HB549 (2022) Detail

(New Title) relative to the system benefits charge and the energy efficiency and sustainable energy board.


CHAPTER 5

HB 549 - FINAL VERSION

 

6Jan2022... 2205h

02/03/2022   0165s

2022 SESSION

21-0717

10/06

 

HOUSE BILL 549

 

AN ACT relative to the system benefits charge and the energy efficiency and sustainable energy board.

 

SPONSORS: Rep. Vose, Rock. 9; Rep. Harrington, Straf. 3; Rep. Ammon, Hills. 40; Rep. Nunez, Hills. 37; Sen. Ward, Dist 8; Sen. Gannon, Dist 23

 

COMMITTEE: Science, Technology and Energy

 

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AMENDED ANALYSIS

 

This bill changes the programs and expenses that system benefits charges may fund, and adjusts the procedure for setting and increasing the rate of the system benefits charge.  The bill also modifies the duties of the energy efficiency and sustainable energy board.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

6Jan2022... 2205h

02/03/2022   0165s 21-0717

10/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Two

 

AN ACT relative to the system benefits charge and the energy efficiency and sustainable energy board.

 

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

 

5:1  Restructuring Policy Principles; System Benefits Charge.  Amend RSA 374-F:3, VI to read as follows:

VI.  Benefits for All Consumers.  Restructuring of the electric utility industry should be implemented in a manner that benefits all consumers equitably and does not benefit one customer class to the detriment of another.  Costs should not be shifted unfairly among customers.

VI-a. System Benefits Charge.

(a)  A nonbypassable and competitively neutral system benefits charge applied to the use of the distribution system may be used to fund public benefits related to the provision of electricity.  [Such benefits] This charge, as approved by regulators, may [include, but not necessarily be limited to, programs for low-income customers, energy efficiency programs, funding for the electric utility industry's share of commission and department expenses pursuant to RSA 363-A, support for research and development, and investments in commercialization strategies for new and beneficial technologies.  Legislative approval of the New Hampshire general court shall be required to increase the system benefits charge.  This requirement of prior approval of the New Hampshire general court shall not apply to the energy efficiency portion of the system benefits charge if the increase is authorized by an order of the commission to implement the 3-year planning periods of the Energy Efficiency Resource Standard framework established by commission Order No. 25,932 dated August 2, 2016, ending in 2020 and 2023, or, if for purposes other than implementing the Energy Efficiency Resource Standard, is authorized by the fiscal committee of the general court; provided, however, that no less than 20 percent of the portion of the funds collected for energy efficiency shall be expended on low-income energy efficiency programs.  Energy efficiency programs should include the development of relationships with third-party lending institutions to provide opportunities for low-cost financing of energy efficiency measures to leverage available funds to the maximum extent, and shall also include funding for workforce development to minimize waiting periods for low-income energy audits and weatherization.] fund:

(1)  Energy efficiency programs.

(2)  Programs that promote and describe the consumer advantages of energy efficiency across all ratepayer classes.

(3)  The electric utility industry's share of commission and department expenses pursuant to RSA 363-A.

(4)  Support for research and development.

(5)  Investments in commercialization strategies for new and beneficial technologies.

(6)  Programs for low-income customers.

(b)  Up to $400,000 of system benefits charge funds collected annually shall be used to promulgate the benefits of energy efficiency according to guidelines developed as specified in RSA 125-O:5-a, I(c) as determined by the department of energy.

(c)  No less than 20 percent of the portion of the funds collected for energy efficiency shall be expended on low-income energy efficiency programs.

(d)  Notwithstanding any subsequent commission order to the contrary, the joint utility energy efficiency plan and programming framework and components, including utility performance incentive payments, lost base revenue calculations, and Evaluation, Measurement, and Verification process that were in effect on January 1, 2021, shall remain in effect until changed by an order or operation of law as authorized in subparagraphs (3) and (5).  The joint utilities shall continue to prepare triennial energy efficiency plans with programming and incentive payments at levels optimized to deliver ratepayer savings as made possible by the funding described as follows:

(1)  Energy efficiency program funding.  The budget for joint energy efficiency planning shall be funded through the system benefits charge, local distribution adjustment charges, the energy efficiency fund established pursuant to RSA 125-O:23, revenues available from wholesale energy and ancillary services markets operated by ISO-New England, and energy efficiency carry-forward or carry-under balances detailed in the most recent Performance Incentive and Fund Balance reports; however, the joint utilities shall continue to seek alternative sources of funding to supplement the aforementioned funding sources.  Total plan overspending shall be treated as a carry-under balance, and not as a charge to utility shareholders.

(2)  System benefits charge and local distribution adjustment charge funding levels.  For the year 2022, the energy efficiency portion of the system benefits charge shall be set at the level for 2020 authorized in Order No. 26,323 dated December 31, 2019.  The energy efficiency portion of the local distribution adjustment charge shall be set at the level for 2020 authorized in Order No. 26,306 dated October 31, 2019, for Liberty Utilities (Energy North Natural Gas) Corp. and in Order No. 26,303 dated October 29, 2019, for Northern Utilities, Inc.  The energy efficiency portion of the system benefits charge and local distribution adjustment charges shall adjust annually beginning January 1, 2023, and shall be calculated using the most recently available 3-year average of the consumer price index (CPI-W) as published by the Bureau of Labor Statistics of the United States Department of Labor plus 0.25 percent all as calculated by the department of energy.  Utilities subject to commission rate regulation shall submit tariff amendments altering solely the system benefits charge and local distribution adjustment charge as described, reconciled for over and under collections already occurred, as soon after the effective date of this subparagraph as possible, and every December 1 for the upcoming year thereafter.

(3)  2022-23 plan filing.  On March 1, 2022, the joint utilities shall petition the commission to approve any changes to current program offerings that will be available for the period between May 1, 2022, and January 1, 2024, consistent with the system benefits charge and local distribution adjustment charges described in subparagraph (2).  The commission shall issue its order approving or denying the joint utility request to alter program offerings no later than May 1, 2022.  If the commission fails to issue an order by May 1, 2022, the proposed alterations to programs and budgets shall be deemed approved, except for any changes in performance incentives and recovery of lost base revenues, which the commission shall promptly review and approve by order.  If the commission denies a 3-year plan or interim program update, the most recent 3-year plan, as updated, shall remain in effect until the commission approves proposed changes to that plan or program update filing.

(4)  Cost effectiveness.  For the purpose of the March 1, 2022 filing, and future plan offerings, the commission’s review of the cost effectiveness shall be based upon the latest completed and available Avoided Energy Supply Cost Study for New England, the results of any Evaluation, Measurement, and Valuation studies contracted for by the department of energy or joint utilities, incorporate savings impacts associated with free-ridership for those programs and measures where such free-ridership may have a material impact on savings figures, and use the Granite State Test as the primary test, with the addition of the Total Resource Cost test as a secondary test.  The commission shall use benefit per unit cost as only one factor in considering whether the utilities have prioritized program offerings appropriately among and within customer classes.  In no instance shall an electric utility’s planned electric system savings fall below 65 percent of its overall planned energy savings.

(5)  Subsequent plan and update filings.  On July 1, 2023, the joint utilities shall petition the commission to approve changes to program offerings for the next 3-year period, consistent with the system benefits charge and local distribution adjustment charges described in subparagraph (2).  The commission shall issue its order approving or denying a joint utility request to alter program offerings no later than November 30, 2023.  Any utility or party may petition the commission to approve interim program updates prior to the next 3-year planning period on July 1 of any year during which a 3-year plan is not filed.  The commission shall issue its order approving or denying the interim program updates by the following November 30.  If the commission fails to issue an order on either a 3-year plan or an interim program update during the year in which a petition is filed, the proposed alterations to programs and budgets shall be deemed approved except for changes in performance incentives and recovery of lost base revenues, which the commission shall promptly review and approve by order.  If the commission denies a 3-year plan or interim program update, the most recent 3-year plan, as updated, shall remain in effect until the commission approves proposed changes to that plan or program update filing.  The joint utilities shall present a joint energy efficiency plan to the commission for review and approval no less frequently than every 3 years.  Up to 5 percent of the overall program budget shall be expended on Evaluation, Measurement, and Verification studies, which the department or joint utilities shall contract for as the department deems necessary to assure program funds are optimized to deliver ratepayer savings and to secure funds available from wholesale energy and ancillary services markets.

5:2  New Section; Ratepayer-Funded Energy Efficiency Programs for Gas Utilities.  Amend RSA 374 by inserting after section 62 the following new section:

374:63  Ratepayer-Funded Energy Efficiency Programs for Gas Utilities.  The commission may authorize a public utility providing natural gas service to participate in and recover costs associated with statewide energy efficiency programs, including any utility-specific aspects of such programs, provided that when the costs of such programs are recovered via the public utility’s local distribution adjustment charge or a similar rate mechanism, any such charges be made subject to the requirements of RSA 374-F:3, VI-a for the energy efficiency portion of electric utility system benefits charges.

5:3  Energy Efficiency and Sustainable Energy Board; Duties.  Amend RSA 125-O:5-a, I to read as follows:

I.  An energy efficiency and sustainable energy board is hereby created to promote [and coordinate] energy efficiency, demand response, and sustainable energy programs in the state.  The board's duties shall include but not be limited to:

(a)  Review available energy efficiency, conservation, demand response, and sustainable energy programs and incentives and compile a report of such resources in New Hampshire.

(b)  [Develop a plan to achieve the state's energy efficiency potential for all fuels, including setting goals and targets for energy efficiency that are meaningful and achievable.

(c)  Develop a plan for economic and environmental sustainability of the state's energy system including the development of high efficiency clean energy resources that are either renewable or have low net greenhouse gas emissions.

(d)  Repealed.]

(e)]  Explore opportunities to coordinate programs targeted at saving more than one fuel resource, including conversion to renewable resources and coordination between natural gas and other programs which seek to reduce the overall use of nonrenewable fuels.

[(f)] (c)  Develop strategies, concepts, and tools to enhance outreach and education programs to increase knowledge and awareness about energy efficiency and sustainable energy among New Hampshire residents and businesses.

[(g)] (d)  Expand upon the state government's efficiency programs to ensure that the state is providing leadership on energy efficiency and sustainable energy including reduction of its energy use and fuel costs.

[(h)] (e) Encourage municipalities and counties to increase investments in energy efficiency and sustainable energy through financing tools, and to create local energy committees.

[(i)] (f)  Work with community action agencies and the office of strategic initiatives to explore ways to ensure that all customers participating in programs for low-income customers and the Low Income Home Energy Assistance Program (LIHEAP) have access to energy efficiency improvements, and where appropriate, renewable energy resources, in order to reduce their energy bills.

[(j)] (g) Investigate potential sources of funding for energy efficiency and sustainable energy development and delivery mechanisms for such programs, coordinate efforts between funding sources to reduce duplication and enhance collaboration, and review investment strategies to increase access to energy efficiency and renewable energy resources.

5:4  Effective Date.  This act shall take effect January 1, 2022.

 

Approved: February 24, 2022

Effective Date: January 01, 2022

Links


Date Body Type
Feb. 22, 2021 House Hearing
Oct. 12, 2021 House Hearing
Oct. 26, 2021 House Exec Session
Nov. 15, 2021 House Floor Vote
Oct. 12, 2021 House Hearing
Nov. 15, 2021 House Floor Vote
Feb. 22, 2021 House Hearing
Oct. 12, 2021 House Hearing
Oct. 26, 2021 House Exec Session
Nov. 15, 2021 House Floor Vote
Jan. 18, 2022 Senate Hearing
Senate Floor Vote
Feb. 3, 2022 Senate Floor Vote

Bill Text Revisions

HB549 Revision: 35083 Date: March 2, 2022, 9:31 a.m.
HB549 Revision: 34953 Date: Feb. 16, 2022, 1:22 p.m.
HB549 Revision: 34779 Date: Feb. 3, 2022, 10:24 a.m.
HB549 Revision: 34706 Date: Jan. 19, 2022, 10:18 a.m.
HB549 Revision: 34688 Date: Jan. 6, 2022, 4:42 p.m.
HB549 Revision: 34582 Date: Dec. 30, 2021, 12:17 p.m.
HB549 Revision: 33489 Date: Nov. 23, 2021, 12:26 p.m.
HB549 Revision: 33488 Date: Nov. 1, 2021, 2:31 p.m.
HB549 Revision: 31862 Date: Jan. 12, 2021, 12:54 p.m.

Docket


March 8, 2022: Signed by Governor Sununu 02/24/2022; Chapter 5; Eff.01/01/22


Feb. 28, 2022: Enrolled (in recess of) 02/17/2022 HJ 4


Feb. 23, 2022: Enrolled (in recess of) 02/17/2022


Feb. 23, 2022: Enrolled Adopted, VV, (In recess 02/16/2022); SJ 4


Feb. 16, 2022: House Concurs with Senate Amendment 2022-0165S (Rep. Vose): MA VV 02/16/2022


Feb. 3, 2022: Ought to Pass with Amendment 2022-0165s, MA, VV; OT3rdg; 02/03/2022; SJ 2


Feb. 3, 2022: Ought to Pass with Amendment 2022-0165s, MA, VV; OT3rdg; 02/03/2022; SJ 2


Feb. 3, 2022: Committee Amendment # 2022-0165s, AA, VV; 02/03/2022; SJ 2


Jan. 26, 2022: Committee Report: Ought to Pass with Amendment # 2022-0165s, 02/03/2022; Vote 5-0; CC; SC 5


Jan. 20, 2022: Committee Report: Ought to Pass with Amendment # 2022-0165s; Vote 5-0; CC


Jan. 13, 2022: Hearing: 01/18/2022, Room 103, SH, 10:00 am; SC 3


Jan. 12, 2022: Introduced 01/05/2022 and Referred to Energy and Natural Resources; SJ 2


Jan. 10, 2022: Ought to Pass with Amendment 2021-2205: MA RC 343-0 01/06/2022 HJ 1


Jan. 12, 2022: Introduced 01/05/2022 and Referred to Energy and Natural Resources; SJ 2


Jan. 10, 2022: Amendment # 2021-2299h: AF DV 155-189 01/06/2022 HJ 1


Jan. 10, 2022: Ought to Pass with Amendment 2021-2205: MA RC 343-0 01/06/2022 HJ 1


Jan. 10, 2022: Amendment # 2021-2299h: AF DV 155-189 01/06/2022 HJ 1


Jan. 10, 2022: Amendment # 2021-2205h: AA RC 187-156 01/06/2022 HJ 1


Jan. 10, 2022: Amendment # 2021-2205h: AA RC 187-156 01/06/2022 HJ 1


Nov. 16, 2021: Minority Committee Report: Inexpedient to Legislate


: Minority Committee Report: Inexpedient to Legislate


Nov. 16, 2021: Minority Committee Report: Inexpedient to Legislate


Nov. 16, 2021: Majority Committee Report: Ought to Pass with Amendment # 2021-2205h 11/15/2021 (Vote 11-10; RC) HC 48 P. 42


: Committee Report: Ought to Pass with Amendment # 2021-2205h 11/15/2021 (Vote 11-10; RC)


Oct. 26, 2021: Executive Session: 10/26/2021 10:00 a.m. LOB302-304


Nov. 16, 2021: Majority Committee Report: Ought to Pass with Amendment # 2021-2205h 11/15/2021 (Vote 11-10; RC) HC 48 P. 42


Oct. 26, 2021: Executive Session: 10/26/2021 10:00 a.m. LOB302-304


Oct. 1, 2021: Public Hearing on non-germane Amendment # 2021-2158h: 10/12/2021 01:00 pm LOB 302-304


Oct. 1, 2021: Public Hearing on non-germane Amendment # 2021-2158h: 10/12/2021 01:00 pm LOB 302-304


Oct. 12, 2021: Public Hearing on non-germane Amendment # 2021-2158h: 10/12/2021 01:00 pm LOB 302-304


Sept. 10, 2021: Subcommittee Work Session: 09/29/2021 10:00 am LOB 302-304


March 23, 2021: Retained in Committee


Sept. 10, 2021: Subcommittee Work Session: 09/29/2021 10:00 am LOB 302-304


Sept. 29, 2021: Subcommittee Work Session: 09/29/2021 10:00 am LOB 302-304


Feb. 22, 2021: Public Hearing: 02/22/2021 10:00 am Members of the public may attend using the following link: 1. To join the webinar: https://www.zoom.us/j/91732382660 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


March 23, 2021: Retained in Committee


: Retained in Committee


Feb. 22, 2021: Public Hearing: 02/22/2021 10:00 am Members of the public may attend using the following link: 1. To join the webinar: https://www.zoom.us/j/91732382660 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


Jan. 12, 2022: Introduced 01/06/2021 and referred to Science, Technology and Energy HJ 2


Jan. 12, 2021: Amendment # 2021-2205h: AA RC 187-156 01/06/2022 HJ 1


Jan. 6, 2021: Introduced (in recess of) 01/06/2021 and referred to Science, Technology and Energy HJ 2 P. 53