MEEA Policy Insider - June 2024

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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:

 

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Illinois banner

Executive

On June 7, the Illinois Stretch Energy Code proposed rules were published in the Illinois Register. The proposed rules can be found here. The proposed stretch code includes provisions related to heat pumps, demand response, electrical energy storage system readiness, solar-readiness and electric-readiness. There is now a 45-day comment period on the proposed rules. After the initial comment period the code 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.

On June 5, Governor Pritzker signed the $53.1 billion budget. The final 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 Home Electrification and Appliance Rebates (HEAR) and $132 million for home energy efficiency rebates (HOMES)
  • $431 million from the IRA for Climate Pollution Reduction Grants (CPRG)
  • $5 million to the Illinois Environmental Protection Agency (IEPA) for Energy Efficiency and Renewable Energy Grants and an additional $200,000 to the IEPA to administer these grants
  • $2.9 million from the Infrastructure Investment and Jobs Act (IIJA) for the Energy Efficiency and Conservation Block Grant Program
  • $2 million for the Climate Jobs Institute in higher education
  • $2 million for a grant to Joliet Junior College to fund education and training for renewable energy and energy efficiency technology, and to operate the Illinois Green Economy Network

 

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 alderpersons through public comment and expert testimony. The Ordinance remains with the Rules Committee, and a Zoning and Environmental Protection joint committee hearing originally proposed for June has yet to be scheduled.

Legislative

With the Illinois spring legislative session now over, the fall veto session has been scheduled to begin November 12.

As the spring legislative session wrapped up on May 24, one of the bills relating to energy efficiency did pass both chambers. HB 2363, The Illinois Clean Lighting Act, will 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.

Among the bills relating to energy efficiency and clean energy that did not pass this session 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.
  • 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.
  • 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.
  • 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.

Although these bills did not pass, we anticipate they may be reintroduced in the next legislative session.

Regulatory

The Illinois Commerce Commission has wrapped up its first phase of the Future of Gas proceedings. A report on this first phase of work is anticipated on June 26, with comments on it due on July 12. The ICC and the facilitation team will review comments and release their final report on the first phase of the proceedings on August 1. The first workshop of the second phase of the Future of Gas proceedings has been scheduled for August 28.

On May 30, the ICC adopted a new Renewable Energy Access Plan (REAP) that urges utilities and transmission providers to consider grid-enhancing technologies, which improve efficiency of the grid.

In June, the Illinois Energy Efficiency Stakeholder Advisory Group (SAG) discussed a proposed policy change from ComEd at their monthly meeting. The change would impact how ComEd is allowed to count Electrification Energy Efficiency savings within their EE portfolio. The SAG also discussed a proposed Technical Reference Manual for electronic vehicles and potential changes to the utility’s Total Resource Cost Test in the 2026-2029 EE Plans.

How to Get Involved

For more information about Illinois or to get more involved, contact Kit White. 

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indiana banner

Legislative

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

Regulatory

The Indiana Utility Regulatory Commission (IURC) has opened an investigation in Cause Number 46043 into whether a Distributed Energy Resource Aggregator (DERA) is a public utility. A public Technical Conference was held on June 11.

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. 

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Legislative

Iowa’s legislative session officially ended on April 20, with energy efficiency largely unimpacted.

Municipal

In the spring, three Metropolitan Areas in Iowa submitted Priority Climate Action Plans to the EPA after receiving Climate Pollution Reduction Grants. The Cedar Rapids Metro Area, Iowa City Metro Area and Des Moines / West Des Moines Metro Area all submitted plans by the March 31 deadline, and each area will submit Comprehensive Climate Action Plans in August of 2025.

How to Get Involved

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

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Legislative

The Kansas Legislature has wrapped up its session. Veto sessions have now concluded, and the House and Senate have adjourned until January 13, 2025. A special session convened on June 18, which focused on tax credits. There were no notable changes to energy efficiency during the 2024 legislative session.

Regulatory

The Kansas Corporation Commission (KCC) was awarded a $1.9 million Energy Efficiency and Conservation Block Grant (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, or until fully allocated. At this time, applications are still being reviewed.

How to Get Involved

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

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Michigan banner

Legislative

Michigan legislators are currently focusing on passing the state budget. On June 6, a conference committee was set up to resolve the differences between the House and Senate versions. Most energy provisions are in HB 5499, the budget bill for the Department of Energy, Great Lakes and Environment (EGLE), and HB 5514, the budget bill for the Department of Licensing and Regulatory Affairs (LARA).

  • 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 to mitigating environmental impacts, including adoption of energy efficiency measures. MEEA submitted comments highlighting the importance of energy efficiency for large energy users like data centers, which can be found here.
  • 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. All bills were heard in Committee on June 5.
  • Lastly, the Michigan Senate passed HB 5028 on June 20. The bill would prohibit homeowners’ associations from preventing Michigan homeowners from installing, replacing or maintaining energy-saving improvements, like heat pumps, insulation, energy efficient appliances and more. The bill was passed by the House last November and now awaits the Governor’s signature.

 

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-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. Comments are due to the Commission by September 27, with reply comments due October 24.
  • 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.
    • 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.
  • Case U-21572 addresses the requirement that the MPSC study and report on electric issues unique to the Upper Peninsula.
    • The order directs MPSC Staff to engage with relevant entities to file the study by November 22.

 

How to Get Involved

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

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minnesota banner

Legislative

The Minnesota legislature has wrapped up its session. Facing a time crunch, legislators ultimately compiled several omnibus packages together and voted on this mega-package (HF 5247) in order to finish the session on time. The bill contains many energy provisions, and notably will:

  • Amend the Energy Conservation and Optimization Act by modifying fuel-switching definitions, removing the cap on spending for fuel-switching measures and reducing the energy efficiency target for consumer-owned gas utilities to 1%
  • Create a requirement for entities that own or operate more than 750 miles of transmission lines to submit annual plans on the potential adoption of grid enhancing technologies, like dynamic line rating, power flow controllers and topology optimization
  • Modify the commercial property assessed clean energy (C-PACE) standard to allow additional resilience and water projects to qualify for funding
  • Establish a grant program for municipalities to explore geothermal energy systems and creates a workgroup for the state to consider the development of thermal energy network systems
  • Reform permitting processes to speed up siting of new energy resources
  • Set a standard for the state to regularly adopt the newest IECC residential building energy code or a more efficient standard, with the goal of the 2038 code being 70% more efficient using the 2006 code as a baseline

 

Regulatory

The Minnesota Public Utilities Commission (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 are 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.

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.

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missouri banner

Legislative

The Missouri Legislature has concluded its sessions for the year, ending on May 17 as scheduled. The session ended with no major changes to energy efficiency in the state. Veto session will commence on September 11, to respond to any veto action taken by the Governor.

Regulatory

Proceedings continue 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, weighed in on the proposal, indicating they do not support an extension of MEEIA programs. After the recent completion of Surrebuttal, the Commission partially granted the motion made by involved parties to extend upcoming deadlines - particularly those for discovery cutoff.

The proceedings for Evergy Missouri’s MEEIA Cycle 4 plan are also underway in docket EO-2023-0369. The timeline has been delayed but is expected to follow after the Ameren MEEIA proceedings, as referenced above.

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. Evergy Missouri has also released its updated IRP as of this spring and can be followed in docket EO-2024-0154.

How to Get Involved

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

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nebraska banner

Legislative

Nebraska’s 2024 legislative session adjourned sine die on April 19. The Governor issued a statement on June 18, telling legislatures to “save-the-date” for July 26 – August 15 for a special legislative session concerning property taxes in NE. These dates, or an agenda, are not yet official.

Executive

Both the City of Omaha and the state of Nebraska (through the Nebraska Department of Environment and Energy) received EPA Climate Pollution Reduction Grant (CPRG) planning awards in 2023. Both entities submitted Priority Climate Action Plans (PCAPs) on March 1. You can read the Nebraska PCAP here and the Omaha PCAP here. Both entities must complete Comprehensive Climate Action Plans (CCAPs) two years after the planning grant award, approximately mid-2025.

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. MEEA will continue to monitor and participate in this public process.

How to Get Involved

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

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Executive

In the spring, the North Dakota Department of Environmental Quality submitted a statewide Priority Climate Action Plan (PCAP) to the EPA through the Climate Pollution Reduction Grant Program. This is the State of North Dakota’s first Climate Action Plan and includes a comprehensive greenhouse gas inventory. The PCAP includes goals to expand the existing energy conservation grant programs to update public buildings. The state will produce a Comprehensive Climate Action Plan in August 2025.

How to Get Involved

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

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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. June 26 is the last scheduled House session day before the summer recess.

 

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. 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. Five separate parties, including the utility, have filed applications for rehearing.

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. 

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Municipal

In the spring, the City of Rapid City submitted a Climate Pollution Reduction Grant (CPRG) Priority Climate Action Plan for the Rapid City Metro Area. While the State of South Dakota denied formula funding awards to craft a state climate action plan, Rapid City will continue with the EPA process, submitting a Comprehensive Climate Action Plan in August 2025.

How to Get Involved

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

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wisconsin banner

Legislative

The Wisconsin Senate met on May 14 for a veto session, but the session abruptly ended after lawmaker disagreements. The Senate did not successfully override the Governor’s vetoes on any energy-related bills, like those related to restricting fuel-switching bans. It is unclear if or when the Assembly will gather for its veto session.

  • 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.

 

How to Get Involved

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

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Federal updates

Legislative

The U.S. Senate confirmed three nominees to the Federal Energy Regulatory Commission (FERC). With the confirmations of Judy Chang, David Rosner and Lindsay See, FERC will once again have its full complement of five commissioners, which it has not had since January 2023.

On May 21, Senators approved a resolution to roll back the Department of Energy rule to improve the efficiency of gas furnaces. Those opposed to the rule claimed it would effectively ban gas furnaces and restrict customer choice. The resolution received some bipartisan support, but President Biden has announced he would veto the measure if it also passed the House.

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
  • 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 bill passed the House and was received by the Senate on May 8. 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.

Executive

The Department of Energy finalized energy efficiency requirements for residential water heaters. The rule is set to go into effect in 2029. The DOE estimates that the rule will save residential customers $7.6 billion per year on their energy and water bills.

Nineteen states have challenged the Federal Energy Regulatory Commission (FERC)’s Order No. 1920 requiring long-term transmission planning. The challenges will likely delay implementation. FERC released Orders No. 1920 and No. 1977 on May 13 after a three-year rulemaking process. Order No. 1977 amends FERC’s sitting procedures. Order No. 1920 is likely to have significant impacts on long-term transmission planning. Some of the key provisions in Order No. 1920 include:

  • Requiring transmission providers to use a 20-year planning horizon, an increase from the prior 3–5-year planning timeline for projected new resources.
  • A more expansive list of seven benefits transmission providers must consider in evaluating each planning scenario.
  • Requires state input in the evaluation and selection of the long-term regional plans as well as a public explanation of why a project was or was not selected.
  • Changes to the cost allocation process including a requirement for transmission operators to hold a 6-month long stakeholder engagement period with relevant state entities.

FERC did not reinstate a Federal Right of First Refusal (ROFR) with Order No. 1920 that had been proposed in the original Notice of Proposed Rulemaking. The Order may face some court challenges that will need to be litigated and resolved before it can take effect 60 days after being published in the Federal Register.

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. 

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resources

Recent Publications:

Recent Testimony and Comments:​

Recent Blogs:

 

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