Revision: Dec. 30, 2021, 12:17 p.m.
Rep. Mann, Ches. 2
December 30, 2021
2021-2299h
10/04
Floor Amendment to HB 549
Amend the bill by replacing all after the enacting clause with the following:
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 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, 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.] No less than 20 percent of the portion of the funds collected for energy efficiency shall be expended on low-income energy efficiency programs.
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.
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.
4 New Section; Energy Efficiency Resource Standard. Amend RSA 125-O by inserting after section 5-a the following new section:
125-O:5-b Energy Efficiency Resource Standard (EERS).
I. The general court finds that greenhouse gases are emitted by not only from fossil-fuel based electric power generation but also by residential and commercial heating and operational systems, and therefore a reduction in demand for energy by these systems, achieved via energy efficiency, is necessary to further reduce greenhouse gas emissions.
II. Consequently, the general court finds that it is in the interest of the people of New Hampshire as well as future generations to achieve feasible reductions in energy demand by means of proactive continuous statewide deployment of energy efficiency measures. Accordingly, an energy efficiency resource standard (EERS) is hereby established, under which utilities shall promote and manage energy efficiency programs in willing customers’ premises in order to further reduce CO2 emissions.
III. The department of energy, the public utilities commission, and the electric and gas utilities, with review and guidance from the energy efficiency and sustainable energy board, shall develop principles and rules to establish, develop, and grow a productive EERS for New Hampshire. Since most implementation will be performed by independent contractors the department shall be responsible for ongoing supervision, evaluation, quality control, and development of New Hampshire-based skilled contractors.
IV. The principles and rules shall:
(a) Require establishing savings targets with a long-term goal of all achievable and provable cost-effective energy efficiency within the context of available, sustainable funding.
(b) Use 3-year planning periods within a decades-long strategic initiative.
(c) Continue joint coordination of programs by the electric and gas utilities.
(d) Drive innovation in outreach, regulation, workforce development, and innovation in technology to accelerate energy efficiency gains.
(e) Provide robust evaluation, measurement, and verification, comprised of data collection, monitoring, and analysis associated with the calculation of savings from individual projects to ensure that the program meets its savings targets and spends ratepayer funds in a just and reasonable manner.
(f) Leverage the private financing market to help building owners repay energy efficiency retrofit costs over time.
(g) Increase public awareness of the benefits of energy efficiency.
(h) Fund the EERS with the systems benefits charge and the local distribution adjustment charge.
(i) Provide a performance incentive for utilities.
(j) Allow utilities to recover just, reasonable, and prudent costs incurred in developing, promoting, and delivering the EERS programs.
5 Effective Date. This act shall take effect January 1, 2022.
2021-2299h
AMENDED ANALYSIS
This bill changes the programs and expenses that system benefits charges may fund, and removes the legislative approval for increasing the rate of the system benefits charge. The bill also modifies the duties of the energy efficiency and sustainable energy board and establishes principles and rules for implementing an energy efficiency resource standard.