HB 269-FN – AS INTRODUCED
2009 SESSION
08/04
HOUSE BILL 269-FN
AN ACT requiring measurement of carbon dioxide produced and sequestered in this state.
SPONSORS: Rep. Kurk, Hills 7; Rep. Itse, Rock 9; Rep. Introne, Rock 3
COMMITTEE: Science, Technology and Energy
This bill requires a measurement of carbon dioxide produced and sequestered in this state.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0130
08/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT requiring measurement of carbon dioxide produced and sequestered in this state.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 In-State Carbon Dioxide Production and Sequestration Measurement; Request for Proposals.
I. Notwithstanding any other provision of law, the committee established in section 2 of this act shall develop and issue a request for proposals to measure, on a statewide basis, the amount of carbon dioxide produced in this state and the amount of carbon dioxide sequestered in this state by all green growth (including grass, trees, shrubs, vines, and crops) and all water bodies (including streams, ponds, lakes, rivers, and oceans considered New Hampshire waters).
II. All responses to the request for proposals developed under this act shall be made by bidders with credible scientific and/or engineering credentials.
III. All responses to the request for proposals developed under this act shall be reviewed by the committee established in section 2 of this act.
IV. The committee shall select a proposal from those submitted by November 1, 2009.
V. The ensuing contract awarded from the selected proposal shall be funded from the greenhouse gas emissions reduction fund established in RSA 125-O:23.
VI. In order to facilitate the measurement of in-state carbon dioxide production and sequestration, the following state resources shall be made available to the successful bidder:
(a) Data on gasoline, fuel oil, and fuel gas entering the state.
(b) Aerial photographs capable of showing forest cover and tree height.
(c) Data on human and animal populations.
VII. The successful bidder shall complete the measurement of in-state carbon dioxide production and sequestration by June 30, 2010.
VIII. If the completed measurement demonstrates that in-state carbon dioxide sequestration is greater than all in-state carbon dioxide production, the state shall suspend any charges for in-state producers as required by RSA 125-O:22. Excess carbon sequestration shall be sold as carbon dioxide offset allowances under RSA 125-O:21.
2 Committee Established.
I. There is established a committee for the purpose of reviewing responses to the request for proposals and selecting a proposal relative to measuring the amount of carbon dioxide produced and sequestered in this state.
II. The committee shall consist of the following members:
(a) One representative, appointed by the speaker of the house of representatives.
(b) One senator, appointed by the president of the senate.
(c) An air quality scientist, appointed by the commissioner of the department of environmental services.
(d) A compliance officer, appointed by the commissioner of the department of transportation.
(e) An agronomist, appointed by the commissioner of the department of agriculture, markets, and food.
III. The members of the committee shall elect a chairperson from among its members. Legislative members shall receive mileage at the legislative rate when attending to the duties of the committee.
3 Report on In-state Carbon Dioxide Production and Sequestration. The chair of the committee established in section 2 of this act shall submit, along with any agreement or contract submitted under section 1 of this act, a report on the results of the measurement of in-state carbon dioxide production and sequestration and recommendations for any appropriate statutory changes to RSA 125-O as a result of the measurement, to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2010.
4 Greenhouse Gas Emissions Fund; Measurement Costs. Amend RSA 125-O:23, II to read as follows:
II. Fund moneys shall be used to support energy efficiency, conservation, and demand response programs to reduce greenhouse gas emissions generated within the state, which may include programs proposed and administered by private entities, as well as by the department, the commission, and other state and local governmental agencies. Such programs may include, but not be limited to, improving the electrical and thermal energy efficiency of New Hampshire’s residential housing and commercial building stock via weatherization, energy auditing, energy efficiency related work force training and development, revolving loan funds for efficiency related investment, related industrial process and control systems, integration of passive solar heating and ventilation systems, and efforts to increase adherence to energy related building and electrical codes. Such funds shall also be used to pay for in-state carbon dioxide production and sequestration measurement to be completed by June 30, 2010. These funds shall not be transferred or used for any other purpose.
5 Effective Date. This act shall take effect 60 days after its passage.
LBAO
09-0130
12/29/08
HB 269-FN - FISCAL NOTE
AN ACT requiring measurement of carbon dioxide produced and sequestered in this state.
FISCAL IMPACT:
The Department of Environmental Services states this bill will increase state, county, and local expenditures and decrease state, county, and local revenues by an indeterminable amount in FY 2009 and each year thereafter.
METHODOLOGY:
The Department states this bill would require a committee to issue a request for proposal (RFP) and select a proposal for a greenhouse gas emissions inventory using monies from the greenhouse gas emissions reduction fund. The Department collects data on carbon dioxide production and sequestration for public use, and assumes an RFP for a contract for measurement of this data would not be necessary. The Department assumes regular reporting would require additional staff time, and related administrative costs could be charged to the greenhouse gas emissions reduction fund.
The Department assumes if the state suspends charges for in-state carbon dioxide producers, New Hampshire would no longer be in compliance with the Regional Greenhouse Gas Initiative Memorandum of Understanding, and it is highly likely the other participating states would no longer recognize New Hampshire’s allowances. If allowances are not recognized, auction revenues will not be collected. The Department assumes state, county, and local governments account for approximately 6% of the total sales of electricity, and are therefore eligible for 6% of the auction revenues to be used for energy efficiency programs. The Department is unable to determine how much of the foregone energy efficiency projects would be attributable to state government versus local or county government, however, total forgone revenues for state, county, and local government may be $300,000 in FY 2009, $1,300,000 in FY 2010, $2,270,000 in FY 2011, $2,980,000 in FY 2012, and $2,870,000 in FY 2013.
The Department states all of the state’s utilities purchase competitively generated power from the New England market. Therefore, if the state does not participate in RGGI but other New England states continue to participate, New Hampshire utilities would still experience the increased cost of RGGI in regional wholesale power prices. The Department is unable to determine how much the increased energy costs would impact state expenditures versus local or county expenditures, however, total increased electricity costs to state, county, and local government may be $100,000 in FY 2009, $420,000 in FY 2010, $420,000 in FY 2011, $660,000 in FY 2012, and $900,000 in FY 2013.