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 / MI / MN / MO / NE / ND / OH / SD / WI
- Federal Update
- New Resources & Publications
MEEA's Upcoming Webinar: Navigating Capacity Challenges and Policy Change at Regional Transmission Organizations in the Midwest
Monday, October 21 | 1 p.m. CT
Join us to learn more about evolving grid conditions, policy change related to the valuation of EE & DR as capacity resources and program design implications, including a case study with a Midwestern electric utility seeking to navigate and shape these policy changes while scaling up their DSM programs more than 2x in the coming year. Register here.
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
Chicago - 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. At the first workshop of the second phase the facilitator shared an outline of a re-envisioned Phase 2 of the proceedings including an extended timeline that would see the final report released by July 1, 2026. The first workshop of Phase 2 also covered highlights from Future of Gas proceedings in other states. The second workshop of Phase 2 included an overview of how greenhouse gas emissions are calculated and an introduction to pathways modeling. Meeting materials can be found here.
On September 10, the Illinois Energy Efficiency Stakeholder Advisory Group (SAG) held an in-person large group meeting. Ameren presented its draft 2026-29 Energy Efficiency Plan and the Illinois Environmental Protection Agency presented an Inflation Reduction Act Home Energy Rebate Program update. Materials from both presentations can be found here. October will be a busy month for the SAG, with several large group meetings planned:
- October 1: Stakeholders to share feedback on Ameren’s draft plan
- October 2: Nicor Gas will present their draft 2026-29 Energy Efficiency Plan
- October 8: ComEd and Peoples Gas & North Shore Gas present their draft 2026-29 Energy Efficiency Plans
- October 24: Stakeholders to share feedback on Nicor’s draft plan
- October 29: Stakeholders to share feedback on ComEd’s draft plan
- October 30: Stakeholders to share feedback on Peoples Gas & North Shore Gas’ draft plan
Find information about upcoming SAG meetings 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 opened an investigation in Cause Number 46043 into whether a Distributed Energy Resource Aggregator is a public utility. The case is ongoing.
2024 Integrated Resource Plans (IRPs) are expected from:
- Publicly-owned utilities –
- Indiana-Michigan Power (AEP) – Indiana-Michigan Power has begun its IRP process in Indiana. The second meeting was held on September 24. The IRP due date was extended by the IURC to March 3, 2025.
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.
Regulatory
As of July 1, the Iowa Utilities Board is now the Iowa Utilities Commission (IUC). The regulatory organization's name change is a result of legislation in Senate File 2385 that removed the IUB from under the umbrella of the Department of Commerce.
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 Kansas Evergy’s KEEIA 2024-2028 DSM Portfolio – which became effective following Commission order and approval under Docket No. 22-EKME-254-TAR. Kansas Evergy seeks to apply the 2024 Energy Efficiency rider to ratepayers beginning on November 1, 2024, 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.
Legislative
Legislators are campaigning; it is expected that the legislature will reconvene for session days later in the year and could take up some of the bills below.
- SB 237, which would extend tax credits to data centers to encourage companies to site them in Michigan, passed out of the Senate on May 9.
- 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. Both go to the House now to be concurred.
- 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 and now head to the House.
Regulatory
The Michigan Public Service Commission (MPSC) has several open dockets to implement the 2023 energy legislation.
- Case U-21638 addresses public engagement processes at the MPSC.
- The Commission is asking for comments on five questions on how the MPSC can improve its processes to foster more effective community participation.
- The Commission held an in-person public hearing in Flint on August 28. Comments were due to the Commission by September 27, with reply comments due October 24.
- Case U-21567 addresses the energy waste reduction (EWR) legislation.
- The MPSC ordered Commission Staff to work with utilities, state government and advocacy organizations to develop strategies around income verification and program coordination to minimize barriers to participation in low-income EWR programs.
- Parties filed reply comments by August 9.
- Case U-21570 addresses the legislative changes to the MPSC.
- Staff will file a redline version of the Michigan Integrated Resource Planning Parameters and Filing Requirements on September 30, along with a straw proposal for municipal and cooperative electric utilities and alternative electric suppliers to submit a clean energy plan.
- The MPSC has ordered Staff to study the potential for EWR, demand response and electrification of transportation, buildings and industry by September 30, with final potential studies completed by July 31, 2025.
- Nothing has been filed in the docket yet.
- Case U-21572 addresses the requirement that the MPSC study and report on electric issues unique to the Upper Peninsula (UP).
- MPSC Staff must file the final study by November 22.
How to Get Involved
For more information about Michigan or to get more involved, contact Maddie Wazowicz.
Regulatory
Xcel Energy has modified its time-of-use (TOU) rate plan by making the TOU rate voluntary instead of the default rate structure for all residential customers. Xcel has also modified other details of its proposal, like reducing the differential in prices between peak and off-peak and implementing a lower electric heating rate in the winter. More information can be found in the filing and in docket M-23-524.
The Minnesota Public Utilities Commission (PUC) approved CenterPoint Energy’s Natural Gas Innovation plan on July 25 in docket 23-215. The plan outlines $106 million in spending on various pilot projects to help CenterPoint decarbonize. Amongst the pilots are programs to incentivize industrial electrification of low-to-medium heat processes, hybrid systems with gas backup for small-to-medium commercial buildings, deep energy retrofits and electric air source heat pumps for residential customers, audits to expand energy efficiency offerings outside of the CIP framework and gas heat pumps.
The PUC continues to work on its natural gas integrated resource plan process in docket 23-117. Utilities submitted their straw proposals on May 31. Plan links can be found here:
The Commission met on September 12 to discuss these plans and the IRP process.
How to Get Involved
For more information about Minnesota or to get more involved, contact Maddie Wazowicz.
Legislative
The Missouri legislature held its veto session on September 11, but no vetoes to respond to veto action made by the Governor were overridden.
Regulatory
The proceedings for Evergy Missouri’s MEEIA Cycle 4 plan are nearly completed in docket EO-2023-0369. On August 30, intervenors filed a joint motion to suspend the procedural schedule, opting instead to draft a Stipulation and Agreement to resolve the case. The Commission canceled the remaining hearings, as requested. On September 27, parties filed a Stipulation and Agreement to resolve all pending issues in the docket. The Agreement, which has not yet been approved by the Commission, provides for a $69.5 million total program budget.
Proceedings are nearing the end of schedule for Ameren Missouri’s MEEIA Cycle 4 plan, which can be followed in docket EO-2023-0136. Ameren filed its amended application on January 25 outlining their proposed programs - a robust plan of 25 programs, including $70 million for income-eligible programs, a residential efficient products program and a Pay As You Save® program. Key parties, including Commission Staff and the Office of Public Counsel, weighed in on the proposal, indicating they do not support an extension of MEEIA programs. After Evidentiary hearings were held in July, parties began to discuss the possibility of a settlement. The Commission granted this change in an order on August 26. As discussion continues between the parties in the case, initial briefs are now expected to be filed by October 16 with reply briefs by October 30.
MEEA will continue to track the outcome of these dockets, as results are expected to affect the other forthcoming investor-owned utility MEEIA filings.
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
In June, the City of Omaha published the Omaha Climate Action and Resiliency Plan (draft plan). The plan sets multiple priority actions for energy efficiency and energy code advancement, driven by an overarching goal to improve total citywide building energy efficiency (all sectors) 10% for electricity and natural gas by 2035. At the end of August, MEEA submitted comments to the City of Omaha recommending further resource allocation for low-income energy efficiency programming.
Regulatory
On September 19, at the Omaha Public Power District (OPPD) September Board of Directors meeting, the Systems Committee presented their formal recommendation for updates to Strategic Directive 7 (SD7). SD7 guides OPPD’s sustainability goals, including a target to reach net zero emissions in energy generation by 2050, and more broadly, houses OPPD’s energy efficiency and demand response metrics. MEEA submitted comments in May, and more recently submitted comments regarding the importance of incorporating both energy efficiency and environmental justice in sustainability goals, highlighting the impact of energy burden in OPPD’s 13-county service territory. The Systems Committee’s recommendations include an initial interim metric on the pathway to net zero, and language recognizing the importance of environmental justice in District decisions. SD7 now enters a 30-day public comment period, and the Board of Directors will accept comments through October 13. Review SD7 revisions and submit public comments here.
On August 21, Governor Jim Pillen announced the appointment of Kirk Olson to the Nebraska Public Power District (NPPD) Board of Directors, representing Subdivision 4. Subdivision 4 includes Frontier, Gosper, Hayes, Lincoln and Red Willow counties. Olson replaces David Gale, who resigned from the NPPD Board of Directors in June. Olson's term will end in 2026.
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.
Regulatory
On August 1, the ND Public Service Commission (PSC) held a technical conference to discuss the large load power impacts of data centers in the state. In the past few years North Dakota has become a beacon for data center development. While there are only a few data centers currently operating in the state, there are at least six more in development. With recent transmission and cost distribution conflicts between utilities arising in response to the development of Atlas Power Data Center, near Williston, the PSC convened this conference to gather information from industry experts and utility representatives. Although there were no clear conclusions from the day-long meeting, the conference marked an important first step in ensuring data center development is as sustainable and equitable as possible. Find audio recordings of the conference and a detailed agenda here.
How to Get Involved
For more information about North Dakota or to get more involved, contact Clara Stein.
Legislative
The most notable energy-related bill this session, HB79, passed the House by a vote of 50-46 on June 26 and will go to the Senate during lame duck later this fall. The bill would allow utilities to establish limited voluntary energy efficiency programs. The bill does not create mandatory energy efficiency in Ohio but does allow for utility-run residential and small commercial energy efficiency programs. Notably, the legislation would allow customers to opt out of efficiency programs and provides that utilities must notify customers how to opt out. The Public Utilities Commission of Ohio will have oversight approval of the cost effectiveness of any EE programs.
Regulatory
First Energy applied for a $72.1 million / four-year energy efficiency and demand response program as part of its Standard Service Offer (SSO) case in docket 23-0301-EL-SSO. In the Opinion and Order on May 15, the Commission followed Staff recommendations and eliminated everything except for 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 PUCO granted an order for 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.
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.
Legislative
AJR 6/SJR 5 passed the legislature in April. The Joint Resolution proposes a constitutional amendment that would move the authority to accept and allocate federal funding from the governor to the legislature. The amendment was on the ballot at the August 13 primary where it was rejected by Wisconsin voters resulting in no change to how federal funding is accepted and allocated, including funding that addresses energy projects from the Bipartisan Infrastructure Law and the Inflation Reduction Act.
Executive
The Office of Sustainability and Clean Energy has released its second annual Clean Energy Plan Progress Report. The report details efforts made on the state’s clean energy goals and includes specific sections on increasing energy efficiency programming, modernizing the state’s building stock through efficiency and stronger building codes, emphasizing environmental equity and leading by example with state facilities.
Regulatory
Focus on Energy staff released two memos that outline potential alternatives for the Commission. 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 efficient fuel-switching and considerations on a fuel-neutral savings goal.
Both memos are in the Quad Plan IV docket, 5-FE-104. Comments were due September 27, with the Commission set to meet next on October 10 to discuss these issues.
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 20 separate groups have filed motions to intervene.
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.
- Attend the webinar MEEA will be hosting with member organization TRC on capacity markets in October. Register here!
- If you have questions on this topic, please submit them HERE.
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.
On August 23, the U.S. Department of Energy (DOE) announced the third round of awards through the Energy Efficiency Revolving Loan Fund Capitalization Grant program, totaling $66 million for fifteen states and two U.S. territories. The awards aim to assist states and territories in issuing loans and grants for energy efficiency audits, upgrades and retrofits. Within MEEA's 13-state region three states received funding: Iowa, Kansas and Minnesota. The Energy Efficiency Revolving Loan Fund Capitalization Grant Program will allocate $242 million, with 40% designated for states, territories and the District of Columbia and 60% reserved for priority states. In June, six awards were granted, totaling $45 million. Illinois and Indiana were among the awardees. View all awardees to date here.
In August, DOE announced $53.6 million in Sustainable Energy Resources for Consumers (SERC) Grants. The Grants are the latest funding stream coming from the Bipartisan Infrastructure Law. In the Midwest Indiana, Kentucky, Michigan and Ohio are all awardees. The SERC Grants are designed to assist low-income households with energy saving measures not included in DOE’s Weatherization Assistance Program. States are expected to use SERC funds to reduce energy burden and support clean energy job creation.
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:
- 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