MEEA Policy Insider - May 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.

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. There will be a Zoning and Environmental Protection joint committee hearing in June.

Legislative

The House approved a $53.1 billion budget in a 2 a.m. vote on May 29. The budget bill has now passed both chambers and is heading to Governor Pritzker’s desk. The budget is a $400 million increase over Pritzker’s original budget proposal for Fiscal Year 2025. 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

 

Many new bills were introduced in the Illinois legislature this session, preceding the state’s bill introduction deadline of February 9. 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 begun its Future of Gas proceedings, as a result of orders passed in gas utility rate cases in the fall. There have been six of a planned seven workshops for the first phase of proceedings. 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. The May 6 workshop introduced findings from various research studies on decarbonization as well as agricultural considerations with the future of gas. The May 20 workshop focused on environmental justice concerns, understanding Regional Transmission Organizations, and electric utility considerations with the future of gas. The seventh meeting in phase 1 took place May 29 and discussed the perspectives of labor and industrial users. A report on this first phase of work is anticipated in June, with comments on it due later in July.

In April, the Illinois Energy Efficiency Stakeholder Advisory Group (SAG) hosted a series of meetings presenting stakeholder ideas for inclusion in utility energy efficiency portfolios as part of the planning process for their 2026-2029 EE plan. On May 14 and 15, the SAG hosted meetings for the utilities to respond to the stakeholder ideas.

How to Get Involved

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

Back to top

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 on the above-captioned Cause will be held in Room 222 of the PNC Center, 101 W. Washington Street, Indianapolis, commencing at 1:30 PM on June 11, 2024. This hearing is open to the public.

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.

Throughout the session MEEA tracked bills on Integrated Resource Planning (IRP) for Investor-Owned Utilities (IOUs). This topic gained traction in Iowa after HF 617 was signed into law by Governor Reynolds in 2023, requiring the IUB to conduct an independent review of Iowa’s ratemaking procedures. After three policy charettes, which MEEA actively participated in, and an independent study by London Economics International, one key recommendation was “to enact a statute that requires rate-regulated utilities to file an integrated resource plan.” While no IRP language was passed this legislative session, we expect further efforts to mandate thorough resource planning from Iowa’s IOUs. MEEA will continue to advocate for energy efficiency as a key resource for demand management. Read a full summary of this process here.

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 has wrapped up its session. Veto sessions have now concluded, and the House and Senate have adjourned until January 13, 2025. 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. 

Back to top

Michigan banner

Legislative

Michigan legislators continue to meet, though there has not been much traction on energy-related bills this session.

  • 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.

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 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. Earlier this year, 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.

Utilities now will submit their straw proposals by May 31. 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.

Back to top

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.

  • 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, but did not pass out of the Senate during the 2024 session.
  • 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 on March 4 but was not taken up for consideration by the full House and did not pass this session.
  • SB 1280 would significantly modify the duties of the PSC, limiting their purview and oversight capabilities. The bill did not get considered by the full Senate body and was not passed.
  • 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 but was not considered by the full Senate body and was not passed this session.

 

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 and recordings from 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 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, have already weighed in on the proposal, indicating they do not support an extension of MEEIA programs.

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. 

Back to top

nebraska banner

Legislative

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

The 2024 legislative session proved rather uneventful for energy efficiency. The legislature passed LB 867, an omnibus bill that made changes to the Nebraska Power Review Board (NPRB). LB 867 revoked the requirement that at least one board member be an accountant, extended the number of consecutive terms a board member may serve and raised the per diem of Board members. None of NPRB’s primary duties were altered.

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. The OPPD Board will present draft recommendations for SD7 at their June 20 board meeting. After a draft is presented, there will be a 30-day public comment period for stakeholder input. MEEA will continue to monitor and participate in this process.

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. Despite numerous attempts to bring the bill to a vote, the bill is unlikely to get a floor vote 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. The total approved program budget is $14 million per year, for four years.

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

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. 

Back to top

Federal updates

Legislative

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 passes 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; 
  • 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 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. 

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 (16% increase). In addition, the budget proposes allocations of $385 million to the Weatherization Assistance Program (5% increase) and $70 million to the State Energy Program (6% increase).

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.

The Federal Energy Regulatory Commission (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. 

Back to top

resources

Recent Publications:

Recent Testimony and Comments:​

Recent Blogs:

 

Back to top