Revision: Dec. 2, 2019, 10:32 a.m.
SB 168 - FINAL VERSION
03/28/2019 1180s
6Jun2019... 1894h
2019 SESSION
19-1090
06/01
SENATE BILL 168
AN ACT relative to class 2 obligations under the electric renewable portfolio standards.
SPONSORS: Sen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21; Sen. Watters, Dist 4; Rep. Oxenham, Sull. 1
COMMITTEE: Energy and Natural Resources
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AMENDED ANALYSIS
This bill increases the renewable portfolio standard requirements for new solar energy from 2019 through 2025. The bill also provides an exemption from increases in the annual purchase percentages for certain electrical supply contracts.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/28/2019 1180s
6Jun2019... 1894h 19-1090
06/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to class 2 obligations under the electric renewable portfolio standards.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Electric Renewable Portfolio Standard; Minimum Standards. Amend the footnote to RSA 362-F:3 to read as follows:
*Class I increases an additional 0.9 percent per year from 2015 through 2025. A set percentage of the class I totals shall be satisfied annually by the acquisition of renewable energy certificates from qualifying renewable energy technologies producing useful thermal energy as defined in RSA 362-F:2, XV-a. The set percentage shall be 0.4 percent in 2014, 0.6 percent in 2015, 0.8 percent in 2016, and increased annually by 0.2 percent per year from 2017 through 2023, after which it shall remain unchanged. Class II shall increase to 0.5 percent beginning in 2018, 0.6 percent beginning in 2019, [and 0.7] 1.4 percent beginning in 2020, 2.2 percent beginning in 2021, 3.0 percent beginning in 2022, 3.8 percent beginning in 2023, 4.6 percent beginning in 2024, and 5.4 percent beginning in 2025[, otherwise]. Classes [II] III-IV shall remain at the same percentages from 2015 through 2025 except as provided in RSA 362-F:4, [V-VI] VI. The requirements for classes I-II are subject to the provisions of RSA 362-F:4, V.
2 New Section; Minimum Electric Renewable Portfolio Standards; Exemption Period for Certain Electrical Supply Contracts. Amend RSA 362-F by inserting after section 3 the following new section:
362-F:3-a Exemption Period for Certain Electrical Supply Contracts.
I. The increases in the annual purchase percentages under RSA 362-F:3 applicable to class II for 2019 and thereafter as compared to the class II annual purchase percentages in effect as of January 1, 2019, shall not apply to the megawatt-hours delivered during the contract term under any electrical power supply contract entered into before the effective date of this section, provided that the contract term in effect before such effective date has not been extended or otherwise increased after that date.
II. Providers shall inform the commission by July 1 of each year, through July 1, 2022, of all such exempted contracts, including but not limited to, the execution date and expiration date of the contract, the basis for exemption under this section, and if applicable, the annual megawatt-hours supplied and exempted, or the annual amount of exempted methane gas certificates and the basis for exemption. All such information filed with the commission shall be exempt from the provisions of RSA 91-A:5, IV.
3 Effective Date. This act shall take effect 60 days after its passage.
VETOED July 19, 2019 -- Veto Sustained September 19, 2019
19-1090
Amended 6/14/19
SB 168- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2019-1894h)
AN ACT relative to class 2 obligations under the electric renewable portfolio standards.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ X ] General [ ] Education [ X ] Highway [ X ] Other - Various government funds (See Methodology) | |||
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COUNTY: |
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Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
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LOCAL: |
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Revenue | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
METHODOLOGY:
This bill as amended includes changes to the Renewable Portfolio Standard (RPS) requirements for Class II sources (solar electric) to increase the amount required to be held in the annual purchase percentages. This bill also exempts certain electrical supply contracts from the requirements to increase the percentage of Class II sources of energy.
The Public Utilities Commission states that electricity providers are required to purchase an electricity portfolio consistent within the standards set in the RPS. If the electricity providers cannot achieve the requirements of the RPS, or elect to not comply, then electricity providers must make alternative compliance payments (ACPs) to the Renewable Energy Fund (REF). To demonstrate compliance with the RPS statute, electric providers purchase Renewable Energy Certificates (RECs) for each of the classes established within the RPS.
The Commission states this bill will impact state, county, and local expenditures and revenue by an indeterminable amount. The impact would be dependent on the market of RECs and future ACP rates set by the Commission, which varies. For example, if Class II RECs are sufficiently available to meet the electricity providers’ compliance obligations, then RECs would likely sell below the ACP rate and electricity providers would not be required to pay a higher price for RECs and/or fulfill their obligation through paying ACPs. However, if the Class II REC supply is insufficient, then ACPs would be deposited into the REF. Money in the REF is used to support energy projects, which may benefit governments seeking grants for renewable energy projects.
The Commission states this bill will increase state, county, and local government expenditures for electricity by an indeterminable amount, assuming no change in the state electricity usage.
AGENCIES CONTACTED:
Public Utilities Commission