Bill Text - HB582 (2019)

Relative to the regional greenhouse gas initiative cap and trade program for controlling carbon dioxide emissions.

Revision: March 27, 2019, 9:52 a.m.

HB 582-FN - AS AMENDED BY THE HOUSE

 

20Mar2019... 0795h

2019 SESSION

19-0594

08/03

 

HOUSE BILL 582-FN

 

AN ACT relative to the regional greenhouse gas initiative cap and trade program for controlling carbon dioxide emissions.

 

SPONSORS: Rep. Mann, Ches. 2

 

COMMITTEE: Science, Technology and Energy

 

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ANALYSIS

 

This bill:

 

I.  Requires the energy efficiency and sustainable energy board to provide recommendations to the public utilities commission on the energy efficiency and renewable energy funds.  

 

II.  Requires rebates from the use of auction proceeds to all commercial and industrial retail energy ratepayers.

 

III.  Requires that any funds remaining in the energy efficiency fund at a year's end be retained for use in subsequent years, and forbids use of the fund for any but it's intended purpose.

 

IV.  Repeals the contingent repeal of the regional greenhouse gas initiative program.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20Mar2019... 0795h 19-0594

08/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to the regional greenhouse gas initiative cap and trade program for controlling carbon dioxide emissions.

 

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

 

1  New Section; Regional Greenhouse Gas Initiative.  Amend RSA 125-O by inserting after section 19 the following new section:

125-O:19-a  Statement of Purpose and Findings.  The general court finds that global climate change is a significant environmental problem posing an unacceptable risk to humankind, and that carbon dioxide is a significant greenhouse gas that contributes to this climate change.  Accordingly the purpose of this subdivision is to reduce greenhouse gas emissions resulting from energy use in New Hampshire.

2  New Subparagraph; Energy Efficiency and Sustainable Energy Board.  Amend RSA 125-O:5-a, I by inserting after subparagraph (j) the following new subparagraph:

(k)  Serve as a stakeholder forum that makes recommendations to program administrators and the public utilities commission with respect to the development and implementation of program plans under the energy efficiency resource standard, including providing assistance interpreting and applying state policies with respect to energy efficiency, demand response, and strategic electrification.

3  Energy Efficiency Fund and Use of Auction Proceeds.  Amend RSA 125-O:23, II to read as follows:

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

4  Energy Consumption Reduction Goal; Reports.  Amend RSA 21-I:14-c, III to read as follows:

III.  Beginning in calendar year 2016, the commissioner shall submit an annual report to be made available to the public on or before January 15 compiling the annual reports submitted under paragraph II, with findings on the departments' annual progress in complying with the energy consumption reduction goal established in paragraph I and problems which may prevent the departments from achieving this goal, to the energy efficiency and sustainable energy board established under RSA 125-O:5-a, the governor, the senate president, the speaker of the house of representatives, the chair of the senate energy and natural resources committee and the chair of the house science, technology and energy committee.

5  Energy Efficiency Fund and Use of Auction Proceeds.  Amend RSA 125-O:23, I to read as follows:

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.  No portion of the energy efficiency fund shall be appropriated for any other purpose.  

6  New Hampshire Energy Policy.  Amend RSA 378:37 to read as follows:

378:37  New Hampshire Energy Policy.  The general court declares that it shall be the energy policy of this state to meet the energy needs of the citizens and businesses of the state at the lowest reasonable cost while providing for the reliability and diversity of energy sources; to maximize the use of all cost effective energy efficiency and other demand side resources; and to protect the safety and health of the citizens, the physical environment of the state, and the future supplies of natural resources from climate change and its associated environmental impacts,, with due consideration of both the financial stability of the state's utilities and the financial costs imposed by climate change on the state, its citizens, and businesses.

7  Repeal.  The following are repealed:

I.  RSA 125-O:21, III-a, relative to unsold budget allowances in the carbon dioxide emissions budget trading program.

II.  2012, 281:11 through 281:17, relative to the contingent repeal of the carbon dioxide cap and the regional greenhouse gas initiative.

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

 

LBAO

19-0594

Amended 3/22/19

 

HB 582-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2019-0795h)

 

AN ACT relative to the regional greenhouse gas initiative cap and trade program for controlling carbon dioxide emissions.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [ X ] General            [    ] Education            [ X ] Highway           [ X ] Other - Energy Efficiency Fund, RGGI Proceeds, Utility Assessment

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

 

METHODOLOGY:

This bill:

  • Requires the Energy Efficiency and Sustainable Energy Board to serve as a stakeholder forum that makes recommendations to program administrators and the public utilities commission with respect to energy efficiency.
  • Requires rebates from the use of auction proceeds to all commercial and industrial (C&I) retail and residential retail energy ratepayers.
  • Requires that any funds remaining in the energy efficiency fund at year end be retained for use in subsequent years, and forbids use of the fund for any but it's intended purpose.
  • Repeals the contingent repeal of the regional greenhouse gas initiative program.

 

The Department of Environmental Services (DES) and the Public Utilities Commission (PUC) indicate, 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 basis.  This bill repeals the $1 per allowance rebate threshold for auction proceeds deposited in the Energy Efficiency Fund.  In addition, under this bill auction proceeds would be allocated to the residential and C&I sectors consistent with the kilowatt-hour delivery sales to each sector.  All C&I retail electric customers would receive a full rebate on a per kilowatt-hour basis and residential customer rebates would end.  The residential allocation would be allocated to the energy efficiency fund and be utilized for core energy efficiency programs pursuant to RSA 125-O23, III.  The bill would not change the total revenue received by the State which is estimated at $14 million for FY 2020 assuming an average allowance price of $4.75.  The DES and PUC provide the following:

  • C&I customers represent 60% of the kilowatt-hour delivery of electric distribution utilities and residential customers represent 40%.
  • After administrative costs estimated at $350,000, $8.19 million would be rebated back to utilities for distribution to C&I customers including state and local governments. Rebates are passed through in the form of a reduction to monthly electric bills.  
  • Rebates to residential customers, estimated at $5.46 million, would end and the funds would support core energy efficiency programs instead.
  • C&I customer rebates would increase resulting in a decrease in electricity costs for state, county and local governments by an indeterminable amount.
  • Municipal and school projects under the core energy efficient programs would benefit from incentives, loans or additional spending.  These entities would also benefit in the long term from increased energy efficient spending.
  • In FY 2017,  State buildings consumed 102.45 billion Kw of electricity.  Under this bill  at the same usage, price and action revenue, State expenditures would decrease by  approximately $29,000.
  • The new language regarding the associated effects and financial cost of climate change on New Hampshire, it's citizens, businesses and environment would require additional time and resources to incorporate into PUC proceedings.  These costs are indeterminate and the PUC states it would initially hire outside consultants paid from utility assessments.  If the costs were to exceed $100,000 the PUC would likely consider hiring full time staff to do the work.
  • Section 7 would repeal the contingent repeal of the regional greenhouse gas initiative program.  If the State were to exit the RGGI program, electricity costs for state, county and local governments would increase due to the elimination of rebates.

 

AGENCIES CONTACTED:

Public Utilities Commission and Department of Environmental Services