HB 1738-FN - AS INTRODUCED
2026 SESSION
26-2643
04/09
HOUSE BILL 1738-FN
AN ACT relative to ratepayer benefits from the regional greenhouse gas initiative.
SPONSORS: Rep. Harrington, Straf. 18; Rep. McGhee, Hills. 35; Rep. Vose, Rock. 5; Sen. Rosenwald, Dist 13; Sen. Watters, Dist 4
COMMITTEE: Science, Technology and Energy
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ANALYSIS
This bill changes the carbon dioxide emissions budget allowances for 2027 through 2030 and thereafter, and creates 2 cost containment allowance levels and the trigger price at which the department releases allowances for years 2027 through 2030 and thereafter.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-2643
04/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
AN ACT relative to ratepayer benefits from the regional greenhouse gas initiative.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Multiple Pollutant Reduction Program; Definition; Regional Organization; RGGI allowance. Amend RSA 125-O:20, XIII-XV to read as follows:
XIII. "Regional organization" means a non-profit organization formed by the signatory states to RGGI to provide technical and administrative assistance for such things as: emissions and allowance tracking, [offsets development and implementation,] allowance market monitoring, and data collection. The organization shall have no regulatory or enforcement authority.
XIV. "Retire" means submitting a RGGI allowance to the department for compliance or other purpose or retaining a RGGI allowance by the department such that the allowance may never be sold or otherwise used again.
XV. "RGGI allowance" means a limited authorization to emit one ton of CO2 issued by the department or other state with a program that the department determines is in accordance with this subdivision or the RGGI program, including emissions limitations as documented by the regional organization, and shall include budget allowances[, offset allowances, and early reduction allowances].
2 Carbon Dioxide Emissions Budget Trading Program. Amend RSA 125-O:21, II to read as follows:
II. The program shall include a statewide budget allowance total for each year calculated as follows:
[2019 4,184,333 minus FCPBA minus SCPBA
2020 4,079,725 minus FCPBA minus SCPBA
2021 3,960,999 minus TBA
2022 3,842,274 minus TBA
2023 3,723,549 minus TBA
2024 3,604,823 minus TBA
2025 3,486,098 minus TBA]
2026 3,367,373
2027 [3,248,648] 2,993,220
2028 [3,129,922] 2,619,068
2029 [3,011,197] 2,244,915
2030 and thereafter [2,892,472] 1,870,763
3 Compliance; Permit Required. Amend RSA 125-O:22, V to read as follows:
V. In addition to the provisions set forth in RSA 125-O:7, an affected CO2 source that fails to obtain and retire sufficient RGGI allowances during a compliance period, in accordance with RSA 125-O:22, I, shall obtain and surrender 3 RGGI budget [or early reduction] allowances in the next compliance period for each RGGI allowance that the affected CO2 source was short in obtaining compliance.
4 Cost Containment Allowances in Addition to the Budget. RSA 125-O:29, I is repealed and reenacted to read as follows:
I. For the purposes of cost containment, the department shall make available for sale at one or more auctions up to the following amounts of allowances, that shall be in addition to the budget allowance total for the given year under RSA 125-O:21, II, if:
(a) The CO2 allowance auction price equals or exceeds $19.50 in 2027, up to 503,667 allowances and up to 503,667 additional allowances if it equals or exceeds $29.25;
(b) The CO2 allowance auction price equals or exceeds $20.87 in 2028, up to allowances and up to 503,667 additional allowances if it equals or exceeds $31.30;
(c) The CO2 allowance auction price equals or exceeds $22.33 in 2029, up to 503,667 allowances and up to 503,667 additional allowances if it equals or exceeds $33.49;
(d) The CO2 allowance auction price equals or exceeds $23.89 in 2030, up to 503,667 allowances and up to 503,667 additional allowances if it equals or exceeds $35.83;
(e) In any year thereafter, the CO2 allowance auction price equals or exceeds 1.07 multiplies by the auction price at which cost containment allowances were required to be made available in the previous calendar year rounded to the nearest whole cent, until further legislative action.
5 Repeal. The following are repealed:
I. RSA 125-O:20, VII and VII-a, relative to the definition of early reduction allowances and the definition of FCPBA or first compliance period banked allowances.
II. RSA 125-O:20, X, relative to the definition of offset allowances.
III. RSA 125-O:20, XV-a, relative to the definition of second compliance period banked allowances (SCPBA).
IV. RSA 125-O:20, XVIII, relative to the definition of third adjustment for banked allowances (TBA).
6 Effective Date. This act shall take effect 60 days after its passage.
26-2643
12/15/25
HB 1738-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to ratepayer benefits from the regional greenhouse gas initiative.
FISCAL IMPACT:
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Estimated State Impact | ||||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||||
Revenue | $0 | Indeterminable (see below) | Indeterminable (see below) | Indeterminable (see below) | ||||
Revenue Fund(s) | Energy Efficiency Fund | |||||||
Expenditures* | $0 | Indeterminable (see below) | Indeterminable (see below) | Indeterminable (see below) | ||||
Funding Source(s) |
| |||||||
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 | Indeterminable | Indeterminable | Indeterminable | ||||
Local Revenue | $0 | $0 | $0 | $0 | ||||
Local Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable | ||||
METHODOLOGY:
This bill updates New Hampshire’s participation in the Regional Greenhouse Gas Initiative by revising the carbon dioxide emissions allowance cap from 2027 through 2030 and maintaining the 2030 allowance level thereafter unless modified through a future program review. The bill also revises the cost containment reserve by establishing two allowance tiers and associated trigger prices to provide additional price controls. These changes are intended to implement the third RGGI Program Review as adopted by participating states.
The Department of Environmental Services and the Department of Energy, which together administer New Hampshire’s participation in RGGI state this bill implements the third RGGI Program Review adopted by all participating states and updates the allowance cap trajectory beginning in 2027, resulting in larger annual reductions in allowances through 2030 than under current law. The bill also modifies the cost containment reserve by adding a second tier of allowances to provide additional consumer price protection during periods of high allowance prices. The Departments state that revenue from RGGI allowance auctions is deposited into the Energy Efficiency Fund and is primarily used to provide rebates to electricity customers to offset the cost of allowance purchases reflected in wholesale electricity prices. In calendar year 2024, New Hampshire received approximately $65,800,000 in auction proceeds, of which about $62,600,000 was returned to ratepayers, with the remaining funds used for energy efficiency programs and administrative costs.
The Departments explain that future RGGI auction prices are uncertain and depend on market conditions, making the fiscal impact of the revised allowance trajectory indeterminable. Economic modeling conducted as part of the RGGI Program Review indicates that if this bill is enacted, allowance prices under the updated program could decrease somewhat during the 2028 through 2030 period. Under the bill, New Hampshire would continue to participate in RGGI auctions and is expected to receive auction proceeds in the range of approximately $33,000,000 to $46,000,000 per year during that period, with the majority returned to consumers through bill rebates. This would represent a reduction compared to historical auction revenues of approximately $66,000,000 per year, but would preserve continued auction participation.
However, the Departments state that under current law, beginning in 2027, New Hampshire’s allowance structure would no longer align with RGGI program requirements and allowances would not be offered for sale at auction, resulting in the loss of all RGGI auction revenue, estimated at approximately $65,800,000 annually. While this bill would reduce auction proceeds relative to prior years, it would avoid the complete loss of auction revenue under current law and maintain continued ratepayer benefits through rebates, with the net impact on State, county, and municipal energy costs remaining indeterminable.
AGENCIES CONTACTED:
Department of Environmental Services and Department of Energy
Dec. 17, 2025: Introduced 01/07/2026 and referred to Science, Technology and Energy HJ 1