HB1690 (2006) Detail

Relative to renewable energy.


HB 1690 – AS AMENDED BY THE SENATE

04/20/06 1931s

05/04/06 2159s

05/04/06 2210s

2006 SESSION

06-3016

03/04

HOUSE BILL 1690

AN ACT relative to renewable energy and making a capital appropriation to the department of health and human services for a dental facility in the town of Tamworth.

SPONSORS: Rep. Slocum, Hills 6; Rep. Harvey, Hills 21

COMMITTEE: Science, Technology and Energy

AMENDED ANALYSIS

This bill:

I. Authorizes electric utilities to offer a renewable energy default service option.

II. Authorizes the use of energy efficiency system benefits charge funds for renewable energy programs.

III. Requires the public utilities commission to open a docket relating to power from generators employing wood-fired energy.

IV. Makes a bonded appropriation for the construction of a dental facility as part of the Tri-County Community Action Program.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

04/20/06 1931s

05/04/06 2159s

05/04/06 2210s

06-3016

03/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to renewable energy and making a capital appropriation to the department of health and human services for a dental facility in the town of Tamworth.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Electric Utility Restructuring; Renewable Energy Option; Default Service. Amend RSA 374-F:3, V(f) to read as follows:

(f)(1) A utility may, at its discretion, allow its customers to choose a renewable energy transition or default service option from one or more options, as approved by the commission. A renewable energy transition or default service option should have either all or a portion of its service attributable to a renewable energy component, with any remainder filled by standard transition or default service. Costs associated with the renewable energy component should be paid for by those customers choosing to take the renewable energy transition or default service option; the price of the renewable energy component shall be approved by the commission.

(2) The renewable energy component should be composed of the purchase of electricity from generation sites powered by renewable energy and located within the ozone transport region (Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Virginia) or, as approved by the commission in consultation with the department of environmental services, the purchase of various forms of renewable energy certificates or emission credits, allowances, or certificates attributable to such generation sites, but acquired separately from the electricity produced. Renewable energy certificates administered by the Independent System Operator-New England should be considered at least one form of certification that is acceptable under this program.

(3) For purposes of subparagraph (f), "renewable energy'' means geothermal energy, tidal or wave energy, wind energy, solar thermal energy, photovoltaic energy, landfill gas energy, hydro energy, biomass energy, or combusted municipal waste energy where mercury emissions are reduced to an emission rate of 0.028 milligrams per dry standard cubic meter or less corrected to 7 percent oxygen by volume on a dry basis, or at least 85 percent control efficiency.

(4) A utility that is required by statute to provide transition or default service from its generation assets should use any of its owned generation assets that are powered by renewable energy for the provision of standard transition service or standard default service, rather than for the provision of a renewable energy component.

(5) Utilities offering renewable energy transition or default service options should insert educational materials in their normal mailings to their customers that explain the renewable energy transition or default service options being offered and the health and environmental benefits associated with them. Such educational materials should be compatible with any environmental disclosure requirements established by the commission.

(6) For purposes of consumer protection and the maintenance of program integrity, reasonable efforts should be made to assure that the renewable energy component of a renewable energy transition or default service option is not separately advertised, claimed, or sold as part of any other electricity service or transaction.

2 Electric Utility Restructuring; System Benefits Charge; Renewable Energy. Amend RSA 374-F:3, VI to read as follows:

VI. BENEFITS FOR ALL CONSUMERS. Restructuring of the electric utility industry should be implemented in a manner that benefits all consumers equitably and does not benefit one customer class to the detriment of another. Costs should not be shifted unfairly among customers. A nonbypassable and competitively neutral system benefits charge applied to the use of the distribution system may be used to fund public benefits related to the provision of electricity. Such benefits, as approved by regulators, may include, but not necessarily be limited to, programs for low-income customers, energy efficiency programs including programs that offer renewable energy technologies, funding for the electric utility industry's share of commission expenses pursuant to RSA 363-A, support for research and development, and investments in commercialization strategies for new and beneficial technologies.

3 New Section; Electric Utility Restructuring; Wood-Fired Generation Project. Amend RSA 374-F by inserting after section 8 the following new section:

374-F:9 Wood-Fired Generation Project. By July 1, 2006 the commission shall open a docket to determine whether it is in the public interest to provide power of up to 60 megawatts to standard default service customers of one or more electric utilities and/or to a renewable default service option available to customers of one or more electric utilities, from generators that employ renewable wood-fired energy, and that are proximate to or benefiting the northern forests of the state. The commission shall issue a request for proposals (RFP) not later than August 1, 2006. The commission and its staff may consult with the department of resources and economic development in developing an RFP and in the analysis of responses, with regard to the possible economic benefits of proposals. The commission may employ an independent consultant with relevant expertise to assist in the preparation, issuance, or evaluation of an RFP. The commission shall make a determination as to which, if any, proposal is approved as being in the greatest public interest. In determining the public interest the commission shall seek a sound balance between the interests of default service retail customers and the economic, energy, and environmental interests of the region and the state, including costs, benefits, and risks, provided the ratepayer’s participation shall not exceed 50 percent for both the cost and benefit of a proposal. Within 30 days after a final determination by the commission of which, if any, proposal is approved, the fiscal committee of the general court may act to disapprove and cancel the commission determination. If no such action is taken with notice filed at the commission within such 30 days, the commission is authorized to issue such orders as are necessary to support implementation of the approved proposal. Recovery of costs for the selected proposal, if applicable, shall be limited to standard default service customers or renewable default service customers, or through bilateral agreements with the state or other customers, and not through transmission and distribution rates or stranded cost charges, or from any customers once they cease to take default service, provided that the entities providing the foregoing services shall have the obligation to purchase the power under the selected proposal or proposals. Any agreement with the state to purchase such power directly or through renewable default service shall be subject to prior approval of the fiscal committee of the general court. Notwithstanding other provisions of law to the contrary, any electric utility may build, acquire, or contract for energy and capacity for such wood-fired generation assets described in this section, subject to participation in the RFP, approval by the commission, and the cost recovery limitations stated herein.

4 Purpose. The state of New Hampshire recognizes the importance of good oral health for all citizens. Many low to moderate income people on Medicaid and Medicare find it difficult to access dental care in the state of New Hampshire, especially emergency oral health care. Some of the federal programs for basic dental care in the public schools have had their funding reduced. The federal court case of Hawkins v. Commissioner filed in 1999 and settled in 2004 involved a 6-year-old girl denied oral health care as a Medicaid recipient. The settlement of the lawsuit cost the state a few million dollars and required the state department of health and human services to spend more time and money to assist low income families in finding dentists. The department makes annual progress reports to the New Hampshire attorney general’s office on oral health status in the state which are available for review by the federal court. This act provides assistance to the towns of Carroll County which have no dental clinic center for treating Medicaid patients, uninsured persons, or participants in the Healthy Kids program, the nearest facility being in Exeter. The construction of the facility with the funds appropriated by this act are intended to alleviate the oral health crisis in this state.

5 Capital Appropriation to the Department of Health and Human Services for Dental Facility; Bonds Authorized.

I. For the purpose of state participation in building a dental facility as part of the Tri-County Community Action Program, there is hereby appropriated to the department of health and human services the sum of $400,000, which shall be matched with $780,000 of federal and local funds. Such funds shall be in addition to any other funds appropriated to the department of health and human services.

II. To provide funds for the state appropriation made in paragraph I, the state treasurer is hereby authorized to borrow upon the credit of the state not exceeding the sum of $400,000 and for said purpose may issue bonds and notes in the name of and on behalf of the state of New Hampshire in accordance with RSA 6-A. Payments of principal and interest on the bonds and notes shall be made from the general fund of the state.

6 Effective Date.

I. Sections 4 and 5 of this act shall take effect July 1, 2006.

II. The remainder of this act shall take effect upon its passage.