MEEA Policy Insider - March 2023

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​​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:

Upcoming MEEA Policy Webinar

Slicing the Pie of EE Funding in IIJA and IRA

On Apr 18, 2023 10:00 AM CT, Join MEEA staff for a rundown of the energy efficiency provisions in the Infrastructure Investment and Jobs Act and Inflation Reduction Act. Find out how much funding individual states are in line to receive, and where things stands on the rollout of the federal funds. Future webinars in this series will follow every few months, keeping track of the current state of these EE funding streams.

Register here>>>

Previous MEEA Policy Webinar

Efficiency and Resilience in Critical Facilities

On March 15, MEEA explored how energy efficiency enhances the resilience of critical facilities across the Midwest region. Featured presentations were given by Amanda LeMaster of the Office of Energy Policy in the Kentucky Energy and Environment Cabinet, Megan Levy of the Office of Cybersecurity, Energy Security and Emergency Response at the U.S. Department of Energy and Eliza Hotchkiss of the Resilient Systems Design and Engineering Group at the National Renewable Energy Laboratory's Energy Security and Resilience Center. Topics included the definition of “critical facilities,” identifying who has the capacity to research the energy needs of these facilities and examples of funding sources that states are using to further related efforts.

View the presentation slides here and the webinar recording here.

State Budgets

Many states are currently working through their respective budgeting processes, with several state governors releasing their budget proposals in recent weeks. These proposals are merely starting points for negotiations; state budgets may ultimately look quite different after making their way through the legislative process. Notably, in Wisconsin, Governor Evers' budget recommends doubling utility contributions to Focus on Energy from 1.2% to 2.4%. Additionally, Evers recommends that the state’s electric investor-owned utilities begin to submit biennial integrated resource plans, which the state does not currently mandate. In Minnesota, Governor Walz's budget includes funds for a state competitiveness fund and a boost to the weatherization program.

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Legislative

The 103rd Illinois General Assembly began on January 11, and legislators have introduced a number of efficiency-related bills.

HB 2172, otherwise known as The People’s Utility Rate Relief Act (or PURR Act), was introduced by Rep. Davis on February 7 and currently sits in the House Rules Committee. HB 2172 is intended to serve as an energy rate relief bill that protects low-income customers from utility shutoffs. The bill also includes shutoff protections for customers aged 65 or older, people with children under 6 and customers who provide a medical certification exemption. In addition to preventing utility shutoffs, HB 2172 also prohibits utility companies from terminating gas or electric service for apartment buildings when daytime temperatures reach 85 degrees Fahrenheit or higher. Lastly, HB 2172 calls for a discounted utility rate for customers making less than 80% of the area median income.

HB 3141 was introduced by Rep. Blair-Sherlock on March 8 and currently sits on its second reading in the House Energy & Environment Committee. HB 3141 provides that the Illinois Department of Central Management Services shall establish a maximum acceptable Global Warming Potential standard for state purchases of vehicles, appliances and building materials for use in state-funded infrastructure projects.

SB 2368 was introduced by Sen. Koehler on February 10 and received a third reading in the Illinois Executive Committee on March 21. SB 2368 amends the Illinois Residential Building Code Act to make conforming changes so that no person may occupy a newly-constructed commercial building located within a non-building code jurisdiction until that building meets the local energy code (base or stretch). SB 2368 also requires municipalities with a population less than 1 million to meet baseline residential building codes beginning July 1, 2024.

SB 1842 was introduced by Sen. Sims on February 9 and was most recently re-referred to the Senate Committee on Assignments on March 10. SB 1842 would amend the Energy Assistance Act to authorize the Department of Commerce and Economic Opportunity to institute a year-round program to ensure availability and affordability of heating and electric services to low-income utility customers. SB 1842 also includes a provision that an energy provider to a potential recipient of the Low-Income Energy Assistance Fund shall ensure that the recipient's utility services are not disconnected while their application is pending.

Regulatory

Governor JB Pritzker has announced multiple new appointments to Illinois Boards and Commissions. Earlier this month, Governor Pritzker announced that Illinois Commerce Commission (ICC) Chairman Carrie Zalewski would be stepping down from her position. She had been named to a five-year term as Chair of the ICC in April 2018. Assuming new positions to the ICC will be Conrad Reddick and MEEA’s own Stacey Paradis. Prior to his appointment to the ICC, Reddick ran a law practice, representing the City of Chicago as a Special Assistant Corporation Counsel. Stacey Paradis currently serves as Executive Director of MEEA, where she has led the organization for over 14 years. Reddick and Paradis will be serving full five-year terms ending in 2028. 

Governor Pritzker also announced that Bria Scudder will serve as Deputy Governor for Public Safety, Infrastructure, Environment and Energy. Scudder will be replacing Christian Mitchell, who stepped down from this role in early March. While Scudder most recently served as Director of State Government Affairs for the Midwest region at Abbvie, she previously worked in the Governor’s Office as First Assistant to then-Deputy Gov. Mitchell.

How to Get Involved

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

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Legislative

The Indiana legislature has passed the halfway point of its session. The following bills that we have been tracking are still active. 

HB 1007, authored by Representatives Soliday, Jeter and Negele, provides that it is the continuing policy of the state that decisions concerning Indiana's electric generation resource mix, energy infrastructure and electric service ratemaking constructs must consider the following attributes of electric utility service: reliability, affordability, resiliency, stability and environmental sustainability. The bill would require the IURC to take each of these attributes into account when reviewing an integrated resource plan submitted by an electric utility, acting upon a petition for the construction, purchase or lease of an electric generation facility and reviewing whether the public convenience and necessity continues to require the completion of an electric generation facility under construction. The bill passed out of Senate Utilities on March 13 with a 9-0 vote and is eligible for second reading.

SB 221, authored by Sen. Zay, would require the Indiana Department of Administration to issue a request for proposals and award a contract to conduct an energy audit on the Indiana State Capitol building and Indiana Government Center North and South buildings. This bill was amended to delete provisions related to studying the feasibility of creating a strategic coal reserve. The bill passed the Senate and is currently in House Utilities.

Regulatory

Commissioner Stephanie Krevda is resigning from the IURC, with her term concluding in April 2023. The IURC Nominating Committee is accepting applications from people who would like to be considered for an appointment to fill her seat. Applications are due by March 31.

2023 integrated resource planning is expected from: 

  • Investor-Owned Utilities:
    • CenterPoint Energy (Vectren) - 2022 IRP extended to November 2023
      • `The next stakeholder meeting is scheduled for April 26, 2023; registration is not open yet
    • AES Indiana (IPL) - stakeholder comments on 2022 IRP
      • Comment period extended through March 31, 2023 via the IURC IRP page
  • Publicly-Owned Utilities (POUs) do not have the requirements for stakeholder meetings associated with their IRPs
    • 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, contact Greg Ehrendreich. 

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    Legislative

    Iowa’s legislative session continues as the final date for bills to report of committees was on March 8. The legislative session is slated to end on April 28. To view Iowa’s 2023 Legislative session schedule, please click here.

    SF 479 (formerly SF 334) represents a major potential change in energy efficiency in Iowa. Introduced by Sen. Webster, the bill would freeze Iowa’s current building energy code, 2012 IECC, and change the code update process from an administrative one to a legislative one. The bill would also allow jurisdictions to enact energy efficiency requirements less restrictive than the state code but prohibit them from adopting codes with more restrictive EE requirements. The bill is now eligible for a Senate floor hearing and could be heard soon. MEEA has provided comments on Iowa’s energy code adoption process, which can be viewed here.

    SF 174 (formerly SF 43), also introduced by Sen. Webster in the Local Government Committee, states that government cannot prohibit or limit the use or installation of building products or materials for residential building design elements regarding construction, renovation, maintenance or other alteration of a residential building or structure if the product or material is approved by the national model code. The bill has been amended and recommended for approval by the committee.

    SF 514 was substituted for HF 662 which looks at government restructuring, including several provisions regarding the Office of Consumer Advocate (OCA), whose mission is to represent consumers on issues relating to gas and electric utilities. Advocates are concerned the changes will compromise the OCA’s ability to represent the interests of consumers and reduce the office's independence. SF 514 passed the Senate on March 7, and passed the House on March 15. The bill now goes to the governor’s desk, where she is expected to sign into law.

    HF 605 (formerly HSB 216) is a bill that prohibits the state building code commissioner, counties and cities from requiring energy benchmarking requirements for private properties. The bill defines benchmarking as requiring a decrease in the average energy use of a property or requiring the average energy use of a property to be less than the average energy use of similarly situated property. The bill passed the House on March 22 and was read for the first time and referred to the Commerce Committee. MEEA submitted comments supporting energy benchmarking and building energy performance in Iowa.

    HF 617 orders that the Iowa Utilities Board (IUB) and the Department of Commerce initiate an independent review of current Iowa Code provisions and ratemaking procedures to determine whether revised provisions and different procedures would be more cost-effective and would result in rates that more accurately reflect a utility’s cost of providing service to its customers. The Commerce Committee recommended passage of the bill on March 21.

    HF 601, which 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 was filed with the board. The bill passed the House on March 9.

    Regulatory

    Iowa investor-owned utilities’ Energy Efficiency Portfolio (EEP) planning process is currently underway, with IOUs filing their new five-year plans (2024-2028). Interstate Power and Light Company, a subsidiary of Alliant Energy, filed its plan with the IUB on November 1, 2022, in docket EEP-2022-0150. The IUB issued an order on February 14, setting a procedural schedule and granting intervention for the docket, with a public hearing set for June 8.

    MidAmerican Energy filed its EEP plan on February 1 in docket EEP-2022-0156. The IUB issued an order on March 3, setting a procedural schedule and granting intervention for the docket with a public hearing set for August 24. Moreover, Black Hills Energy has not yet filed its EEP plan but is expected to do so in the coming months. It has been assigned docket number EEP-2022-0225.

    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 opened its 2023 legislative session on January 9. Republicans maintain a supermajority in both chambers of the state legislature.

    Turnaround Day, the last day to consider non-exempt bills in the legislative house of origin, was February 24.

    SB 88/HB2154 is sponsored by the Senate Committee on Utilities and recommends reforming the Kansas Corporation Commission (KCC). The bill, which is notably supported by the state’s largest private-sector employer, would require each of the KCC Commissioners to stand for partisan, statewide election, serving four-year terms. Currently, Commissioners are appointed by the Governor. The bill would also establish a new Utilities Regulation Division within the Office of the Attorney General which would be tasked with representing Kansas utility customers in rate case proceedings. The Senate bill was heard by the Committee on Utilities on February 13 and 14, while the House bill was heard by the Committee on Energy, Utilities and Telecommunications on Feb 14.

    SB 68, sponsored by the Senate Committee on Utilities, provides incumbent electric transmission owners a right of first refusal for the construction of certain electric transmission lines. The Committee heard testimony regarding the bill and now recommends it be passed in its current amended form. The bill was rereferred to the general Senate on March 1.

    HB 2225, which passed the House on March 16 and has now been referred to the Senate Committee on Utilities, would limit cost recovery for KCC-regulated utilities' transmission-related costs. The bill would also require public utilities to evaluate the regional rate competitiveness and impact to economic development in rate proceedings. The bill was heard in the Senate Committee on March 22.

    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 a 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 in early March 2023.

    KCC Staff and Evergy hosted a workshop on Evergy's Capital Investment plan to discuss the company’s upcoming investments on December 13, the recording of which can be found here. KCC staff, proponents and opponents submitted Post-Hearing Briefs on February 6, to which Evergy submitted their official Reply Brief on February 27. We will continue to monitor the progress of this matter.

    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 began on January 3. It will last 30 legislative days, with a final adjournment currently scheduled for March 30.

    HB 66, introduced by Representatives Willner and Bridges, concerns utility disconnection requirements. It creates winter and summer temperature standards for disconnection of service by retail electric and gas utilities, allowing for resumption of disconnection only after a 72-hour period during which the temperature standard is exceeded. The bill also establishes a certificate of need for those at risk if utility service is disconnected and allows for reconnection of service with partial payment under a payment plan. It requires utilities to make a reasonable effort towards reestablishing service for a customer terminated after having a certificate of need but no more than 24 hours after repayment is commenced. This bill has not moved since being introduced in the House Committee on Committees.

    HB 187, introduced by Representative King, defines “greenhouse gas emissions reductions agreement” and requires it to be properly recorded pursuant to Kentucky law for it to be binding on creditors or subsequent purchasers. This bill has not moved since being introduced in the House Committee on Committees.

    HB 140, introduced by Representatives Raymond and Palumbo, proposes to create a new section of the Constitution of Kentucky to establish a right of the people to have a healthy environment, including a right to clean air, pure water and ecologically healthy habitats. Energy considerations can be considered as they relate to air pollution and public health. This bill has not moved since being introduced in the House Committee on Committees.

    SB 4, prohibits the KY PSC from approving a request by a utility to retire a coal-fired electric generator unless the utility demonstrates that the retirement will not have a negative impact on the reliability or the resilience of the electric grid or the affordability of the customer’s electric utility rate. The bill passed both the House and the Senate and as of March 24, has been filed without Governor Beshear’s signature with the Secretary of State.

    SB 159, introduced by Sen. Smith, relates to building codes. It permits the use of safe refrigerant alternatives if they are used in equipment listed and installed in accordance with safety standards put forth in 42 U.S. Code § 7671k. The bill has been sent to the Licensing and Occupations Committee.

    Regulatory

    LG&E and KU, including subsidiary ODP, are currently 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.

    Executive

    The KY Energy and Environmental Cabinet Office of Energy Policy has hosted two of the three planned Energy Efficiency Housing Funding Stakeholder Meetings. The first meeting served as a convening of interested parties to discuss how funding coming to the Commonwealth for residential energy efficiency, namely through the Revolving Loan Fund in the Infrastructure Investment and Jobs Act, can be best utilized to provide impactful benefits to the citizens of Kentucky. The meeting recording can be viewed here. The second meeting included presentations from Madeline Priest of Inclusive Property Capital discussing the Smart e-Loan program and Elizabeth More of TVA discussing their loan options. The third meeting is scheduled for Thursday, April 13 at 1 pm CT with registration available here.

    How to Get Involved

    For more information about Kentucky or to get more involved, contact Amanda Caloras.

    Legislative

    The Michigan legislature opened its 2023 legislative session on January 11. With Democrats assuming control of the Senate, Michigan becomes one of three Midwestern states with a Democratic trifecta (along with Illinois and Minnesota).

    Few bills related to energy have been introduced so far. SB10/HB4036 would prevent municipalities from banning the use or installation of natural gas infrastructure. Both bills were introduced by Republicans (Bellino in the Senate, Zorn and Slagh in the House) and are unlikely to move. HB4256, sponsored by Rep. Hill, would amend the state’s clean and renewable energy and energy waste reduction act to include an energy storage target for the state’s utilities.

    Prior to the close of the last legislative biennium, Governor Whitmer signed HB727 into law. The law extends the sunset for the Weatherization Assistance Program through 2027. WAP is funded in part through the Low-Income Home Energy Assistance Program, and the appropriation from LIHEAP for WAP was set to expire at the end of 2022.

    Regulatory

    The Michigan Public Service Commission recently released its 2022 Annual Report. The report finds that Michigan utilities spent around $498 million on energy waste reduction programs in 2022.

    The MI Power Grid initiative is set to wrap up in 2023. A final report on the initiative and its workgroups is due by April 3.

    The MPSC announced a reorganization, reflecting learnings from the MI Power Grid Initiative. The PSC now has several new units: a Distribution Planning Section, an Interconnection and Distributed Energy Resources Section, a Resource Adequacy and Forecasting Section and a Data Access, Privacy and Information Technology Section. Additionally, the Commission will adjust the scope of several other divisions by consolidating some and separating others. More information on these changes can be found in the press release.

    The MPSC recently approved the settlement agreement for Indiana Michigan Power’s first integrated resource plan. Per the settlement, I&M will ramp up its energy waste reduction efforts, with goals of 1.6% in 2024, 1.75% in 2025, 1.9% in 2026 and 2% in 2027. Additionally, I&M will work to increase the percentage of its EWR spend on low-income customers to 12% by 2025.

    DTE Electric filed its IRP on November 3. DTE outlined 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 opened its 2023 legislative session on January 3. With the third and final committee deadline of April 4 approaching, legislators have been busy.

    The House Climate and Energy omnibus bill is HF2754 and a summary of the bill's included provisions can be found here. The Senate Energy, Utilities, Environment and Climate omnibus bill is SF2847, and summaries of the bill's included provisions can be found here and here. Several of the following bills are currently included in the omnibus packages, though changes are expected.

    Governor Walz signed HF 7/SF 4 into law on February 7 after the bill passed both legislative chambers. 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 states in the Midwest with laws mandating carbon-free electricity generation by mid-century.

    HF 849/SF 1787 would create a grant program to help fund electrical panel upgrades. The program will prioritize building owners of low-income single-family housing and multifamily housing and seeks to allay some of the costs of electrification. The bill was referred to committee on January 25.

    HF 1656/SF 1622 would establish the Minnesota State Competitiveness Fund. The bill seeks to appropriate $156 million in FY23 to provide matching funds required for federal funding opportunities through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. Funds could also be accessed by municipalities, tribal governments, utilities and nonprofits. Governor Walz also included a competitiveness fund in his budget, set at $114 million. The bill passed out of the House on March 27 and is now headed to the Senate.

    HF 2771/SF 2775 would create a residential heat pump rebate program. The $14 million program would fund rebates and contractor training programs. The bill was referred to the House Climate and Energy Committee on March 9.

    HF 2907 would require a seller of a residential property to disclose to a prospective buyer the costs of the usage of electricity, natural gas and water over the last twelve months, along with information on how those costs compare to statewide household averages.

    HF 1983/SF 1759 would amend the state’s energy policy goals by establishing that commercial and residential building energy use should be reduced by fifty percent by 2035 through energy-savings programs that prioritize carbon reduction. The bill is scheduled to be heard in committee on February 28.

    HF 1939 would create a $10 million fund for workforce development for workers that are Black, Indigenous and People of Color to prepare them for careers in energy efficiency and clean energy. The bill was referred to committee on February 20.

    HF 772/SF 1368 would mandate that the state adopt the new model commercial energy code of ASHRAE 90.1 or a more efficient standard each time ASHRAE is updated. The House version mandates that buildings be powered by carbon-neutral sources by 2036, whereas the Senate version mandates a net-zero energy standard for new commercial buildings by 2038. The House bill was most recently referred to the House Ways and Means Committee on February 27.

    HF 2014/SF 2024 would create a weatherization training grant program. Additionally, the bill would allocate general funds to install pre-weatherization measures in low-income residences. The bill was referred to the House Climate and Energy Committee.

    HF 3003/SF 2987 would amend the definition of a low-income household for purposes of receiving energy assistance. The threshold would change from 60% to 80% or less of state median income. The bill would also allow households to qualify if they meet thresholds for other programs. The bill was referred to the House Climate and Energy Committee on March 20.

    HF 49/SF 315 would mandate that Minnesota’s utilities file an annual report on workforce diversity, procurement goals and actual spend to diverse businesses. The bill was referred to committee on January 4.

    SF 42/HF 810 would establish a climate action tax credit. Eligible recipients would be able to claim tax credits after purchasing and installing a variety of energy efficiency technologies. Eligible technologies include air-source heat pumps, ductless mini-split heat pumps, induction ranges, heat pump water heaters and other efficient appliances and upgrades. The bill was heard in the House Taxes Committee on February 2.

    SF 41 would institute a carbon assessment on utilities. Minnesota utilities would have to pay into a carbon assessment dividend fund based on the amount of carbon they emit from power generation and procurement. The funds would be managed by the Pollution Control Agency and would, in part, be used to establish a revolving loan fund to make loans to businesses for renewable energy and energy efficiency projects. The bill was referred to committee on January 5.

    HF 2336/SF 2301 would create a Minnesota Climate Innovation Finance Authority to function as a green bank for the state. The bill most recently passed the House Climate and Energy Committee and was referred to the House Labor and Industry Committee on March 22.

    Regulatory

    Reply comments were submitted by March 13 in Docket 22-624, which was opened to gather information on how utilities seek to use the Inflation Reduction Act. Specifically, the PUC seeks to understand how the IRA will impact equity, workforce development, existing CIP programs, future NGIA plans and more.

    On December 8, the PUC voted to require the state’s gas investor-owned utilities (Xcel Gas, CenterPoint Energy and Minnesota Energy Resources) to file integrated resource plans. Previously, only the state’s regulated electric utilities were required to file IRPs. The Commission plans to open a docket to gather input on what these IRPs will include and what procedural requirements must be met.

    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 has been hosting meetings, with the most recent on February 24, to decide what pilots to pursue in its NGIA filing, which they plan to submit later this year.

    The Department of Commerce Staff’s Proposed Decision in the Matter of 2024-2026 CIP Cost-Effectiveness Methodologies for Electric and Gas Investor-Owned Utilities was filed on eDockets. (Linked searches expire, please enter docket number 23-46 to view filings.) The Proposed Decision provides a summary of the Committee’s activities and presents Staff’s recommended cost-effectiveness methodology updates for the 2024-2026 CIP Triennials. The Deputy Commissioner will issue a decision on March 31.

    Additionally, the Department of Commerce and Minnesota’s Energy Efficiency for All coalition hosted a virtual CIP Planning for Low Income Kick-Off meeting on January 26, with a second meeting on February 28. The third meeting is scheduled for March 30 from 2-3:30 pm CT. Registration is open here. Meeting participants include energy and housing advocates, energy efficiency implementers, utilities and other interested parties. Attendees have had the opportunity to learn more about CIP, the ongoing triennial utility planning process and different ways to get involved and provide recommendations to utilities on their low-income programs ahead of their draft plans, which are due on June 1, 2023. 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 opened its 2023 session on January 4. March 1 was the last day to file bills in the Senate, while the House has no parallel deadline.

    HB 580, sponsored by Representative Houx, would establish a limit on the regulation of construction standards for insulation in new dwellings that political subdivisions may adopt and enforce. This bill, in effect, would limit all jurisdictions from going beyond the 2006 IECC. It would also prohibit jurisdictions from enforcing those currently adopted codes beyond the bill provisions, effectively rolling back energy codes in many Missouri jurisdictions.  It would also require the state and local governments to provide free access to any third-party standards or codes referenced by laws or regulations. All filed testimony can be found here. The bill has now passed a second committee, the Rules-Legislative Oversight Committee. The companion bill in the Senate is SB 404, sponsored by Senator Schroer, which has been referred to the General Laws Committee.

    HB 184, which passed the House on February 16, requires political subdivisions to pay costs associated with any required electric vehicle charging stations at certain businesses. The bill was reported to the Senate and first read on February 21.

    HB 992, which is sponsored by Representative Lewis, modifies provisions for the construction of electric transmission facilities. Under the bill, the only electrical corporations that may file an application with the Public Service Commission to construct electric transmission facilities are those that own in-service transmission facilities in Missouri under the functional control of a regional transmission operator and to which such electric transmission facilities will connect once construction is completed. The bill passed the House Committee on Utilities on March 8. The companion bill in the Senate, SB 568, is sponsored by Senator Black.

    SB 140, sponsored by Senator Jason Bean, would require the Public Service Commission to permit utility companies to recover workforce development investments. The bill passed the Senate Commerce, Consumer Protection, Energy and the Environment Committee on February 21 and is now calendared for Perfection on March 27.

    SB 333, sponsored by Senator Trent, would create the "Missouri Nuclear Clean Power Act” and allow for utilities to charge for the costs of construction work in progress related to new nuclear-fueled electric generating facilities. The bill is scheduled to be heard in the Senate Commerce, Consumer Protection, Energy and the Environment Committee on March 28. This bill is the same as HB 225, which has now passed out of two committees and is calendared for Perfection (to be heard on the floor) in the House.

    SB 520, which has been referred to the Senate Commerce, Consumer Protection, Energy and the Environment Committee, would allow the Public Service Commission to contract counsel, financial advisors or other consultants as necessary for the purpose of reviewing financing orders for energy transition costs. The bill is sponsored by Senator Cierpiot.

    SB 635, sponsored by Senator Beck, would require the Office of Administration to perform a mechanical insulation energy audit of every public building within the state by August 2033.

    Regulatory

    Through Evergy’s Missouri Energy Efficiency Investment Act (MEEIA) Cycle 2 2023 extension year, Evergy has agreed to host four working group sessions to identify relevant information, potential partners, outside funding streams and other considerations for a feasibility study and vulnerability study regarding an Urban Heat Island (UHI) Mitigation program for Evergy’s next MEEIA application, MEEIA Cycle 4. Evergy has hosted three working group meetings thus far and plans to host at least one additional meeting before June 30, 2023. The working group has created a draft UHI Mitigation Action Plan and is determining available priority funding sources. For more information or to join the working group, please contact Natalie Gray, Manager of Energy Efficiency Programs and Services with Evergy, at natalie.gray@evergy.com.

    Ameren Missouri held stakeholder collaborative meetings in late 2022 on behalf of the Missouri Energy Efficiency Investment Act (MEEIA), which allows utilities to submit energy efficiency program filings. MEEIA does not set forth targets for energy efficiency, and program filings under MEEIA are entirely voluntary by the utilities. Ameren Missouri is preparing to file their MEEIA 4 portfolio, which will be a 6-year plan.

    The MO Public Service Commission, 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 (IIJA) and the Inflation Reduction Act (IRA). The PSC has scheduled an initial in-person workshop meeting for April 21 in Jefferson City, Missouri, and a proposed agenda must be submitted by interested stakeholders by April 7.

    How to Get Involved

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

    Legislative

    The legislative session in Nebraska began on January 9 and within ten days, over 800 bills were introduced in the legislature. January 18 was the final day for state senators to introduce bills. Nebraska’s legislature has yet to pass any bills due to a weekslong filibuster.

    LB 560 declares the intent of the legislature to seek all funds made available to the state through the Inflation Reduction Act (IRA). These funds will be used for energy efficiency in homes and businesses, electric vehicle infrastructure, assisting in transition to cleaner energy, supporting agricultural practices that are drought resistant, decreasing the use of water and fertilizer, creating jobs and stimulating the economy. MEEA submitted supportive comments on the bill. The bill was heard on March 6. 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, sponsored by Sen. McKinney, proposes to update the International Building Code, International Residential Code, and International Energy Conservation Code from the 2018 to the 2021 editions. The bill was heard in the Urban Affairs Committee on January 24.

    LB 255, cosponsored by Senators Brewer and Ardman, 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. The bill was heard in the Natural Resources Committee on February 22.

    LB 237 would appropriate grants of $1 million to NDEE to assist with administering and implementing weatherization programs. A notice of hearing was set on March 13.

    Regulatory

    Nebraska Public Power District (NPPD), Nebraska’s largest electric utility, is currently working on updating its Integrated Resource Plan (IRP), which is required every five years. NPPD’s current plan covers 2018-2022. The 2023 draft plan includes several energy efficiency measures, seeking to maximize the value of customer energy purchases in a cost-effective manner to improve customer bottom lines, reduce the cost to serve load during peak usage times, and delay or even eliminate the need to build additional resources.

    NPPD has scheduled four in-person stakeholder meetings and one virtual meeting. Community members and other stakeholders can submit feedback through their online portal by April 12. After the stakeholder meetings are completed, NPPD will review feedback and finalize the updated IRP and submit to the board and the Western Area Power Administration for approval in September 2023. To stay up to date, please 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 began January 3. Since then, legislators have introduced several bills state’s laws pertaining to energy issues.

    HB 1315 would require applicants of proposed energy facilities to inform the commission that, before facility operations begin, owners/operators have filed interconnection agreements with affected regional transmission organizations or transmission owners. HB 1315 was introduced on January 11 by Representatives Novak, Dockter, S. Olson, and Sen. Patten and passed its second reading in the House (90-4) on February 21. HB 1315 is currently scheduled for a first reading in the Senate Committee on Energy and Natural Resources on March 23.

    HB 1345 was introduced by Rep. Satrom on January 11. HB 1345 would allow the state to give contracting priority to companies that support the state’s agriculture and energy industries. HB 1345 passed in the House (85-8) on February 20 and was received by the Senate on February 21. HB 1345 most recently received a first reading by the Senate Committee on Agriculture and Veterans Affairs on March 16.

    SB 2161, introduced on January 6 by Sen. Sickler, eliminates a 2027 sunset for funding the state’s Energy and Environmental Research Center. This bill complements the decision of a North Dakota Senate panel to increase the funding cap for the Energy and Environmental Research Center from $5 million to $10 million. SB 2161 was voted out of the Senate (44-0) on February 3 and currently sits in the House Appropriations Committee.

    Regulatory

    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 percent clean energy by 2040. Not long after Governor Walz signed the law, the North Dakota Industrial Commission agreed unanimously to consider a lawsuit to challenge Minnesota’s clean energy legislation. While no lawsuit has yet to be 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

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

    Legislative

    The Ohio legislature opened its 2023 session on January 2. Two bills related to energy efficiency were introduced in Ohio this session.

    HB41, from Rep. Skindell (D-13) would require that utility bills itemize generation, distribution, transmission and supply, as well as any riders, in utility bills. It has been introduced and referred to the Public Utilities Committee.

    HB79 is the reintroduction of HB 389 that did not pass last session, with some changes. 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. On the positive side, it has a minimum spend requirement for low-income programs and would limit lost revenue recovery to the duration of the portfolio. On the other hand, it includes an automatic opt-out for all mercantile customers and broad opt-out eligibility for residential customers that would persist for subsequent portfolios until the customer opts back in.

    Regulatory

    Governor DeWine has selected John Williams to take up the PUCO seat vacated by Commissioner Trombold. Williams has a long career on PUCO staff and also served as Director of the Transportation Department prior to this nomination.

    Ohio’s Office of Consumers’ Counsel (OCC) head Bruce Weston intends to retire in the coming months, although he has yet to pick a departure date. The agency’s nine-member board, appointed by the attorney general, will hire his successor. Read the full announcement from the OCC here.

    PUCO has rendered its decision in the Columbia Gas of Ohio rate case. The stipulated agreement was modified and approved, cutting all energy efficiency except for $14M for low-income energy efficiency programs. A stipulated provision in which the utility agreed to not pursue or support customer DSM programs through legislation was eliminated as beyond the authority of the commission to approve or enforce.

    AEP Ohio has 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 $43M annually for voluntary efficiency, including $800k for R&D and $1.45M for education and training. The company is proposing using a customized cost-effectiveness test that includes some quantified non-energy impacts (NEIs). A technical conference was held on Feb. 7, and the case is ongoing.

    How to Get Involved

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

    South Dakota

    Legislative

    The South Dakota legislature opened its 2023 session on January 10. On the legislature’s opening day, the South Dakota Senate Committee on Commerce and Energy introduced SB 11 at the request of the South Dakota Public Utilities Commission. SB 11 would increase the cap on deposits required from public utilities that file for approval of general rate cases. The current deposit limit is $250,000. Additionally, SB 11 outlines that any interest earned on monies in the fund are to be credited to the fund. SB 11 passed both the South Dakota House and Senate and was signed by Governor Noem on February 24.

    At the beginning of February, Representative Krohmer introduced HB 1239, which would prohibit the banning of gas services and appliances used by consumers. HB 1239 has passed in both the House and Senate and was signed by Governor Noem on March 14.

    How to Get Involved

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

    wisconsin header

    Legislative

    The Wisconsin legislature opened its 2023 legislative session on January 3. Few bills related to energy have been introduced yet.

    SB49 would prevent municipalities from restricting certain fuel types, effectively preventing jurisdictions from banning the use or installation of natural gas infrastructure. The bill was referred to the Senate Committee on Utilities and Technology.

    Regulatory

    Governor Evers has appointed Summer Strand to the Wisconsin Public Service Commission. Strand was appointed to the seat recently vacated by Commissioner Ellen Nowak, whose term ended March 1. This appointment is effective March 2, 2023, for a six-year term expiring in 2029.

    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 early 2023.

    How to Get Involved

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

    federal section header

    Executive

    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. 

    The US Department of Agriculture (USDA) is currently seeking applications for Fiscal Year 2023 funding. Agricultural producers and rural small businesses are eligible applicants for loan guarantees and grants to develop renewable energy systems and to make energy efficiency improvements. Two significant changes to this additional funding include an increase in the maximum Federal grant share from 25% to 40% of total project costs and an increase of maximum grant amounts from $250,000 to $500,000 for energy efficiency projects and an increase from $500,000 to $1 million for renewable energy systems. The application deadline is March 31. More information is available from the USDA’s Rural Development Office here.

    On December 28, the Department of Energy (DOE) proposed new energy efficiency standards for distribution transformers, which lower the voltage of electrical power before delivery to the customer (and can often be seen on neighborhood utility poles). The standards were last changed in 2013, when slight improvements were made. The new standards, which would come into effect in 2027, aim to reduce greenhouse gas emissions, potentially saving consumers approximately $15 billion over 30 years. On February 16, DOE hosted a public meeting to solicit feedback on the proposed rulemaking from stakeholders. Read the full notice from DOE here.

    On December 19, DOE announced proposed stronger efficiency standards for some of the most common bulbs. The new standards raise the minimum lightbulb efficiency level from 45 lumens/watt to 67 through 123 lumens/watt, depending on the type of bulb. A pre-publication Federal Register notice of proposed rulemaking by DOE and comments, data and information will be accepted until 75 days after publication in the Federal Register.

    DOE closed its comment period on proposed new energy efficiency standards for residential gas furnaces on January 30, 2023. If DOE’s tentative agenda is adhered to, this would go into effect in 2029 and require gas furnaces to be 95% fuel efficient. According to DOE, older, less efficient and non-condensing style furnaces can have efficiency rates as low as 56%. The phasing out of these older furnaces is expected to save consumers $30.3 billion over 30 years. DOE held a webinar in December on this matter, and updates from DOE’s Office of Energy Efficiency and Renewable Energy are available here.

    On November 22, the Biden-Harris Administration released a Notice of Intent announcing $550 million to support community-based clean energy in state, tribal and local governments through the Energy Efficiency and Conservation Block Grant Program. This funding is made available through IIJA. Pre-application information checklists for formula grant funding are open now and due on April 28.

    On August 26, DOE released its guidance for implementation of IIJA’s State Energy Program funds. These funds will provide a $425 million injection to state energy offices and can be used for a variety of projects to increase energy efficiency, reduce energy costs, lower carbon emissions and increase energy resiliency. See the allocation by state here. An overview of all IIJA provisions is available at Building a Better America | The White House.

    In fall 2022, The White House released a guidebook for funding under the Inflation Recovery Act, Inflation Reduction Act Guidebook | Clean Energy | The White House. Information on all the Biden Administration’s energy priorities are available at Clean Energy for All | The White House.

    How to Get Involved 

    For more information about federal issues, contact Jason Liechty. 

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