SB 492-FN - AS INTRODUCED
2016 SESSION
\t16-2949
\t06/03
SENATE BILL\t492-FN
AN ACT\trelative to expenditures from the energy efficiency fund.
SPONSORS:\tSen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21; Sen. Little, Dist 8; Sen. Boutin, Dist 16; Sen. Stiles, Dist 24; Rep. Richardson, Coos 4; Rep. Introne, Rock. 5; Rep. Devine, Rock. 4
COMMITTEE:\tEnergy and Natural Resources
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ANALYSIS
\tThis bill modifies the allocation of rebates to retail electric customers.
\tThis bill also 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\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2949
\t06/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to expenditures from the energy efficiency fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 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.
\t2 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.
\t3 Effective Date. This act shall take effect 60 days after its passage.
\t\t\t\t\t\t\t\t\t\t\t16-2949
\t\t\t\t\t\t\t\t\t\t\t1/5/16
SB 492-FN- FISCAL NOTE
AN ACT\trelative to expenditures from the energy efficiency fund.
FISCAL IMPACT:
The Department of Environmental Services and Public Utilities Commission state this bill, as introduced, will have an indeterminable impact on state, county and local revenue and expenditures in FY 2017 and each year thereafter.
METHODOLOGY:
The Department of Environmental Services and Public Utilities Commission, working in conjunction, state this bill repeals the $1 rebate threshold for auction proceeds deposited into the Energy Efficiency Fund. All commercial and industrial retail electric rate payers would receive a full rebate. At least 35% of the remaining proceeds received by the state from the sale of allowances, after administrative costs, would be allocated to the low income core energy efficiency program. Up to $5 million annually would be allocated to municipal, school district and local government energy efficiency projects under the core programs, and the remainder would go to a fuel-neutral residential core energy efficiency program. The Department and the Commission indicate the bill would not change the annual revenue which is estimated to be $27 million for FY 2016 (assuming an average allowance price of $8). Beginning in FY 2017, all commercial and industrial retail electric ratepayers, including state and local government units, would receive a full rebate and current commercial and industrial efficiency programs would no longer be supported with Regional Greenhouse Gas Initiative (RGGI) funds. Under current law electric utilities pass RGGI rebates through to customers in the form of a reduction to the customer’s monthly bill based on monthly usage. This bill eliminates rebates to residential customers. The Commission and Department state most of this revenue would instead be redirected to energy efficiency programs for low income, municipal, school district and local government energy efficiency projects. The Department and Commission estimate an additional $2.2 million would be allocated to the low income core energy efficiency program and an additional $3 million would be allocated to municipal, school district, and local government energy efficiency projects in the form of incentives, loans or spending on energy efficiency investments. The remaining funds, estimated at $1.8 million, would go to a fuel-neutral residential core energy efficiency program. School district and local government entities would receive increased rebates and benefit in the long term due to increase energy efficiency. State government would gain additional rebates reducing expenditures for electricity, but would no longer be eligible for direct energy efficiency benefits since the bill focuses energy efficiency funding on low income residential, local government and residential customers. The Department and Commission are not able to determine the fiscal impact to state and local governments.