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 / KY / MI / MN / MO / NE / OH / SD / WI
- Federal Update
- New Resources & Publications
Executive
On February 21, Governor Pritzker delivered his sixth State of the State address, outlining a nearly $53 billion budget proposal for Fiscal Year 2025. The budget includes increased funding for energy efficiency and electrification in support of implementing 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, Chicago’s Mayor Johnson 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. Effectively, this means that new buildings would have to be built all-electric. The ordinance would apply to all new commercial and residential buildings, as well as those undergoing substantial retrofits, though the ordinance does contain some opt-outs for items such as commercial laundry and cooking. A subject matter hearing on CABO has been scheduled for April 3 in the Chicago City Council Rules Committee.
Legislative
Many new bills have been introduced in the Illinois legislature over the past month, preceding the state’s bill introduction deadline of February 9. Among the bills relating to energy efficiency and clean energy are:
- 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) lamps. The bill currently sits in the House Energy & Environment Committee.
- 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 but has since been 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. 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.
- SB 3637 would change the Cumulative Persisting Annual Savings (CPAS) goals subject to 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. The bill currently sits in the Senate Energy and Public Utilities Committee.
Regulatory
The Illinois Energy Efficiency Stakeholder Advisory Group (SAG) held a 2-day kick-off to the 2024 SAG Portfolio Planning Process on February 13-14 and heard presentations on current energy efficiency portfolios from ComEd, Nicor Gas, Ameren Illinois, Peoples Gas & North Shore Gas. Illinois SAG also held a meeting on February 21 and received presentations from ComEd, Nicor Gas and Peoples & North Shore Gas on current income qualified energy efficiency programs. These utilities also presented considerations for their 2026-2029 energy efficiency plans.
The 2024 SAG Portfolio Planning Process includes an opportunity for stakeholders to propose energy efficiency ideas for utility consideration as they develop their 2026-2029 energy efficiency plans. Interested parties may submit feedback on current utility energy efficiency portfolios and energy efficiency ideas by submitting an electronic EE Ideas template by March 15.
How to Get Involved
For more information about Illinois or to get more involved, contact Christian Koch.
Legislative
The 2024 Indiana legislature will hold a short session, as is normal in even-numbered years. A calendar of 2024 House and Senate legislative sessions can be found here and here. Session opened on January 8, and will adjourn on or by March 14. Bills of note that were introduced include:
- SB 259 would allow municipalities to establish clean energy districts.
- HB 1278 would establish some reforms at the 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 has passed the House and passed committee in the Senate.
Regulatory
2024 Integrated Resource Plans (IRPs) are expected from:
- Publicly-owned utilities – expected filing date has been extended for all utilities.
- Hoosier Energy – extended to April 1, 2024
- Indiana Municipal Power Agency (IMPA) – Comments on the Indiana Municipal Power Agency 2023 IRP are due by April 30, 2024, and can be sent by email to the Commission's Research, Policy, and Planning Division Director, Dr. Bradley Borum.
- Wabash Valley – extended to May 1, 2024
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.
Legislative
Iowa’s legislative session kicked off on January 8, and the full session timetable can be accessed here. Two relevant bills have been introduced, stemming from the Iowa Utilities Board’s (IUB) utility ratemaking procedures research study.
- SF 2244, introduced by Senator Klimesh on February 7, 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 Commerce Committee released their report on February 15, recommending the passage of the bill.
- Additionally, HF 2554, introduced on February 15, addresses electric power generation, energy storage and transmission facility ratemaking principles. This bill would establish eligibility criteria for utilities seeking ratemaking principles for leasing or owning new facilities and introduce requirements for integrated resource plans as a condition of advance ratemaking petition approval.
Regulatory
The Iowa Utilities Board held three policy charrettes in response to the passage of HF 617, which required the IUB to review utility ratemaking procedures. MEEA actively participated and submitted comments for all three charrettes, available here. Independent consultants, London Economics International, presented their research and findings to the legislature on January 9. Key findings include the potential for more ambitious EE/DR programs and the suggestion that long-term resource planning could help identify infrastructure and resource needs in the state. The complete report is accessible here.
How to Get Involved
For more information about Iowa or to get more involved, contact Arlinda Bajrami.
Legislative
The Kansas Legislature convened its annual session starting on January 8. The deadline for introduction of bills was February 7, as established in the 2024 session deadlines.
A few energy efficiency-related bills were introduced, and a majority have been referred to the Senate Committee on Utilities and the House Committee on Energy, Utilities and Telecommunications, respectively.
- HB2527, sponsored by the Committee on Energy, Utilities and Telecommunications, would establish cost recovery mechanisms for public utilities that construct certain electric generation facilities, revising the determination of rate base, capital structure and return on equity in utility rate proceedings and revising the provision of economic development electric rates. The bill was heard in committee on February 6.
Regulatory
The details of Evergy Kansas’ KEEIA filing continue to be worked out in docket 22-EKME-254-TAR, including Evaluation, Measurement and Verification Methodology and specific tariffs. The commission expressed their intent to issue an order by March 1.
On February 21, Chair Andrew French of the Kansas Corporation Commission (KCC) was reconfirmed by the Senate to a second four-year term, which will expire on March 15, 2028.
How to Get Involved
For more information about Kansas or to get more involved, contact Natalie Newman.
Legislative
The 2024 legislative session convened on January 2. See the calendar here. Session will adjourn on or by April 15.
- HB 180 is the only energy or utility-related bill that has been filed this session. It pertains to utility disconnection by electric and gas utilities. It remains in committee.
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.
Legislative
The Michigan legislature returned on January 10. Before the close of last session, the Michigan House passed HB5028. 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 then landed in the Senate, where it was heard by the Housing and Human Services Committee on February 13.
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.
- 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.
The MPSC has approved a settlement agreement for Consumers Energy’s 2024-25 EWR plan in Docket U-21321. Under the settlement, Consumers will seek to hit 2% annual electric savings and 1% annual gas savings. The agreement tweaked a few other details of the plan, notably increasing Consumers’ pilot budget (with additional dedicated funds for health and safety) and boosting efforts on education and outreach around heat pump adoption.
How to Get Involved
For more information about Michigan or to get more involved, contact Maddie Wazowicz.
Legislative
The Minnesota legislature returned on February 12. The 2024 session will end by May 20.
Some energy-related bills have been introduced. HF3946/SF3535 would modify and expand the state’s commercial property assessed clean energy (C-PACE) program. The bills have been referred to committee.
The Senate Energy, Utilities, Environment, and Climate Committee has started holding hearings this session. Notably, the committee met on February 14 to consider the appointment of Commissioner Hwikwon Ham to the Public Service Commission and to hold an informational hearing on conservation and efficiency. On the House side, the Climate and Energy Committee held an informational hearing on February 21 on Xcel’s integrated resource plan and both Xcel and CenterPoint Energy’s natural gas innovation act plans.
Regulatory
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.
The PUC continues its work in docket 23-117 to determine the scope of natural gas integrated resource plans (IRPs). In February 2023, the PUC ordered that the state’s IRP process be expanded to include gas utilities. Since that order, the Great Plains Institute has been holding an ongoing workshop series to determine the parameters for gas IRPs. The framework will start from an October 24 filing from the Citizens Utility Board.
How to Get Involved
For more information about Minnesota or to get more involved, contact Maddie Wazowicz.
Legislative
The Legislative sessions for the Missouri House of Representatives and Senate convened on January 3 and are scheduled to conclude on May 17.
Two notable Senate bills have been introduced and referred to the Commerce, Consumer Protection, Energy and the Environment Committee:
- SB 1280 would significantly modify the duties of the Public Service Commission, limiting their purview and oversight capabilities.
- SB 805 would allow investor-owned utilities advantages regarding construction of power transmission.
Regulatory
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 must have filed their comments on the plan by February 28, 2024.
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.
Evergy is working with the Mid-America Regional Council (MARC) on an Urban Heat Island Mitigation pilot program. A draft proposal for the program - Kansas City Urban Heat Island Analysis and Mitigation Proposal - was shared with previously involved stakeholders in the Urban Heat Island Work Group for their review and feedback in preparation for submission to the Missouri Public Service Commission. MARC is currently establishing a stakeholder group to guide the pilot project. Please reach out to Ryan Umberger at MARC if you are interested in getting involved.
How to Get Involved
For more information about Missouri or to get more involved, contact Natalie Newman.
Legislative
Nebraska’s 2024 legislative session began on January 3 and is scheduled to last through mid-April. The deadline for legislators to introduce bills was January 17. The full legislative calendar can be found here.
- LB164 was introduced by Senator John Cavanaugh last year and idled in the Urban Affairs Committee. The bill has been renumbered to LB1219. LB1219 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. However, no major outcomes arose from the hearing. MEEA submitted comments in support of the adoption of the full 2021 IECC, which you can read here.
- LB541, another carryover bill introduced by Senator John Lowe, focuses on the nomination and election process for public power districts and public power and irrigation directors. If passed, this bill will mandate that these positions be included on the partisan ballot. The Government, Military and Veterans Affairs adopted the bill, and it is currently undergoing the enrollment and review process.
Executive
The Nebraska Department of Environment and Energy (NDEE) has received a $3 million planning grant through the Environmental Protection Agency’s Climate Pollution Reduction Grant program. This grant will support the development of a Priority Climate Action Plan by March 1, 2024, and a Comprehensive Climate Action Plan by late summer 2025.
NDEE has established five stakeholder working groups to consider greenhouse gas emission reduction measures, including 1) transportation, 2) agriculture/natural and working lands, 3) industry/waste and wastewater, 4) energy production and 5) buildings/housing communities. Interested parties and the public will be engaged over the next two years. For further information on engagement opportunities, visit the program web page or contact NDEE via email.
How to Get Involved
For more information about Nebraska or to get more involved, contact Arlinda Bajrami.
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.
- HB79 would allow utilities to establish limited voluntary energy efficiency programs. The bill has passed committee but has not had a vote by the House. Most observers do not expect the bill to make it to the House floor until after the March primary election.
Regulatory
The Ohio House Energy and Natural Resources Committee, Ohio Senate Energy and Public Utilities Committee and the Pennsylvania Environmental Resources and Energy Committee held a joint meeting on February 1, 2024 to discuss the reliability of the PJM electricity grid, with invited speakers. MEEA produced a memo on the role of EE in reliability and the missed contribution to reliability in Ohio due to the end of utility DSM programs which was shared with EE advocacy contacts in the state.
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. Initial testimony has been filed in that case.
How to Get Involved
For more information about Ohio or to get more involved, contact Greg Ehrendreich.
Legislative
Many new bills were introduced in the South Dakota legislature over the past month, preceding the state’s bill introduction deadline of February 1. Relevant to our interests, HB 1053 would create term limits of two consecutive terms for public utility commissioners. The bill currently sits in the House State Affairs Committee.
How to Get Involved
For more information about South Dakota or to get more involved, contact Christian Koch.
Legislative
AJR6/SJR5 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 the next Wisconsin election. 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.
SB651, introduced by Senators Cowles and Stroebel, would require electric utilities and cooperative associations to submit integrated resource and reliability plans. The plans would outline future construction, project future energy demand and assess whether a utility has sufficient capacity to meet demand at a reasonable price. The plan would also describe programs and policies for discouraging “inefficient” energy usage. A mandate for utilities to submit these plans would replace the requirement that the PSC prepare a biennial strategic energy assessment. The bill was referred to the Senate Committee on Utilities and Technology on November 9.
Additionally, Wisconsin Democrats have released a suite of climate and energy related bills. Among the bills are:
- SB795 would double the mandated amount utilities must pay into the Focus program, from 1.2% of its annual retail sales revenue to 2.4%
- SB806 would add a mandate that the Focus on Energy program promote energy efficiency and renewable energy measures for low-income households
- SB775 would create a $20 million appropriation to the PSC Energy Innovation Grant Program, which would fund energy efficiency innovation
- SB777 would require the Department of Safety and Professional Services to establish a stretch energy code
- SB784 would require the PSC to establish an on-bill financing program to finance energy improvements at residences
The bills have been assigned to committee.
Regulatory
On January 11, Chairperson Valcq announced that she would step down from the PSC, effective February 2. Governor Evers promptly named a replacement, appointing Kristy Nieto to the seat, which is set to expire January 2025. Nieto was most recently a division administrator for energy regulation and analysis at the PSC. Also, in response to this announcement, Governor Evers named Commissioner Strand the new Chair of the PSC. Commissioner Huebner’s seat remains vacant after his appointment was rejected by the legislature in January.
How to Get Involved
For more information about Wisconsin or to get more involved, contact Maddie Wazowicz.
Executive
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.
Federal agencies continue to roll out programs funded under the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA).
EPA recently announced The Community Change Grants Program – a funding opportunity under the IRA Environmental and Climate Justice Program – which aims to fund environmental and climate justice activities for local community organizations that benefit disadvantaged communities. Approximately $2 billion in funding will be provided, allocated towards projects that reduce pollution, increase community climate resilience and build community capacity to address environmental and climate justice challenges. The Notice of Funding Opportunity is now open, with rolling applications accepted and a final deadline of November 21, 2024.
The Climate Pollution Reduction Grants program will be accepting applications from states and metro areas until April 1, 2024, and from Tribes and territories until May 1, 2024. The EPA will award $4.6 billion to implement climate pollution reduction plans developed by states and metro areas. Those plans were seeded by $250 million in planning funds awarded earlier this year. EPA has emphasized that it will prioritize awards for “measures that achieve the greatest amount of GHG reductions.”
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:
- Ohio State Fact Sheet
- Non-Energy Impacts of Energy Efficiency Fact Sheet
- Integrated Resource Planning Fact Sheet
Recent Testimony and Comments:
- MEEA Public Comments on Michigan's Adoption of the Residential & Commercial Building EE Codes
- MEEA Comments in Support of the Adoption of the Full 2021 IECC - Nebraska
- Energy Efficiency & Reliability: Estimate of Savings Lost in Ohio
- MEEA Comments on a Minnesota Gas Integrated Resource Planning Structure
- MEEA Post-Comments for Policy Charette #3
- MEEA Comments on Homeowner Association Restrictions on Energy-Saving Improvements - Michigan
Recent Blogs:
- Unpacking CA's Total System Benefits Metric and the NSPM
- Detroit Passes Benchmarking Ordinance as Part of City’s Climate Strategy
- Michigan Passes Transformative Energy Efficiency Legislation