MEEA Policy Insider - April 2024

<< Previous Edition

Next Edition >>

 

 

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:

 

Back to top

Illinois banner

Executive

On April 9, the Illinois Community Development Board voted 6-1 to advance the state energy stretch code. The proposed stretch code includes provisions related to heat pumps, demand response, electrical energy storage system readiness, solar-readiness and electric-readiness. The code now moves to the Joint Committee on Administrative Rules (JCAR) for a final round of public comment and voting to officially adopt the codes. The process is now expected to be completed by October 2024. If adopted by JCAR, the state stretch energy code will be available for municipal adoption, and serve as a step further, or “stretch,” from state-wide energy codes.

Governor Pritzker has outlined a nearly $53 billion budget proposal for Fiscal Year 2025. The budget includes increased funding for energy efficiency and electrification in support of implementing the Climate and Equitable Jobs Act (CEJA), including:

  • $266.8 million in federal funding through the Inflation Reduction Act (IRA) for energy efficiency improvements, including $131 million for the High-Efficiency Electric Home Rebate Act (HEHRA) and $132 million for home energy efficiency rebates (HOMES)
  • $3 million from the IRA for Climate Pollution Reduction Grant (CPRG) planning
  • $2 million for the Climate Jobs Institute in higher education
  • $200,000 to the Illinois Environmental Protection Agency for Energy Efficiency Grants

 

Municipal

On January 24, Mayor Johnson of Chicago introduced the Clean and Affordable Buildings Ordinance (CABO). The ordinance would greatly restrict natural gas usage in all newly constructed buildings by banning the combustion of fuels that emit more than 25 kilograms of carbon dioxide per million Btu of energy inside a structure. On April 3, the Chicago City Council Rules Committee held a subject matter hearing on CABO to educate aldermen through public comment and expert testimony. There will be a Zoning and Environmental Protection joint committee hearing in June.

Legislative

Many new bills were introduced in the Illinois legislature this session, preceding the state’s bill introduction deadline of February 9. Among the bills relating to energy efficiency and clean energy are:

  • SB 3637 would change the Cumulative Persisting Annual Savings (CPAS) goals for large electric utilities to reflect an incremental annual savings equal to 2.25% of the utility’s annual electricity sales, based on the average life of installed energy efficiency measures as opposed to minimum average energy efficiency savings. The bill also removes an opt out provision for large industrial customers’ participation in energy efficiency plans. A future amendment to the bill is expected to increase utility’s spending cap on low-income energy efficiency programs. On March 15, SB 3637 was re-referred to the Senate Assignments Committee from the Senate Energy and Public Utilities Committee.
  • HB 2363 would create a clean lighting standard by prohibiting the sale of fluorescent lamps to support the transition to more energy efficient and environmentally friendly light-emitting diode (LED) bulbs. After adding an amendment in the Energy & Environment Committee, HB 2363 was passed by the House on April 18 and referred to the Senate Assignments committee on April 19.
  • HB 4287 would amend the Energy Efficient Building Act, changing the state’s baseline energy code to the “latest published edition" of the International Energy Conservation Code (IECC) from the currently used 2018 IECC. However, on February 7, principal bill sponsor Rep. Spain filed a motion to table the bill, thereby effectively removing the bill from further advancement.
  • SB 1587 would require the Illinois Power Agency to create an energy storage procurement plan and develop energy storage credit targets in support of grid reliability and efficiency. The bill was initially introduced in 2023 and then reassigned to the Senate Energy and Public Utilities Committee for the 2024 legislative session. On March 15, it was re-referred to the Senate Assignments Committee.
  • SB 2763 would restrict state money from being used to install or replace outdoor lighting units unless the lighting replacements meet certain safety, light pollution reduction and energy efficiency standards. The bill currently sits in the Senate Assignments Committee.
  • SB 2885 would require the Illinois Commerce Commission (ICC) to hold at least one public hearing on and allow for public input on utility’s proposed general rate increases. The bill currently sits in the Senate Assignments Committee.

 

Regulatory

The Illinois Commerce Commission has begun its Future of Gas proceedings, as a result of orders passed in gas utility rate cases in the fall. The workshops kicked off with an introductory meeting on April 1. The April 8 workshop had speakers discuss energy efficiency, decarbonization and thermal energy networks and the April 22 workshop focused on the gas utility perspective. An evening workshop was also held on April 29 to hear from community members. Future meetings are set to focus on the electric utility perspective, municipal and cooperative utilities, workforce development, cost considerations and potential legislative and regulatory changes. A report on this first phase of work is anticipated in June, with comments on it due later in July.

The Illinois Energy Efficiency Stakeholder Advisory Group (SAG) recently hosted a series of meetings presenting stakeholder ideas for possible inclusion in utility energy efficiency portfolios. April 30 is the final day for eligible stakeholders who want to participate in EE Plan negotiations to notify SAG facilitators.

How to Get Involved

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

Back to top

indiana banner

Legislative

The 2024 Indiana legislature adjourned sine die on Friday, March 8.

  • SB 259 would allow municipalities to establish clean energy districts. The bill did not pass during session.
  • HB 1278 would establish some reforms at the Indiana Utility Regulatory Commission (IURC) and the Office of Energy Development, primarily related to repealing portions of the Indiana Code related to programs and funds that have become obsolete. The bill also makes a change in where public meetings can be held related to rate cases. The bill passed and was sent to the Governor on March 8.

 

Regulatory

2024 Integrated Resource Plans (IRPs) are expected from:

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. 

Back to top

iowa banner

Legislative

Iowa’s legislative session officially ended on April 20, with energy efficiency largely unimpacted. MEEA primarily tracked four bills in Iowa this session - their movement is summarized below:

  • SF 2244, introduced by Sen. Klimesh, would mandate that rate-regulated electric utilities file an integrated resource plan (IRP) to the IUB within one year of the bill’s enactment. Utilities would be required to include any energy efficiency and demand response plans in the IRP. The Committee on Commerce recommended passage of the bill, but ultimately SF 2244 did not pass through the second funnel deadline.
  • HF 2554, managed by Rep. Thomson, would introduce requirements for resource plans. HF 2554 passed the House with an amendment to require all rate-regulated electric utilities to file a resource plan every five years, which the IUB would evaluate for completeness. A resource plan would be required to include supply resources, conservation and management of demand. HF 2554 did not pass the Senate prior to adjournment.
  • HF 2574, managed by Rep. Bloomingdale, and SF 2385, managed by Sen. Cournoyer, would eliminate the State Building Codes Advisory Council, which is currently made up of volunteer industry experts and stakeholders. Read MEEA’s comments on preserving the Building Codes Advisory Council here. HF 2574 was ultimately withdrawn and replaced in House debates with SF 2385. SF 2385 passed the House and Senate with amendments prior to adjournment. The final version of this bill merges the State Building Code Board with the Plumbing and Mechanical Systems Board to create the Board of Building and Construction Occupations. The Building Code Advisory Council remains intact.

 

How to Get Involved

For more information about Iowa or to get more involved, contact Clara Stein.

Back to top

kansas banner

Legislative

The Kansas Legislature convened its session on January 8. The First Adjournment was April 5, as established in the 2024 session deadlines. The Senate Ways and Means Committee met April 25-26 and veto sessions have now begun.

As the Kansas legislative session comes to a close, there were no notable changes to energy efficiency through legislation.

  • HB 2527, sponsored by the Committee on Energy, Utilities and Telecommunications, would modify cost recovery mechanisms and rate design elements. After weeks of stagnation, HB2527 has picked up momentum, passing the House as amended by the Committee on Energy, Utilities and Telecommunication. Language previously included, which required any utility seeking a determination of rate-making principles and treatment to submit a description of conservation measures and demand-side management efforts, was removed via strike amendment in the House. This bill was approved by the Governor on April 18.

 

Regulatory

The Kansas Corporation Commission (KCC) was awarded a $1.9 million EECBG from the Department of Energy (DOE). The KCC plans to subgrant these funds to local governments to replace traffic signals and/or street lighting with energy efficiency lighting technology. The distribution of these funds will be focused on rural, underserved and disadvantaged communities in Kansas. Applications for subgrants are now being accepted. Awards will be made on a “first come first served” basis, and funds will be available until July 31.

How to Get Involved

For more information about Kansas or to get more involved, contact Clara Stein. 

Back to top

kentucky banner

Legislative

The 2024 legislative session adjourned sine die on April 15. No energy-related bills passed during the session.

Regulatory

LG&E/KU’s 2024-2030 DSM-EE plan was approved in Case 2022-00402. The approved plan will spend $45-50 million/year, about triple the annual spending for existing programs. It will include an expanded suite of cost-effective programs, with an Income-Qualified program designed to reach 5,400 customers a year.

How to Get Involved

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

Back to top

Michigan banner

Legislative

Michigan held a special election for two vacant seats in the state House of Representatives on April 16, which restored a Democratic majority in the chamber and the Democratic trifecta. Once those results are certified, it’s likely the legislature will pick up its pace, first addressing the budget and then other bills. Very few energy-related bills have been introduced this year.

Regulatory

In response to the recent passage of energy legislation, the Michigan Public Service Commission (MPSC) opened several dockets to implement these new laws. Notably:

  • Case U-21567 will address the new energy waste reduction (EWR) legislation, which increases utility EWR targets, requires municipal and cooperative utilities to participate in EWR programs and establishes minimum amounts that utilities must spend on EWR for low-income customers.
    • The MPSC ordered Commission Staff to work with utilities, state government, low-income advocacy organizations and others to develop strategies around income verification and program coordination to minimize barriers to participation in low-income EWR programs.
    • The Commission seeks comments in this docket by July 17 with reply comments due by August 9.
  • Case U-21570 will address the legislative changes to the MPSC. That law allows the MPSC to consider climate, environmental justice and affordability in long-term energy planning.
    • The MPSC has ordered Commission 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.
    • The Commission directed Staff to file a redline version of the Michigan Integrated Resource Planning Parameters and Filing Requirements by September 30, along with a straw proposal for municipal and cooperative electric utilities and alternative electric suppliers to submit a clean energy plan.
    • Staff also was directed to conduct engagement sessions to receive feedback on the redlined documents and the straw proposal.
  • Case U-21572 will address the requirement that the MPSC study and report on electric issues unique to the Upper Peninsula (U.P.).
    • The order directs MPSC Staff to engage with relevant entities to file the study by November 22. The Commission directed Staff to conduct at least one public hearing in the U.P. and also provide an opportunity for the public to comment on the elements to be included in the study.

 

How to Get Involved

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

Back to top

minnesota banner

Legislative

The Minnesota legislature is nearing the end of its session. Legislators are currently working in conference committees to finalize the differences between the House and Senate committee omnibus packages. Details on the omnibus bills are below:

  • SF 4942 is the Senate Energy, Environment, Utilities, and Finance omnibus bill. A bill summary can be found here. Among other provisions, the bill would:
    • Modify language on fuel-switching, reduce the energy savings requirement for consumer-owned gas utilities and make other technical changes to 2021’s Energy Conservation and Optimization (ECO) Act (SF 4562).
    • Create a program to fund rebates for geothermal heat exchange system (SF 4686).
    • Modify and expand the state’s commercial property assessed clean energy (C-PACE) program (SF 3535).
  • HF 4177 is the House Climate and Energy omnibus bill. A bill summary can be found here. The bill includes the three mentioned components of the Senate bill, but also contains additional provisions that would:
    • Establish a residential energy rating rebate program to defray costs applicants paid for certification by DOE’s Zero Energy Ready Home Program (HF 4242).
    • Require utilities to submit plans regarding the implementation of grid enhancing technologies to increase electricity transmission capacity (HF 3704).
    • Reform permitting processes designed to speed up transmission approval and deployment of grid enhancing technologies (HF 4700).

As of April 25, HF 4177 has passed out of the House Climate and Energy Committee and is in the House Ways and Means Committee, along with several other omnibus bills. SF 4942 has passed out of multiple committees and received its second reading on April 24.

Regulatory

On February 22, the Minnesota Public Utilities Commission (PUC) established a framework for a natural gas integrated resource plan process in docket 23-117. The Commission voted that plans must include natural gas and alternative resources like renewable natural gas, electrification and increased energy efficiency. Importantly, cost-effective energy efficiency will be prioritized as a resource in the IRPs. The PUC set the planning horizon for ten years and also ruled on additional filing requirements. It’s expected that the PUC will issue another request for comments to finalize other details in preparation for a final ruling in August.

Xcel released its 2024-2040 Upper Midwest integrated resource plan in docket 24-67. The plan outlines how Xcel will meet increased demand while also complying with the state’s new carbon-free standard and includes substantial energy efficiency and demand response. Xcel has also proposed time-of-use rates as the default rate structure for its customers.

How to Get Involved

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

Back to top

missouri banner

Legislative

The Legislative sessions for the Missouri House of Representatives and Senate began on January 3 and are still scheduled to conclude on May 17. While the primary focus remains on passing the 2025 budget and other major appropriations bills, a few notable bills remain in contention.

  • HB 1746 contains language from several bills heard by the Committee on Utilities and would modify laws relevant to utilities – most notably requiring the Missouri Public Service Commission (PSC) to allow voluntary renewable natural gas programs for gas utilities, modifying renewable energy standards, allowing the PSC to directly contract consultants and allowing utility companies to recover investments made in workforce development. The bill passed the House on March 27. Now in the Senate, the bill passed the Committee on Commerce, Consumer Protection, Energy and the Environment on April 18, and then moved to the Fiscal Oversight Committee, where it passed in Executive Session on April 25.
  • HB 2541 would allow electric investor-owned utilities to receive a determination from the PSC on ratemaking principles before acquiring a stake in transmission facilities. The bill passed out of committee, with slight modifications, on March 4 and now awaits consideration by the full House.
  • SB 1280 would significantly modify the duties of the Public Service Commission, limiting their purview and oversight capabilities. The bill was heard in the Senate Commerce, Consumer Protection, Energy and the Environment Committee on March 26 and passed that same committee on April 3.
  • HB 2756 would modify the “Property Assessment Clean Energy Act” making it inapplicable to residential property and changing the maximum duration of financing on commercial property from 20 to 30 years. The bill passed the House on April 18 and was delivered to the Senate for consideration, receiving its first reading on April 22. The bill was then referred to the Senate Committee on Insurance and Banking, where it passed in Executive Session on April 29.

 

Regulatory

The Missouri Department of Natural Resources’ (DNR) Division of Energy Staff held a series of in-person and virtual meetings in April to offer information on the Inflation Reduction Act (IRA) Home Energy Rebates Programs and provide opportunities for public comments. The state will submit applications to receive $75,807,060 for Home Efficiency Rebates and $75,366,640 for Home Electrification and Appliance Rebates under the authorized formula-based funding, offering those rebates through subsequent programs. For more information, including the slides presented at and recordings of the meetings, please visit Missouri DNR’s website. To offer comments about the Home Energy Rebates Programs, please use the feedback form provided on the DNR website.

Proceedings have begun for Ameren Missouri’s MEEIA Cycle 4 plan, which can be followed in Docket EO-2023-0136. Ameren filed their 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. As previously ordered, an amended procedural schedule for the proceedings was proposed by Ameren and intervenors on February 15 in a Joint Response, setting the deadline for direct testimony on March 1 and evidentiary hearings now in July. Key parties, including Commission Staff and the Office of Public Counsel, have already weighed in on the proposal, indicating they do not support an extension of MEEIA programs.

Missouri’s triennial Integrated Resource Planning (IRP) process is underway, with Ameren Missouri releasing its 20-year IRP in late September. The proceedings can be monitored at docket EO-2024-0020. Ameren filed Supplemental IRP documentation on December 20. Commission Staff and other interveners filed their comments on the plan by February 28. Notably, Staff outlined several concerns with the plan in their report but indicated that Ameren’s concurrent MEEIA case, outlined above, is the appropriate venue for these discussions.

How to Get Involved

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

Back to top

nebraska banner

Legislative

Nebraska’s 2024 legislative session adjourned sine die on April 19.

  • LB 164 was introduced by Senator John Cavanaugh last year and idled in the Urban Affairs Committee. The bill has been renumbered to LB 1219. LB 1219 aims to adopt the 2021 International Energy Conservation Code (IECC) to ensure that minimum energy efficiency standard is maintained throughout the state. The bill was heard on February 13. MEEA submitted comments in support of the adoption of the full 2021 IECC, which you can read here. LB 164 did not progress past first hearing in the 2024 legislative session.
  • LB 541, another carryover bill introduced by Senator Lowe, focuses on the nomination and election process for public power districts and public power and irrigation directors. If passed, this bill would mandate that these positions be included on the partisan ballot. The Government, Military and Veterans Affairs adopted the bill, but LB 541 did not pass in the 2024 legislative session.
  • LB 867 emerged late in the session as a “Christmas Tree Bill,” merging multiple issues into one collection for debate and voting. LB 867 would amend the Nebraska Power Review Board (NPRB) and restrict provisions of services related to natural gas and propane. This bill does not alter any of the NPRB’s primary duties but does institute new restrictions on board membership and term length. LB 867 was approved by the Governor on April 15.

 

Executive

The Nebraska Department of Environment and Energy (NDEE) received a $3 million planning grant through the Environmental Protection Agency’s (EPA) Climate Pollution Reduction Grant program and submitted the state’s Priority Climate Action Plan to the EPA on March 1. On March 29, the NDEE submitted an implementation grant application to the EPA for competitive funding. The next phase of this planning process will require the NDEE to develop a Comprehensive Climate Action Plan due to the EPA by August of 2025.

On March 19, NDEE opened the application period for their EECBG competitive subaward grant process, distributing $1.779 million in federal funds. Applications are open to counties, cities and tribes that did not already receive direct federal EECBG formula funding. Projects should focus on reducing the community’s energy burden, promoting job growth and clean energy development. The application period closed on April 20. Read the full press release here.

How to Get Involved

For more information about Nebraska or to get more involved, contact Clara Stein. 

Back to top

Ohio banner

Legislative

The 2024 session convened on January 2 as a carryover session. See the calendar here. Session runs the full calendar year and is currently scheduled through June.

  • HB 79 would allow utilities to establish limited voluntary energy efficiency programs. The bill has passed committee but has not had a vote by the House. A vote was expected in late April, but it now appears the bill will come to the House floor on May 8.

 

Regulatory

First Energy has applied for a $72.1 million / 4-year energy efficiency and demand response program as part of its Standard Service Offer (SSO) case in docket 23-0301-EL-SSO. The case is ongoing.

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. 

Back to top

wisconsin banner

Legislative

Wisconsin legislators likely held their last day of floor session on March 12. The legislature could return later this year, but legislative leaders indicated this was unlikely. The energy-related bills that were introduced this session did not pass and are not expected to do so even if the legislature returns.

  • AJR 6/SJR 5 has passed the legislature. 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 will now be put to a vote in August. If the amendment passes, this will likely result in the state accepting significantly less federal funding, including funding that addresses energy projects from the Bipartisan Infrastructure Law and the Inflation Reduction Act.

 

Regulatory

Wisconsin PSC Staff have issued a memorandum on program implementation of the federal home energy rebate programs, HOMES and HEAR. Program administrators were looking for feedback on program eligibility and processes. Comments were due on April 16 in dockets 9716-FG-2023 for HOMES and 9717-FG-2023 for HEAR. The dockets were heard by the Commission on April 25.

Governor Evers has appointed Marcus Hawkins to the PSC to fill the seat vacated by Commissioner Huebner after his appointment was rejected by the legislature in January. Hawkins’ appointment is effective April 8, with the term ending March 1, 2027. Hawkins previously worked at the PSC as an engineer and most recently was the executive director of the Organization of MISO States.

How to Get Involved

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

Back to top

Federal updates

Legislative

A legislative package, aimed at dismantling home appliance efficiency standards, reached the House floor on April 15. The package includes: HR 6192, the Hands Off Our Home Appliances Act; HR 7673, the Liberty in Laundry Act; HR 7645, the Clothes Dryers Reliability Act; HR 7637, the Refrigerator Freedom Act; HR 7626, the Affordable Air Conditioning Act; and HR 7700, the Stop Unaffordable Dishwasher Standards Act.

The Hands Off Our Home Appliances Act would empower a future DOE to revoke existing efficiency standards for home appliances and prohibit standards that increase the upfront cost of an appliance regardless of utility bill cost savings. The other five bills under consideration target recently completed and pending energy efficiency standards for washers, dryers, refrigerators, air conditioners and dishwashers, while making future efficiency standard improvements far more difficult to enact. The DOE has had the authority to set appliance efficiency standards since 1978 and is already required to ensure standards are cost-effective and technologically feasible. All six bills were previously referred to the House Energy and Commerce Committee.

President Biden has announced his proposed budget for FY2025. Notably, the budget includes $3.1 billion for the Office of Energy Efficiency and Renewable Energy (8% increase over FY23) and $574 million to the Department of Energy’s State and Community Energy Programs Office (a 16% increase). In addition, the budget proposes allocations of $385 million to the Weatherization Assistance Program (a 5% increase) and $70 million to the State Energy Program (a 6% increase).

Executive

President Biden named three nominees for commissioner seats at the Federal Energy Regulatory Commission (FERC). There are currently two vacancies at FERC, though Commissioner Alison Clements has announced her decision to leave at the end of her term this year. The three nominees are Judy Chang, David Rosner and Lindsay See.

The Department of Energy finalized energy efficiency requirements for residential refrigerators and freezers and announced proposed efficiency standards for commercial fans and blowers. Both sets of standards are set to go into effect in 2029. With these announcements, DOE has wrapped up a busy 2023 where it issued 30 proposed or finalized efficiency standards.

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. 

Back to top

resources

Recent Publications:

Recent Testimony and Comments:​

Recent Blogs:

 

Back to top