HB1660 (2016) Detail

(Second New Title) relative to appraisals of residential property, a residential owner option in a partial taking, and relocation, temporary housing, and legal expenses in eminent domain proceedings for gas pipelines; relative to intervention by the site evaluation committee in such proceedings; and relative to expenditures from the energy efficiency fund.


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HB 1660-FN-LOCAL - AS AMENDED BY THE SENATE

9Mar2016... 0677h

04/28/2016   1545s

04/28/2016   1580s

2016 SESSION

\t16-2072

\t10/03

 

HOUSE BILL\t1660-FN-LOCAL

 

AN ACT\t relative to appraisals of residential property, a residential owner option in a partial taking, and relocation, temporary housing, and legal expenses in eminent domain proceedings for gas pipelines; relative to intervention by the site evaluation committee in such proceedings; and relative to expenditures from the energy efficiency fund.

 

SPONSORS:\tRep. J. Belanger, Hills. 27; Rep. Flanagan, Hills. 26; Rep. Edelblut, Hills. 38; Rep. Emerson, Ches. 11; Rep. McConnell, Ches. 12; Rep. Eastman, Hills. 28; Sen. Sanborn, Dist 9

 

COMMITTEE:\tJudiciary

 

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AMENDED ANALYSIS

 

This bill:

 

\tI. Allows an owner of residential property to have an updated appraisal completed at the expense of a pipeline company seeking to acquire the property by eminent domain.

 

\tII. Allows certain owners of property subject to a partial taking under eminent domain to require a pipeline company to take the entire tract of land.

 

\tIII. Provides for the awarding of relocation, temporary housing, and legal expenses in gas pipeline eminent domain proceedings.

 

\tIV. Requires the site evaluation committee to file as an intervenor in Federal Energy Regulatory Commission proceedings involving siting of high pressure gas pipelines.

 

\tV.  Modifies the allocation of rebates to retail electric customers and requires the public utilities commission to allocate certain funds to school districts for energy efficiency projects.

 

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Explanation:\tMatter added to current law appears in bold italics.

\t\tMatter removed from current law appears [in brackets and struckthrough.]

\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.

9Mar2016... 0677h\t16-2072

04/28/2016   1545s\t10/03

04/28/2016   1580s

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Sixteen

 

AN ACT\t relative to appraisals of residential property, a residential owner option in a partial taking, and relocation, temporary housing, and legal expenses in eminent domain proceedings for gas pipelines; relative to intervention by the site evaluation committee in such proceedings; and relative to expenditures from the energy efficiency fund.

 

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

 

\t1  Eminent Domain by Pipeline Companies; Updated Appraisals.  Amend RSA 371:15, IV to read as follows:

\t\tIV.  In trying any question of damages before said commissioners or by jury, the appraisal for taxation of such real estate, and, in cases where less than the whole interest in real estate is sought to be acquired, the appraisal for taxation of such whole interest, by the selectmen or tax assessors for the tax year in which such application shall have been filed, and for as many preceding years as the commissioners or the court may consider relevant, shall be competent as evidence of value.  The owner of private real property used for residential purposes may select a licensed appraiser to expeditiously conduct an updated appraisal of the private real estate sought to be acquired, with the reasonable costs of such appraisal, as determined by the agreement of the parties, or by the commissioners or the court, to be borne by or reimbursed by the pipeline company.  Any such appraisal submitted to the commissioners or the court shall be considered by the commissioners or the court.  The damages as determined shall be awarded to the owner or apportioned among the several owners in accordance with their several interests as determined and judgment shall be entered accordingly.

\t2  Paragraphs; Eminent Domain; Residential Owner Option; Relocation and Expenses.  Amend RSA 371:15 by inserting after paragraph VI the following new paragraphs:

\t\tVII.  When private real property which is used for residential purposes is proposed to be acquired in part, temporarily or permanently, for the construction of a high pressure gas pipeline or appurtenance thereto, the owners of the residential property shall have the option to require the pipeline company to condemn and take in fee the entire tract of land impacted by the proposed partial taking including all buildings and improvements thereon if all owners, excluding lienholders and mortgagees, of the private real property make such an election and provide the commission and the pipeline company with written notice of their election within 30 days after receipt of the notice under paragraph II.  The option under this paragraph shall only apply if the residence is within 250 feet of the boundary of the proposed partial taking.

\t\tVIII.  In all cases where residential property is taken pursuant to the provisions of this section, a resident owner may also be awarded reasonable relocation, temporary housing, and legal expenses not to exceed 10 percent of the compensation ordered for the taking.  

\t3  Site Evaluation Committee; High Pressure Gas Pipelines.  Amend RSA 162-H:10-b, IV to read as follows:

\t\tIV.  The committee shall [consider intervention] file as an intervenor in Federal Energy Regulatory Commission proceedings involving the siting of high pressure gas pipelines in order to protect the interest of the state of New Hampshire.

\t4  Severability.  If any provision of sections 1-3 of this act or the application thereof to any person or circumstance is held to be invalid, the invalidity shall not affect other provisions or applications of sections 1-3 of this act which can be given effect without the invalid provision or application, and to this end the provisions of sections 1-3 of this act are severable.

\t5  Regional Greenhouse Gas Initiative; Energy Efficiency Fund and Use of Auction Proceeds.  Amend RSA 125-O:23, II and III to read as follows:

\t\tII.  All amounts [in excess of the threshold price of $1 for any allowance sale] shall be allocated to the commercial and industrial retail electric customers and the residential retail electric customers consistent with the kilowatt-hour delivery sales of electric distribution utilities as determined by the commission.  All of the commercial and industrial retail electric customer allocations shall be rebated to all [retail electric ratepayers] commercial and industrial retail customers in the state on a per-kilowatt-hour basis, in a timely manner to be determined by the commission.

\t\tIII.  All remaining proceeds received by the state from the sale of allowances, excluding the amount used for commission and department administration under paragraph I, shall be allocated by the commission as follows:

\t\t\t(a)  At least [15] 35 percent to the low-income core energy efficiency program.

\t\t\t(b)  Beginning January 1, [2014] 2017, up to [$2,000,000] $5,000,000 annually to utility core programs for municipal, school district, and local government energy efficiency projects, including projects by local governments that have their own municipal utilities.  Funding elements shall include, but not be limited to, funding for direct technical and project management assistance to identify and encourage comprehensive projects and incentives structured to assist municipal and local governments funding energy efficiency projects.  In calendar years 2014, 2015, [and] 2016, and 2017 any unused funds allocated to municipal and local government projects under this paragraph remaining at the end of the year shall roll over and be added to the new calendar year program funds and continue to be made available exclusively for municipal and local government projects.  Beginning in calendar year [2017] 2018, and all subsequent years, funds allocated to municipal and local government projects under this paragraph shall be offered first to municipal and local governments as described in this paragraph for no less than 4 full calendar months.  If, at the end of this time, municipal and local governments have not submitted requests for eligible projects that will expend the funds allocated to municipal and local government projects under this paragraph within that program year, the funds shall [be offered on a first-come, first-serve basis to business and municipal customers who fund the system benefits charge] go to a fuel neutral residential core energy efficiency program.

\t\t\t(c)  The remainder to [all-fuels, comprehensive energy efficiency programs administered by qualified parties which may include electric distribution companies as selected through a competitive bid process.  The funding shall be distributed among residential, commercial, and industrial customers based upon each customer class's electricity usage to the greatest extent practicable as determined by the commission.  Bids shall be evaluated based on, but not limited to, the following criteria:]

\t\t\t\t(1)  A benefit/cost ratio analysis including all fuels.

\t\t\t\t(2)  Demonstrated ability to provide a comprehensive, fuel neutral program.

\t\t\t\t(3)  Demonstrated infrastructure to effectively deliver such program.

\t\t\t\t(4)  Experience of the bidder in administering energy efficiency programs.

\t\t\t\t(5)  Ability to reach out to customers.

\t\t\t\t(6)  The validity of the energy saving assumptions described in the bid] a fuel neutral residential core energy efficiency program.

\t6  Repeal.  RSA 125-O:23, IV and V, relative to use of remaining proceeds received by the state from the sale of allowances, is repealed.

\t7  Effective Date.  

\t\tI.  Sections 5 and 6 of this act shall take effect 60 days after its passage.

\t\tII.  The remainder of this act shall take effect upon its passage.

 

\t\t\t\t\t\t\t\t\t\t\tLBAO

\t\t\t\t\t\t\t\t\t\t\t16-2072

\t\t\t\t\t\t\t\t\t\t\t12/22/15

 

HB 1660-FN-LOCAL- FISCAL NOTE

 

AN ACT\trelative to eminent domain for gas pipelines and relative to assessment of the land use change tax for eminent domain takings for energy infrastructure.

 

 

FISCAL IMPACT:

The New Hampshire Municipal Association, Department of Revenue, Public Utilities Commission, and Board of Tax and Land Appeals state this bill, as introduced, may increase local expenditures by an indeterminable amount, and have an indeterminable fiscal impact on state and local revenue and state expenditures in FY 2017 and each year thereafter.  There will be no fiscal impact to county revenue and expenditures.

 

METHODOLOGY:

The New Hampshire Municipal Association states this bill requires an entity taking land by eminent domain to build energy infrastructure, resulting in increased revenue to that entity, to pay the land use change tax (LUCT) if such land is in current use.  Under current law, land taken under eminent domain, RSA 79-A:7, VI (a), is exempt from paying the LUCT.  This bill requires the consent of a public body before property may be taken by eminent domain for siting a natural gas pipeline.  Further, this bill allows an owner, whose property is taken under eminent domain for siting a high pressure gas pipeline, to require the pipeline company to acquire the entire property.  The Association states to the extent an entity takes land by eminent domain to build energy infrastructure, local revenues may increase because the LUCT may have to be paid by the entity.   

 

The Department of Revenue states to the extent land is taken under eminent domain for the construction of a high pressure gas pipeline local expenditures and revenue will increase.  Under this bill entities that take land under eminent domain will have to pay the LUCT which is currently not required.  This requirement may increase local revenues by an indeterminable amount.  The Department states municipalities may experience increased expenditures related to the required legislative meeting within thirty days notice of public property to be acquired by eminent domain and the cost to administer the LUCT when a property qualifies for the LUCT assessment.  

 

The Public Utilities Commission states it is unclear how the requirements of this bill will impact local property taxes.  The Commission states this bill may affect the amount of property tax revenue due to local and other governmental entities because of its expansion of current use treatment to undersized parcels following a taking.

 

The Board of Tax and Land Appeals states this bill may impact the number of condemnation appeals filed with the Public Utilities Commission.  The filing fee for each LUCT appeal filed with the Board is $65.  The Board cannot estimate the number of such appeals that may result from this bill or the related operational costs of processing the appeals.