The New Political Landscape for Energy Efficiency

MEEA Policy Webinar

The New Political

Landscape

for Energy Efficiency

December 13, 2010(final)

Midwestern Governorsafter 2010 Elections

Party Change

No Change

No Election

Jack Dalrymple*

Dennis Daugaard**

Dave Heineman

Sam Brownback

Terry

Branstad

Scott

Walker

Rick

Snyder

John

KasichMitch

Daniels

* ND Lt. Gov assumed

Governor’s office on

12/7

Mark

Dayton

Jay

Nixon

Pat

Quinn

Steve

Beshear

** New Governor, Same

Party

Midwestern State Senatesafter 2010 Elections

(Republican)

Ratios are

Majority: Minority

(vacant)

Previous Majority

Midwestern State Housesafter 2010 Elections

No State

House

Ratios are

Majority:Minority

(:Independent)

Previous Majority

State House/Senate and Governor party affiliation at the time of the first enactment of

statewide energy efficiency policy

Energy Efficiency is a Bipartisan Issue

R

D

VT: D

R

D

D

D

D

HI: R

D

D

R

D

D D

R

R

R

D

CT: R

RI: R

MD: D

DE: D

MA: D

R

D

D

Governor’s Party

State Legislature

H/S: Republican

H/S: Democrat

H/S: Split

EERS Pending

D/R

January 2011

R

Energy Efficiency Investment Rising2009 2010 Regional Totals

for Electric &

Natural Gas

Efficiency

2004: $178 M

2006: $318 M

2007: $335 M

2008*: $443 M

2009*: $546 M

2010*: $714 M

2011*: $859 M

2012*: $912 M

*Estimated Nov 2009

Increases

predicted, value

currently unknown

Other States have Higher Goals2.00%

by 2015

2.00%by 2019

1.40%current

1.00%by 2012

1.50%current

2.00%by 2019

0.70%current

1.50%by 2017

1.00%current

0.75%by 2012

1.50%current

0.40%current

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Illin

ois

India

na

Iow

a

Kansas

Kentu

cky

Mic

hig

an

Min

nesota

Mis

souri

Nebra

ska

Nort

h D

akota

Oh

io

South

Dakota

Wis

consin

Current and Planned Decoupling

Decoupling

Authorized

Pilot Projects

gas electric

Residential BuildingEnergy Codes

IECC Version or

Equivalent

None/Precedes

2003 IECC

2003 IECC

2006 IECC

In Process to

2009 IECC

2009 IECC

Commercial BuildingEnergy Codes

ASHRAE 90.1

Version or

Equivalent

None/Precedes

90.1-2001

90.1-2001

90.1-2004

In Process to

90.1-2007

90.1-2007

Illinois – Energy Efficiency

• Energy Efficiency Resource Standards

– Electric – Ramps up to 2% by 2015 and thereafter

– Natural Gas – Ramps up to 1.5% by 2019 and thereafter

• Decoupling – Yes (natural gas pilot)

• Building Codes

– In 2009 passed the Energy Efficient Building Act

– Adopted the 2009 International Energy Conservation Code (IECC) for commercial and residential buildings

• EE Financing – PACE enabling statute passed

• Appliance Standards – No

Illinois – Governor

Pat Quinn (D)

• Elected to a full term in 2010

• Founded the Citizens Utility Board

• Supports Energy Efficiency

Illinois – General Assembly

House

• 64 Democrats

• 54 Republicans

• Republicans gain 6 seats

• Leadership Unlikely to Change

Senate

• 35 Democrats

• 24 Republicans


• Leadership Unlikely to Change

Illinois Commerce Commission

• 5 Members

– Manuel Flores, Acting Chairman (2014)

– Lula Ford (2013)

– Erin O’Connell-Diaz (2013)

– Sherman Elliott (2012)

– John Colgan (2015)

Indiana – Energy Efficiency• Energy Efficiency Resource Standards

– utilities will be required to meet a goal of 0.3% efficiency in 2010, ramping up a 2.0% by 2019

• Decoupling – Yes (natural gas pilot)

• Building Codes

– Residential – Current code based on 1992 Model Energy Code. In process of adopting 2009 IRC with amendments to make it equivalent to the 2009 IECC.

– Commercial – Recently adopted ASHRAE 90.1-2007

• EE Financing – Financial assistance for manufacturers; tax

credit for energy star purchases


Indiana – Governor

Mitch Daniels (R)

• Elected to second term in 2008

• Encouraged Commission to Enact Energy Efficiency Portfolio Standard

• Used Administrative Proceedings to Upgrade Residential and Commercial Energy Codes to meet ARRA goals

Indiana – General Assembly

House

• 52 Republicans

• 48 Democrats


• Republicans Gained Control

• Rep. Jack Lutz of Anderson will Chair the Utilities & Energy Committee

Senate

• 36 Republicans

• 14 Democrats


• Sen. Beverly Gard of Greenfield will chair the Energy & Environmental Committee

• Sen. Jim Merritt of Indianapolis will chair the Utilities & Technology Committee

Indiana Utility Regulatory Commission

• 5 Commissioners

– Jim Atterholt (R), Chair (2013)

– Larry Landis (R) (2011)

– Carolene Mays (D) (2013)

– David Ziegner (D) (2011)

– Vacancy

Iowa – Energy Efficiency

• Energy Efficiency Resource Standards– IUB given the authority to set a recommended yearly

energy savings goal for investor-owned utilities of 1.5% for electricity and natural gas.

• Decoupling – No

• Building Codes – Adopted the 2009 IECC for both residential and commercial

• EE Financing – through the Building Energy Smart

program, the Office of Energy Independence helps find competitive rates and financing to fund energy efficiency and renewable technology projects.


Iowa – Governor

Terry Branstad (R)• Defeated incumbent Governor Chet

Culver

• Previously served as Governor from 1983 – 1999

• Signed law creating the Iowa Energy Center in 1990. IEC’s mission is to promote efficiency and reduce dependence on imported fuels

Iowa – General Assembly

House

• 58 Republicans

• 42 Democrats


• Republicans gained control of House

• Kraig Paulson is the new Speaker

• Steve Olson from DeWitt will chair the Environmental Protection Committee

Senate

• 27 Democrats

• 23 Republicans


• Leadership not likely to change

• Senate Majority Leader Mike Gronstal: “We will continue what’s working, such as building Iowa’s renewable energy economy…”

Iowa Utilities Board

• 3 Members

– Robert Berntsen, Chair (2015)

– Krista Tanner (2011)

– Darrell Hanson (2013)

Kansas – Energy Efficiency• Energy Efficiency Resource Standards – No


• Building Codes – Established “applicable standard” for Commercial & Industrial

– Residential & Commercial – State initiative to encourage adoption by local jurisdictions

• EE Financing – Efficiency Kansas (bank loans and on-bill utility financing)


Kansas – Governor

Sam Brownback (R)• Elected in 2010

• Former U.S. Senator

• Sponsored a 15% RES by 2021 bill with Sen. Bingaman. Eligible resources for meeting the RES are traditional renewables. Governors would have been able to petition for permission to allow up to 26.67% of the target to be met with energy efficiency.

Kansas – Legislature

House

• 92 Republicans

• 33 Democrats


• The Energy & Utilities Committee is chaired by Rep. Carl Holmes

Senate

• 31 Republicans

• 9 Democrats

• No 2010 elections

• The Utilities Committee is chaired by Sen. Pat Apple (an electrician)

Kansas Corporation Commission

• 3 Members

– Thomas Wright, Chair (2014)

– Ward Lloyd (2012)

– Joseph Harkins (last day is December 23, 2010)

Kentucky – Energy Efficiency

• Energy Efficiency Resource Standards

– No EERS, but DSM programs approved on a utility-by-utility basis

• Decoupling – No• Building Codes

– Residential- 2006 International Residential Code with Amendments.

– Commercial- 2006 IECC. Moving forward on 2009 IECC

• EE Financing – No


Kentucky – Governor

Steve Beshear (D)

• Elected in 2007

• Intelligent Energy Choices for Kentucky’s Future

Strategy 1: Improve the energy efficiency of Kentucky’s homes, buildings, industries and transportation fleet.

Goal: Energy efficiency will offset at least 18 percent of Kentucky’s projected 2025 energy demand.

Kentucky – General Assembly

House

• 58 Democrats

• 42 Republicans


• No leadership change likely

• The chair of the Committee on Tourism Development and Energy retired, and a new chair has not been named

Senate

• 23 Republicans

• 15 Democrats



• Brandon Smith from Hazard chairs the Natural Resources & Energy Committee

Kentucky Public Service Commission

• 3 Members

– David Armstrong, Chairman (2011)

– James Gardner, Vice Chairman (2012)

– Charles Borders (2013)

Michigan – Energy Efficiency• Energy Efficiency Resource Standards

– Electric – Ramps up to 1% annual savings by 2012 and thereafter

– Natural Gas – Ramps up to 0.75% annual savings by 2012 and every year thereafter

• Decoupling – Yes (electric pilot)• Building Codes

– Residential – 2003 IRC, with reference to the 2004 IECC . 2009 IECC will become effective March, 2011

– Commercial – ASHRAE/IESNA 90.1-1999; ASHRAE 90.1-2007 will become effective in March, 2011

• EE Financing – On December 14, 2010, Gov. Granholmsigned PACE enabling legislation into law.


Michigan – Governor

Rick Snyder (R)• Elected 2010

• Venture Capitalist; served on board of Michigan Chapter of the Nature Conservancy

• During the campaign, Snyder indicated that he supported the state’s current laws regarding energy efficiency and renewable energy standards.

• From his 10-point plan: “Michigan needs to be a leader in the innovative movement towards alternative and cleaner energy.”

Michigan – Legislature

House

• 63 Republicans

• 47 Democrats


• Republicans gained control of Chamber

• Speaker-designate Jase Bolger announced the committee structure, including an Energy & Technology Committee

Senate

• 26 Republicans

• 12 Democrats



• Sen. Mike Nofs has been selected to chair the Senate Energy Policy and Public Utilities Committee . Sen. Nofs previously chaired the House Energy panel.

Michigan Public Service Commission

• 3 Members

– Orjiakor Isiogu, Chairman (2013)

– Monica Martinez (2011)

– Greg White (2015)

Minnesota – Energy Efficiency• Energy Efficiency Resource Standards

– Electric – 1.5% annual savings

– Natural Gas – 1.5%annual savings

• Decoupling - Yes (natural gas pilot) – The Next Generations Energy Act of 2007 directed the Public Utility

Commission to allow pilot programs to assess decoupling.

• Building Codes – Residential – 2006 IECC with state specific amendments.

– Commercial – ASHRAE 90.1-2004 with state specific amendments. Amendments make code more stringent than 2009 IECC.



Minnesota – Governor

Mark Dayton (D)• Elected in 2010

• Former U.S. Senator

• As Commissioner of Energy and Economic Development, Mark created a direct link between renewable energy and job creation by helping to fund some of the earliest weatherization projects at no cost to taxpayers.

• Lt. Governor-elect Yvonne Prettner Solon chaired the Minnesota Senate Energy Committee and authored the Minnesota RPS Legislation

• Committed to retrofitting every public building for clean energy efficiency within 10 years.

Minnesota – Legislature

House

• 72 Republicans

• 62 Democrats


• Republicans gain control

• Denny McNamara from Hastings will chair the Energy & Natural Resources Policy & Finance Committee

Senate

• 37 Republicans

• 30 Democrats


• Republicans gain control

• Julie Rosen to chair the Energy, Utilities & Telecom Budget & Policy Committee

Minnesota Public Utilities Commission

• 5 Members

– David Boyd (R), Chair (2015)

– Phyllis Reha (D), Vice Chair (2013)

– Thomas Pugh (D) (2011)

– J. Dennis O’Brien (R) (2014)

– Betsy Wergin (R) (2016)

Missouri – Energy Efficiency• Energy Efficiency Resource Standards

– Electric – None– Natural Gas – None

• Decoupling - Yes (natural gas pilot)• Building Codes

– Residential – No statewide code. 1992 Model Energy Code (MEC) or ANSI/ASHRAE Standard 90.2-1993 for state-owned. St. Louis County has 2009 IECC.

– Commercial – No statewide code. State-owned commercial construction must comply with the 2006 IECC.

• EE Financing – PACE enabling legislation adopted

• Appliance Standards – MO SB1181, has requirements for certain

appliances and consumer electronics sold or installed within the state to meet energy efficiency standards

Missouri – Governor

Jay Nixon (D)

• Elected 2008

• Supportive of energy efficiency initiatives and manufacturing with an EE focus

• Proposed tax incentives for the purchase of energy efficient homes

Missouri – General Assembly

House

• 105 Republicans

• 58 Democrats



• Rep. Darrell Pollock of Lebanon will chair the Utilities Committee

Senate

• 22 Republicans

• 12 Democrats

• Republicans gain 1 seat


• Sen. Brad Lager from Northwest Missouri chairs the Commerce, Consumer Protection, Energy and Environment Committee

Missouri Public Service Commission

• 5 Members

– Robert Clayton, Chair (2015)

– Jeff Davis (2012)

– Terry Jarrett (2013)

– Kevin Gunn (2014)

– Robert Kenney (2015)

Nebraska – Energy Efficiency

• Energy Efficiency Resource Standards– Electric – None

– Natural Gas – None


• Building Codes – Residential – The 2003 IECC is mandatory statewide.

– Commercial – The 2003 IECC, with reference to ASHRAE 90.1 -2001, is mandatory statewide. Statutory requirement for both residential and commercial

*State has began process to adopt 2009 IECC



Nebraska – Governor

Dave Heineman (R)• Re-elected to a second full 4-year term

in 2010

• Elevated the state Energy Office to cabinet level

• State energy plan addresses energy efficiency strategies and renewable energy resources.

• Opposes renewable energy portfolio standards

Nebraska – Legislature

• Unicameral Legislature

• Non-partisan legislative body

• 49 State Senators

• 24 District elections held in 2010

• Natural Resources Committee, which has jurisdiction over issues affecting public power districts and electric co-ops, is chaired by Sen. Chris Langmeier

Nebraska Public Service Commission

• 5 Elected Members

– Gerald Vap, Chairman (2011) – reelected 2010

– Tim Schram (2013)

– Anne Boyle (2015)

– Rod Johnson (2011) – reelected 2010

– Frank Landis (2013)

North Dakota – Energy Efficiency

• Energy Efficiency Resource Standards– Electric – None

– Natural Gas – None


• Building Codes – Residential- Voluntary ASHRAE/IESNA 90.1-1989

– Commercial – Voluntary ASHRAE/IESNA 90.1-1989

*2009 IECC will take into effect on Jan. 1, 2011 but no change to voluntary basis.



North Dakota – Governor

Jack Dalrymple (R)

• Assumed Governorship on December 7, 2010, following the resignation of Gov. John Hoeven, who was elected to the U.S. Senate

• Has requested the legislature create a state energy office and appropriate funds of $600,000

North Dakota – Legislative Assembly

House

• 69 Republicans

• 25 Democrats


• Leadership unlikely to change

• Held organizational session December 6 – 8, 2010

Senate

• 35 Republicans

• 12 Democrats


• Leadership unlikely to change

• Held organizational session December 6 – 8, 2010

North Dakota Public Service Commission


– Kevin Cramer, Chair (reelected in 2010)

– Tony Clark (NARUC President) (2012)

– Brian Kalk (2014)

Ohio – Energy Efficiency

• Energy Efficiency Resource Standards– Ramp-up to 2% annual savings by 2019 through 2025 for

electric utilities

• Decoupling – Yes (natural gas and electric pilots)– Can be used in an electric utility’s “Energy Security Plan”. – Ohio's gas utilities have all implemented the Straight Fixed Variable

rate design. This is a type of decoupling

• Building Codes – Residential – 2006 IECC or Residential Code of Ohio (based

on 2006 IRC), mandatory statewide. – Commercial –ASHRAE 90.1-2004, mandatory statewide.



Ohio – Governor

John Kasich (R)• Elected 2010

• Former Congressman (Chaired House Budget Committee)

• In the campaign, emphasized the need for low cost power.

• It’s been reported that if Ohio’s Renewable Portfolio Standard drives up costs to consumers, Kasich has indicated that he would want to look at it.

Ohio – General Assembly

House

• 58 Republicans

• 41 Democrats


• Republicans gained control of House

• Public Utilities Committee

Senate

• 23 Republicans

• 10 Democrats



• It is currently unknown who the new chair Senate Public Utilities Committee will be.

Public Utility Commission of Ohio

• 5 Members

– Alan Schriber, Chair (announced retirement effective 12/31/2010)

– Paul Centolella (2012)

– Valerie Lemmie (2011)

– Steven Lesser (2015)

– Cheryl Roberto (2013)

South Dakota – Energy Efficiency

• Energy Efficiency Resource Standards– Electric – None– Natural Gas – None

• Decoupling – No• Building Codes

– Residential – No statewide code – Commercial – No statewide code

• EE Financing – No• Appliance Standards – No

South Dakota – Governor

Dennis Daugaard (R)• Elected 2010

• Current Lt. Governor

• Campaign Web site addresses energy efficiency —

– Proposes creating a revolving fund for local governments to perform audits and make investments in EE.

– Promises to work with the utilities and the PUC to encourage private companies to invest in energy

efficiency.

South Dakota – Legislature

House

• 48 Republicans

• 21 Democrats



Senate

• 30 Republicans

• 5 Democrats



South Dakota Public Utilities Commission


– Steve Kolbeck, Chair (2012) (MARC President)

– Gary Hansen, Vice Chair (2014)

– Dusty Johnson (reelected in 2010)

• Announced resignation to become Governor Daugaard’s Chief of Staff

– Governor-elect Daugaard indicated that he will appoint Chris Nelson, the current Secretary of State, to the PUC. Nelson brings no utility experience to this position.

Wisconsin – Energy Efficiency

• Energy Efficiency Resource StandardsStatewide EE/RE program, Focus on Energy. On December 14, 2010, the Joint Finance Committee adopted a rate increase to fund EE of 0.2% in 2011 increasing to 0.6% in 2013. It is anticipated that this increased investment will result in a decrease in energy use by 1.5% by 2014.

• Decoupling – Yes (natural gas pilot)– Revenue Stabilization Mechanism' for decoupling approved for

Wisconsin Public Service Corporation.

• Building Codes– Residential – 2006 IECC with amendments– Commercial – 2006 IECC with amendments; 2009 IECC on track

for adoption in March, 2011.



Wisconsin – Governor

Scott Walker (R)• Elected 2010

• Anticipated that as Governor, Walker will re-examine the state’s Renewable Portfolio Standard adopted by the legislature under his democratic predecessor

• Wants to pursue an energy policy focused on job creation.

• Spokesperson has indicated that Walker will bring together stakeholders to discuss the state’s energy policy.

Wisconsin – Legislature

General Assembly

• 60 Republicans

• 38 Democrats

• 1 Independent


• Republicans gain control of Assembly

• Energy & Utilities Committee chaired by Rep. Mark Honadel of South Milwaukee

Senate

• 19 Republicans

• 14 Democrats


• Republicans gain control of Senate

Public Service Commission of Wisconsin

• 3 Members

– Eric Callisto, Chairperson (2015)

– Mark Meyer (2011)

– Lauren Azar (2013)

QUESTIONS?

MGA Perspective

Jesse Heier, Washington Director Midwestern Governors Association

Midwestern Governors Association Goals

MGA Roadmap has 2015 goals for the Midwest of:

• 2.0% annual savings for electric utilities

• 1.5% annual savings for natural gas utilities

• Applied consistently to IOUs, munis, and co-ops.

2007: Energy Security and ClimateStewardship Platform

• 2 percent energy-efficiency savings per year, by 2015, in regional annual retail sales of natural gas and electricity, and an additional 2 percent in energy efficiency improvements every year thereafter,

• 20 percent of total energy consumption from renewable sources by 2020, and 30 percent by 2030,

• 50 percent usage of renewable and low-carbon transportation fuels by 2025, and

• by 2020, all new coal gasification and combustion plants will capture and store carbon dioxide (CO2) emissions, and by 2050, all regional coal plants will have transitioned to carbon capture and storage.

2009: Platform for Creating and Retaining Midwestern Jobs in the New Energy Economy

Cooperative Regional Agreements

1. Midwestern Workforce and Economic Development

Collaborative

2. Mapping the Region's Assets and Resources

3. Establishing Regional Training Standards and

Portable Credentials

4. Developing a Regional Growth, Investment and

Technology Commercialization Plan

5. Advancing Regional Sector Initiatives

6. Creating a Regional Communications Strategy

2011: Investment Platform

Increasing investment opportunities for Midwestern

businesses. The Midwest has enormous energy resources

to lead the nation in the new energy economy, as well as a

strong manufacturing and agribusiness base. To fully

realize this potential, substantial efforts must be taken to

identify and create new opportunities to bring funding to the

region.

•Created by investors and state economic development

professionals

• Discussed at September 2010 investment meeting

• Final Draft to be released in early 2011

Marty Kushler Director, Utilities Program

ACEEE

MEEA Policy Staff • Stacey Paradis, Director of External Relations

– [email protected]

• Kevin Cullather, Senior Policy Manager


• Isaac Elnecave, Senior Policy Manager


• Jessica Collingsworth, Policy Associate


• Nathan Pepper, Policy Associate


• Greg Ehrendreich, Research Analyst
