the new political landscape for energy efficiency
TRANSCRIPT
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
• Republicans gain 2 seats
• 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
• Appliance Standards – No
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 gain 4 seats
• Republicans Gained Control
• Rep. Jack Lutz of Anderson will Chair the Utilities & Energy Committee
Senate
• 36 Republicans
• 14 Democrats
• Republicans gain 3 seats
• 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.
• Appliance Standards – No
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 gain 14 seats
• 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
• Republicans gain 5 seats
• 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
• Decoupling – 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)
• Appliance Standards – No
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
• Republicans gain 16 seats
• 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
• Appliance Standards – 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
• Republicans gain 7 seats
• 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
• Republicans gain 3 seats
• No leadership change likely
• 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.
• Appliance Standards – No
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 gain 21 seats
• Republicans gained control of Chamber
• Speaker-designate Jase Bolger announced the committee structure, including an Energy & Technology Committee
Senate
• 26 Republicans
• 12 Democrats
• Republicans gain 4 seats
• No leadership change likely
• 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.
• EE Financing – No
• Appliance Standards – No
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 25 seats
• Republicans gain control
• Denny McNamara from Hastings will chair the Energy & Natural Resources Policy & Finance Committee
Senate
• 37 Republicans
• 30 Democrats
• Republicans gain 16 seats
• 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
• Republicans gain 17 seats
• No leadership change likely
• Rep. Darrell Pollock of Lebanon will chair the Utilities Committee
Senate
• 22 Republicans
• 12 Democrats
• Republicans gain 1 seat
• No leadership change likely
• 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
• Decoupling – No
• 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
• EE Financing – No
• Appliance Standards – No
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
• Decoupling – No
• 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.
• EE Financing – No
• Appliance Standards – No
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
• Republicans gain 11 seats
• Leadership unlikely to change
• Held organizational session December 6 – 8, 2010
Senate
• 35 Republicans
• 12 Democrats
• Republicans gain 9 seats
• Leadership unlikely to change
• Held organizational session December 6 – 8, 2010
North Dakota Public Service Commission
• 3 Elected Members
– 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.
• EE Financing – PACE enabling legislation adopted
• Appliance Standards – No
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 gain 12 seats
• Republicans gained control of House
• Public Utilities Committee
Senate
• 23 Republicans
• 10 Democrats
• Republicans gain 2 seats
• No leadership change likely
• 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
• Republicans gain 3 seats
• No leadership change likely
Senate
• 30 Republicans
• 5 Democrats
• Republicans gain 9 seats
• No leadership change likely
South Dakota Public Utilities Commission
• 3 Elected Members
– 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.
• EE Financing – PACE enabling legislation adopted
• Appliance Standards – No
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 15 seats
• Republicans gain control of Assembly
• Energy & Utilities Committee chaired by Rep. Mark Honadel of South Milwaukee
Senate
• 19 Republicans
• 14 Democrats
• Republicans gain 4 seats
• 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
• Kevin Cullather, Senior Policy Manager
• Isaac Elnecave, Senior Policy Manager
• Jessica Collingsworth, Policy Associate
• Nathan Pepper, Policy Associate
• Greg Ehrendreich, Research Analyst