Revision: Dec. 3, 2019, 10:30 a.m.
HB 1496-FN - AS INTRODUCED
2020 SESSION
20-2674
08/03
HOUSE BILL 1496-FN
SPONSORS: Rep. Mann, Ches. 2
COMMITTEE: Science, Technology and Energy
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
20-2674
08/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Findings. The general court finds that light-emitting diode (LED) bulbs save enough electric power compared to incandescent or compact fluorescent lamp bulbs to easily earn back the cost of their purchase and subsequently earn enough to cover small charges to fund energy efficiency programs. Therefore the general court finds it is reasonable to collect revenue for the energy efficiency fund through RGGI based charges on residents' electric bills.
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. All of the commercial and industrial retail electric ratepayer allocations shall be rebated to all commercial and retail 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.
4 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.
5 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. No portion of the energy efficiency fund shall be appropriated for any other purpose.
6 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.
7 Effective Date. This act shall take effect 60 days after its passage.
20-2674
11/13/19
HB 1496-FN- FISCAL NOTE
AS INTRODUCED
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 | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease |
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 | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease |
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LOCAL: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease |
METHODOLOGY:
The Public Utilities Commission (PUC) and the Department of Environmental Services (NHDES) indicate this bill requires the Energy Efficiency and Sustainable Energy Board (EESE 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 funded through the system benefits charge and energy efficiency fund. Further, this bill would repeal the $1 per allowance threshold for auction proceeds deposited into the Energy Efficiency Fund. A 60%/40% split is assumed for the Commercial & Industrial (C & I) and residential revenues. Rebates to all residential electric ratepayers would end and instead auction proceeds would be used to support programs identified in RSA 125-0:23. III. Rebates of the C & I portion of the proceeds would be provided to all commercial and industrial ratepayers. 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 still be allocated to municipal and local government energy efficiency projects. The remaining residential proceeds 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 $14 million annually. After deducting administrative costs of $0.35 million, $13.65 million would be allocated as follows:
Current Law | Current Allocation of Revenue | Proposed Changes | Proposed Allocation of Revenue | Net Change |
Low-income Energy Efficiency Program (15% of the $1 threshold=$2.91 million) | $440,000 ($2.91 million x 15%) | Low-income Energy Efficiency Program (15% of residential) | $819,000 ($13.65 million x 40% x 15%) | $379,000 |
Energy Efficiency Program (only municipal and local governments) | $2.0 million | Energy Efficiency Program (only municipal and local governments) | $2.0 million | $0 |
All-fuels Program (remaining balance of $1 per allowances) | $470,000 ($2.91million minus $2.44 million) | All-fuels Program (remaining residential balance) | $2.641 million ($13.65 million x 40% minus $2.819 million) | $2.171 million |
Rebates to all electricity rate payers | $10.74 million C & I customer rebates = $6.44 million Residential customer rebates = $4.3 million | Rebates to commercial/ industrial electricity rate payers | $8.19 million ($13.65 million x 60%) No rebates to Residential ratepayers | ($2.55 million) |
TOTAL | $13.65 million |
| $13.65 million | $0 |
This bill would reallocate state revenue to energy efficiency programs, but will rebate 100% of the C & I portion to C & I ratepayers. Therefore, the cost of electricity for C & I ratepayers will decrease by an indeterminable including state, county, and local governments that consume electricity.
It is assumed this bill will not be effective until FY 2021.
AGENCIES CONTACTED:
Public Utilities Commission and Department of Environmental Services