding may be used to explore research and methodologies to facilitate the development of clean and efficient use of the state’s energy resources and to promote education and outreach efforts related to the state’s energy resources.

    HB 1429, signed into law on April 26, prohibits the state from contracting with companies that “boycott” energy, mining and agriculture production efforts within the state of North Dakota.

    Executive

    North Dakota state officials are preparing to sue Minnesota Governor Tim Walz over a February 2023 law that requires Minnesota’s electric utilities to produce 100% clean energy by 2040. Not long after Governor Walz signed the law, the North Dakota Industrial Commission unanimously agreed to consider a lawsuit to challenge Minnesota’s clean energy legislation. While no lawsuit has yet been filed, the Industrial Commission has requested $3 million from the state legislature for legal fees associated with the effort to prepare a lawsuit against Minnesota.

    How to Get Involved

    For more information about North Dakota or to get more involved, contact Christian Koch. 

    Legislative

    Energy efficiency bill HB79 would allow utilities to establish limited voluntary EE programs with a target of 0.5% of retail sales and a cost cap at 2.5% of revenue. Favorable provisions include a minimum spending requirement for low-income programs and limitation of lost revenue recovery to the duration of the portfolio. On the other hand, it also includes some problematic features, including an automatic opt-out for all mercantile customers and broad opt-out eligibility for residential customers. Sponsor testimony was heard on April 19 (video) and opponent testimony was heard on May 3.

    Regulatory

    Ohio’s Office of Consumers’ Counsel (OCC) head Bruce Weston announced plans to retire this summer. The agency’s nine-member board, appointed by the attorney general, will hire his successor. There is not yet any news on an appointment.

    PUCO has granted an application for rehearing in the Columbia Gas of Ohio rate case for the limited purpose of further consideration. The stipulated agreement was modified and approved, cutting all energy efficiency except for $14 million for low-income energy efficiency programs.

    AEP Ohio filed an energy efficiency plan as part of its Standard Service Offer approval in 23-0023-EL-SSO. The energy efficiency plan is part of the utility’s fifth Electric Security Plan (“ESP V”) proposal and would allocate $43 million annually for voluntary efficiency. The company is proposing using a customized cost-effectiveness test that includes some quantified non-energy impacts (NEIs). The case is ongoing.

    How to Get Involved

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

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    Legislative

    The Wisconsin legislature opened its 2023 legislative session on January 3. Little legislation related to energy has been introduced to date, but there are three bills preventing the restriction of fuel sources.

    SB49/AB45 would bar municipalities from restricting certain fuel types, effectively preventing jurisdictions from banning the use or installation of natural gas infrastructure. The bill was referred to committee in both legislative chambers.

    SB212/AB142 would prevent state agencies or local governments from restricting the sale or use of motor vehicles based on the energy source used to power the motor vehicle. The Assembly passed AB142 on April 18. The Senate received the bill and assigned it to committee.

    SB213/AB141 would restrict state agencies or local governments from restricting the sale or use of devices based on the energy source used to power the device. The Assembly passed AB141 on April 18. The Senate received the bill and assigned it to committee.

    Executive

    The Office of Sustainability and Clean Energy recently issued its Clean Energy Plan Progress Report. The report outlines efforts taken to advance the goals outlined in the state’s first-ever Clean Energy Plan, which was released a year ago.

    On April 19, Governor Evers signed Executive Order #195, creating the Green Ribbon Commission on Clean Energy and Environmental Innovation. The Commission will be tasked with advising the creation of the state’s Green Innovation Fund, which will serve as Wisconsin’s first green bank.

    Regulatory

    At the April 13 meeting, the Wisconsin Public Service Commission determined that Focus on Energy shall be the implementer for Inflation Reduction Act funds from the Home Energy Performance-Based, Whole-House Rebates (HOMES) and High-Efficiency Electric Home Rebate (HEEHRA) programs. The Commission also decided that the rebates should be administered as separate programs and not folded into the Focus portfolio.

    In 2022 the Commission held several workshops on performance-based regulation, as set out in the roadmap-to-zero-carbon docket, Docket 5-EI-158. WPSC staff will now work to compile materials from the workshops and stakeholder comments into a report for the Commission in mid-2023.

    How to Get Involved

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

    federal section header

    Executive

    The US Environmental Protection Agency released the list of states and metropolitan areas that submitted a notice of intent to participate in the Climate Pollution Reduction Grant – Planning Grants Program. States will receive $3 million each in planning grants; metro areas will receive $1 million each. These plans will enable states and metro areas to compete for $4.75 billion in implementation grants for climate pollution reduction efforts.

    All states in the MEEA region expressed their intent to participate, except for Iowa, South Dakota and Kentucky. Midwestern metro areas that intend to participate include:

    • Cedar Rapids, IA
    • Des Moines, IA
    • Iowa City, IA
    • Chicago, IL
    • Indianapolis, IN
    • Bowling Green, KY
    • Lexington, KY
    • Louisville/Jefferson County, KY
    • Detroit, MI
    • Grand Rapids, MI
    • Minneapolis-St. Paul, MN
    • Kansas City, MO/KS
    • St. Louis, MO
    • Omaha, NE
    • Cincinnati, OH
    • Columbus, OH
    • Cleveland, OH
    • Rapid City, SD
    • Milwaukee, WI

    On April 19, the US EPA released an implementation framework for the Greenhouse Gas Reduction Fund created by the Inflation Reduction Act. A total of $27B will be competitively awarded through three separately administered programs:

    • The National Clean Investment Fund program will award a total of $14B to “two or three national nonprofits that will partner with private capital to deliver financing at scale” to private, public and community-based partners for clean energy projects.
    • The Clean Communities Investment Accelerator Program will award a total of $6B to seven “hub” nonprofits to rapidly build clean energy financing capacity “for specific networks of public, quasi-public, and community lenders,” including Community Development Financial Institutions (CDFIs), housing lenders, green banks, credit unions and others. This financing will focus on educational and community institutions, households and small businesses in low-income and disadvantaged communities.
    • The $7B Solar for All competition will award up to 60 grants to states, tribes, local governments and nonprofits to expand residential and community solar investment in low-income and disadvantaged communities.

    These programs align with the Biden Administration’s Justice40 Initiative, which seeks to direct 40% of federal investments to disadvantaged communities - underserved or marginalized communities or those burdened by pollution.

    EPA conducted a series of public engagement workshops and offered additional opportunities for feedback. Details of these efforts are available here. The agency expects to open the competition for funding in summer 2023. For more information about the GGRF, visit its website.

    On April 4, the governors of Iowa, Nebraska and Missouri signed a memorandum of understanding to establish the Mid-Continent Clean Hydrogen Hub. This joint effort aims to secure federal funding of up to $1 billion towards the creation of a regional clean hydrogen hub. Similarly, on April 17, the governors of Illinois, Indiana and Michigan announced that they have also taken steps to partner and obtain up to $1.25 billion in federal funding for a regional clean hydrogen hub. These funding opportunities are made available through IIJA, which has allocated $8 billion to create four or more regional hydrogen hubs, complete with networks of hydrogen producers and users.

    On March 23, the Department of Energy finalized new energy efficiency standards for window air conditioners and portable air cleaners. DOE expects the standards to save Americans $1.5 billion per year and decrease CO2 emissions by 106 million metric tons over 30 years. The rules will come into effect in 2024 for air cleaners and 2026 for room air conditioners.

    The US Department of Energy (DOE) issued a Request for Information regarding the Home Energy Performance-Based, Whole-House Rebates (HOMES) and High-Efficiency Electric Home Rebate Act (HEEHRA), with the comment period ending on March 3. MEEA submitted a comment responding to the DOE’s request for input regarding equitable and efficient program design, tools, metrics and sustainability. You can read MEEA’s comments here. MEEA also signed onto collective comments submitted by the Energy Efficiency Strategy Group and the Illinois Clean Jobs Coalition.

    How to Get Involved

    For more information about federal issues, contact Jason Liechty. 

    resources

    Recent Blogs:

    Recent Testimony and Comments: