1. MEEA Policy Webinar
The New Political
Landscape
for Energy Efficiency
December 13, 2010
(final)

2. Midwestern Governors
after 2010 Elections
Party Change
Jack Dalrymple*
No Change
Mark
Dayton
No Election
Scott
Dennis 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. Midwestern State Senates
after 2010 Elections
Ratios are
Majority: Minority
(vacant)
Previous Majority
(Republican)

4. Midwestern State Houses
after 2010 Elections
Ratios are
Majority:Minority
(:Independent)
Previous Majority
No State
House

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: R
January 2011

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. Other States have Higher Goals
2.00%
by 2015
2.50% 1.50%
2.00% 1.50% 2.00%
by 2017 by 2019 by 2019
current
2.00%
1.40% 1.50%
1.00%
current current
by 2012
1.50% 1.00% 0.70%
0.75%
current current
by 2012
0.40%
1.00%
current
0.50%
0.00% Michigan
Kentucky
Missouri
Ohio
Illinois
Kansas
Indiana
Wisconsin
Minnesota
South Dakota
Nebraska
North Dakota
Iowa

8. Current and Planned Decoupling
Decoupling
Authorized
Pilot Projects
gas electric

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. 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. 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. Illinois – Governor
Pat Quinn (D)
• Elected to a full term in 2010
• Founded the Citizens Utility Board
• Supports Energy Efficiency

13. Illinois – General Assembly
House 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. 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. 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. 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. Indiana – General Assembly
House 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. 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. 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. 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. Iowa – General Assembly
House 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. Iowa Utilities Board
• 3 Members
– Robert Berntsen, Chair (2015)
– Krista Tanner (2011)
– Darrell Hanson (2013)

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. 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. Kansas – Legislature
House 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. Kansas Corporation Commission
• 3 Members
– Thomas Wright, Chair (2014)
– Ward Lloyd (2012)
– Joseph Harkins (last day is December 23, 2010)

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. 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. Kentucky – General Assembly
House 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. Kentucky Public Service
Commission
• 3 Members
– David Armstrong, Chairman (2011)
– James Gardner, Vice Chairman (2012)
– Charles Borders (2013)

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. 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. Michigan – Legislature
House 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. Michigan Public Service
Commission
• 3 Members
– Orjiakor Isiogu, Chairman (2013)
– Monica Martinez (2011)
– Greg White (2015)

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. 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. Minnesota – Legislature
House 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. 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. 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. 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. Missouri – General Assembly
House 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. Missouri Public Service
Commission
• 5 Members
– Robert Clayton, Chair (2015)
– Jeff Davis (2012)
– Terry Jarrett (2013)
– Kevin Gunn (2014)
– Robert Kenney (2015)

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. 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. 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. 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. 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. 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. North Dakota – Legislative Assembly
House 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. North Dakota Public Service
Commission
• 3 Elected Members
– Kevin Cramer, Chair (reelected in 2010)
– Tony Clark (NARUC President) (2012)
– Brian Kalk (2014)

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”.
– 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

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. Ohio – General Assembly
House 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. 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. 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. 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. South Dakota – Legislature
House 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. 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. 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. 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. Wisconsin – Legislature
General 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. Public Service Commission of
Wisconsin
• 3 Members
– Eric Callisto, Chairperson (2015)
– Mark Meyer (2011)
– Lauren Azar (2013)

63. QUESTIONS?

64. MGA Perspective
Jesse Heier, Washington Director
Midwestern Governors Association

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. 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. 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

68. 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

70. Marty Kushler
Director, Utilities Program
ACEEE

71. 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