HB1496 (2020) Detail

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


HB 1496-FN - AS AMENDED BY THE HOUSE

 

12Mar2020... 0978h

2020 SESSION

20-2674

08/03

 

HOUSE BILL 1496-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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AMENDED 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12Mar2020... 0978h 20-2674

08/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

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  Findings.

I.  The general court finds that light-emitting diode (LED) bulbs save enough electric power compared to incandescent bulbs to rapidly earn back the cost of their purchase and, through additional purchases using only previous savings, thereafter easily exceed current rebates.  Therefore, and in view of climate concerns, the general court finds it both reasonable and necessary to end the rebate to residential ratepayers of revenue derived from the regional greenhouse gas initiative and invest it all, as originally intended, on effective energy efficiency programs for buildings.  

II.  According to the Energy Information Administration more than 40 percent of New Hampshire houses are heated by fuel oil.

III.  Energy efficiency measures that reduce heat loss in buildings (through air sealing, adding insulation, and other measures tailored for each building) not only lower demand for electricity but also for fuel, lowering heating expense for our families, while directly reducing the burning of fossil fuels which produces greenhouse gases.

IV.  Continuing failure to implement a serious energy efficiency program produces an unnecessary and accelerating loss of wealth from the New Hampshire economy, to the benefit only of out-of-state fossil-fuel producers.

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.  Eighty percent of the commercial and industrial retail electric ratepayer allocations shall be rebated to all commercial and industrial [rebated to all retail electric] ratepayers in the state on a per-kilowatt-hour basis, in a timely manner to be determined by the commission.  Twenty-five percent of the residential ratepayer allocation shall be rebated to residential ratepayers in a similar manner to all residential ratepayers, prorated over the 4 months following the effective date of this paragraph, after which the residential rebates shall permanently end.  During this 4-month period utility-run energy efficiency programs shall distribute information to all residential ratepayers alerting them of the pending end of the rebate and informing them of how to grow the savings from using one or 2 LED bulbs to fully compensate for the end of the rebate.

4  Energy Efficiency Fund and use of Auction Proceeds.  Amend RSA 125-O:23, III(a) to read as follows:

(a)  At least 15 percent to the low-income core energy efficiency program.  Starting as of the effective date of this subparagraph, this program may provide, through coupons or otherwise, one or more 60 or 75 watt-equivalent LED bulbs to each low-income household along with instructions for increasing the savings from the first LED bulbs to more than compensate for the pending end of the rebate.

5  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.

6  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.  

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

20-2674

Amended 4/16/20

 

HB 1496-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2020-0978h)

 

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 & Various Governmental Funds

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

 

METHODOLOGY:

The Public Utilities Commission (PUC) and the Department of Environmental Services (DES) indicate this bill requires the Energy Efficiency and Sustainable Energy Board to serve as a stakeholder forum that makes recommendations to program administrators and the PUC with respect to the development and implementation of program plans for the energy efficiency resource standard (EERS).  The EERS is an energy efficiency program, which is funded in part through the system benefits charge and the Energy Efficiency Fund.  The PUC and DES fiscal analysis considers the following:

  • The bill would repeal the $1 per allowance threshold for auction proceeds deposited into the Energy Efficiency Fund.  
  • A 60%/40% allocation is assumed for commercial & industrial (C&I) vs residential revenues based on estimated kilowatt-hour sales.  
  • Seventy-five percent of rebates to all residential electric ratepayers would end 60 days after passage of the bill and the remaining 25% would end 4 months later.  
  • Instead of rebating funds to residential ratepayers, that portion of auction proceeds would provide additional funding to the energy efficiency programs identified in RSA 125-O:23. III.
  • Eighty percent of the C&I portion of auction proceeds would be provided as rebates to all commercial and industrial ratepayers.  The remaining 20% of the C&I allocation would fund C&I energy efficiency projects.
  • At least 15% of residential allocation (proceeds received by the State from the sale of allowances, after administrative costs and the sector split) would still be allocated to the low-income core energy efficiency program.  
  • Up to $2 million of residential allocation annually would still be allocated to municipal and local government energy efficiency projects.  The remaining residential balance would still go to all-fuels, comprehensive energy efficiency programs.  

 

The bill would have no effect on state revenue from auction proceeds which is estimated to be $17 million annually.  After deducting administrative costs of $0.35 million, $16.65 million would be allocated as follows:

 

Current Law

Current Allocation of Revenue

Proposed Changes

Proposed Allocation of Revenue

Net Estimated Change

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

$435,000 ($2.90 million x 0.15)

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

 

$1,000,000 ($16.65 million x 0.4 x 0.15)

$565,000

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 allowances)

$465,000 ($2.90 million - $2.435 million)

All-fuels Program (remaining residential balance)

$3.66 Million ($16.65 million x 0.4 – 3 million)

$3.195 Million

C&I energy efficiency projects

$0

C&I energy efficiency projects

$1.998 Million ($16.65 million x 0.6 x 0.2)

$1.998 Million

Rebates to all electricity rate payers

$13.75 Million (total rebates)

 

C&I customer rebates = $8.25 million

 

Residential customer rebates = $5.5 million

Rebates to commercial/ industrial electricity rate payers

 

$7.992 million (total rebates)

 C&I customer rebates = $7.992 million

($16.65 million x 0.6 x 0.8)

$0 rebates to Residential ratepayers beginning 4 months after effective date

($5.758 Million)

 

Total

$16.65 Million

 

$16.65 Million

$0

 

The table reflects estimated proceed allocations 4 months after the effective date of this bill.  During the first four months, twenty-five percent of the residential ratepayer allocation would be rebated to residential ratepayers in a similar manner to all residential ratepayers.  Assuming a total annual residential allocation of $6.66 million, the estimated allocation for four months would equal approximately $2.22 million (1/3 of the annual allocation).  Twenty-five percent of $2.22 million equals $555,000; prorated over 4 months equates to $138,750 monthly rebated in a similar manner to all residential ratepayers.    

 

This bill decreases the total rebates to ratepayers and increases the funding to energy efficiency programs.  Rebates to C&I customers are estimated to decrease slightly ($8.25 million to $7.992) and funding for C&I energy efficiency programs are estimated to increase.  The fiscal impact on state, county, and local governments that consume electricity is indeterminable.

 

AGENCIES CONTACTED:

Department of Environmental Services and Public Utilities Commission

 

Links

HB1496 at GenCourtMobile
HB1496 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

HB1496 Revision: 8425 Date: April 17, 2020, 9:31 a.m.
HB1496 Revision: 7147 Date: Dec. 3, 2019, 10:30 a.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and referred to Science, Technology and Energy HJ 1 P. 24
Jan. 28, 2020 Public Hearing: 01/28/2020 02:15 pm LOB 304
March 3, 2020 Executive Session: 03/03/2020 10:00 am LOB 304
March 11, 2020 Majority Committee Report: Ought to Pass with Amendment # 2020-0978h for 03/11/2020 (Vote 10-8; RC) HC 10 P. 72
Majority Committee Report: Ought to Pass with Amendment # 2020-0978h (Vote 10-8; RC)
Minority Committee Report: Inexpedient to Legislate
March 12, 2020 Amendment # 2020-0978h: AA VV 03/12/2020
March 12, 2020 Ought to Pass with Amendment 2020-0978h: MA RC 180-101 03/12/2020
June 16, 2020 Introduced 06/16/2020, and Laid on Table, MA, VV; 06/16/2020; SJ 8
June 16, 2020 No Pending Motion; 06/16/2020 SJ 8