The New Political Landscape for Energy Efficiency

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The New Political Landscape for Energy Efficiency

  1. 1. MEEA Policy Webinar The New Political Landscapefor Energy Efficiency December 13, 2010 (final)
  2. 2. Midwestern Governors after 2010 Elections Party Change Jack Dalrymple* No Change Mark Dayton No Election ScottDennis Daugaard** Walker Rick * ND Lt. Gov assumed Governor’s office on 12/7 Terry Snyder ** New Governor, Same Party Branstad Dave Heineman John Mitch Kasich Pat Daniels Quinn Jay Sam Brownback Nixon Steve Beshear
  3. 3. Midwestern State Senates after 2010 Elections Ratios are Majority: Minority (vacant) Previous Majority(Republican)
  4. 4. Midwestern State Houses after 2010 Elections Ratios are Majority:Minority (:Independent) Previous MajorityNo State House
  5. 5. Energy Efficiency is a Bipartisan Issue State House/Senate and Governor party affiliation at the time of the first enactment of statewide energy efficiency policy VT: D D MA: D D D R D RI: R D CT: R R D R DE: D D D R D R D MD: D D State Legislature R D H/S: Republican D H/S: Democrat H/S: Split R EERS Pending R D/R Governor’s Party HI: RJanuary 2011
  6. 6. Energy Efficiency Investment Rising 2009 2010 Regional Totals Increases for Electric & predicted, value currently unknown 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
  7. 7. Other States have Higher Goals 2.00% by 20152.50% 1.50% 2.00% 1.50% 2.00% by 2017 by 2019 by 2019 current2.00% 1.40% 1.50% 1.00% current current by 20121.50% 1.00% 0.70% 0.75% current current by 2012 0.40%1.00% current0.50%0.00% Michigan Kentucky Missouri Ohio Illinois Kansas Indiana Wisconsin Minnesota South Dakota Nebraska North Dakota Iowa
  8. 8. Current and Planned Decoupling Decoupling Authorized Pilot Projects gas electric
  9. 9. Residential Building Energy Codes IECC Version or Equivalent None/Precedes 2003 IECC 2003 IECC 2006 IECC In Process to 2009 IECC 2009 IECC
  10. 10. Commercial Building Energy 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
  11. 11. 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
  12. 12. Illinois – GovernorPat Quinn (D)• Elected to a full term in 2010• Founded the Citizens Utility Board• Supports Energy Efficiency
  13. 13. Illinois – General AssemblyHouse Senate• 64 Democrats • 35 Democrats• 54 Republicans • 24 Republicans• Republicans gain 6 seats • Republicans gain 2 seats• Leadership Unlikely to • Leadership Unlikely to Change Change
  14. 14. Illinois Commerce Commission• 5 Members – Manuel Flores, Acting Chairman (2014) – Lula Ford (2013) – Erin O’Connell-Diaz (2013) – Sherman Elliott (2012) – John Colgan (2015)
  15. 15. 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
  16. 16. 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
  17. 17. Indiana – General AssemblyHouse Senate• 52 Republicans • 36 Republicans• 48 Democrats • 14 Democrats• Republicans gain 4 seats • Republicans gain 3 seats• Republicans Gained Control • Sen. Beverly Gard of• Rep. Jack Lutz of Anderson Greenfield will chair the will Chair the Utilities & Energy & Environmental Energy Committee Committee • Sen. Jim Merritt of Indianapolis will chair the Utilities & Technology Committee
  18. 18. Indiana Utility Regulatory Commission• 5 Commissioners – Jim Atterholt (R), Chair (2013) – Larry Landis (R) (2011) – Carolene Mays (D) (2013) – David Ziegner (D) (2011) – Vacancy
  19. 19. 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
  20. 20. 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
  21. 21. Iowa – General AssemblyHouse Senate• 58 Republicans • 27 Democrats• 42 Democrats • 23 Republicans• Republicans gain 14 seats • Republicans gain 5 seats• Republicans gained control • Leadership not likely to of House change• Kraig Paulson is the new • Senate Majority Leader Speaker Mike Gronstal: “We will• Steve Olson from DeWitt continue what’s working, will chair the Environmental such as building Iowa’s Protection Committee renewable energy economy…”
  22. 22. Iowa Utilities Board• 3 Members – Robert Berntsen, Chair (2015) – Krista Tanner (2011) – Darrell Hanson (2013)
  23. 23. 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
  24. 24. 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.
  25. 25. Kansas – LegislatureHouse Senate• 92 Republicans • 31 Republicans• 33 Democrats • 9 Democrats• Republicans gain 16 seats • No 2010 elections• The Energy & Utilities • The Utilities Committee is Committee is chaired by chaired by Sen. Pat Apple Rep. Carl Holmes (an electrician)
  26. 26. Kansas Corporation Commission• 3 Members – Thomas Wright, Chair (2014) – Ward Lloyd (2012) – Joseph Harkins (last day is December 23, 2010)
  27. 27. 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
  28. 28. 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.
  29. 29. Kentucky – General AssemblyHouse Senate• 58 Democrats • 23 Republicans• 42 Republicans • 15 Democrats• Republicans gain 7 seats • Republicans gain 3 seats• No leadership change likely • No leadership change likely• The chair of the Committee • Brandon Smith from Hazard on Tourism Development chairs the Natural and Energy retired, and a Resources & Energy new chair has not been Committee named
  30. 30. Kentucky Public Service Commission• 3 Members – David Armstrong, Chairman (2011) – James Gardner, Vice Chairman (2012) – Charles Borders (2013)
  31. 31. 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. Granholm signed PACE enabling legislation into law.• Appliance Standards – No
  32. 32. 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.”
  33. 33. Michigan – LegislatureHouse Senate• 63 Republicans • 26 Republicans• 47 Democrats • 12 Democrats• Republicans gain 21 seats • Republicans gain 4 seats• Republicans gained control • No leadership change likely of Chamber • Sen. Mike Nofs has been• Speaker-designate Jase selected to chair the Senate Bolger announced the Energy Policy and Public committee structure, Utilities Committee . Sen. including an Energy & Nofs previously chaired the Technology Committee House Energy panel.
  34. 34. Michigan Public Service Commission• 3 Members – Orjiakor Isiogu, Chairman (2013) – Monica Martinez (2011) – Greg White (2015)
  35. 35. 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
  36. 36. 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.
  37. 37. Minnesota – LegislatureHouse Senate• 72 Republicans • 37 Republicans• 62 Democrats • 30 Democrats• Republicans gain 25 seats • Republicans gain 16 seats• Republicans gain control • Republicans gain control• Denny McNamara from • Julie Rosen to chair the Hastings will chair the Energy, Utilities & Telecom Energy & Natural Resources Budget & Policy Committee Policy & Finance Committee
  38. 38. 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)
  39. 39. 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
  40. 40. 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
  41. 41. Missouri – General AssemblyHouse Senate• 105 Republicans • 22 Republicans• 58 Democrats • 12 Democrats• Republicans gain 17 seats • Republicans gain 1 seat• No leadership change likely • No leadership change likely• Rep. Darrell Pollock of • Sen. Brad Lager from Lebanon will chair the Northwest Missouri chairs Utilities Committee the Commerce, Consumer Protection, Energy and Environment Committee
  42. 42. Missouri Public Service Commission• 5 Members – Robert Clayton, Chair (2015) – Jeff Davis (2012) – Terry Jarrett (2013) – Kevin Gunn (2014) – Robert Kenney (2015)
  43. 43. 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
  44. 44. 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
  45. 45. 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
  46. 46. 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)
  47. 47. 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
  48. 48. 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
  49. 49. North Dakota – Legislative AssemblyHouse Senate• 69 Republicans • 35 Republicans• 25 Democrats • 12 Democrats• Republicans gain 11 seats • Republicans gain 9 seats• Leadership unlikely to • Leadership unlikely to change change• Held organizational session • Held organizational session December 6 – 8, 2010 December 6 – 8, 2010
  50. 50. North Dakota Public Service Commission• 3 Elected Members – Kevin Cramer, Chair (reelected in 2010) – Tony Clark (NARUC President) (2012) – Brian Kalk (2014)
  51. 51. 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”. – Ohios 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
  52. 52. 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.
  53. 53. Ohio – General AssemblyHouse Senate• 58 Republicans • 23 Republicans• 41 Democrats • 10 Democrats• Republicans gain 12 seats • Republicans gain 2 seats• Republicans gained control • No leadership change likely of House • It is currently unknown who• Public Utilities Committee the new chair Senate Public Utilities Committee will be.
  54. 54. 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)
  55. 55. 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
  56. 56. 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.
  57. 57. South Dakota – LegislatureHouse Senate• 48 Republicans • 30 Republicans• 21 Democrats • 5 Democrats• Republicans gain 3 seats • Republicans gain 9 seats• No leadership change likely • No leadership change likely
  58. 58. 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.
  59. 59. Wisconsin – Energy Efficiency• Energy Efficiency Resource Standards Statewide 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
  60. 60. 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.
  61. 61. Wisconsin – LegislatureGeneral Assembly Senate• 60 Republicans • 19 Republicans• 38 Democrats • 14 Democrats• 1 Independent • Republicans gain 4 seats• Republicans gain 15 seats • Republicans gain control of• Republicans gain control of Senate Assembly• Energy & Utilities Committee chaired by Rep. Mark Honadel of South Milwaukee
  62. 62. Public Service Commission of Wisconsin• 3 Members – Eric Callisto, Chairperson (2015) – Mark Meyer (2011) – Lauren Azar (2013)
  63. 63. QUESTIONS?
  64. 64. MGA Perspective Jesse Heier, Washington DirectorMidwestern Governors Association
  65. 65. 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.
  66. 66. 2007: Energy Security and Climate Stewardship 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.
  67. 67. 2009: Platform for Creating and RetainingMidwestern Jobs in the New Energy Economy Cooperative Regional Agreements 1. Midwestern Workforce and Economic Development Collaborative 2. Mapping the Regions 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
  68. 68. 2011: Investment PlatformIncreasing investment opportunities for Midwesternbusinesses. The Midwest has enormous energy resourcesto lead the nation in the new energy economy, as well as astrong manufacturing and agribusiness base. To fullyrealize this potential, substantial efforts must be taken toidentify and create new opportunities to bring funding to theregion.•Created by investors and state economic developmentprofessionals• Discussed at September 2010 investment meeting• Final Draft to be released in early 2011
  69. 69. Marty KushlerDirector, Utilities Program ACEEE
  70. 70. MEEA Policy Staff• Stacey Paradis, Director of External Relations – sparadis@mwalliance.org• Kevin Cullather, Senior Policy Manager – kcullather@mwalliance.org• Isaac Elnecave, Senior Policy Manager – ielnecave@mwalliance.org• Jessica Collingsworth, Policy Associate – jcollingsworth@mwalliance.org• Nathan Pepper, Policy Associate – npepper@mwalliance.org• Greg Ehrendreich, Research Analyst – gehrendreich@mwalliance.org

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