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The MEEA Policy Insider summarizes the latest state and federal policy activity and provides new resources to aid members in their outreach, education and advocacy initiatives.
In this issue:
- State Updates: IL / IN / IA / KS / MI / MN / MO / NE / ND / OH / SD / WI
- Federal Update
- New Resources & Publications
Executive
The Illinois stretch energy codes have entered the final stage of the formal rulemaking process, having been moved to “Second Notice” on August 2. Accordingly, the rules were considered by the Joint Committee on Administrative Rules (JCAR) at its August 14 meeting in Springfield. The rules were not voted on at said meeting; however, the JCAR (with the concurrence of the Capital Development Board) extended the “Second Notice” period for the stretch code rules. The rules will be considered again at the September 10 JCAR meeting. The proposed code language and information on submitting public comment can be found here.
On July 22, the Illinois Environmental Protection Agency (IEPA) was awarded a $430 million Climate Pollution Reduction Grant Implementation Grant (CPRG). The statewide Illinois Priority Climate Action Plan (PCAP) highlighted energy efficiency in multiple priority measures, including:
- Improving building efficiency, reaching a 33% reduction in energy use in buildings by 2050.
- Accelerating the use of efficient, all-electric heating appliances in buildings, significantly increasing their share of new sales to between 50% and 90% by 2050.
- Establishing a clean building gap closing and incentive stacking catalyst fund, to braid together available incentives to achieve full decarbonization of residential buildings for low-income and moderate-income households and households in disadvantaged communities.
- Improving industrial efficiency 5% by 2030 and 25% by 2050, and support implementation of process improvements.
Legislative
With the Illinois spring legislative session now over, the fall veto session has been scheduled to begin November 12.
Regulatory
The Illinois Commerce Commission (ICC) released its final Report on Phase 1 of the Future of Gas proceedings on July 29. The final report is not dramatically different than the previously released draft, but the ICC did incorporate several stakeholder comments including some of MEEA’s. All stakeholder comments on the draft report are available in the Appendices to the final report. The first workshop of the second phase of the Future of Gas proceedings was held on August 28. The facilitator shared an outline of a re-envisioned Phase 2 of the proceedings including an extended timeline that would see the final Report released by July 1, 2026. The first workshop of Phase 2 covered highlights Future of Gas proceedings in other states. Meeting materials detailing the plans for Phase 2 are available here.
In August, at the Illinois Energy Efficiency Stakeholder Advisory Group (SAG) large group meeting, GDS Associates presented the results of the Ameren, ComEd and Nicor Gas Baseline and Potential Study. On September 10, there will be an in-person SAG meeting where Ameren will present its draft 2026-29 Energy Efficiency Plan.
How to Get Involved
For more information about Illinois or to get more involved, contact Kit White.
Regulatory
The Indiana Utility Regulatory Commission (IURC) has opened an investigation in Cause Number 46043 into whether a Distributed Energy Resource Aggregator is a public utility. The case is ongoing.
2024 Integrated Resource Plans (IRPs) are expected from:
- Publicly-owned utilities –
- Indiana-Michigan Power (AEP) – Indiana-Michigan Power has begun its IRP process in Indiana, with its first virtual workshop for Indiana on June 27. The IRP due date was extended by the IURC to March 3, 2025.
Updates from the Commission on IRPs in Indiana will be posted to the IURC’s IRP page.
How to Get Involved
For more information about Indiana or to get more involved, contact Greg Ehrendreich.
Regulatory
As of July 1, the Iowa Utilities Board is now the Iowa Utilities Commission (IUC). The regulatory organization's name change is a result of legislation in Senate File 2385 that removed the IUB from under the umbrella of the Department of Commerce.
How to Get Involved
For more information about Iowa or to get more involved, contact Clara Stein.
Regulatory
On July 15, Kansas Evergy filed an application for approval of its 2024 Energy Efficiency Rider for Program Costs with the Kansas Corporation Commission. This process is a continuation of Kansas Evergy’s KEEIA 2024-2028 DSM Portfolio – which became effective following Commission order and approval under Docket No. 22-EKME-254-TAR. Kansas Evergy seeks to apply the 2024 Energy Efficiency rider to ratepayers beginning on November 1, 2024, Additional developments can be seen in Docket #25-EKCE-080-TAR.
How to Get Involved
For more information about Kansas or to get more involved, contact Clara Stein.
Executive
On July 22, Michigan was awarded a $129 million Climate Pollution Reduction Grant Implementation Grant by the EPA. The state of Michigan’s Priority Climate Action Plan included multiple energy efficiency focused priority measures, including:
- Reducing household fossil energy use through home repairs, electrical upgrades for electric-readiness, weatherization and other energy waste reduction investments with an emphasis on ensuring equitable access.
- Decarbonizing government and nonprofit facilities and infrastructure, with a focus on LIDAC areas, by reducing energy waste and investing in decarbonization solutions.
- Encouraging industrial innovation to advance energy efficiency.
MI EGLE will submit Comprehensive Climate Action Plans in August 2025.
Legislative
Michigan legislators finalized the State budget, which the Governor signed on July 24. The budget includes several line items for key energy priorities:
- The Michigan Public Service Commission received a substantial funding increase to hire additional staff to implement the 2023 legislation. The Commission also received $1 million to conduct an energy efficiency and demand response potential study.
- Legislators also allocated funding for a housing affordability program, which will include funding for deep energy efficiency retrofits in the existing housing stock.
- Michigan Saves received $5 million to help leverage funding for clean energy projects.
Legislators are now on summer break; it is expected that the legislature will reconvene for session days later in the year and could take up some of the bills below.
- SB 237, which would extend tax credits to data centers to encourage companies to site them in Michigan, passed out of the Senate on May 9.
- HF 4906, which is virtually identical but focuses on the sales tax portion as opposed to the use tax portion, passed the Senate as amended on May 16. Both go to the House now to be concurred.
- The bills have gathered opposition from energy and environmental advocates who are concerned that an influx of data centers could jeopardize the state’s target of carbon-free electricity generation by 2040, which was enacted into law last year by the legislature. In order to qualify for the credits, a data center facility must attain one or more green building standards, such as BREEAM®, ENERGY STAR®, ISO 50001, LEED®, Green Globes® or UL 3223. The bill additionally states that data centers are encouraged (but not mandated) to take positive steps towards mitigating environmental impacts, including adoption of energy efficiency measures.
- Sen. Singh and Sen. Outman have introduced a package of bills – SB 879, SB 880 and SB 881 – that would collectively amend the state’s processes around the state’s Low-Income Energy Assistance Fund. Among other changes, the legislation would allow the Commission to increase the funding factor for the assistance from $1 per ratepayer to $2, remove the $50 million cap, remove the provision that utilities could opt-out of collecting the funding factor and institute a requirement that the Department of Health and Human Services submit an annual report on the disbursement of funds. SB 880 and 881 passed the Senate on June 26 and now head to the House.
- Lastly, Governor Whitmer signed HB 5028 into law. The bill prohibits homeowners’ associations from preventing Michigan homeowners from installing, replacing or maintaining energy-saving improvements, like heat pumps, insulation, energy efficient appliances and more.
Regulatory
The Michigan Public Service Commission (MPSC) has several open dockets to implement the 2023 energy legislation.
- Case U-21638 addresses public engagement processes at the MPSC.
- The Commission is asking for comments on five questions on how the MPSC can improve its processes to foster more effective community participation.
- The Commission held an in-person public hearing in Flint on August 28. Comments are due to the Commission by September 27, with reply comments due October 24.
- Case U-21567 addresses the energy waste reduction (EWR) legislation. The MPSC ordered Commission Staff to work with utilities, state government and advocacy organizations to develop strategies around income verification and program coordination to minimize barriers to participation in low-income EWR programs.
- Parties filed reply comments by August 9.
- Case U-21570 addresses the legislative changes to the MPSC.
- 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.
- Nothing has been filed in the docket yet.
- Case U-21572 addresses the requirement that the MPSC study and report on electric issues unique to the Upper Peninsula (UP).
- The MPSC is hosting a meeting in the UP on July 30 to present on its ongoing UP energy study. The MPSC took public input on its plan through August 9.
- MPSC Staff must file the final study by November 22.
How to Get Involved
For more information about Michigan or to get more involved, contact Maddie Wazowicz.
Executive
On July 22, the Minnesota Pollution Control Agency was awarded a $200 million Climate Pollution Reduction Grant Program Implementation Grant by the EPA, for their application titled “Climate-Smart Food Systems”. Priority measures highlighted in the application focus on sustainable food systems and are included in Minnesota’s statewide Priority Climate Action Plan.
The Minnesota Pollution Control Agency will submit a Comprehensive Climate Action in August 2025, integrating implementation components made possible by new EPA funding.
Regulatory
Xcel Energy has modified its time-of-use (TOU) rate plan by making the TOU rate voluntary instead of the default rate structure for all residential customers. Xcel has also modified other details of its proposal, like reducing the differential in prices between peak and off-peak and implementing a lower electric heating rate in the winter. More information can be found in the filing and in docket M-23-524.
The Minnesota Public Utilities Commission (PUC) approved CenterPoint Energy’s Natural Gas Innovation plan on July 25 in docket 23-215. The plan outlines $106 million in spending on various pilot projects to help CenterPoint decarbonize. Amongst the pilots are programs to incentivize industrial electrification of low-to-medium heat processes, hybrid systems with gas backup for small-to-medium commercial buildings, deep energy retrofits and electric air source heat pumps for residential customers, audits to expand energy efficiency offerings outside of the CIP framework and gas heat pumps.
The PUC continues to work on its natural gas integrated resource plan process in docket 23-117. Utilities submitted their straw proposals on May 31. Plan links can be found here:
Comments were due on these proposals by June 28, with reply comments due July 19. It is anticipated that the PUC will meet on September 12 to make further decisions on these plans and the IRP process.
How to Get Involved
For more information about Minnesota or to get more involved, contact Maddie Wazowicz.
Municipal
In July 2023, the Kansas City Council adopted the 2021 International Energy Conservation Code. However, in April 2024 local and regional home builders and allies began pushing the Council to relax the energy efficiency standard and offer a less strenuous alternate path for compliance, citing higher costs and slowed construction. Advocates and experts have disagreed, arguing the new code will lead to higher quality housing and lower energy costs. An ordinance allowing for the alternative compliance path was proposed at City Council, however recent additional hearings have been repeatedly delayed and on August 15, the Council moved to Hold Off Docket. MEEA and our members are engaged in these conversations.
Legislative
The Missouri legislature will hold its veto session on September 11 to respond to veto action taken by the Governor.
Regulatory
Proceedings are nearing the end of schedule for Ameren Missouri’s MEEIA Cycle 4 plan, which can be followed in docket EO-2023-0136. Ameren filed its amended application on January 25 outlining their proposed programs - a robust plan of 25 programs, including $70 million for income-eligible programs, a residential efficient products program and a Pay As You Save® program. Key parties, including Commission Staff and the Office of Public Counsel, weighed in on the proposal, indicating they do not support an extension of MEEIA programs. Evidentiary hearings were held July 22-25, with the exhibits published in the docket on August 15. On August 26, the Commission again amended the Procedural Schedule, at the request of parties. Initial Briefs shall be filed by September 11 and Reply Briefs shall be filed by October 2. MEEA will continue to track the outcome of this docket, as results are expected to affect the other investor-owned utility MEEIA filings which are forthcoming.
The proceedings for Evergy Missouri’s MEEIA Cycle 4 plan are also underway in docket EO-2023-0369. Intervenors' initial testimony was filed in May and rebuttal testimony was filed in July. At the request of intervenors, the Commission extended the deadline for a list of issues to August 23, and the deadline for party position statements to August 27.
Missouri's triennial Integrated Resource Planning (IRP) process is still underway. You can read Ameren’s 20-year IRP here and follow docket EO-2024-0020. You can read Evergy Missouri’s plan here and follow docket EO-2024-0154.
How to Get Involved
For more information about Missouri or to get more involved, contact Natalie Newman.
Legislative
Nebraska’s 2024 legislative session adjourned sine die on April 19. The unicameral legislature reconvened on July 25 for a special session on Governor Pillen’s proposed property tax plan, and adjourned August 20 after passing a slimmed down property tax relief package (LB 24). Governor Pillen has confirmed that he would not call a second special session this fall.
Executive
On July 22, the Nebraska Department of Energy and Environment (NDEE) was awarded a $307 million Climate Pollution Reduction Grant program Implementation Grant. The statewide Priority Climate Action Plan included multiple energy efficiency focused priority measures, including:
- Expanding NE’s public utilities incentive programs for energy efficiency, electrification and weatherization upgrades for nonresidential buildings and facilities.
- Delivering financial assistance to low-income Nebraskans for critical home repairs that will lead to eligibility for energy-efficiency upgrades through the Weatherization Assistance Program.
The NDEE launched the ONE RED (Opportunity for Nebraska: Reducing Emissions and Decarbonization) program, to steward NDEE’s development of plans and programs to leverage implementation funding. Through the remainder of 2024, NDEE will develop a more comprehensive work plan for the implementation grant. To contact the NDEE about the ONE RED program or to sign up for listserv updates, click here.
The NDEE will submit a Comprehensive Climate Action plan in August 2025 and utilize this historic level of funding to advance clean energy solutions and greenhouse gas reduction across the state.
In June, the City of Omaha published the Omaha Climate Action and Resiliency Plan (draft plan). The plan sets multiple priority actions for energy efficiency and energy code advancement, driven by an overarching goal to improve total citywide building energy efficiency (all sectors) 10% for electricity and natural gas by 2035. The Omaha Climate Action Plan is open for public comment through August 30. Access public comment portals within each corresponding section of the Omaha Climate Action and Resiliency Plan here.
Regulatory
Omaha Public Power District (OPPD), the public power district serving Omaha and the wider 13-county region, is completing an annual review of their Strategic Directive 7, which guides OPPD’s sustainability initiatives. Within the scope of sustainability, OPPD allots funding for energy efficiency and demand response. On June 18, the Systems Committee presented draft recommendations for SD-7 to the OPPD Board. The draft language was returned to the Systems Committee for further development and will likely be presented during OPPD’s August Board meeting. There will be a 30-day public comment period for stakeholder input after a formal board presentation. On May 31, MEEA submitted comments highlighting the critical nature of energy efficiency investments to meet Net Zero Emission goals by 2050.
How to Get Involved
For more information about Nebraska or to get more involved, contact Clara Stein.
Executive
On August 1, the ND Public Service Commission (PSC) held a technical conference to discuss the large load power impacts of data centers in the state. In the past few years North Dakota has become a beacon for data center development. While there are only a few data centers currently operating in the state, there are at least six more in development. With recent transmission and cost distribution conflicts between utilities arising in response to the development of Atlas Power Data Center, near Williston, the PSC convened this conference to gather information from industry experts and utility representatives. Although there were no clear conclusions from the day-long meeting, the conference marked an important first step in ensuring data center development is as sustainable and equitable as possible. Find audio recordings of the conference and a detailed agenda here.
How to Get Involved
For more information about North Dakota or to get more involved, contact Clara Stein.
Legislative
The most notable energy-related bill this session, HB79, passed the House by a vote of 50-46 on June 26 and will go to the Senate during lame duck later this fall. The bill would allow utilities to establish limited voluntary energy efficiency programs. The bill does not create mandatory energy efficiency in Ohio but does allow for utility-run residential and small commercial energy efficiency programs. Notably, the legislation would allow customers to opt out of efficiency programs and provides that utilities must notify customers how to opt out. The Public Utilities Commission of Ohio will have oversight approval of the cost effectiveness of any EE programs.
Regulatory
First Energy applied for a $72.1 million / 4-year energy efficiency and demand response program as part of its Standard Service Offer (SSO) case in docket 23-0301-EL-SSO. In the Opinion and Order on May 15, the Commission followed Staff recommendations and eliminated everything except for Low-Income and Energy Education programs and directed the development of a smart thermostat demand response program. In response to petition of five separate parties, including the utility, the PUCO granted an order for rehearing on specific matters.
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.
Municipal
On July 22, the EPA awarded the Cleveland-Elyria, OH Metropolitan Service Area (MSA) a $129 million Climate Pollution Reduction Grant program Implementation Grant. The Cleveland-Elyria MSA Priority Climate Action Plan included multiple priority measures related to energy efficiency and energy code advancement, including:
- Expanding the home weatherization program.
- Installing building envelope improvements and electrification for low- and moderate-income residents – stacking incentives to create low and no cost options.
- Advocating for the state to update building codes and developing a benchmarking policy that requires larger buildings to report energy use.
The Cleveland-Elyria MSA will strategize to distribute funding and implement new programs while developing a Comprehensive Climate Action Plan, due August 2025.
How to Get Involved
For more information about Ohio or to get more involved, contact Greg Ehrendreich.
Executive
Governor Kristi Noem’s administration has rejected Home Energy Rebate programs funding from the Department of Energy. While state Home Energy Rebate applications are not yet due, the deadline for state entities to indicate intention to apply was August 16th. South Dakota declined over $70 million, including the rejection of $1.8 million earlier this year to cover administrative costs throughout the application process. South Dakota is the only state to decline participation in the Home Energy Rebates program.
Earlier this year, the Noem Administration rejected Climate Pollution Reduction Grant funding to establish a statewide Priority Climate Action Plan and compete for implementation grants. No state or local entity within South Dakota has received an Energy Efficiency Conservation Block Grants (EECBG) award. The deadline for local governments to apply for EECBG funding is October 31, 2024.
How to Get Involved
For more information about North Dakota or to get more involved, contact Clara Stein.
Legislative
AJR 6/SJR 5 passed the legislature in April. The Joint Resolution proposes a constitutional amendment that would move the authority to accept and allocate federal funding from the governor to the legislature. The amendment was on the ballot at the August 13 primary where it was rejected by Wisconsin voters resulting in no change to how federal funding is accepted and allocated, including funding that addresses energy projects from the Bipartisan Infrastructure Law and the Inflation Reduction Act.
Executive
The Office of Sustainability and Clean Energy has released its second annual Clean Energy Plan Progress Report. The report details efforts made on the state’s clean energy goals and includes specific sections on increasing energy efficiency programming, modernizing the state’s building stock through efficiency and stronger building codes, emphasizing environmental equity and leading by example with state facilities.
Regulatory
Focus on Energy staff released a memo detailing research APTIM and VEIC conducted to help program administrators target and reach underserved customers. The Commission voted to approve Focus on Energy’s strategy for targeting additional disadvantaged customers and to set additional KPIs around energy savings and partnering with community-based organizations. See the order here. MEEA submitted comments on July 8 which can be found here.
How to Get Involved
For more information about Wisconsin or to get more involved, contact Maddie Wazowicz.
Executive
All the lawsuits challenging the Federal Energy Regulatory Commission (FERC)’s Order No. 1920 requiring long-term transmission planning will be consolidated and heard in the 4th Circuit Court of Appeals in Virginia. Eleven total lawsuits have been filed, including one by the Public Utility Commission of Ohio who filed a joint appeal with West Virginia. The challenges come in the wake of the Supreme Court’s overruling of the Chevron doctrine, which required courts to give deference to federal agencies interpretation of federal statutes containing any ambiguity. FERC may have a more difficult time defending the Order in the wake of this ruling.
Additionally, several groups have recently filed energy efficiency-related complaints at the FERC. The market monitor for Regional Transmission Organization PJM Interconnection has called for the removal of energy efficiency from PJM’s capacity market, claiming energy efficiency is not a dispatchable resource. Meanwhile, ratepayer advocates including the Illinois Citizens Utility Board along with four US Senators, filed a complaint against PJM at the FERC related to energy efficiency. The advocates and Senators argue that a PJM practice dating back to 2015 is preventing energy efficiency resources from fully participating in the capacity market. The complaint urges FERC to hold a technical conference on how to ensure energy efficiency resources are able to fully participate in wholesale energy capacity markets. FERC has not yet responded to the request for a technical conference.
On July 22, the EPA announced the Climate Pollution Reduction Grant (CPRG) program implementation grant awards to 25 states and metropolitan statistical areas (MSA), totaling $4.3 billion of funding across the nation. In MEEA’s 13-state region, the awardees are Illinois, Michigan, Minnesota, Nebraska and the Cleveland-Elyria, OH MSA. These funds will be used to reduce greenhouse gas emissions through a variety of programmatic mechanisms, including energy efficiency financing and energy code advancement, with an emphasis on justice and equity.
The EPA also announced more than $325 million in Environmental and Climate Justice Community Change Grants for 21 projects. Midwest winners include two projects in Cleveland, MetroHealth System & Community Housing Solutions and The Trust for Public Land & See You At The Top, along with a $20 million grant the Midwest Tribal Energy Resources Association and Grid Alternatives to install home weatherization and energy efficiency upgrades across 35 Tribes in Michigan, Minnesota and Wisconsin.
How to Get Involved
Information about a number of federal funding opportunities can be found on the Funding Roundup page of MEEA’s website.
For more information about federal matters or to get more involved, contact Maddie Wazowicz.
Recent Publications:
- White Paper: Building Decarbonization Policies in the Midwest
- Missouri State Fact Sheet
- North Dakota State Fact Sheet
- Buildings Upgrade Prize Explainer
Recent Testimony and Comments:
- MEEA Comments on ICC Future of Gas Phase I Draft Report
- MEEA Comments on Wisconsin Quad Planning Process IV – Underserved Customers
- MEEA Comments on OPPD's Strategic Directive 7 Annual Review
- MEEA Comments on Data Centers and Energy Efficiency Measures
Recent Blogs:
- Putting the Work in Workforce Development
- 2023 BOC Operator of the Year: Malachi Rein
- Distributional Equity Analysis Case Study Underway in Illinois
- EECBG Status Update: Many Eligible Midwest Communities Awarded Formula Grants