HB1317 (2020) Detail

Relative to funding for energy efficiency and renewable energy projects by residential, commercial, and industrial ratepayers.


HB 1317-FN - AS INTRODUCED

 

 

2020 SESSION

20-2276

10/06

 

HOUSE BILL 1317-FN

 

AN ACT relative to funding for energy efficiency and renewable energy projects by residential, commercial, and industrial ratepayers.

 

SPONSORS: Rep. Balch, Hills. 38; Rep. Oxenham, Sull. 1; Rep. Vann, Hills. 24

 

COMMITTEE: Science, Technology and Energy

 

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ANALYSIS

 

This bill modifies the distribution of auction proceeds under the regional greenhouse gas initiative program and allocates the funds among residential, commercial, and industrial energy efficiency and renewable energy projects.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2276

10/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT relative to funding for energy efficiency and renewable energy projects by residential, commercial, and industrial ratepayers.

 

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

 

1  Energy Efficiency Fund and Use of Auction Proceeds.  Amend RSA 125-O:23, II and III 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.  

(a)  Of the commercial and industrial retail electric ratepayer allocations, 80 percent 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 and the remaining amount shall be allocated as provided in paragraph III(c).  

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 percent to the low-income core energy efficiency program.

(b)  [Beginning January 1, 2014,] Up to $2,000,000 annually to utility core programs for municipal 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, 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, 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.

(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] with 50 percent of the funds attributable to residential retail electric ratepayers to be used for renewable energy projects by private ratepayers and all of the deposited funds attributable to commercial and industrial retail electric ratepayers to be used for commercial or industrial energy efficiency and renewable energy projects.  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  Effective Date.  This act shall take effect January 1, 2021.

 

LBAO

20-2276

11/13/19

 

HB 1317-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to funding for energy efficiency and renewable energy projects by residential, commercial and industrial ratepayers.

 

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

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

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

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

METHODOLOGY:

The Public Utilities Commission and the Department of Environmental Services indicate this bill would repeal the $1 per allowance threshold for auction proceeds deposited into the Energy Efficiency Fund.  Rebates to all residential electric ratepayers would end.  Rebates to commercial and industrial ratepayers would be reduced from 100% to 80%, with 20% now to be used for commercial or industrial (C & I) energy efficiency and renewable energy projects.  At least 15% of residential proceeds received by the State from the sale of allowances, after administrative costs, would still be allocated to the low-income core energy efficiency program.  Up to $2 million of residential proceeds annually would continue to be allocated to municipal and local government energy efficiency projects.  Under this bill, rather than 100% of the remaining residential proceeds going to all-fuels, comprehensive energy efficiency programs for residential, commercial and industrial customers, that allocation would be reduced to 50%, and the remaining 50% of the funds attributable to residential retail electric ratepayers would be used for renewable energy projects by private ratepayers.  For illustrative and computational purposes, a 60%/40% split is assumed for C & I and residential revenues.   The bill would have no effect on state revenue from auction proceeds estimated to be $14 million annually.  After deducting the administrative costs of $0.35 million, $13.65 million would be allocated as  follows:  Residential (40%) = $5,460,000 C&I (60%) =  $8,190,000

 

Current Law

Current Allocation of Revenue

Proposed Changes

Proposed Allocation of Revenue

Net Change

Low-income Energy Efficiency Program 15% of $1 threshold

$440,000

($2.91 million x 15%)

Low-income Energy Efficiency Program (15%) of residential

$819,000

($13.65 million x 40% x15%)

$379,000

Energy Efficiency Program (only municipal and

local governments)

   $2.0 million

Energy Efficiency Program (municipal and

local governments)

$2.0 million

$0

All-fuels Program (remaining balance of $1 per allowance)

$470,000

($2.91 million -$2.44 million)

All-fuels Program (50% of remaining residential balance)

$1.32 million (50% x ($13.65 million x 40% - 2.819 million))

$850,000

Renewable energy projects by private   ratepayers

$0

Renewable energy projects by private   ratepayers (50% of the remaining residential balance)

$1.32 million

$1.32 million

Commercial or industrial energy efficiency and

renewable energy projects

$0

Commercial or industrial energy efficiency and

renewable energy projects

$1.64 million ($13.65 million x 60% x 20%)

$1.64 million

Rebates to all electricity rate payers

$10.74 million

($13.65 million - $2.91 million)

 

 C&I rebates =$6.44 million

 

Residential rebates = $4.30million

Rebates to commercial/ industrial electricity rate payers

$6.55 million ($13.65 million x

60% x 80%)

($4.19 million)

Total

$13.65 million

 

$13.65 million

$0

 

 

This bill would reallocate state revenue from customer rebates to energy efficiency and renewable energy programs.  Therefore, the cost of electricity will increase by an indeterminable amount for state, county, and local governments that consume electricity.  The Commission and Department note that investments into energy efficiency and renewable energy may offset, in the future, any increase to electricity costs.

 

AGENCIES CONTACTED:

Public Utilities Commission and Department of Environmental Services

 

Links

HB1317 at GenCourtMobile
HB1317 Discussion

Action Dates

Date Body Type
Jan. 28, 2020 House Hearing
March 3, 2020 House Exec Session
House Floor Vote
March 11, 2020 House Floor Vote

Bill Text Revisions

HB1317 Revision: 6969 Date: Dec. 2, 2019, 2:25 p.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and referred to Science, Technology and Energy HJ 1 P. 17
Jan. 28, 2020 Public Hearing: 01/28/2020 03:00 pm LOB 304
March 2, 2020 Full Committee Work Session: 03/02/2020 10:00 am LOB 304
March 3, 2020 Executive Session: 03/03/2020 10:00 am LOB 304
Committee Report: Inexpedient to Legislate (Vote 18-0; CC)
March 11, 2020 Committee Report: Inexpedient to Legislate for 03/11/2020 (Vote 18-0; CC) HC 10 P. 28
March 11, 2020 Inexpedient to Legislate: MA VV 03/11/2020