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:
- State Updates: IL / IN / IA / KS / KY / MI / MN / MO / NE / OH / SD / WI
- Federal Update
- New Resources & Publications
Executive
The rules to adopt the Illinois Stretch Energy Codes were approved by the State’s Joint Committee on Administrative Rules (JCAR) on September 10 and will go into effect (and be adoptable by municipalities) on January 1, 2025. The International Code Council is expected to publish the 2023 Illinois Stretch Energy Code by year end. The voted-on language can be found here. The commercial stretch energy code incorporates the 2024 Final Draft version of the International Energy Conservation Code (IECC), and the residential stretch energy code incorporates, with amendments and modifications, the 2021 IECC and strengthening aspects of the 2024 IECC. The codes also contain required decarbonization provisions (EV-readiness, solar-readiness, electric-readiness, demand-response-readiness, etc.) in addition to meeting the statutory energy conservation targets set out by the Climate and Equitable Jobs Act.
Municipal
On September 18, Chicago City Council passed a data residency ordinance incentivizing city data to be stored in data centers in the City of Chicago. It will go into effect on January 1, 2025. The ordinance had previously failed to pass out of Committee but was updated to include a requirement that the city’s Chief Sustainability Officer establish an interdepartmental working group to recommend policies to address the environmental and energy impacts of data centers.
Legislative
With the Illinois spring legislative session now over, the fall veto session has been scheduled to begin November 12.
Regulatory
The Illinois Commerce Commission (ICC) has begun the second phase of the Future of Gas proceedings. The ICC has approved an updated timeline for the proceedings that would see the final report released by February 27, 2026. The ICC and facilitator have hosted four workshops thus far in Phase 2 of the proceedings, with the fifth scheduled for November 4. Meeting materials for all past workshops can be found here.
October was a busy month for the Illinois Energy Efficiency Stakeholder Advisory Group (SAG), with several large group meetings where utilities presented their draft Energy Efficiency Plans for the 2026-29 cycle:
October 1: Stakeholders shared feedback on Ameren’s draft plan
October 8: ComEd and Peoples Gas & North Shore Gas presented their draft 2026-29 Energy Efficiency Plans
October 24: Nicor Gas presented their draft 2026-29 Energy Efficiency Plan
October 29: Stakeholders shared feedback on ComEd’s draft Plan
October 30: Stakeholders shared feedback on Peoples Gas & North Shore Gas’ draft plan
Meeting materials for these October SAG meetings, including the utility presentations, can be found here. The next large group SAG meeting is scheduled for November 6 for stakeholders to present feedback on Nicor Gas’s draft plan. Information about upcoming SAG meetings can be found here.
How to Get Involved
For more information about Illinois or to get more involved, contact Kit White.
Regulatory
The Indiana Utility Regulatory Commission (IURC) has an open investigation in Cause 46043 into whether a Distributed Energy Resource (DER) aggregator is a public utility. Proposed orders have been submitted by Advanced Energy United (AEU), Indiana Industrial Energy Consumers (INDIEC), the Investor-Owned Utilities (IOUs) and IURC Staff, with no agreement among the parties:
DER aggregators are not public utilities: AEU
DER aggregators are public utilities: Staff
DER aggregators may petition to IURC to determine status: IOUs
The investigation is closed without determination: INDIEC
The IURC is conducting a study of performance-based ratemaking, as required by 2023 legislation. A stakeholder workshop was held on October 17. The Commission has a set of survey questions for stakeholders, which was distributed to registrants for that workshop with responses due on November 22. The survey questions are not posted on the study’s page, but we can forward them to you on request.
CenterPoint filed its 2025-2027 Demand Side Management (DSM) Plan in Cause 46100 at the end of July. The case is ongoing, and only the utility has filed testimony so far. The plan would save 1.1% of eligible (non-opt out) sales.
The current integrated resource planning processes in Indiana are:
- Indiana-Michigan Power (AEP)’s IRP process has two remaining stakeholder meetings, which have not yet been scheduled but will be posted to their IRP page. The IRP due date was extended by the IURC to March 3, 2025.
- NIPSCO - The 5th stakeholder meeting for NIPSCO’s 2024 IRP was held on October 28. Meeting materials have been shared, and materials from previous meetings are available on their IRP page. The IRP is due on December 9.
- Indiana Municipal Power Agency – The Draft Director’s Report on IMPA’s 2023 IRP has been posted. Comments on that report can be made by November 12, by emailing them to bborum@urc.in.gov.
Updates from the Commission on IRPs in Indiana will be posted to the IURC’s IRP page.
How to Get Involved
For more information about Indiana or to get more involved, contact Greg Ehrendreich.
Executive
On October 17, the Iowa Environmental Council reintroduced the Iowa Energy & Infrastructure Funding Hub, designed to help Iowans better understand and access the plethora of federal support for clean energy and energy efficiency projects. This resource includes opportunities made available from the Inflation Reduction Act and the Bipartisan Infrastructure Law. The Funding Hub contains current information and will be regularly updated with federal program details as programs develop within the state.
How to Get Involved
For more information about Iowa or to get more involved, contact Clara Stein.
Regulatory
On July 15, Kansas Evergy filed an application for approval of its 2024 Energy Efficiency Rider for Program Costs with the Kansas Corporation Commission. This process is a continuation of Evergy’s KEEIA 2024-2028 Demand Side Management (DSM) Portfolio – which became effective following Commission order and approval under Docket No. 22-EKME-254-TAR. Evergy seeks to apply the 2024 energy efficiency rider to ratepayers beginning on November 1, 2024, but tariff proceedings are still underway. Additional developments can be seen in Docket #25-EKCE-080-TAR.
How to Get Involved
For more information about Kansas or to get more involved, contact Clara Stein.
Regulatory
Kentucky Power filed an application to expand its energy efficiency program in Case 2024-00115. The proposed portfolio, with a budget of $5.1 million for the 2025-2027 triennium, would expand the funds available for weatherization readiness in residential housing and begin offering heat pump incentives. The Joint Intervenors in the case (Mountain Association, Appalachian Citizens’ Law Center, Kentuckians for the Commonwealth and Kentucky Solar Energy Society) are generally supportive in their testimony and propose even further expansion of the existing programs. An evidentiary hearing will be held on December 19.
Duke Energy Kentucky is involved in integrated resource planning in Case 2024-00197. A public hearing will be held for cross-examination on December 10. Due dates for staff reporting and finalizing the IRP have not been scheduled.
Duke Energy Kentucky has also filed to amend its ongoing DSM plan in Case 2024-00264. The case would expand the scope and adjust budgets across a suite of programs for the 2024-2025 biennium. There are no current intervenors in the case.
How to Get Involved
For more information about Kentucky or to get more involved, contact Greg Ehrendreich.
Legislative
The Michigan Senate continues to meet, but the House of Representatives is not expected to be in session until after the November 5 election.
SB 237, which would extend tax credits to data centers to encourage companies to site them in Michigan, passed out of the House of Representatives on September 25. The legislation was previously passed by the Senate in May. HF 4906, which is virtually identical but focuses on the sales tax portion as opposed to the use tax portion, passed the Senate as amended on May 16. That bill is currently waiting to be concurred by the House, which may not happen until the lame duck session after the November elections.
The bills have gathered opposition from energy and environmental advocates who are concerned that an influx of data centers could jeopardize the state’s target of carbon-free electricity generation by 2040, which was enacted into law last year by the legislature. In order to qualify for the credits, a data center facility must attain one or more green building standards, such as BREEAM®, ENERGY STAR®, ISO 50001, LEED®, Green Globes® or UL 3223. The bill additionally states that data centers are encouraged (but not mandated) to take positive steps towards mitigating environmental impacts, including adoption of energy efficiency measures.
Sen. Singh and Sen. Outman have introduced a package of bills – SB 879, SB 880 and SB 881 – that would collectively amend the state’s processes around the state’s Low-Income Energy Assistance Fund. Among other changes, the legislation would allow the Commission to increase the funding factor for the assistance from $1 per ratepayer to $2, remove the $50 million cap, remove the provision that utilities could opt-out of collecting the funding factor and institute a requirement that the Department of Health and Human Services submit an annual report on the disbursement of funds. SB 880 and 881 passed the Senate on June 26 but have not yet been heard by the House.
Regulatory
The Michigan Public Service Commission (MPSC) hosted a day-long meeting on October 17 to outline Staff’s straw proposal on new requirements and planning parameters for integrated resource plans as well as proposed requirements for the new clean energy plans. This updated guidance is in response to the passage of the 2023 clean energy legislation. Commission Staff is seeking public comment on these drafts by November 7. Comments should be emailed to Amelia Arnold at arnolda11@michigan.gov. The proposed requirements can be found here:
The MPSC has announced that it will resume its Affordability, Alignment and Assistance subcommittee in January 2025. The group will work to make recommendations on percentage of income payment plans and low-income rates. The group will meet the first Tuesday of each month at 12 p.m. CT. Interested parties can sign up for meeting invites here.
How to Get Involved
For more information about Michigan or to get more involved, contact Maddie Wazowicz.
Regulatory
On October 2, Xcel Energy announced a settlement with intervenors for its integrated resource plan in docket 24-67. On October 25, Xcel submitted its comments and evidentiary support for the settlement agreement. Parties now have time to respond to Xcel’s comments, with the PUC planning a final decision on the IRP in the first quarter of 2025.
The Commission issued its orders for the utilities’ integrated distribution plans (IDPs). The IDPs outline the utilities’ goals in maintaining and enhancing the resiliency of the electrical grid. The utilities are planning for increased deployment and usage of distributed energy resources and non-wires alternatives, which include energy efficiency, demand response and beneficial electrification. The final orders are linked in the following dockets:
Xcel, docket M-23-452
Minnesota Power, docket M-23-258
Otter Tail, docket M-23-380
Dakota Electric, docket M-23-420
Executive
On October 10, the Minnesota Pollution Control Agency (MPCA) held a webinar to share more information on their Climate-Smart Food Systems program, funded through a $200 million EPA Climate Pollution Reduction Grant implementation grant. The new MPCA program aims to reduce climate pollution, advance economic opportunity and fight hunger through accelerating the state’s transition to an equitable, climate-smart food system. The Industrial Innovation in Food Systems initiative will include a new industrial grant program which will fund planning and implementation of various technologies within the industrial food sector towards zero waste and zero emissions, including opportunities for industrial energy efficiency advancements. Programs are expected to launch between early to mid-2025. Watch the webinar here.
How to Get Involved
For more information about Minnesota or to get more involved, contact Maddie Wazowicz.
Regulatory
On September 27, parties filed a Non-Unanimous Stipulation and Agreement on Evergy Missouri’s MEEIA Cycle 4 plan in dockets EO-2023-0369 and EO-2023-0370. The agreement provides a $69.5 million total program budget. Although Missouri Public Service Commission (PSC) Staff were not signatories on the agreement, they did not object to the filing in their response. Evergy filed its tariff revision on October 15, as directed by the Commission, which now awaits Staff’s recommendation by November 1.
Proceedings are also nearing completion for Ameren Missouri's MEEIA Cycle 4 plan in docket EO-2023-0136. On October 30, Ameren and other parties filed a Non-Unanimous Stipulation and Agreement outlining a total budget of $125.03 million and a more limited set of programs than their previous application. As the procedural schedule has been formally suspended given the discussion of a settlement between the parties in the case, we await responses from those parties not included as signatories on the settlement agreement, notably PSC Staff.
Missouri’s triennial Integrated Resource Planning (IRP) process is still underway. You can read Ameren’s 20-year IRP here and follow docket EO-2024-0020. You can read Evergy Missouri’s plan here and follow docket EO-2024-0154.
How to Get Involved
For more information about Missouri or to get more involved, contact Natalie Newman.
Executive
At the end of September, Governor Pillen announced that Kara Valentine will be the new interim director of the Nebraska Department of Energy and Environment (NDEE). Valentine served as the NDEE deputy director for the last eight years and is replacing Than Fineran, who was appointed interim director in March 2024 after the retirement of NDEE Director, Jim Macy.
NDEE announced Energy Efficiency and Conservation Block Grant (EECBG) awards, distributing $958,000 to 12 Nebraska communities. Eligible projects included upgrades to energy efficient lighting; installation of renewable energy systems on public buildings; development of alternative transportation infrastructure; and public education to promote energy efficiency and conservation. View more information on each of the awardees here.
Regulatory
Omaha Public Power District’s (OPPD) review of Strategic Directive 7 (SD7) has officially ended. SD7 guides OPPD’s sustainability goals, including a target to reach net zero emissions in energy generation by 2050. At the start of these proceedings, the Board of Directors hoped to implement interim metrics for carbon reductions in anticipation of OPPD’s 2050 deadline. After a six-month process, in which MEEA submitted three rounds of comments, the Board of Directors voted unanimously to approve revisions to SD7 language. Those revisions can be found here and include language recognizing the importance of environmental justice in OPPD’s decision making process and the value of energy efficiency efforts. However, under the Systems Committee’s recommendation, the Board determined that interim metrics should be determined at the conclusion of the OPPD’s Integrated Resource Planning Process, which is set to begin in early 2025.
The City of Lincoln's Heat Pump Incentives program, established and operated in collaboration with Lincoln Electric System (LES), has been approved for a second round of funding. The program launched in January 2024 and offered incentives to the general public, as well as targeted incentives to low-to-moderate income households to install electric heat pumps. These funds could be stacked with an $800 incentive through the LES Sustainable Energy Program. Prior to additional funding, Lincoln's program was set to lapse on August 31. Find more information on the City of Lincoln's Heat Pump Incentives program here and the LES Sustainable Energy Program here.
How to Get Involved
For more information about Nebraska or to get more involved, contact Clara Stein.
Legislative
HB79 will go to the Senate in lame duck. The bill would allow utilities to establish limited voluntary energy efficiency programs. The bill would allow utility-run residential and small commercial energy efficiency programs, with an automatic opt-out for mercantile and industrial customers. It would also allow residential and business customers multiple opportunities to opt out. The vote out of the House was close and it is uncertain how the Senate will lean.
Regulatory
First Energy applied for a $72.1 million / 4-year energy efficiency and demand response program as part of its Standard Service Offer case in docket 23-0301-EL-SSO. The Commission’s Order of May 15 approved only low-income and energy education programs and directed the development of a smart thermostat demand response program. In response to the petition of five separate parties, including the utility, the Public Utilities Commission of Ohio (PUCO) granted an order for a rehearing on specific matters. That rehearing has not yet been scheduled.
Duke Energy Ohio has applied for a $28 million annual voluntary energy efficiency program for 2024-2026 in docket 24-0045-EL-POR. The case is ongoing. The administrative law judge filing from October 11 rescheduled the evidentiary hearing for “January 29, 2024” without correction.
How to Get Involved
For more information about Ohio or to get more involved, contact Greg Ehrendreich.
Executive
Governor Kristi Noem’s administration has rejected Home Energy Rebate programs funding from the Department of Energy. While state Home Energy Rebate applications are not yet due, the deadline for state entities to indicate intention to apply was August 16. South Dakota declined over $70 million, including the rejection of $1.8 million earlier this year to cover administrative costs throughout the application process. South Dakota is the only state to decline participation in the Home Energy Rebates program.
Earlier this year, the Noem Administration rejected Climate Pollution Reduction Grant funding to establish a statewide Priority Climate Action Plan and compete for implementation grants. No state or local entity within South Dakota has received an Energy Efficiency Conservation Block Grants (EECBG) award. The deadline for local governments to apply for EECBG funding is October 31.
How to Get Involved
For more information about North Dakota or to get more involved, contact Clara Stein.
Regulatory
Focus on Energy staff released two memos that outline potential alternatives for consideration by the Commission in docket 5-FE-104. One details potential pathways to resolve attribution of energy savings for the Focus on Energy program and its administrators when measures are co-funded by Inflation Reduction Act Home Energy Rebates. The second memo discusses Focus’s role in promoting beneficial electrification and considerations on a fuel-neutral savings goal.
Commissioners met on October 10 to rule on these potential decisions. On attribution, the Wisconsin Public Service Commission (PSC) decided to allow full attribution to Focus on Energy in instances where the program co-funds with Home Energy Rebates. On beneficial electrification, the PSC established a more expansive definition of customer costs and a definition of beneficial electrification that reduces customer costs, greenhouse gases and source energy. Additionally, the Commission passed on transitioning program goals to MMBtus. Rather, the PSC elected to keep kwh and therm goals but reduced minimum requirements to achieving 70% of fuel-specific goals, allowing for enhanced flexibility.
How to Get Involved
For more information about Wisconsin or to get more involved, contact Maddie Wazowicz.
Executive
On September 6, PJM filed a proposal with the Federal Energy Regulatory Commission (FERC) to eliminate energy efficiency resources from its capacity market effective November 6, 2024. Since the filing, over 30 organizations have filed motions to intervene. Several organizations, including the Illinois Attorney General’s Office and Illinois Citizen’s Utility Board in the Midwest, filed protests against PJM’s proposal with PJM filing their response on October 22.
PJM’s market monitor and ratepayer advocates have taken issue with how PJM treats energy efficiency as a resource in the capacity market but have disagreed on the solution. Both argue PJM is improperly counting energy efficiency on both the supply (capacity market) and the demand (load forecast) sides of the equation. Advocates have urged FERC to hold a technical conference to investigate the best way for energy efficiency resources to continue participating in the capacity market. Conversely, PJM’s market monitor argued in favor of taking energy efficiency out of the supply side of the curve and removing these resources from the capacity market. Ultimately, PJM members voted to agree with the market monitor and PJM has now asked FERC to finalize this decision.
Here’s how to learn more about the issue:
- Read two related blog posts MEEA published on Regional Transmission Organizations and several complaints filed with FERC leading up to PJM's September 6 filing:
- Follow this docket by subscribing to Docket ER24-2995 in FERC’s eLibrary.
- Watch MEEA's October 21 Webinar "Navigating Capacity Challenges and Policy Change at Regional Transmission Organizations in the Midwest”
On September 11, the EPA announced the final round of Climate Pollution Reduction Grant funding, $300 million in grants to 34 Tribes and one U.S. territory to implement community-driven climate solutions. In the Midwest, 10 tribal entities were granted funding, including the:
- Bad River Band of Lake Superior Chippewa Indians
- Bay Mills Indian Community
- Lac Vieux Desert Band of Lake Superior Chippewa Indians
- Lower Sioux Indian Community in the State of Minnesota
- Nottawaseppi Huron Band of Potawatomi
- Pokagon Band of Potawatomi Indians
- St. Croix Chippewa Indians of Wisconsin
- Iowa Tribe of Kansas and Nebraska
- Rosebud Sioux Tribe
- Spirit Lake Tribe
The majority of these grants will fund priority measures to advance energy efficiency through energy audits, energy efficiency appliance upgrades, air-source and ground-source heat pump installation and full building retrofits. Learn more about each awardee here.
How to Get Involved
Information about a number of federal funding opportunities can be found on the Funding Roundup page of MEEA’s website.
For more information about federal matters or to get more involved, contact Maddie Wazowicz.
Recent Publications:
Recent Testimony and Comments:
- MEEA Comments on OPPD’s Strategic Directive 7 Energy Burden
- MEEA Comments on ICC Future of Gas Phase I Draft Report
- MEEA Comments on Wisconsin Quad Planning Process IV – Underserved Customers
- MEEA Comments on OPPD's Strategic Directive 7 Annual Review
- MEEA Comments on Savings Attribution for Stacking of Benefits
Recent Blogs:
- Over $1 Billion in Federal Funds Flow into the Midwest: Energy Efficiency's Role in CPRG Implementation Awards
- Energy Markets 101: Regional Transmission Organizations, Independent Systems Operators and Energy Efficiency
- Energy Markets 102: Energy Efficiency Participation in PJM’s Capacity Market
- New Benchmarking Ordinance Advances Milwaukee’s Climate Goals
- Insights from ACEEE’s Summer Study on Energy Efficiency in Buildings