Revision: May 9, 2019, 10:11 a.m.
SB 205 - AS AMENDED BY THE HOUSE
03/28/2019 1179s
03/28/2019 1346s
8May2019... 1640h
2019 SESSION
19-0911
10/06
SENATE BILL 205
SPONSORS: Sen. Watters, Dist 4; Sen. Kahn, Dist 10; Sen. Chandley, Dist 11; Sen. Dietsch, Dist 9; Sen. Feltes, Dist 15; Sen. Fuller Clark, Dist 21; Sen. Giuda, Dist 2; Sen. Hennessey, Dist 5; Sen. Morgan, Dist 23
COMMITTEE: Energy and Natural Resources
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AMENDED ANALYSIS
This bill adds requirements for uses of system benefits charges for energy efficiency programs. The bill also adds voting members and a nonvoting member to the energy efficiency and sustainable energy board and clarifies procedures of the board.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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 1179s
03/28/2019 1346s
8May2019... 1640h 19-0911
10/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Electric Utility Restructuring; Policy Principles; System Benefits Charge. Amend RSA 374-F:3, VI to read as follows:
VI. Benefits for All Consumers. Restructuring of the electric utility industry should be implemented in a manner that benefits all consumers equitably and does not benefit one customer class to the detriment of another. Costs should not be shifted unfairly among customers. A nonbypassable and competitively neutral system benefits charge applied to the use of the distribution system may be used to fund public benefits related to the provision of electricity. Such benefits, as approved by regulators, may include, but not necessarily be limited to, programs for low-income customers, energy efficiency programs, funding for the electric utility industry's share of commission expenses pursuant to RSA 363-A, support for research and development, and investments in commercialization strategies for new and beneficial technologies. Legislative approval of the New Hampshire general court shall be required to increase the system benefits charge. This requirement of prior approval of the New Hampshire general court shall not apply to the energy efficiency portion of the system benefits charge [consistent with or authorized only by Order No. 25,932 issued by the commission, dated August 2, 2016.] if the increase is authorized by an order of the commission to implement the 3-year planning periods of the Energy Efficiency Resource Standard framework established by commission Order No. 25,932 dated August 2, 2016, ending in 2020 and 2023, or, if for purposes other than implementing the Energy Efficiency Resource Standard, is authorized by the fiscal committee of the general court; provided, however, that no less than 20 percent of the portion of the funds collected for energy efficiency shall be expended on low-income energy efficiency programs. Energy efficiency programs should include the development of relationships with third-party lending institutions to provide opportunities for low-cost financing of energy efficiency measures to leverage available funds to the maximum extent, and shall also include funding for workforce development to minimize waiting periods for low-income energy audits and weatherization.
2 Energy Efficiency and Sustainable Energy Board. Amend RSA 125-O:5-a to read as follows:
125-O:5-a Energy Efficiency and Sustainable Energy Board.
I. An energy efficiency and sustainable energy board is hereby created to promote and coordinate energy efficiency, demand response, and sustainable energy programs in the state. The board's duties shall include but not be limited to:
(a) Review available energy efficiency, conservation, demand response, and sustainable energy programs and incentives and compile [a report] reports as necessary of such resources in New Hampshire.
(b) Develop [a plan] plans as necessary to achieve the state's energy efficiency potential for all fuels, including setting goals and targets for energy efficiency that are meaningful and achievable.
(c) Develop [a plan] plans as necessary for economic and environmental sustainability of the state's energy system including the development of high efficiency clean energy resources that are either renewable or have low net greenhouse gas emissions.
(d) [Repealed.]
(e) Explore opportunities to coordinate programs targeted at saving more than one fuel resource, including conversion to renewable resources and coordination between natural gas and other programs which seek to reduce the overall use of nonrenewable fuels.
(f) Develop tools to enhance outreach and education programs to increase knowledge about energy efficiency and sustainable energy among New Hampshire residents and businesses.
(g) Expand upon the state government's efficiency programs to ensure that the state is providing leadership on energy efficiency and sustainable energy including reduction of its energy use and fuel costs.
(h) Encourage municipalities and counties to increase investments in energy efficiency and sustainable energy through financing tools, and to create local energy committees.
(i) Work with community action agencies and the office of strategic initiatives to explore ways to ensure that all customers participating in programs for low-income customers and the Low Income Home Energy Assistance Program (LIHEAP) have access to energy efficiency improvements, and where appropriate, renewable energy resources, in order to reduce their energy bills.
(j) Investigate potential sources of funding for energy efficiency and sustainable energy development and delivery mechanisms for such programs, coordinate efforts between funding sources to reduce duplication and enhance collaboration, and review investment strategies to increase access to energy efficiency and renewable energy resources.
(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, providing assistance interpreting and applying state policies with respect to energy efficiency, demand response, and strategic electrification.
II. The members of the board shall be as follows:
(a) The chairman of the public utilities commission, or designee.
(b) The director of the office of strategic initiatives, or designee.
(c) The consumer advocate, or designee.
(d) The commissioner of the department of environmental services, or designee.
(e) The commissioner of the department of business and economic affairs, or designee.
(f) The president of the Business and Industry Association of New Hampshire, or designee.
(g) The executive director of the New Hampshire Municipal Association, or designee.
(h) The executive director of New Hampshire Legal Assistance, or designee.
(i) The president of the Homebuilders & Remodelers Association of New Hampshire, or designee.
(j) Two members of the house of representatives, at least one of whom shall be from the science, technology and energy committee, appointed by the speaker of the house of representatives.
(k) One member of the senate energy[, environment and economic development] and natural resources committee, appointed by the president of the senate.
(l) [Three] Five representatives from not-for-profit groups representing energy, environmental, consumer, or public health issues and knowledgeable in energy conservation policies and programs, appointed by the chairman of the public utilities commission.
(m) The commissioner of the department of administrative services, or designee.
(n) The state fire marshal, or designee.
(o) The executive director of the New Hampshire housing finance authority, or designee.
(p) The executive director of the community development finance authority, or designee.
III. The board shall include, as nonvoting participants, the following:
(a) One representative from each utility-administered electric and natural gas energy efficiency program appointed by the chairman of the public utilities commission.
(b) A representative of energy services companies delivering energy efficiency services to residential and business customers, appointed by the chairman of the public utilities commission.
(c) A representative of a business or association of businesses selling or installing sustainable or renewable energy systems, appointed by the chairman of the public utilities commission.
(d) A representative from the investment, financial services, or lending community with expertise in efficiency and/or renewable energy investments and financing, appointed by the chairman of the public utilities commission.
(e) A representative of the New Hampshire Bankers Association or the New Hampshire chapter of the Cooperative Credit Union Association, appointed by the chairman of the public utilities commission.
IV. The chairman of the public utilities commission shall call the first meeting of the board. The board shall elect a chairperson from among its members. [Seven] A majority of voting members of the board shall constitute a quorum. The board shall make an annual report on [December 1] January 31 to the governor, the speaker of the house of representatives, the president of the senate, the house science, technology and energy committee, the senate energy[, environment and economic development] and natural resources committee, and the public utilities commission, to provide an update on [its] activities during the preceding calendar year and recommendations for action including possible legislation.
V. The board shall be administratively attached to the public utilities commission under RSA 21-G:10.
VI. Legislative members of the commission shall receive mileage at the legislative rate when attending to the duties of the board.
VII. No member of the board shall vote on a matter in which the member, his or her spouse or dependent, or the organization or entity represented by or employing the member, has a private interest which may directly or indirectly affect or influence the performance of his or her duties.
3 Effective Date. This act shall take effect 60 days after its passage.
19-0911
Amended 4/9/19
SB 205- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENTS #2019-1179s and 2019-1346s)
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Appropriation | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ ] Education [ X ] Highway [ X ] Other - Various Government Funds | |||
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COUNTY: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
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LOCAL: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable | Indeterminable | Indeterminable | Indeterminable |
METHODOLOGY:
This bill adds requirements for uses of system benefits charges for energy efficiency programs. The bill also adds voting members and a nonvoting member to the energy efficiency and sustainable energy board and clarifies procedures of the board.
The Public Utilities Commission indicates this bill does not increase the system benefits charge and does not increase electric rates. The Commission states it is unknown at this point whether the systems benefit charge will be increased to implement the 2021-2023 triennium of the Energy Efficiency Resource Standard. The bill would increase the allocation of the energy efficiency portion of the systems benefits charge to low-income energy efficiency programs and decrease the allocation of funds to other participants, but the Commission expects the effect of other participants to be de minimus. The change in membership and authority of the Energy Efficiency and Sustainable Energy Board is not expected to have a fiscal impact on state, county or municipal governments.
The Department of Environmental Services reports the bill, as amended, will have no impact on its level of participation in the meetings and work of the Energy Efficiency and Sustainable Energy Board and will not require additional staff time. There will be no impact on the Department expenditures or revenues.
AGENCIES CONTACTED:
Public Utilities Commission and Department of Environmental Services