MEEA Policy Insider - August 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

Last fall, 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. The Governor has since integrated information gathered through working groups and stakeholder consultation into a clean energy bill called the Consumers and Climate First Act, which was discussed and debated in the legislative session.

Legislative

Illinois’ legislative session ended on May 31, but legislators have indicated they are open to reconvening during the summer to pass energy legislation, which would require a three-fifths majority vote in each chamber given the May 31 deadline has passed. Legislators are expected to return to Springfield August 31 to discuss the energy omnibus legislative package. Reach out to MEEA's staff for a more in-depth analysis of the state of legislation.

There were several clean energy bills under consideration, including:

  • Clean Energy Jobs Act or CEJA (HB 804)
    • CEJA, previously introduced as SB 2132 / HB 3624, was re-introduced 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 15 and moved to the full Illinois House of Representatives for debate.
  • Climate Union Jobs Act or CUJA (SB 1100)
    • 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.  
  • Path to 100 (SB 1601)
    • HB 2640, known as the 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 9 and heard on March 22. It would, among other things, alter the definition of energy efficiency, allow certain public utilities to recover natural gas delivery service costs through a performance-based rate and authorize utilities to plan for, construct and operate electric vehicle charging infrastructure.
  • Consumers and Climate First Act (SB 2896 / HB 4074)
    • 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 the transition. The bill includes many of the same components of the CEJA bill, related to Just Transition, workforce development, electrification and utility accountability reforms.

Regulatory

On March 1, Illinois investor-owned utilities filed their energy efficiency programs. As of August 18, all IOU portfolio plans for program years 2022-2025 have been approved. The final orders are linked below.  

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

The second iteration of the legislative 21st Century Energy Policy Development Task Force has begun meeting. The first and second meetings were held on August 18 and August 24, with subsequent meetings on September 8, September 27 and October 12. The first meeting focused on co-op reporting requirements, fairness in rate structures and demand response. The second meeting focused on electric vehicles. The agendas for subsequent meetings were put forth in the first meeting.

  • September 8: Distributed Energy Resources, Net Metering
  • September 27: Reliability, Batteries, Back-Up Sources for Renewable Energy
  • October 12: Environmental, Green Possibilities and Urban Areas

Regulatory

Integrated resource planning is ongoing for Indiana utilities.

  • Duke Energy Indiana is in its 2021 IRP stakeholder process.
    •  The next meeting (Workshop 6) has not been scheduled yet.
  • Indiana Michigan Power is engaged in its 2021 IRP process.
    • Workshop 3b was on August 24. Workshop 4 is tentatively scheduled for September 14 and registration is open.
  • NIPSCO began its 2021 IRP process.
    • Future meetings on September 21 and October 12 have been announced, but registration is not yet open for those meetings on the utility’s IRP page. Email NIPSCO to be added to the notification list for when registration opens.

The utility filing deadline for 2021 IRPs are as follows:

  • NIPSCO: November 1, 2021
  • Wabash Valley: November 1, 2021
  • Duke Energy Indiana: 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.

Presentations and YouTube videos from the IURC IRP Contemporary Issues Technical Conference sessions on June 21 and July 21 are available on the IURC website.

How to Get Involved

While testimony to the Task Force is by invitation of the committee, members may have an opportunity to ask to be considered for the agenda for the upcoming meetings. If you would like to reach out to the Task Force, contact Jacob Carrico (legislative aide for Chairman Soliday), Luke Wilson (policy analyst for House Republicans) or Sarah Burkman (staff attorney for Task Force & House Utilities).

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

On August 25, MidAmerican Energy will be holding its second collaboration meeting under their Settlement Article III Collaboration Terms from their EE case (EEP-2018-0002). The meeting will be held from 8:30 – 10:00 a.m. CT and will focus on implications of fuel switching policy in the context of air source heat pumps.

On August 24, investor-owned utilities and energy efficiency stakeholders convened for an annual Energy Efficiency Portfolio meeting. The meeting featured presentations from Black Hills Energy, MidAmerican Energy and Alliant Energy on their 2020 Annual Reports, their 2020 energy efficiency programs performance and questions from stakeholders.

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 signed into law on June 16. 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, alternative fuel vehicle (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. 

How to Get Involved

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

Regulatory

Evergy continues to convene stakeholders regarding the development of their energy efficiency portfolio application, expected to be filed in September according to the Kansas Energy Efficiency Investment Act.

In late winter, Evergy filed an application for a Transportation Electrification Portfolio (Docket No. 21-EKME-320-TAR) including rebate programs, rates for charging services and an associated education and program administration budget along with program cost recovery. Evidentiary hearings are scheduled on September 20-21.

During the spring and summer, the Kansas Corporation Commission (KCC) held work study sessions related to demand-side management.

  • 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 June 24, KCC convened a work study on the role of the utility in demand-side management. The session included a presentation from Evergy on their intent to offer energy efficiency programs in the state and a discussion regarding the approach and impacts of programs. 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 Sustainability Transformation Plan (STP) (Docket No. 21-EKME-088-GIE). On May 24, the KCC convened the final of four workshops (see 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.

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

The Energy Affordability and Accessibility Collaborative has decided that the bulk of the collaborative’s work will take place in the group’s subcommittees: Affordability, Alignment, and Assistance; Outreach and Education; Data Analysis and Regulatory Review; and Definitions.

MI Power Grid workgroups continue to meet. The Customer Education Participation workgroup set two meetings to discuss the opportunities and barriers related to customer participation in utility programs. The first meeting was held on August 4 and focused on customer engagement in commission processes. The second will be held on August 25 and will focus on equitable outreach and access to utility programs and offerings. The Distributed Energy Resources Rate Design workgroup is working on its draft report in coordination with the Regulatory Assistance Project. The report is due September 1, and a stakeholder meeting is scheduled for September 8.

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 most recent draft of the EWR potential study was released in early August and can be found here. Comments on this draft are due August 27. The DR potential study draft is anticipated to be released in late August.

Energy Waste Reduction plans are actively being filed with the MPSC.  Many utilities contract with the statewide administrator, Efficiency United, to run their programs. Thus, proceedings often focus more on overall budgets and energy savings goals as opposed to details of individual programs. The dockets for the EWR plans can be found here:

  • U-20874: Alpena Power Company
  • U-20875: Consumers Energy Company
  • U-20876: DTE- Electric
  • U-20877: Indiana Michigan Power Company
  • U-20878: Northern States Power Company
  • U-20879: Upper Peninsula Power Company (UPPCO)
  • U-20880: Upper Michigan Energy Resources Corporation (UMERC)
  • U-20881: DTE- Gas
  • U-20882: Michigan Gas Utilities Corporation

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 the legislature returned for a special session on June 14. 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. After session closed, the conference committee continued to seek a compromise as a working group.

The working group did reach a compromise, HF 6/SF 19, which was signed into law by Governor Walz. The law will:

  • Establish a revolving loan account which would fund energy efficiency upgrades for state facilities;
  • Create the Energy Transition Office, which would help assist communities experiencing economic distress from power plant retirements;
  • Extend the Cold Weather Rule by banning disconnections for customers complying with a payment plan from October 1 to April 30 (previously October 15 to April 15);
  • Create the Minnesota Efficient Technology Accelerator, where a Minnesota nonprofit would collaborate with technology manufacturers to accelerate the deployment of energy efficient technologies;
  • Authorize natural gas utilities to file plans with the PUC outlining their usage of innovative resources that displace traditional natural gas;
  • Fund a pilot program to connect young adults in underserved communities with job training in clean energy and energy efficiency sectors and
  • Require the PUC to study the role of natural gas utilities in achieving the state’s carbon reduction goals.

Additional details on the compromise can be found here. Some energy efficiency-related provisions did not make it into the final bill, like the provision to strengthen the state’s commercial energy codes or funding for an innovative clean energy finance authority.

Prior to the close of session, the Energy Optimization and Conservation (ECO) Act passed 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. To explain the details of the Conservation Improvement Planning overhaul, MEEA wrote a summary analysis of ECO.

Regulatory

The ECO Act tasks the Department of Commerce with forming several sets of guidance. DOC has initiated a stakeholder process to help determine energy efficiency program eligibility for low-income customers in multifamily buildings. Additionally, over the next year or so, DOC will need to engage stakeholders to determine guidance on allowable pre-weatherization measures, electric vehicle charging sales, and cost-effectiveness. More information on the Department’s work can be found here.

The PUC has opened a few dockets to fulfill requirements in legislation that passed this session.

  • Docket 21-565- The PUC will evaluate changes to natural gas utility regulatory and policy structures needed to meet or exceed Minnesota’s greenhouse gas emissions reductions goals.

  • Docket 21-566- Natural gas utilities will have the opportunity to present the commission with plans to study and utilize alternative and innovative energy resources, like renewable natural gas, biogas and hydrogen.

  • Docket 21-548- The Minnesota Efficient Technology Accelerator (META) program seeks nonprofits to apply to run the accelerator, which will accelerate the deployment and reduce cost of efficient technologies. CEE filed its intent to apply in this docket.

How to Get Involved

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

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Executive

On August 31, the Missouri Department of Natural Resources – Division of Energy will be convening the first of six regional State Energy Planning (MoSEP) meetings. See the plan page to join MoDNR’s mailing list, register for meetings or to submit inquiries. The process began with a Virtual Energy Stakeholder Kickoff Workshop last fall. In May, MoDNR issued a Summary and Action Report summarizing next steps. As described in the report, the 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.

Regulatory

On August 4, the PSC issued an order offering an opportunity to comment on the temporary ban on demand-side resource aggregators for commercial and industrial customers. The order was filed in a working docket opened for the PSC to consider the Federal Energy Regulatory Commission’s Order 2222. Comments must be submitted no later than September 1. For more details, see the full press release.

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.

Comments on Ameren’s 2020 Integrated Resource Plan (EO-2021-0021) from intervening parties were filed on March 31. On June 18, intervening parties filed a joint filing, reaching an agreement on a pathway to addressing concerns raised. Unresolved issues were addressed in Ameren’s response, with interested parties responding to the response on July 19. The Commission has yet to issue an order on the process for proceeding forward in this case.

How to Get Involved

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

Legislative

The Nebraska Unicameral adjourned its legislative session sine die in late May. It is likely the Unicameral will gather for a special session this summer, but that session is expected to focus on legislative redistricting. 

LB 306, introduced by Sen. Brandt, passed on a 38-6 vote. Despite this, Governor Ricketts vetoed LB 306 on May 25. The legislature successfully overrode this veto, and the bill is now law. LB 306 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

House Bill 389 (Leland, Seitz) was introduced on August 12. The bill allows voluntary EE portfolios by the electric distribution utilities, allowing for cost recovery and for the proposal of incentives and lost revenues. At least 15% of the residential program costs must go to low-income programs. There is a goal of 0.5% EE savings, only 30% of which can come from behavioral programs. A utility cost test will be used to assess cost-effectiveness at the portfolio level. There is a cost cap of 2.25% of utility revenue. Mercantile customers are automatically excluded unless they opt in for at least 12 months. All other commercial and residential customers are allowed to opt out with no specific provisions for duration of opt-out or opting back into the portfolio.

Regulatory

PUCO has announced a series of energy efficiency workshops to “solicit the views of stakeholders on whether cost-effective energy efficiency programs are an appropriate tool to manage electric generation costs, and how those fit into Ohio’s competitive electric and natural gas marketplaces.” The five workshops will take place from September through January, focusing on different customer segments for each workshop. In addition to speaking opportunities, there is also an opportunity to comment on a series of 14 questions that PUCO has posed on EE policy, portfolio and program design and other aspects of EE and DR delivery.  

How to Get Involved

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

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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

The legislature spent much of session working on the state’s budget, which was sent and signed by Governor Evers in early July. 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 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.

Additionally, Cadmus is expected to release its Focus on Energy potential study in September or October. More information on the potential study can be found here.

How to Get Involved

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

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Executive

On August 18, DOE posted a Notice of Proposed Rulemaking on the definitions for general service lamps and general service incandescent lamps. DOE proposes reverting the definitions back to those established by the Obama Administration in January 2017 after the Trump Administration withdrew these revised definitions. The revised definitions would no longer exempt five categories of specialty incandescent lamps from the Energy Independence and Security Act’s (2007) efficiency standards. DOE will hold a public meeting on September 30 from 10 a.m. to 4 p.m. ET, and is accepting comments, data, and information on the NOPR no later than October 18.

On August 13, DOE announced awardees of its Building Energy Efficiency Frontiers & Innovation Technologies (BENEFIT) funding opportunity announcement - $82.6 million in funding for 44 projects in building materials, lighting and heating and cooling systems.

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. PJM’s final proposal was approved by the Board of Directors, though must be approved by FERC prior to its implementation. The proposal removes the expanded MOPR and “narrows the scope of the MOPR … aimed at mitigating buyer-side market power; to avoid harming state policies and power providers with self-supply business models; and to make sure the market design is robust and could work well into future.”

Legislative

On August 10, the Senate passed a bipartisan infrastructure bill that includes substantial investment in energy efficiency across sectors of the economy, for example, the Energy Savings and Industrial Competitiveness Act. The bill is expected to be taken up by the House next week.

How to Get Involved

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

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