Revision: Feb. 12, 2026, 3:42 p.m.
HB 1542-FN - AS AMENDED BY THE HOUSE
12Feb2026... 0241h
2026 SESSION
26-2766
07/05
HOUSE BILL 1542-FN
SPONSORS: Rep. Notter, Hills. 12; Rep. Ammon, Hills. 42; Rep. Bernardy, Rock. 36; Rep. Berry, Hills. 44; Rep. Sabourin dit Choiniere, Rock. 30; Rep. D. Thomas, Rock. 16; Rep. Vose, Rock. 5
COMMITTEE: Science, Technology and Energy
-----------------------------------------------------------------
AMENDED ANALYSIS
This bill provides that alternative compliance payments to the renewable energy fund under RSA 362-F:10, II shall be refunded to ratepayers on a per kilowatt hour basis.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
12Feb2026... 0241h 26-2766
07/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Renewable Energy Fund; Effective until July 1, 2027. 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, including the office of energy innovation. Class II moneys shall primarily be used to support solar energy technologies in New Hampshire] shall be rebated to ratepayers in the state on a per-kilowatt-hour basis. 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 Renewable Energy Fund; Effective July 1, 2027. 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 energy innovation. Class II moneys shall primarily be used to support solar energy technologies in New Hampshire] shall be rebated to ratepayers in the state on a per-kilowatt-hour basis. 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.
I. Section 2 of this act shall take effect on July 1, 2027 at 12:01 a.m.
II. The remainder of this act shall take effect July 1, 2026.
26-2766
12/3/25
HB 1542-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to renewable energy fund compliance payments.
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
|
| ||||||
Estimated State Impact | |||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | |||
Revenue | $0 | $0 | Indeterminable Decrease ($3.35 million) | Indeterminable Decrease ($6.7 million) | |||
Revenue Fund(s) | Renewable Energy Fund | ||||||
Expenditures* | $0 | $0 | Indeterminable Decrease ($3.35 million +) REF | Indeterminable Decrease ($6.7 million) REF | |||
Indeterminable Decrease ($0 to $420,000) GF, HF, Various Agency Funds | Indeterminable Decrease ($420,000) GF, HF, Various Agency Funds | ||||||
Funding Source(s) | Renewable Energy Fund, General Fund, Highway Fund and Various Agency Funds | ||||||
Appropriations* | $0 | $0 | $0 | $0 | |||
Funding Source(s) | None | ||||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | |||||||
| |||||||
Estimated Political Subdivision Impact | |||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | |||
County Revenue | $0 | $0 | $0 | $0 | |||
County Expenditures | $0 | $0 | Indeterminable | Indeterminable | |||
Local Revenue | $0 | $0 | $0 | $0 | |||
Local Expenditures | $0 | $0 | Indeterminable | Indeterminable | |||
METHODOLOGY:
This bill amends RSA 362-F:10 to set the Alternative Compliance Payment (ACP) rate for all Renewable Portfolio Standard (RPS) classes—Class I, II, III, and IV—to $0, effective January 1, 2027.
The Department of Energy states ACPs are the payments electric service providers must make when they cannot procure sufficient Renewable Energy Certificates (RECs) for annual compliance. Under current law, ACPs constitute the sole revenue source of the Renewable Energy Fund (REF), which is used to support renewable energy programs, including required grants for non-residential projects and low-moderate income community solar initiatives. Average ACP revenue into the REF over the past five years has been approximately $6.7 million per year. Setting ACP rates to $0 eliminates the ceiling price in the REC market and removes any penalty for non-compliance with the RPS. The Department of Energy states this change would effectively collapse the REC market, result in electricity providers stopping REC purchases or retirements, and reduce REF revenue to $0 mid year in FY 2028. With the REF eliminated as a funding source, all REF-funded programs including rebate programs, competitive grant programs, low-moderate income solar programs, and statutorily required initiatives would cease unless funded by future legislative appropriations.
The Department of Energy reports that nine full-time positions across the Sustainable Division, Office of Energy Innovation, Division of Administration, and Policy and Programs Division are currently funded entirely from the REF. These positions support REC certification, RPS compliance review, group net-metering application processing, RPS-related rulemaking, administration of all REF grant and rebate programs, and oversight of low-moderate income initiatives. With REF revenue eliminated, these positions would no longer have a funding source and would need to be eliminated. The REF expended on positions ranges between $1.5 million to $2.0 million.
The bill may decrease electricity costs for the State of New Hampshire and other ratepayers because providers would no longer incur REC procurement or ACP costs. Based on the Department of Administrative Services’ consumption data, the State uses roughly 77,000 MWh annually. Using the five-year average compliance rate cost of $0.0054/kWh, the State’s electricity costs could decrease by roughly $420,000 per year. The Department notes that long-term economic effects particularly from declining renewable-energy sector activity are indeterminable without a detailed economic study. County and municipal impacts are indeterminable because the Department does not have consumption data for those entities, though reductions in electricity costs would likely occur similar to the State.
AGENCIES CONTACTED:
Department of Energy