HB559 (2018) Detail

Relative to expenditures from the energy efficiency fund.


HB 559-FN - AS AMENDED BY THE HOUSE

 

9Jan2018... 2479h

6Mar2018... 0378h

2017 SESSION

17-0470

06/04

 

HOUSE BILL 559-FN

 

AN ACT relative to expenditures from the energy efficiency fund.

 

SPONSORS: Rep. Richardson, Coos 4; Rep. Shepardson, Ches. 10; Rep. Backus, Hills. 19; Sen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21

 

COMMITTEE: Science, Technology and Energy

 

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AMENDED ANALYSIS

 

This bill:

 

I.  Requires the public utilities commission to allocate certain funds to school districts for energy efficiency projects.

 

II.  Repeals a rebate to retail electric ratepayers.

 

III.  Requires the public utilities commission and the department of environmental services to submit a report with recommendations for allocations of auction proceeds.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

9Jan2018... 2479h

6Mar2018... 0378h 17-0470

06/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT relative to expenditures from the energy efficiency fund.

 

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

 

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

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 as follows:

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

(b)  Beginning January 1, [2014] 2019, [up to $2,000,000] no more than $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, 2017, and 2018 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] 2019, 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.

(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:

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

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

(3)  Demonstrated infrastructure to effectively deliver such program.

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

(5)  Ability to reach out to customers.

(6)  The validity of the energy saving assumptions described in the bid.

2  Review and Report.  The public utilities commission and the department of environmental services shall review the use of auction proceeds under RSA 125-O:23, III and shall submit a report, with recommendations to continue or revise the allocation of auction proceeds among the core programs based on program needs, to the house and senate finance committees, the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, and director of legislative services on or before July 1, 2023.

3  Repeal.  The following are repealed:

I.  RSA 125-O:23, II, relative to rebates to retail electric ratepayers.

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

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

 

LBAO

17-0470

Amended 3/29/18

 

HB 559-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2018-0378h)

 

AN ACT relative to expenditures from the energy efficiency fund.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [ X ] General            [    ] Education            [ X ] Highway           [ X ] Other - Various Governmental Funds

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

 

METHODOLOGY:

The Public Utilities Commission and the Department of Environmental Services state this bill repeals the $1 per allowance rebate threshold for auction proceeds deposited into the Energy Efficiency (EE) Fund, eliminates all customer rebates, and provides that at least 35% of the proceeds received from the sale of allowances, after administrative costs, would be allocated to the low-income core energy efficiency program.  In addition, up to $5,000,000 annually would be allocated to municipal, school district, and local government energy efficiency projects under the core programs.  The remainder of the $5,000,000, if any, would go to a fuel-neutral residential core energy efficiency program.  Any revenues beyond the 35% and the $5,000,000, would go to an all-fuels, comprehensive energy efficiency program.

 

The amendment would not change revenue to the State when compared to current law. Revenues for fiscal 2019 are estimated to be $14 million assuming an average allowance price of $4.30.  Under current law, revenue in excess of $1 per allowance sold is allocated by the PUC for rebates to all electric ratepayers on a per-kilowatt hour basis.  This bill redirects the use of all  revenues after administrative costs to energy efficiency projects as follows:

(Based on FY 2018 amounts)

 

 

Current Law

HB559 Amended #2018-0378h  

Difference

 

Auction Revenue                        

$14,000,000

$14,000,000

$0

(Assuming $4.30 per allowance)

 

 

 

Allocations

 

 

 

Program Administration  

$350,000

$350,000

$0

Energy Efficiency Programs Low Income

$440,000

$4,777,500

$4,337,500

Energy Efficiency Programs Municipal, Schools & Local Government

$2,000,000

$5,000,000

$3,000,000

Fuel Neutral Energy Efficiency Programs (60% Commercial / 40% Residential)

$470,000

$3,872,500

$3,402,500

Commercial & Industrial Rebates

$6,440,000

$0

($6,440,000)

Residential Rebates

$4,300,000

$0

($4,300,000)

Totals:

$14,000,000

$14,000,000

$0

 

Termination of the rebates will increase electricity costs for residential, commercial and industrial customers including state, county and local governments.  Based on the amounts above, the increase is estimated at $0.000997 per kWh, or $0.62 per month for the average residential bill and $747 per month on average for the largest commercial & industrial class.

 

Municipal, school district, and local government energy efficiency projects under the core energy efficiency programs would benefit from incentives, loans or spending on energy efficiency investments.  For these entities, the increased electricity cost is expected to be at least partly offset by the energy efficiency investments.  Municipal, school district and local government entities would benefit in the long term from increased energy efficiency funding.  The direct and indirect benefit to the State as a result of this bill over each of the next 4 fiscal years is indeterminable.  The direct and indirect benefits to county and local governmental entities are likely to increase over each of the next 4 fiscal years, however, the amount of these benefits is indeterminable.

 

The New Hampshire Municipal Association states this bill would increase, from $2 million to $5 million, the amount to be distributed annually to municipal energy efficiency projects from the sale of carbon allowances under the regional greenhouse gas initiative, and add school districts as eligible for this funding.  The Association assumes the full amount allocated will be distributed and spent on municipal and school district energy efficiency projects each year.  Since investment in energy efficiency projects has been demonstrated to reduce energy costs, the Association assumes there would be long-term reductions in local expenditures.  The increased revenues and reduced expenditures would affect only the municipalities and school districts that take advantage of the energy efficiency programs.

 

As amended, the bill would repeal the statutory requirement that sale proceeds in excess of $1 from any allowance sale to be rebated to retail electric customers on a per-kilowatt-hour basis.  Elimination of the rebates would result in higher electric costs for municipalities.  The Association has no information on the amount of electricity used by municipalities and therefore cannot estimate the increase in expenditures.

 

The Department of Administrative Services states this bill has the potential to change the amount of energy efficiency money, held by the utilities, and available to the class of facilities that state facilities belong to. Currently, the State can apply for these incentives and deposit any funds received into the Energy Fund; a non-lapsing, dedicated fund for reinvestment in energy saving projects in state facilities.  A change in the amount available overall may or may not affect the amount of funds that the State receives.

 

The New Hampshire Association of Counties in consultation with the County Administrators Group determines there will not be a fiscal impact to counties.

 

AGENCIES CONTACTED:

Public Utilities Commission, Departments of Environmental Services and Administrative Services, New Hampshire Municipal Association and New Hampshire Association of Counties

 

Links

HB559 at GenCourtMobile

Action Dates

Date Body Type
Jan. 31, 2017 House Hearing
Feb. 21, 2017 House Exec Session
Oct. 25, 2017 House Exec Session
Jan. 3, 2018 House Floor Vote
Jan. 3, 2018 House Floor Vote
Jan. 17, 2018 House Hearing
Feb. 21, 2018 House Exec Session
House Floor Vote
March 6, 2018 House Floor Vote
March 27, 2018 Senate Hearing
April 26, 2018 Senate Floor Vote

Bill Text Revisions

HB559 Revision: 3142 Date: April 2, 2018, 3:09 p.m.
HB559 Revision: 2921 Date: Jan. 31, 2018, 3:01 p.m.
HB559 Revision: 2478 Date: Jan. 25, 2017, 3:40 p.m.

Docket


April 26, 2018: Inexpedient to Legislate, RC 13Y-11N, MA === BILL KILLED ===; 04/26/2018; SJ 14


April 26, 2018: Committee Report: Inexpedient to Legislate, 04/26/2018; SC 18


March 27, 2018: Hearing: 03/27/2018, Room 103, SH, 01:00 pm; SC 14


March 8, 2018: Introduced 03/08/2018 and Referred to Finance; SJ 7


March 6, 2018: Ought to Pass with Amendment 0378h: MA VV 03/06/2018 HJ 6 P. 86


March 6, 2018: Amendment # 2018-0378h: AA VV 03/06/2018 HJ 6 P. 86


: Committee Report: Ought to Pass with Amendment # 2018-0378h (Vote 24-0; RC)


March 6, 2018: Committee Report: Ought to Pass with Amendment # 2018-0378h for 03/06/2018 (Vote 24-0; RC) HC 9 P. 41


Feb. 21, 2018: Executive Session: 02/21/2018 10:00 AM LOB 210-211


Jan. 31, 2018: Division I Work Session: 01/31/2018 01:30 PM LOB 212


Jan. 18, 2018: Division I Work Session: 01/18/2018 01:00 PM LOB 212


Jan. 17, 2018: Public Hearing: 01/17/2018 11:00 AM LOB 210-211


Jan. 9, 2018: Referred to Finance 01/09/2018 HJ 2 P. 24


Jan. 9, 2018: Ought to Pass with Amendment 2479h: MA DV 197-147 01/09/2018 HJ 2 P. 24


Jan. 9, 2018: Lay HB 559 on Table (Rep. J. Graham): MF RC 153-189 01/09/2018 HJ 2 P. 22


Jan. 9, 2018: Amendment # 2017-2479h: AA RC 215-126 01/09/2018 HJ 2 P. 20


Jan. 9, 2018: Inexpedient to Legislate: MF RC 160-182 01/09/2018 HJ 2 P. 17


Jan. 3, 2018: Special Order to fourth order of business on 1/9/2018 (Rep. Vose): MA VV 01/03/2018 HJ 1 P. 91


: Minority Committee Report: Ought to Pass with Amendment # 2017-2479h


Jan. 3, 2018: Majority Committee Report: Inexpedient to Legislate for 01/03/2018 (Vote 11-10; RC)


Oct. 25, 2017: ==RESCHEDULED== Executive Session: 10/25/2017 02:00 PM LOB 304


Oct. 25, 2017: Retained Bill Full Committee Work Session: 10/25/2017 01:00 PM LOB 304


Oct. 25, 2017: ==CANCELLED== Executive Session: 10/25/2017 01:00 PM LOB 304


Oct. 10, 2017: Retained Bill Subcommittee Work Session: 10/10/2017 02:00 PM LOB 304


Sept. 28, 2017: Retained Bill Subcommittee Work Session: 09/28/2017 10:00 AM LOB 304


Sept. 6, 2017: Retained Bill Full Committee Work Session: 09/06/2017 10:00 AM LOB 304


: Retained in Committee


Feb. 21, 2017: Executive Session: 02/21/2017 02:00 PM LOB 304


Feb. 21, 2017: Full Committee Work Session: 02/21/2017 10:00 AM LOB 304


Jan. 31, 2017: Public Hearing: 01/31/2017 11:00 AM LOB 304


Jan. 5, 2017: Introduced 01/05/2017 and referred to Science, Technology and Energy HJ 3 P. 18