HB627 (2017) Detail

Establishing the position of energy efficiency advocate.


HB 627-FN - AS INTRODUCED

 

 

2017 SESSION

17-0581

06/01

 

HOUSE BILL 627-FN

 

AN ACT establishing the position of energy efficiency advocate.

 

SPONSORS: Rep. Vose, Rock. 9; Rep. Aldrich, Belk. 2; Rep. Kurk, Hills. 2; Rep. LeBrun, Hills. 32

 

COMMITTEE: Science, Technology and Energy

 

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ANALYSIS

 

This bill establishes the position of energy efficiency advocate within the office of the consumer advocate.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0581

06/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT establishing the position of energy efficiency advocate.

 

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

 

1  New Paragraph; Support Personnel to the Public Utilities Commission; Office of the Consumer Advocate; Position Created.  Amend RSA 363:28 by inserting after paragraph VI the following new paragraph:

VII.  There is hereby created within the office of the consumer advocate the position of energy efficiency advocate which shall be funded by moneys from the energy efficiency fund established under RSA 125-O:23.  The energy efficiency advocate shall be responsible for:

(a)  Educating the public about the benefits of making energy efficiency improvements to homes and businesses.

(b)  Working with New Hampshire municipalities, school districts, government agencies, charitable organizations, and business and residential energy users.

(c)  Assisting in the development of curricula for schools to educate students about the importance of energy efficiency.

2  Use of Energy Efficiency Fund  RSA 125-O:23 is repealed and reenacted to read as follows:

125-O:23  Energy Efficiency Fund and Use of Auction Proceeds.  

I.  There is hereby established an energy efficiency fund.  This nonlapsing, special fund shall be continually appropriated to the commission to be expended in accordance with this section.  The state treasurer shall invest the moneys deposited therein, as provided by law.  Income received on investments made by the state treasurer shall also be credited to the fund.  All programs supported by these funds shall be subject to audit by the commission as deemed necessary.  A portion of the fund moneys shall be used to pay for commission and department costs to administer this subdivision, including contributions for the state's share of the costs of the RGGI regional organization.  No fund moneys shall be used by the commission or the department to contract with outside consultants.  The commission shall transfer from the fund to the department such costs as may be budgeted and expended, or otherwise approved by the fiscal committee of the general court and the governor and council, for the department's cost of administering this subdivision.

II.  All amounts in excess of the threshold price of $0.10 for any allowance sale shall be rebated to all retail electric ratepayers in the state on a per-kilowatt-hour basis, in a timely manner to be determined by the commission.

III.  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 to fund the office of the energy efficiency advocate created under RSA 363:28, VII.

IV.  The energy efficiency advocate shall file an annual report with the office of energy and planning, the speaker of the house of representatives, the president of the senate, and the chairman of the public utilities commission.  The report shall include, but not be limited to, the following:

(a)  Program expenditures.

(b)  The number of customers served by the program.

(c)  Other data as required by the commission in order to determine program effectiveness.

3  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

17-0581

1/23/17

 

HB 627-FN- FISCAL NOTE

as introduced

 

AN ACT establishing the position of energy efficiency advocate.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [    ] General            [    ] Education            [    ] Highway           [ X ] Other

 

COUNTY:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

($2,000,000)

($2,000,000)

($2,000,000)

($2,000,000)

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

 

METHODOLOGY:

This bill modifies New Hampshire's laws concerning the Regional Greenhouse Gas Initiative (RGGI).  Specifically, it lowers the current $1 per allowance rebate threshold for auction proceeds deposited into the Energy Efficiency Fund to $0.10 and uses these funds, excluding administrative costs, to establish the position of the energy efficiency advocate within the Office of the Consumer advocate.  Under this bill all retail electric ratepayers would receive a rebate on a per kilowatt-hour basis for all amounts in excess of $0.10 for any allowance sale.  Allocation of funds to the low-income core energy efficiency program, to municipal, school districts and local government energy efficiency projects under the core programs, and to a fuel-neutral residential core energy efficiency program would be discontinued.  

 

The Department of Environmental Services (DES) and the Public Utilities Commission (PUC) estimate approximately $19.68 million would be rebated back to the utilities for distribution to all electric rate payers.  Electric utilities would pass RGGI rebates back through to customers in the form of a reduction to each customers' monthly electricity bill based upon the customer's monthly kilowatt-hour usage.  DES and PUC state the termination of energy efficiency investments would negatively impact low income customers, municipalities and schools.  Under this bill, approximately $320,428 of revenue would be allocated for program administration and establishing the new position of energy efficiency advocate, and would eliminate energy efficiency investment spending as follows:

  • Investment in the energy efficiency program for low income - approximately $440,000 (15% under current law)
  • Investment in energy efficiency programs for municipal, school district and local government energy efficiency projects - $2 million under current law.  
  • Fuel-neutral residential core energy efficiency programs - balance of funds which is about $470,000 under current law.  

 

DES and PUC state municipal, school district and governmental entities would receive increased rebates, but would lose both direct and indirect benefits in the long-term due to decreased energy efficiency funding.  State governmental entities would gain additional rate rebates which could reduce direct expenditures for electricity.  However, the amount of direct and indirect benefits to state, county, and local government entities is indeterminable.  DES and PUC state the administrative costs for FY 2018 are estimated to be $350,000 and the estimated revenue is about $320,000.  Therefore, this bill would not cover both administrative expenses and funding for the new position of the energy efficiency advocate.  

 

AGENCIES CONTACTED:

Department of Environmental Services and Public Utilities Commission

 

 

Links

HB627 at GenCourtMobile

Action Dates

Date Body Type
Feb. 1, 2017 House Hearing
Feb. 8, 2017 House Exec Session
Feb. 15, 2017 House Floor Vote

Bill Text Revisions

HB627 Revision: 651 Date: Jan. 25, 2017, 1:53 p.m.

Docket

Date Status
Jan. 5, 2017 Introduced 01/05/2017 and referred to Science, Technology and Energy HJ 3 P. 22
Feb. 1, 2017 Public Hearing: 02/01/2017 02:30 PM LOB 304
Feb. 8, 2017 Subcommittee Work Session: 02/08/2017 09:30 AM LOB 304
Feb. 8, 2017 Executive Session: 02/08/2017 10:15 AM LOB 304
Feb. 15, 2017 Committee Report: Inexpedient to Legislate for 02/15/2017 (Vote 18-1; CC) HC 11 P. 15
Feb. 15, 2017 Inexpedient to Legislate: MA VV 02/15/2017 HJ 7 P. 20