Powering the West Through a Reliable Energy Grid

Westrends Board Recap:

Co-Chairs, New Mexico Senator Liz Stefanics and Wyoming Representative Landon Brown would like to thank Hawaii Senator Lynn DeCoite and Montana Senator Mike Cuffe, who both agreed to introduce the speakers and facilitate the discussion on this very important topic, and to recognize and thank the speakers below who brought their expertise to share and especially Alaska Representative Sara Hannan, one of the committee’s members, who kindly agreed to co-facilitate the session with MLA Hunter.  

Hawaii Senator Lynn DeCoite and Montana Senator Mike Cuffe

A growing number of utilities join Regional Transmission Organizations (RTOs) for better planning

Rikki Seguin, Executive Director of Interwest Energy Alliance, explained that a Regional Transmission Organization (RTO) is an electric power transmission operator that coordinates, controls, and monitors a regional electric grid and is a critical tool for planning transmission. Seven RTOs and Independent System Operators (ISOs) nationwide cover two-thirds of the electricity consumed. Though states must maintain grid reliability and keep costs low, there is a need for more renewables and transmission lines, given that 80% of energy use in the West aligns with state-driven decarbonization policies.

Regulatory proceedings and state mandates in Western states are advancing progress toward RTOs. Colorado and Nevada have passed legislation signed by their Governors requiring utilities to join an RTO by 2030.

Suitable RTO structures are needed to enable grid reliability  

Vijay Satyal, Deputy Director of Regional Markets at Western Resource Advocates, worked in both Virginia and Oregon, first as Virginia’s Department of Environmental Quality’s first policy economist and later as a senior policy analyst at the Oregon Department of Energy, where he advised the Governor’s Office on renewable energy and emerging grid technologies. Independence is one of the critical components Vijay highlighted; an independent and transparent board is pivotal for utilities to join. A model that is not profit-minded so costs can remain low and that creates consistent rules of the game for market operations. Investments in transmission and future needs are also necessary.

“A board that is independent and transparent is pivotal for utilities to join.”

Vijay Satyal, Deputy Director of Regional Markets, Western Resource Advocates

The Western Electricity Coordinating Council (WECC) provides resource-neutral grid reliability across the western region

Kris Raper is Vice President of Strategic Engagement & External Affairs; she coordinates and oversees engagement with the resource-neutral Western Electricity Coordinating Council (WECC’s) strategic partners and stakeholders. Her background as commissioner for the Idaho Public Utilities Commission and as one of two Western representatives on the Federal Energy Regulatory Commission (FERC) gives her a unique perspective.

Kris recalled the 2003 Northeast blackout that extended to the Midwestern United States and most parts of the Canadian province of Ontario in August. While this should have been a manageable situation, it was not due to an inability to redistribute energy loads. The Energy Policy Act in 2005 directly resulted from this event as the need to ensure reliability and transmission became priorities. WECC is a non-profit corporation that FERC has approved as the Regional Entity for the Western Interconnection, which includes 14 Western States, 2 Canadian Provinces, and Northern Baja California. She, too, agrees that governance is central to how RTOs operate.

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Enhancing Reforms in Public Safety: Juvenile Justice

Public Safety Committee Recap:

Alaska Senator Matt Claman, co-chair of the CSG West Public Safety Committee, was graciously joined by Washington Senator Jesse Salomon. CSG West thanks Senator Salomon for stepping in to present legislative efforts and co-facilitate the session.

Addressing gaps in juvenile justice to identify a path forward 

Ben Eikey, Levin Center for Oversight and Democracy, and Senator Jesse Salomon (WA) presented data and legislative perspectives on juvenile justice reform, including:

  • Reducing juvenile incarceration rates
  • Increasing diversion from the juvenile justice system
  • Reducing recidivism
  • Addressing mental and behavioral health issues
  • Increasing data sharing
Left to right: Speaker Ben Eikey and Alaska Senator Jesse Salomon.

Eikey provided a historical perspective going back to the 1990s when there was a growing nationwide sentiment to be tough on crime. Following this period, there was a rampant increase in trying 16 and 17-year-olds as adults. Texas even created a maximum-security prison for juveniles. Approximately 4,000 youths were in detention centers for low-level offenses such as delinquency, skipping school, and petty theft. In 2006, state legislatures began hearing testimony, including the impact on the mental health and suicide rates of juveniles incarcerated in adult prisons.

A trajectory of progress: Connecticut case study

In Connecticut, a joint bipartisan committee was dedicated solely to evaluating policies related to the juvenile justice system, including recommendations on how to reduce juvenile incarceration rates, increase diversion from the juvenile justice system, reduce recidivism, and address mental and behavioral health issues. 

Between 2015 and 2018, enacted legislation eliminated mandatory minimums for low-level drug offenses, strengthened visitation policies for all prisoners with children under age 18, raised the age of juvenile justice jurisdiction to 21, prohibited discrimination in employment, housing, public education, insurance, and government program and services based on criminal history. View their dashboard here to track progress and legislation.

Senator Salomon shared Washington House Bill 1324 concerning scoring prior juvenile offenses in sentencing range calculations. The bill intended to enact the juvenile justice system’s goals of rehabilitation and reintegration. Some of those goals included bringing Washington in line with most states that do not consider prior juvenile offenses in sentencing range calculations for adults. The reason for not doing so is the expansive body of scientific research on brain development. Specifically, an adolescent’s perception, judgment, and decision-making differ significantly from that of adults. Another reason is facilitating due process within the juvenile court system. Members expressed great interest in this legislation and shared their states’ efforts and experiences addressing it.

Improving Outcomes for Youth (IOYouth) – CSG Justice Center

The CSG Justice Center provides valuable juvenile justice resources. The Improving Outcomes for Youth (IOYouth) works with state and local jurisdictions to align their policies, practices, and resource allocation with what research shows works to reduce recidivism and improve outcomes for youth while enhancing public safety. You can access many resources here: CSG Improving Youth Outcomes Program Juvenile Justice Equity Dashboard.

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Decoding School Funding Formulas

Education Committee Recap

In today’s educational landscape, it is crucial to comprehend the mechanisms that underpin school funding. Presenters Michael Griffith and Justin Silverstein guided audience members through a comprehensive examination of school funding formula structures, including attributes of a high-quality formula, variations in funding across states, and emerging issues in school finance.

Speaker Justin Silverstein discussing emerging issues in school funding.
Education funding ranges considerably

The composition of K-12 funding reflects a national average distribution—42.5% local, 44.3% state, and 13.2% federal for the fiscal year 2021-22. Notably, disparities emerge when examining state-level variations, with local funding ranging from 2.0% to 61.7%, state funding from 29.5% to 85.4%, and federal funding from 6.5% to 24.0%.

“Notably, disparities emerge when examining state-level variations, with local funding ranging from 2.0% to 61.7%, state funding from 29.5% to 85.4%, and federal funding from 6.5% to 24.0%.”

-Michael Griffith, Senior Researcher and Policy Analyst at Learning Policy Institute

Predictability ensures administrators can anticipate funding changes 

The core of school funding lies in the formulation of a funding formula where primary and categorical funding sources intersect. High-quality funding formulas aspire to be adequate and equitable but also flexible, adaptable, and predictable. The emphasis on predictability ensures that administrators can anticipate funding changes based on shifts in student populations.

 

Adaptability in funding formulas comes with a cautionary note–as policy choices increase, the flexibility available to districts diminishes 

Foundation formulas, a prevalent approach, multiply a foundation amount by a weighted student count to determine total funding. This foundation amount varies across states, ranging from $4,015 to $11,525, and can be determined based on research, past expenditures, educational inputs, or the state’s financial capacity. Funding weights are additional resources allocated to high-need student groups like at-risk or special education students. The formula’s final step involves dividing total foundation funding by a district’s ability to pay, yielding state foundation funding.

The widespread adoption of foundation formulas stems from their practicality, offering states and districts an easily adjustable mechanism that balances educational objectives with economic realities. Yet, this adaptability comes with a cautionary note – as policy choices increase, the flexibility available to districts diminishes, emphasizing the delicate balance between standardization and local autonomy in the pursuit of effective school funding.


 
“Costing Out Studies” can determine resources for students to meet standards 

Emerging issues in school funding include Costing Out Studies, which determine resources needed for students to meet state standards, and debates on prescriptive targeted funds for special needs populations. Approaches like “professional judgment,” “evidence-based,” “education-cost function,” and “successful school districts” offer varying perspectives and methodologies in implementing these studies.

Professional Judgment Approach

The Professional Judgment Approach relies on educators’ insights, adapting to state standards but lacking a specific tie to current performance outcomes, causing skepticism among stakeholders.

Evidence-Based Approach

The Evidence-Based Approach delves into academic research, creating prototypes reviewed by state-level educators. While research-based, it may lack state-specific context.

Education Cost Function Approach

The Education Cost Function Approach establishes a link between costs and outcomes through state-collected data, requiring high-quality data but offering a strong empirical foundation.

Successful School Districts Approach

The Successful School Districts Approach analyzes resource models of high-performing schools, providing a clear link between costing out results and performance, albeit with limitations on estimating special needs populations.

Multiple Approaches

Using multiple approaches allows triangulation of results and enhanced analysis. Prescriptive Funding Policies involve balancing flexibility and interventions, with some states imposing guardrails and specific requirements, such as Nevada and Maryland. At-Risk/Poverty Counts have evolved, with direct certification and census block data gaining prominence to identify students’ needs accurately. The landscape reflects a complex interplay of methodologies and policies aimed at ensuring equitable and effective school funding.

Colorado Representative Jennifer Bacon facilitating the Education Committee session.

Legislators discuss school funding

A diverse panel of Western legislators related school funding topics to their respective states, sharing challenges, opportunities, and insights. Panelists included:

Alaska Representative Alyse Galvin
Member, House Finance Committee
California Assemblymember Al Muratsuchi
Chair, Assembly Committee on Education
Nevada Senator Marilyn Dondero Loop
Chair, Senate Finance Committee
Washington Representative Kristine Reeves
Co-Sponsor, HB 1436, Funding Special Education
Washington Senator Claire Wilson
Chair, Senate Human Services Committee
Vice-Chair, Senate Early Learning & K-12 Education Committee
Left to right: Alaska Representative Alyse Galvin, California Assemblymember Al Muratsuchi, Nevada Senator Marilyn Dondero Loop, and Washington Senator Claire Wilson
Adequately funding institutional education

Among the many topics highlighted, Senator Claire Wilson discussed efforts to fund institutional education within Washington’s juvenile justice system. Acknowledging historic K-12 investments following the state’s 2018 McCleary decision, she conversely described a critical lack of funding for justice-involved youth students.

Notably, Senator Wilson shared that most students in Washington’s institutional facilities qualify for an Individualized Education Program (IEP), therefore necessitating special education services.

As co-chair of Washington’s Joint Select Committee on Governance and Funding for Institutional Education, Wilson detailed current and upcoming committee work to address shortfalls in institutional funding. The committee is tasked with examining and evaluating revisions to statutes, funding formulas, funding sources, and operating and capital budget appropriation to assign delineated basic education responsibilities to the Office of the Superintendent of Public Instruction. With a special focus on adequately funding juvenile justice students, the Select Committee will be reporting back to the Governor and the Legislature by December 1, 2024.


Teacher retention and inflationary challenges

Representative Alyse Galvin described Alaska’s teacher retainment challenges, contending that reinstatement of a defined benefit retirement program would support enhanced retention. Following the state’s switch from defined benefits to a defined contribution, Galvin asserts that significant numbers of educators complete their training years in Alaska, then transfer their portable retirement account to a new state for further career building.

Representative Galvin also highlighted the inflationary impact on Alaska’s K-12 funding. She provided data illustrating the Base Student Allocation (BSA) from fiscal years 2012-2023, in which the BSA of $5,930 in FY23 has a FY12 value of $4,776 when adjusted for inflation. With the actual 2012 BSA of $5,680, Galvin emphasized the added strain inflation has placed on current resource allocation, asserting that education budget considerations must reflect rising costs.

At the centerpiece of her comments, Galvin maintained that building greater “trust” among the legislature, executive branch, school districts, and educators is paramount for effectively funding student education.


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Michigan’s new clean energy laws include a 100 percent clean energy goal, but what does that mean in practical policy?

Among an early-November blizzard of clean energy-related bills approved by Michigan legislators is one requiring electric utilities to source 100 percent of electricity generation from renewable sources by 2040.

Signed by Gov. Gretchen Whitmer, SB 271 makes Michigan the third Midwestern state to set a 100 percent clean energy standard in statutory stone — joining Illinois and Minnesota — and the 17th nationwide to do so. Four other states, including Wisconsin, have declared 100 percent clean energy goals by an executive order.Map of Midwestern states with 100 percent clean energy goals or standards as of November 2023

SB 271 also sets a statewide energy storage requirement of 2.5 gigawatts of utility-scale battery capacity by 2030 to store wind and solar power, making Michigan the second Midwestern state (after Illinois) to do so. The new law is part of a five-bill package that codifies myriad provisions in Whitmer’s September 2020 executive order that called for a completely carbon-neutral state economy by 2050.

Others will likely be part of legislation in 2024, says SB 271’s main sponsor, Michigan Sen. Sam Singh.

“We wanted to be able to codify a lot of those ideas [in Whitmer’s order],” Singh says. “A lot of states have begun the process of working toward 100 percent clean energy, this provides stronger guidelines to our utilities and a more aggressive timeline.”

That timeline includes an interim benchmark of 80 percent clean energy-sourced electricity by 2035.

To meet the storage goal, utilities must petition the Michigan Public Service Commission by the end of 2029 for approval to build storage facilities, along with plans to build them.

Each utility’s share of the statewide storage capacity total will be based on its annual average contribution to Michigan’s in-state electric load for the five-year period immediately preceding the filing of those plans.

Michigan’s new law is similar to Illinois’ 2021 Clean Energy & Jobs Act and Minnesota’s 2023 energy omnibus bill.Table of electricity generation by fuel type in Midwestern states for 2022

Illinois’s law (SB 2408) includes interim benchmarks of 40 percent by 2030 and 50 percent by 2040, and directs the Illinois Commerce Commission to set energy storage goals to be met by 2032 for all utilities serving more than 200,000 customers.

Minnesota’s SF 4 sets an interim of 80 percent by 2030 and raises the state’s renewable portfolio standard — the amount of electricity that must be generated by renewable technologies — to 55 percent by 2035, but doesn’t set energy storage requirements.

Clean energy goals are the latest development from a trend that began in 1983, when Iowa enacted the nation’s first renewable portfolio standard.

Minnesota adopted one in 1994, Wisconsin in 1998, then Illinois in 2007 and both Michigan and Ohio in 2008, and Kansas in 2009.

Why set clean energy standards?

Setting clean energy goals or standards in law is important because they give clear direction to utilities and energy developers, says Warren Leon, executive director of the Clean Energy States Alliance, a bipartisan coalition of energy agencies in 18 states that advocates for the rapid expansion of clean energy technologies.

A law is more permanent than an executive order, thus it signals to energy markets that your state has better stability in its renewable energy sector, Leon adds.

Michigan Sen. Sean McCann, chair of the Senate Energy & Environment Committee, says legal standards also ensure an energy transition actually happens. While the state’s two biggest utilities (DTE Energy and Consumers Energy) are working aggressively to meet self-set clean energy goals, legislators weren’t inclined to leave that to them alone, he says.

“We can’t leave things to hope and wishes,” McCann says.Map of Midwestern states' renewable energy portfolios or clean energy standards as of June 2023

Singh agrees, adding Michigan’s version provides flexibility by letting the Public Service Commission review and extend deadlines if it determines circumstances warrant a delay.

Another bill signed into law, HB 5120, wasn’t part of this legislative package, but is related.

Like Illinois’ new siting law (HB 4412), it shifts siting authority for wind, solar and energy storage projects from local governments to the state (the Michigan Public Service Commission) and bars local jurisdictions from imposing requirements more restrictive than those in state law.

“There was a strong sense that we needed to review our siting process” and treat renewable energy infrastructure the same as other critical energy infrastructure like pipelines, Singh says.

Of all Midwestern states, Illinois has the shortest path to 100 percent clean energy — if clean energy is defined as not carbon-based, which would include nuclear power. In that case, 66.4 percent of electricity generation in Illinois was fueled by clean energy in 2022, according to the U.S. Energy Information Administration.

While the definition of clean energy varies from state to state, Leon says its definitions generally fit within a framework of decarbonization.

“We say we want to help you learn from other states, we want to help you learn about best practices, we want to help you be successful,” he says, “but it’s your decision on how to proceed and which direction you choose to go.”


NEW LAWS IN MICHIGAN’S ‘CLEAN ENERGY FUTURE’ LEGISLATIVE PLAN

  • SB 273 limits energy waste benchmarks to 1.5 percent of the previous year’s total megawatts for electric utilities and 0.875 percent for natural gas utilities (starting in 2026).
  • SB 277 allows farmers to use land for solar projects without jeopardizing state income tax credits under Michigan’s Farmland & Open Space Preservation program.
  • SB 502 requires the Michigan Public Service Commission to approve financial incentives for utilities to sign power purchase agreements with third parties for clean energy or energy storage.
  • SB 519 creates the Community & Worker Transition Office in the Department of Labor & Economic Opportunity to help workers and communities shift from fossil fuels to renewable energy resources. 

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Artificial Intelligence in the States: Emerging Legislation

Since 2019, 17 states have enacted 29 bills focused on regulating the design, development and use of artificial intelligence. These bills primarily address two regulatory concerns: data privacy and accountability. Legislatures in California, Colorado and Virginia have led the way in establishing regulatory and compliance frameworks for AI systems.

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Artificial Intelligence in the States: Challenges and Guiding Principles for State Leaders

For years now, the use of artificial intelligence has been ingrained into the everyday lives of Americans through iPhones, social media and even email platforms. A 2018 study by OpenAI revealed the amount of computational power used for AI training has doubled every year since 2012. Due to AI’s rapid advancement, state policymakers must determine how their states must address the significant regulatory challenges posed by AI.

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Artificial Intelligence in the States: Harnessing the Power of AI in the Public Sector

As AI systems advance, concerns grow regarding the safety and effectiveness of these tools as well as the potential impacts of these systems on the workforce and the economy. Although private sector uses of AI garner much attention, these systems are also used by the public sector to streamline service provision and support public officials in fields such as law enforcement, elections, transportation, public finance and government administration.

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The CSG Henry Toll Fellowship: Toll Fellows on the Impact of the Program 

 Since 1986, the Henry Toll Fellowship has been an essential part of CSG outreach initiatives. The annual gathering has strived to accelerate growth for each selected participant in their roles as state leaders and public servants. To date, the Henry Toll Fellowship program has vetted more than 1,370 alumni that have gone on to illustrious careers in public policy and beyond.

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A Q&A with Douglas Brinkley

CSG welcomes Douglas Brinkley as its plenary speaker at the 2023 CSG National Conference in Raleigh, North Carolina. Brinkley is a presidential scholar and history professor at Rice University. He joined CSG ahead of the conference to discuss his personal history and what studying presidents teaches us about leadership.

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Celebrating 90 Years of Advancing the Common Good

On Oct. 22, 1933, as many as 15 state legislators convened at the Penn Harris Hotel in Harrisburg, Pennsylvania, as part of a shared interest in introducing harmony among the states. CSG Executive Director/CEO David Adkins addressed this meeting and the growth of CSG in a message recognizing the organization’s 90th birthday.

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