1 Regional Greenhouse Gas Initiative; 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 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.

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. 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 Energy Efficiency Fund and Use of Auction Proceeds; Reports. Amend RSA 125-O:23, V to read as follows:

V. Each entity receiving funding under subparagraph III(c) shall file an annual report on the performance of the entity's program. The commission shall establish the format, content, and the methodologies used to provide the content of the reports. The commission shall make use of, as applicable and appropriate, the monitoring and verification requirements used in the natural gas and electric utility core programs. The annual reports shall be delivered to the governor, the president of the senate, the speaker of the house of representatives, the chairmen of the senate and house standing committees with jurisdiction over energy matters, and the chairman of the public utilities commission. The reports shall include, but not be limited to, the following:

(a) Program expenditures, including direct customer installation costs.

(b) Resulting actual and projected energy savings by fuel type and associated CO2 emissions reductions.

(c) Any measurement and verification data that corroborate projected savings.

(d) The number of customers served by the programs.

(e) Other data as required by the commission in order to determine program effectiveness.

3 Effective Date. This act shall take effect 60 days after its passage.

VETOED July 17, 2020 VETO SUSTAINED September 16, 2020

1 Regional Greenhouse Gas Initiative; Energy Efficiency Fund and Use of Auction Proceeds. Amend RSA 125-O:23, II and III to read as follows:

II. All amounts 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 ratepayers in the state on a per-kilowatt-hour basis, in a timely manner to be determined by the commission.

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 35 percent to the low-income utility core energy efficiency program.

(b) Beginning January 1, 2020 , no more than $5,000,000 annually to utility core energy efficiency programs for municipal , school district, 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 through 2019 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 2020 , 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 divided evenly between the 2 existing customer classes to the greatest extent practicable as determined by the commission. 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 Energy Efficiency Fund and Use of Auction Proceeds; Reports. Amend RSA 125-O:23, V to read as follows:

V. Each entity receiving funding under subparagraph III(c) shall file an annual report on the performance of the entity's program. The commission shall establish the format, content, and the methodologies used to provide the content of the reports. The commission shall make use of, as applicable and appropriate, the monitoring and verification requirements used in the natural gas and electric utility core programs. The annual reports shall be delivered to the governor, the president of the senate, the speaker of the house of representatives, the chairmen of the senate and house standing committees with jurisdiction over energy matters, and the chairman of the public utilities commission. The commission shall make these reports available to the public on the website and in person. The reports shall include, but not be limited to, the following:

(a) Program expenditures, including direct customer installation costs.

(b) Resulting actual and projected energy savings by fuel type and associated CO2 emissions reductions.

(c) Any measurement and verification data that corroborate projected savings.

(d) The number of customers served by the programs.

(e) Other data as required by the commission in order to determine program effectiveness.

VI. The public utilities commission and the department of environmental services shall review the use of auction proceeds under paragraph III and shall submit a report with recommendations to continue or revise the allocation of auction proceeds among the core programs based on program needs to the house and senate finance committees, the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before July 1, 2023.

3 Effective Date. This act shall take effect 60 days after its passage.

VETOED July 17, 2020 VETO SUSTAINED September 16, 2020