Revision: Dec. 26, 2023, 10:14 a.m.
SB 303-FN - AS INTRODUCED
2024 SESSION
24-2861
10/05
SENATE BILL 303-FN
AN ACT relative to the use of renewable energy funds by the department of energy.
SPONSORS: Sen. Avard, Dist 12; Sen. Watters, Dist 4; Sen. Pearl, Dist 17; Sen. Carson, Dist 14; Rep. Vose, Rock. 5
COMMITTEE: Energy and Natural Resources
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ANALYSIS
This bill adds battery storage projects to uses of the renewable energy fund, deletes a required renewable generation incentive program, and authorizes a political subdivision incentive, rebate, or grant program using the fund. The bill also modifies the reporting date by the department of energy concerning the renewable energy fund.
This bill is a request of the department of energy.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2861
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to the use of renewable energy funds by the department of energy.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Renewable Energy Fund; Battery Storage. Amend RSA 362-F:10, I to read as follows:
I. There is hereby established a renewable energy fund. This nonlapsing special fund shall be continually appropriated to the department of energy to be expended in accordance with this section; provided that at the start of the period in which there is no adopted state operating budget, the department of energy shall in a timely manner seek the approval of the fiscal committee of the general court to continue using moneys from the renewable energy fund to support renewable energy rebate and grant programs in order to ensure there are no interruptions to the programs. 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 payments to be made under this section shall be deposited in the fund. Any remaining moneys paid into the fund under paragraph II of this section, excluding class II moneys, shall be used by the department of energy to support thermal and electrical renewable energy initiatives [and], offshore wind initiatives, including the office of offshore wind industry development, and battery storage. Class II moneys shall primarily be used to support solar energy technologies in New Hampshire. All initiatives supported out of these funds shall be subject to audit by the department of energy as deemed necessary. All fund moneys including those from class II may be used to administer this chapter, but all new employee positions shall be approved by the fiscal committee of the general court. No new employees shall be hired by the department of energy due to the inclusion of useful thermal energy in class I production.
2 Reporting Date by Department of Energy. Amend RSA 362-F:10, IV to read as follows:
IV. The department of energy shall make an annual report by [October] November 1 of each year, beginning in [2009] 2024, to the house science, technology and energy committee, and the senate energy and natural resources committee detailing how the renewable energy fund is being used and any recommended changes to such use. The report shall also include information on the total peak generating capacity that is net energy metered under RSA 362-A:9 within the franchise area of each electric distribution utility, and the percentage this represents of the amount that is allowed to be net metered within each franchise area. Information shall be provided on net metered group host registrations and the associated customer groups, including number and location of group host facilities, generation by renewable source and size of facility, and group load served by such facilities.
3 Department of Energy; Authority for Incentive and Rebate Programs; Political Subdivision Projects Added. Amend RSA 362-F:10, VIII to read as follows:
VIII.(a) The department of energy may, after notice and hearing, by order or rule, establish additional incentive or rebate programs and competitive grant opportunities for renewable thermal and electric energy projects sited in New Hampshire, or may modify existing programs or opportunities. Funding allocations shall be subject to the apportionment requirements under paragraph X.
(b) The department of energy shall, after notice and hearing, by order or rule, develop incentive or rebate programs or competitive grant opportunities for renewable thermal and electric energy projects for political subdivisions. Any project that receives funding shall be sited in New Hampshire. Funding allocations for political subdivision projects under this subparagraph shall not be subject to the apportionment requirements under paragraph X.
4 Renewable Projects Funding. Amend RSA 362-F:10, X and XI to read as follows:
X. [Consistent with RSA 362-F:10, VI,] The department of energy shall, over each 2-year period commencing July 1, 2010, reasonably balance overall amounts expended, allocated, or obligated from the fund, net of administrative expenditures, between residential and nonresidential sectors. Funds from the renewable energy fund awarded to renewable projects in the residential sector shall be in approximate proportion to the amount of electricity sold at retail to that sector in New Hampshire, and the remaining funds from the renewable energy fund shall be awarded to projects in the nonresidential sector which include commercial and industrial sited renewable energy projects, existing generators, and developers of new commercial-scale renewable generation in New Hampshire, provided no less than 15 percent of the funds shall annually benefit:
(a) Low-moderate income residential customers, including, but not limited to, the financing or leveraging of financing for low-moderate income community solar projects in manufactured housing communities or in multi-family rental housing.
(b) Residents of a public housing authority created pursuant to RSA 203, or a housing project as described in RSA 78-B:2, XXIII, where the electric bills are either paid directly by the residents or by the public housing authority or housing project, provided that at least a majority of the residents benefiting are at or below 80 percent of the Area Median Income (AMI) calculated by the Department of Housing and Urban Development.
XI. The department of energy shall issue requests for proposals that provide renewable projects in the nonresidential sector, which include commercial and industrial sited renewable energy projects, existing generators, and developers of new commercial-scale renewable generation in New Hampshire, with opportunities to receive funds from the renewable energy fund established under RSA 362-F:10. The requests for proposals shall provide such opportunities to those renewable energy projects and battery storage projects that are not eligible to participate in incentive and rebate programs developed by the department of energy under RSA 362-F:10, V and RSA 362-F:10, VIII. The department of energy shall issue a request for proposals [no later than March 1, 2011 and] annually [thereafter, and select winning projects in a timely manner].
5 Repeals. RSA 362-F:10, V through VII, and IX, relative to a residential small renewable generation incentive payment program, are repealed.
6 Effective Date. This act shall take effect 60 days after its passage.
24-2861
Revised 12/26/23
SB 303-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the use of renewable energy funds by the department of energy.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $0 | $0 | $0 | ||
Revenue Fund(s) | None
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Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable | ||
Funding Source(s) | Renewable Energy Fund
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Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] Yes • Does this bill authorize new positions to implement this bill? [X] No | ||||||
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Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
County Revenue | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
County Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Local Revenue | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Local Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
METHODOLOGY:
This bill adds battery storage projects to the uses of the renewable energy fund, deletes a required renewable generation incentive program, and authorizes a political subdivision incentive, rebate, or grant program using the fund. The bill also modifies the reporting date by the Department of Energy concerning the Renewable Energy Fund (REF).
The Department of Energy states this bill makes a series of changes to the administration of the REF including:
The Department states the impact on state expenditures would be dependent on program design, the applicants’ desires to undertake such projects, and the amount of revenue available to the REF from alternative compliance payments. State expenditures are limited by the balance of the fund. The fiscal impact would be dependent on program design and if applicants apply for funding. In theory, these changes will make it more likely that entities would apply for funding, but other factors, including general economic conditions, will determine the impact on expenditures. The bill would have no impact on state revenue to the REF.
Regarding county and local revenue, there would be no direct impact, however, with a specific program for political subdivisions, county and local revenues could increase, provided they apply for and are awarded funds. There would be no direct impact on county or local expenditures. With establishment of programs for political subdivisions, county and local expenditures could increase for entities that apply for and are awarded funds. Any such increase in expenditures would be offset by a grant or rebate and result in a net zero impact.
It is assumed that any fiscal impact would occur after FY 2024.
AGENCIES CONTACTED:
Department of Energy