Revision: Feb. 18, 2020, 12:42 p.m.
SB 668-FN-A - AS AMENDED BY THE SENATE
SENATE BILL 668-FN-A
SPONSORS: Sen. Watters, Dist 4; Sen. Feltes, Dist 15; Sen. Levesque, Dist 12; Sen. Rosenwald, Dist 13; Sen. Fuller Clark, Dist 21; Sen. Hennessey, Dist 5; Sen. Cavanaugh, Dist 16; Sen. Morgan, Dist 23; Sen. Gray, Dist 6; Sen. Bradley, Dist 3; Sen. Sherman, Dist 24; Sen. Kahn, Dist 10; Rep. Backus, Hills. 19; Rep. Cushing, Rock. 21
COMMITTEE: Energy and Natural Resources
I. Establishes an offshore wind commission.
II. Establishes an offshore wind industry development office in the department of business and economic affairs.
III. Includes both land based and offshore wind programs relative to renewable energy.
IV. Establishes and makes an appropriation to the offshore wind industry development fund.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/13/2020 0575s 20-2927
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 Purpose Statement. The general court finds that in order to promote more economic, clean energy and associated economic development benefits for New Hampshire, Governor Sununu made a formal request to the Bureau of Ocean Energy Management (BOEM) to establish an Intergovernmental Renewable Energy Task Force (Task Force) to facilitate regional collaboration among state and federal agencies in the planning and development of offshore wind in the Gulf of Maine. In parallel with the work of the Task Force, it is in the interest of all New Hampshire ratepayers and residents to create a commission to study the opportunities within New Hampshire for supply chain development, seacoast port capability, workforce development and associated economic expansion; to ensure that New Hampshire is poised to immediately engage in, support, and benefit from the development of the offshore wind industry, and to ensure that such development and the energy produced therefrom benefits economically disadvantaged populations. It is declared a public good in the state of New Hampshire to develop offshore wind generation of renewable energy, with the attendant coastal zone utilization, as such development ensures the vitality and sustainability of industry, and tourism, and the quality of life of New Hampshire people, including the protection of historic resources and natural resources, including wetlands, floodplains, estuaries, beaches, dunes, and fish and wildlife and their habitat, within the coastal zone.
2 New Section; Offshore Wind Commission Established. Amend RSA 374-F by inserting after section 9 the following new section:
374-F:10 Offshore Wind and Port Development; Commission Established.
I. There is established a commission to investigate, in parallel with the work of the Gulf of Maine Intergovernmental Renewable Energy Task Force established by the Bureau of Ocean Energy Management (BOEM) study, the economic development opportunities for New Hampshire in supply chain needs, port capabilities, workforce development, energy procurement, transmission and storage, and fisheries and marine environment, to ensure the success of offshore wind in the Gulf of Maine. The commission may consider, at an appropriate time, in relation to the New Hampshire state energy strategy, outlined in RSA 4-E, how contracts with developers and utilities can deliver lower costs to ratepayers. The commission shall create working groups, including the offshore wind fisheries and marine environment working group, workforce working group, and the port facilities and supply chain working group, and after July 1, 2021 or after BOEM identifies potential sites for leasing, the procurement, transmission, financing, energy storage, renewable energy credits, and ratepayer benefits working group, to assist the commission in reaching its recommendations. Working group members and chairpersons shall be appointed by the chairperson of the commission in consultation with the commission, the governor, and any other parties deemed relevant by the commissioner.
II. The members of the commission shall be as follows:
(a) Two members of the senate, appointed by the president of the senate.
(b) Four members of the house of representatives, at least one of whom shall be a member of the house environment and agriculture committee, one of whom shall be a member of the fish and game and marine resources committee, and one of whom shall be a member of the house science, technology & energy committee, appointed by the speaker of the house of representatives.
(c) The director of the office of strategic initiatives, or designee.
(d) The commissioner of the department of business and economic affairs, or designee.
(e) A representative of the public utilities commission, appointed by the chairperson.
(f) The consumer advocate, or designee.
(g) A representative of The Nature Conservancy in New Hampshire, appointed by that organization.
(h) A representative of Clean Energy NH, appointed by that organization.
(i) The president of the University of New Hampshire, or designee.
(j) The chancellor of the community college system of New Hampshire, or designee.
(k) The president of Dartmouth College, or designee.
(l) A member of the oceanography studies research team at the University of New Hampshire, appointed by the president of the university.
(m) A member of the Pease Development Authority, appointed by that authority.
(n) A member of the New Hampshire Port Authority.
(o) The director of the fish and game department, or designee.
(p) A member of a New Hampshire fisheries organization, appointed by the governor.
(q) A representative of the clean energy development industry, appointed by the governor.
(r) A representative of the city of Portsmouth and a representative of the city of Dover, appointed by each city's respective governing body.
(s) Four representatives of additional coastal or Great Bay communities, appointed by the governor.
(t) The commissioner of the department of transportation, or designee.
(u) The commissioner of the department of environmental services, or designee.
(v) A director of a career and technical education center, appointed by the commissioner of the department of education.
(w) The president of the Business and Industry Association, or designee.
(x) Two members representing offshore wind-related labor, one of whom shall be appointed by the IBEW and one of whom shall be appointed by the New Hampshire AFL-CIO.
III. The commission shall consider and make specific recommendations on the following topics:
(a) Existing and future opportunities to establish a supply chain supporting the development of offshore wind facilities.
(b) An assessment of the capabilities of the Portsmouth Harbor to become a regional hub for offshore wind, both on and off shore, to attract developers in the offshore wind industry.
(c) An evaluation of the potential workforce and workforce housing and transportation needs of the offshore wind industry and New Hampshire’s ability to provide workforce educational opportunities, training, development, and recruitment, housing, and transportation to meet those needs, and the benefits of utilizing a New Hampshire workforce to the fullest extent possible.
(d) Potential locations to interconnect offshore wind facilities to the onshore transmission grid, and the advisability of an independent transmission solicitation process.
(e) Opportunities for contracts and/or solicitations with offshore wind developers to ensure the full development of the projects and at the lowest cost to ratepayers.
(f) Opportunities for research partnerships with the University of New Hampshire and the community college system of New Hampshire on workforce development, technology, and environmental issues.
(g) Opportunities in coordination with the congressional delegation and the Department of the Navy for use of facilities at the Portsmouth Naval Shipyard.
(h) Appropriate accommodations and protections for fisheries and marine habitat.
(i) Energy procurement requirements and schedules for public utilities.
(j) The role of energy storage in transmission procurement or energy procurement.
(k) Coordination with partner states on marine surveys and studies, meta-ocean data, and transmission studies.
IV. The first meeting of the commission shall be called by the first-named senate member and shall be held within 30 days of the effective date of this section. The members of the commission shall elect a chairperson from among the members at the first meeting. Sixteen members of the commission shall constitute a quorum.
V. The commission shall make an annual report, starting on November 1, 2020, to the speaker of the house of representatives, the president of the senate, the governor, and the chairperson of the public utilities commission. The report shall describe the activities and findings of the commission and any recommendations for proposed legislation, direction to the New Hampshire congressional delegation for items requiring federal oversight, direction to the public utilities commission to initiate a proceeding for all items requiring state regulatory review, and direction to state agencies and communities concerning economic and educational development related to offshore wind development.
VI. The commission shall receive staff support and other services, including research and facilities assessments, from the department of business and economic affairs, office of offshore wind industry development established in RSA 12-O:51. In addition to funds appropriated by the state of New Hampshire or provided from grants, the public utilities commission is authorized to contract for such services on behalf of the commission and to recover its costs.
VII. The offshore wind fisheries and marine environment working group shall ensure that local and regional environmental and fisheries expertise and experience can inform the federal and state offshore wind planning, leasing, and permitting process. It shall include representation with scientific, technical, environmental, habitat, and fisheries expertise, drawn from New Hampshire and other fisheries organizations, environmental organizations, academia, and federal and state agencies, and from additional members as deemed necessary by the working group and the commission. The working group shall make recommendations on these and other matters deemed relevant to the commission. The working group shall include representation from commercial and recreational fisheries and aquaculture, fisheries management entities, state agencies conservation and environmental groups, geological survey, coastal, and ocean floor mapping researchers and regulators, the United States Coast Guard, and any other persons the commission deems relevant to the working group.
VIII. The workforce development working group shall make efforts to mobilize New Hampshire’s education and workforce training system, and to promote business and trade efforts to provide the workers needed for the offshore wind industry. The working group shall also examine efforts by other states, review the capacity of New Hampshire’s labor force, and consider programs and incentives to encourage the use of local workers. The working group shall identify any impediments or lack of capacity in education, training, apprenticeship, and recruitment systems in the state as well as considering enhancements needed to the career and technical education system, the community college system, and the university system, and other workforce development entities to meet industry needs. The working group will consult with communities, workforce housing and other developers, realtors, and representatives of the building trades and other organized labor about strategies to meet housing needs for the offshore wind and transmission development workforce. The working group shall make recommendations on these and other matters deemed relevant to the commission. The working group shall include representatives of organized labor, relevant state agencies, career and technical education, college and university systems, business and industry associations, realtors, workforce housing advocacy organizations, homebuilders, the offshore wind industry seacoast municipalities, regional planning commissions, and any other persons the commission deems relevant to the working group.
IX. The port facilities and offshore wind industry manufacturing and supply chain working group is established and shall utilize and as necessary solicit studies and receive expert advice on ensuring New Hampshire's capacity for potential use by the offshore wind industry. The working group shall coordinate with the United States Coast Guard, the United States Navy, and other entities with authority over port, coastal, and Great Bay Estuary waters. The working group shall also examine the feasibility of leasing facilities at the Portsmouth Naval Shipyard for offshore wind industry activities and consider the needs and logistics of supply chain and manufacturing activities for construction and maintenance of offshore wind, and the potential impact on transportation systems. The working group shall make recommendations on these and other matters deemed relevant to the commission. The working group shall include representatives of labor, business and industry, relevant state agencies, the Pease Development Authority and the New Hampshire Port Authority, the United States Coast Guard, the United States Navy, offshore wind companies, public utilities, educational institutions, environmental groups and any other persons the commission deems relevant to the working group.
X.(a) After July 1, 2021 or after BOEM identifies potential sites for leasing, whichever occurs first, the commission shall establish a procurement, transmission, financing, labor, energy storage, renewable energy credits, and ratepayer benefits working group. In accordance with the New Hampshire energy plan, the working group will consider development that delivers energy to the benefit of New Hampshire ratepayers. The working group will consider:
(1) The inclusion of independent evaluation of procurements, solicitations, and contracts, and the involvement, as appropriate, of consumer advocates.
(2) The role of procurement mandates and schedules that may encourage investment by the industry and encourage workforce development.
(3) The advisability of an independent solicitation for transmission, and the inclusion of energy storage proposals in energy procurement or transmission.
(4) New Hampshire financing, banking, and tax structure for potential impacts by the offshore wind industry.
(5) The benefits and concerns associated with any procurement of the energy derived from offshore wind facilities and associated transmission and energy storage capacities.
(6) Labor contracting that promotes the employment of New Hampshire and regional workers.
(b) The working group shall make recommendations on these and other matters deemed relevant to the commission.
XI. There is established a separate, nonlapsing fund to be known as the offshore wind development fund. Funds dedicated to the state of New Hampshire from the BOEM leasing of offshore areas shall be deposited in this fund. Moneys received from federal grants for these purposes from NOAA and other agencies, and from grants and non-profits, shall be deposited in this fund for the purposes of supporting the office of offshore wind industry development established in RSA 12-O:51, workforce development, and other items approved by the commission.
3 New Subdivision; Office of Offshore Wind Industry Development. Amend RSA 12-O by inserting after section 50 the following new subdivision:
Office of Offshore Wind Industry Development
12-O:51 Statement of Findings and Purpose. The general court hereby finds that the development of a new offshore wind development industry is in the beginning stages of expanding to northern New England. It should be a goal of the state of New Hampshire to maximize the economic benefit that will come to the state as a result of this new industry. In furtherance of these objectives, the general court hereby establishes an office of offshore wind industry development in the department of business and economic affairs.
12-O:52 Office of Offshore Wind Industry Development Established.
I. There is established in the department of business and economic affairs the office of offshore wind industry development. The office shall be under the supervision of a classified director of the office of offshore wind industry development, who shall serve under the supervision of the commissioner. The director shall provide administrative oversight and ensure that the responsibilities of the office described in this section are fulfilled.
II. The office of offshore wind industry development shall:
(a) Support the work of the New Hampshire members of the Intergovernmental Renewable Energy Task Force administered by the federal Bureau of Ocean Energy Management (BOEM).
(b) Support the work of the offshore wind commission established in RSA 374:10.
(c) Assist the offshore wind commission to develop and implement offshore wind development strategies including:
(1) Assessment of port facilities.
(2) Economic impact analyses.
(3) Supply chain analyses.
(4) Outcome and performance measurements.
(d) Collaborate with key state agencies and partners on offshore wind industry development initiatives.
(1) The office of strategic initiatives.
(2) The department of environmental services.
(3) The Pease Development Authority.
(4) The fish and game commission.
(5) The university system of New Hampshire.
(6) The community college system of New Hampshire.
(e) Coordinate offshore wind industry economic development policy, including:
(1) Development of workforce.
(2) Identification of and recruitment of offshore wind development employers.
(3) Identification and recruitment of offshore wind supply chain employers.
(4) Promotion of New Hampshire's benefits to the various components of the offshore wind industry.
(5) Provide updates and guidance to the general court with regard to policy and funding.
162-H:1 Declaration of Purpose. The legislature recognizes that the selection of sites for energy facilities may have significant impacts on and benefits to the following: the welfare of the population, private property, the location and growth of industry, the overall economic growth of the state, the environment of the state, historic sites, aesthetics, air and water quality, the use of natural resources, and public health and safety. Accordingly, the legislature finds that it is in the public interest to maintain a balance among those potential significant impacts and benefits in decisions about the siting, construction, and operation of energy facilities in New Hampshire; that undue delay in the construction of new energy facilities be avoided; that full and timely consideration of environmental consequences be provided; that all entities planning to construct facilities in the state be required to provide full and complete disclosure to the public of such plans; and that the state ensure that the construction and operation of energy facilities is treated as a significant aspect of land-use and offshore planning in which all environmental, economic, and technical issues are resolved in an integrated fashion. In furtherance of these objectives, the legislature hereby establishes a procedure for the review, approval, monitoring, and enforcement of compliance in the planning, siting, construction, and operation of energy facilities.
(f) A renewable energy facility as defined in RSA 162-H:2, XII.
XII. "Renewable energy facility" means electric generating station equipment and associated facilities designed for, or capable of, operation at a nameplate capacity of greater than 30 megawatts and powered by land-based or offshore wind energy, geothermal energy, hydrogen derived from biomass fuels or methane gas, ocean thermal, wave, current, or tidal energy, methane gas, biomass technologies, solar technologies, or hydroelectric energy. "Renewable energy facility" shall also include electric generating station equipment and associated facilities of 30 megawatts or less nameplate capacity but at least 5 megawatts which the committee determines requires a certificate, consistent with the findings and purposes set forth in RSA 162-H:1, either on its own motion or by petition of the applicant or 2 or more petitioners as defined in RSA 162-H:2, XI.
(359) Moneys deposited in the offshore wind development fund established in RSA 374-F:10, XI.
8 Appropriation. The sum of $102,000 for the fiscal year ending June 30, 2021 is appropriated to the department of business and economic affairs for deposit in the offshore wind development fund established in RSA 374-F:10, XI to support offshore wind development. Such funds shall be in addition to any other funds appropriated to the department of business and economic affairs. The governor is authorized to draw a warrant for said sums out of any money in the treasury not otherwise appropriated.
SB 668-FN-A- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2020-0575s)
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
In Excess of $102,000
In Excess of $99,000
In Excess of $104,000
[ X ] General [ ] Education [ ] Highway [ ] Other
This bill establishes an independent Offshore Wind Commission (Commission) and an Office of Offshore Wind Industry Development (Office) within the Department of Business and Economic Affairs (DBEA). The bill also establishes a new classified director of the Office under the supervision of the Commissioner of DBEA. The Commission shall receive staff support and other services, including research and facilities assessments from the Office. In addition to funds appropriated by the state or provided from grants, the Public Utilities Commission is authorized to contract for such services on behalf of the Commission and to recover its costs. The bill appropriates $102,000 for the fiscal year ending June 30, 2021 to DBEA for deposit into a newly created offshore wind development fund.
The DBEA indicated it would need an Administrator II position (LG 29, step 1) to fulfill the responsibilities outlined for the classified Director of the Office. Salary, benefits and related administrative costs are $102,000 for FY 2021, $99,000 for FY 2022 and $104,000 for FY 2023.
Department of Business and Economic Affairs