Revision: March 28, 2013, midnight
SB 148-FN – AS AMENDED BY THE SENATE
03/28/13 1069s
2013 SESSION
09/01
SENATE BILL 148-FN
AN ACT relative to electric renewable portfolio standards.
SPONSORS: Sen. Bradley, Dist 3; Sen. Boutin, Dist 16; Sen. Carson, Dist 14; Sen. Cataldo, Dist 6; Sen. Forrester, Dist 2; Sen. Fuller Clark, Dist 21; Sen. Odell, Dist 8; Sen. Woodburn, Dist 1; Rep. Chandler, Carr 1; Rep. Kaen, Straf 5; Rep. Pastor, Graf 12
COMMITTEE: Energy and Natural Resources
This bill make adjustments in the purchase percentage requirements and the alternative compliance payment amount and mechanism under the electric renewable portfolio standards law.
This bill also establishes a renewable portfolio standards study committee.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/28/13 1069s
13-0979
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT relative to electric renewable portfolio standards.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Minimum Electric Renewable Portfolio Standards. Amend RSA 362-F:3 to read as follows:
362-F:3 Minimum Electric Renewable Portfolio Standards. For each year specified in the table below, each provider of electricity shall obtain and retire certificates sufficient in number and class type to meet or exceed the following percentages of total megawatt-hours of electricity supplied by the provider to its end-use customers that year, except to the extent that the provider makes payments to the renewable energy fund under RSA 362-F:10, II:
2008 2009 2010 2011 2012 2013 2014 2015 2025
Class I 0.0% 0.5% 1% 2% 3% 4% 5% 6% 15% (*)
Class II 0.0% 0.0% 0.04% 0.08% 0.15% 0.2% 0.3% 0.3% 0.3%
Class III 3.5% 4.5% 5.5% 6.5% 6.5% [6.5%] 3.0% [7.0%] 3.0% 8.0% 8.0%
Class IV 0.5% 1% 1% 1% 1% 1.3% 1.4% 1.5% 1.5%
*Class I increases an additional 0.9 percent per year from 2015 through 2025. A set percentage of the class I totals shall be satisfied annually by the acquisition of renewable energy certificates from qualifying renewable energy technologies producing useful thermal energy as defined in RSA 362-F:2, XV-a. The set percentage shall be 0.2 percent in 2013, 0.4 percent in 2014, and increased annually by 0.2 percent per year from 2015 through 2025. Classes II-IV remain at the same percentages from 2015 through 2025 except as provided in RSA 362-F:4, V-VI.
2 Electric Renewable Energy Classes; Class I (New). Amend the introductory paragraph to RSA 362-F:4, I to read as follows:
I. Class I (New) shall include the production of electricity or useful thermal energy from any of the following, provided the source began operation after January 1, 2006 if a source of electricity and January 1, 2013 if a source of useful thermal energy provided that the thermal load had not previously been served by a renewable source, except as noted below:
3 Electric Renewable Energy Classes. Amend RSA 362-F:4, III to read as follows:
III. Class III (Existing Biomass/Methane) shall include the production of electricity from any of the following, provided the source began operation prior to January 1, 2006:
(a) Eligible biomass technologies having a gross nameplate capacity of 25 MWs or less.
(b) Methane gas.
(c) Municipal waste combustion, provided the technology does not have a gross nameplate capacity in excess of 6 MWs, is subject to and meets state law requirements limiting mercury emissions to a 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, and is interconnected with an electric distribution system located in New Hampshire.
4 Renewable Energy Fund; Rates RSA 362-F:10, III is repealed and reenacted to read as follows:
III.(a) Beginning in 2013, the commission shall adjust these rates by January 31 of each year using the Consumer Price Index as published by the Bureau of Labor Statistics of the United States Department of Labor for classes III and IV and 1/2 of such Index for classes I and II.
(b) In lieu of the adjustments under subparagraph (a) for class III in 2015, 2016 and 2017, the class rate in each of those years shall be $45.
(c) By January 31, 2018 the commission shall compute the 2018 class III rate to equal the rate that would have resulted in 2018 by the application of subparagraph (a) to the 2013 rate and each subsequent year’s rate to 2018.
(d) In 2019 and thereafter, the class III rate shall be determined by application of subparagraph (a) to the prior year’s rate.
5 New Paragraph; Renewable Energy Fund. Amend RSA 362-F:10 by inserting after paragraph IX the following new paragraph:
X. To the extent the moneys paid pursuant to paragraph II into the fund established under paragraph I exceed $4,500,000 in compliance year 2012, the commission shall rebate such excess to all retail electric ratepayers in the state on a per kilowatt-hour basis, in a timely manner to be determined by the commission.
6 Renewable Portfolio Standards Study Committee.
I. There is established a renewable portfolio standards study committee to study (i) whether to increase the class III alternative compliance rate for 2018 and any subsequent years, and (ii) the shortfall potential and reasons for the shortfall potential in the purchase percentage requirements of RSA 362-F:3, and (iii) creating a cap and rebate program for the renewable energy fund. The members of the committee shall be as follows:
(a) Two members of the senate who are members of the energy and natural resources committee, appointed by the president of the senate.
(b) Three members of the house of representatives who are members of the science, technology and energy committee, appointed by the speaker of the house of representatives.
II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.
III. The committee shall study (i) whether to increase the class III alternative compliance rate for 2018 and any subsequent years, and, if so shall propose any such changes for formula for change; (ii) the shortfall potential and reasons for the shortfall potential in the purchase percentage requirements in RSA 362-F:3, and may propose a mechanism to provide a credit or other after the fact adjustment device against potential alternative compliance payments when the purchase percentage has not been met due to eligible facilities selling into another jurisdiction’s renewable portfolio standard market; and (iii) whether to create a cap and rebate program for the renewable energy fund under RSA 362-F:10, I for future years.
IV. The committee shall solicit input from any individual or organization with relevant information or expertise.
V. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named senate member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Four members of the committee shall constitute a quorum.
VI. The committee shall report its findings and any recommendations for proposed legislation 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, 2013.
7 Effective Date. This act shall take effect 60 days after its passage.
LBAO
13-0979
Revised 02/05/13
SB 148 FISCAL NOTE
AN ACT relative to electric renewable portfolio standards.
FISCAL IMPACT:
The Department of Environmental Services and Public Utilities Commission state this bill, as introduced, will decrease state restricted revenues, and state, county, and local expenditures by an indeterminable amount in FY 2013 and each fiscal year thereafter. There will be no fiscal impact on county and local revenues.
METHODOLOGY:
The Department of Environmental Services and Public Utilities Commission state this bill changes certain requirements for renewable energy certificates and alternative compliance payments; limits the revenues to the renewable energy fund and designates excess revenues be refunded to electricity providers on behalf of customers; and establishes a committee to study future purchase percentage adjustment mechanisms. The Department notes the renewable energy fund derives its revenues from alternative compliance payments made by electricity providers in lieu of purchasing renewable energy certificates. The alternative compliance payments are set by statute and designed to provide a price ceiling for what electricity providers pay for renewable energy certificates. The Department states the proposed legislation decreases the requirement for Class III renewable energy certificates from 6.5% in 2013 and 7.0% in 2014 of total megawatt-hours of electricity produced by power providers to 5.5% in both years. The proposed legislation also designates the alternative compliance payments for Class III certificates be established at a minimum of $45 and a maximum of $55 beginning in 2015. As of December 31, 2012, the alternative compliance payments for Class III certificates is set at $31.50 and designated to be adjusted according to the consumer price index by January 31, 2013 and each year thereafter.
The Department states although the market for renewable energy certificates is regional, and the prices are dynamic and difficult to predict due to the influence of supply and demand in other states, the decrease in the requirements for the Class III certificates would correlate to a decrease in corresponding alternative compliance payments thereby reducing state restricted revenues. Assuming similar market conditions and pricing of Class III certificates in calendar years 2013 and 2014 as occurred during 2012, the Department estimates renewable energy fund revenues associated with alternative compliance payments for Class III certificates would decrease from $15.5 million (received in 2012), to $13.1 million in 2013, and to $11.9 million in 2014.
The Department states the subsequent increase in the alternative compliance payment in calendar years 2015 and 2016 would effectively raise the price ceiling on Class III certificates. The Department is unable to determine the fiscal impact, if any this would have on the renewable energy fund revenues. Although the decrease in the requirements for Class III credits and the subsequent increase in alternative compliance payments will affect the revenue to the renewable energy fund as described above, the proposed legislation also designates any revenues to the fund in excess of $6 million be refunded to the electricity providers on behalf of their customers. Accordingly, a portion of the refunded revenues would in turn be refunded to the state and its counties and municipalities thereby reducing state, county, and local expenditures. Although the Department cannot estimate the extent of the reduction in expenditures, the Department notes the state’s 2012 electricity costs were $11.2 million of which $372,000 (3.3%) is attributable to compliance costs incurred by the electrical providers and presumably passed onto the state.