Bill Text - SB167 (2019)

Establishing a clean energy resource procurement commission.


Revision: Jan. 25, 2019, 2:38 p.m.

SB 167-FN - AS INTRODUCED

 

 

2019 SESSION

19-1081

06/01

 

SENATE BILL 167-FN

 

AN ACT establishing a clean energy resource procurement commission.

 

SPONSORS: Sen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21; Sen. Watters, Dist 4; Rep. Cali-Pitts, Rock. 30; Rep. Mann, Ches. 2; Rep. Oxenham, Sull. 1; Rep. Merner, Coos 7

 

COMMITTEE: Energy and Natural Resources

 

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ANALYSIS

 

This bill establishes a commission to investigate the cost-effective procurement of renewable energy generation resources.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-1081

06/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT establishing a clean energy resource procurement commission.

 

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

 

1  Purpose Statement.  In order to promote more diverse, reliable, and resilient electricity across New Hampshire, it is in the interest of all New Hampshire ratepayers to determine a cost-effective pathway toward creating new long-term contracts for renewable energy generation, in accordance with RSA 374-F.

2  New Section; Procurement of Renewable Energy Generation Resources; Commission Established.  Amend RSA 374-F by inserting after section 8 the following new section:

374-F:9  Procurement of Renewable Energy Generation Resources; Commission Established.

I.  There is established a commission to investigate cost-effective methods to increase renewable energy generation resources for New Hampshire ratepayers through competitive energy procurement or long-term contracting, or both.

II.  The members of the commission shall be as follows:

(a)  One member of the senate, appointed by the president of the senate.

(b)  Two members of the house of representatives, appointed by the speaker of the house of representatives.

(c)  The director of the office of strategic initiatives, or designee.

(d)  A chairperson of the public utilities commission, or designee.

(e)  The commissioner of the department of administrative services, or designee.

(f)  The commissioner of the department of environmental services, or designee.

(g)  The consumer advocate, or designee.

(h)  A representative of the New Hampshire Sustainable Energy Association, appointed by the association.

(i)  A representative of the Business and Industry Association of New Hampshire, appointed by its president.

(j)  A representative of the New England Power Generators Association, appointed by the association.

(k)  A representative of the New Hampshire Electric Cooperative, appointed by the executive director.

(l)  A representative of the land conservation community, appointed by the governor.

(m)  A representative of Eversource, appointed by its president.

(n)  A representative of the renewable energy development industry, appointed by the governor.

III.  The commission shall consider and make specific recommendations on the following topics:

(a)  Eligible renewable energy generation resources allowed to participate in a competitive New Hampshire procurement.

(b)  The appropriate amount of renewable energy generation resources to procure for New Hampshire ratepayers, and the time frame in which to do so.

(c)  The short and long-term rate impacts of renewable energy resource procurement on default energy supply.

(d)  The economic and environmental costs and benefits of in-state resources and out-of-state renewable energy resources.

(g)  Potential impacts upon the state and regional electricity markets and state restructuring laws.

(h)  Appropriate state agency or designee to adopt rules for a competitive solicitation and/or to conduct the competitive process, review the proposals, and make final selections.

(i)  Appropriate time frame needed to develop, launch, review, and set long term power purchase contracts for clean energy generation resources.

(j)  Appropriate criteria by which to value renewable energy resources.

(k)  The pros and cons of the current default energy service procurement process in soliciting firm and intermittent resources.

IV.  The first meeting of the commission shall be called by the senator member and shall be held within 30 days of the effective date of this section.  The members of the commission shall elect a chairperson from among the members at the first meeting.  Nine members of the commission shall constitute a quorum.

V.  The commission shall make a final report, on or before October 1, 2019, to the speaker of the house of representatives, the president of the senate, the governor, and the chairperson of the public utilities commission.  The reports shall describe the activities and findings of the commission and any recommendations for either 1) proposed legislation, or 2) direction to the public utilities commission to initiate a proceeding with the utilities and stakeholders to determine a competitive process and time line to secure clean energy generation resources for New Hampshire ratepayers.

VI.  The commission shall have a budget of $100,000 in order to hire technical and consulting support and is authorized to undertake an assessment for the same.

3  Repeal.  RSA 374-F:9, relative to the commission to investigate the cost-effective procurement of renewable energy generation resources, is repealed.

4  Effective Date.  

I.  Section 3 of this act shall take effect October 1, 2019.

II.  The remainder of this act shall take effect upon its passage.

 

LBAO

19-1081

Revised 1/25/19

 

SB 167-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT establishing a clean energy resource procurement commission.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

$100,000

$0

$0

$0

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Assessment Revenue

 

 

 

 

 

METHODOLOGY:

This bill establishes a commission to investigate the cost-effectiveness of procurement of renewable energy generation resources.  The Public Utilities Commission (PUC) indicates the bill authorizes a budget of $100,000 to hire technical and consulting support for the commission.  The PUC assumes, in addition to the budget amount, additional costs would be incurred to pay state employees overtime and mileage to participate as a designee or advisor to the commission.  Additional incremental costs if incurred by the PUC, would be funded by the utility assessment.  Because the location and frequency of the meetings is unknown, and the employees who would be involved and their wage rates are not known, the additional costs are indeterminable, but will likely be insignificant.  The PUC indicates it is unclear where the clean energy resource procurement commission would reside and what the source of funds would be for the $100,000 budget.  Since the proposed energy resource procurement commission is not part of the PUC, the PUC would not have the statutory authority to assess the $100,000 for the commission budget.

 

AGENCIES CONTACTED:

Public Utilities Commission