Bill Text: NH HB524 | 2023 | Regular Session | Introduced
Bill Title: Relative to regional greenhouse gas initiative funds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-16 - Reconsider HB524 (Rep. Sweeney): Motion Failed DV 180-187 03/16/2023 House Journal 9 P. 65 [HB524 Detail]
Download: New_Hampshire-2023-HB524-Introduced.html
HB 524-FN - AS INTRODUCED
2023 SESSION
23-0733
02/08
HOUSE BILL 524-FN
AN ACT relative to regional greenhouse gas initiative funds.
SPONSORS: Rep. McGhee, Hills. 35
COMMITTEE: Science, Technology and Energy
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ANALYSIS
This bill raises the threshold price for allowance sales eligible for rebate under the energy efficiency fund.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0733
02/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to regional greenhouse gas initiative funds.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Regional Greenhouse Gas Initiative; Energy Efficiency Fund and Use of Auction Proceeds. Amend RSA 125-O:23, II to read as follows:
II. All amounts in excess of the threshold price of [$1] $3 for any allowance sale shall be rebated to all retail electric ratepayers in the state on a per-kilowatt-hour basis, in a timely manner to be determined by the commission.
2 Effective Date. This act shall take effect January 1, 2024.
23-0733
1/8/23
HB 524-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to regional greenhouse gas initiative funds.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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STATE: | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - Energy Efficiency Fund, Various Government Funds | |||
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COUNTY: |
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Revenue | $0 | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable |
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LOCAL: |
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Revenue | $0 | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable |
METHODOLOGY:
The Departments of Energy and Environmental Services indicate this bill raises the $1 per allowance rebate threshold for auction proceeds deposited into the Energy Efficiency Fund (EEF) to $3. The distribution of proceeds from the EEF would not change from current law. Under current law, at least 15% of all remaining proceeds after rebates and after administrative costs would be allocated to the low-income core energy efficiency program. Up to $2,000,000 annually would be allocated to municipal, school district, and local government energy efficiency projects. If any portion of the $2,000,000 remains unrequested at the end of the program year, those remaining funds would be offered on a first-come, first-served basis to business and municipal customers who fund the systems benefit charge. Any remaining funds beyond the 15% and the $2,000,000 would go to an all-fuels, comprehensive energy efficiency program.
The bill would not change gross revenue to the state compared with current law. Revenues from auction proceeds were $43 million for calendar year 2022. Future revenues will vary depending upon the auction clearing prices and the decreasing amount of allowances offered, but for the purpose of this fiscal note, a constant $43 million per year is assumed.
Regarding expenditures, under current law, revenue in excess of $1 per allowance sold is allocated by the Public Utilities Commission for rebates to all electric ratepayers on a per-kilowatt-hour basis. The administrative costs for the program are approximately $350,000. This bill raises the $1 threshold for rebates to $3. In 2022, 3,212,739 allowances were sold. This amount will decrease by 118,725 allowances per year. Prices ranged from $12.99 to $13.90. This translates into $3.2 million being credited to the energy efficiency fund. Under this bill, the funds going into the energy efficiency fund would triple to $9.6 million as shown in the table below:
(In Millions) | Current: $1 per allowance | Proposed: $3 per allowance |
Auction Proceeds Revenue | $43.00 | $43.00 |
Administrative Costs | -$0.35 | -$0.35 |
Energy Efficiency Fund | $3.2 | $9.6 |
Rebates to Ratepayers | $39.45 | $33.05 |
The decrease in ratepayer rebates would result in some near-term increase in electricity costs for state, county, and local governments. Over the long-term, increased investment in energy efficiency projects would save ratepayers money. The costs and savings for state, county, and local governments are indeterminable.
AGENCIES CONTACTED:
Departments of Energy and Environmental Services
