Bill Text: NH HB614 | 2022 | Regular Session | Amended
Bill Title: Exempting the state and political subdivisions from payment of the costs of compliance with the renewable portfolio standard.
Spectrum: Partisan Bill (Republican 7-0)
Status: (Engrossed - Dead) 2022-04-28 - Refer to Interim Study, Motion Adopted, Voice Vote; 04/28/2022; Senate Journal 10 [HB614 Detail]
Download: New_Hampshire-2022-HB614-Amended.html
HB 614-FN - AS AMENDED BY THE HOUSE
24Feb2021... 0156h
6Jan2022... 2238h
2021 SESSION
21-0468
10/06
HOUSE BILL 614-FN
SPONSORS: Rep. Vose, Rock. 9; Rep. Pearl, Merr. 26; Rep. Lang, Belk. 4; Rep. Cordelli, Carr. 4; Rep. Harvey-Bolia, Belk. 4; Rep. Edwards, Rock. 4; Rep. Binford, Graf. 15
COMMITTEE: Science, Technology and Energy
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AMENDED ANALYSIS
This bill requires that the state and political subdivisions be exempted from paying the portion of electricity rates that cover the costs of compliance with the renewable portfolio standards unless opting in to payment of such costs of compliance.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25Feb2021... 0156h
6Jan2022... 2238h 21-0468
10/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Electrical Rates and Charges; Exemption For State and Political Subdivisions. Amend RSA 378:49 by inserting after paragraph III the following new paragraph:
IV.(a) The public utilities commission shall, after notice and hearing, by order or rule, approve a standard format and methodology that providers of electricity, as defined in RSA 362-F:2, XIV, shall use in exempting the state and its political subdivisions from paying the portion of electricity rates that covers the cost of compliance with the renewable portfolio standard (RPS) under RSA 362-F. A political subdivision shall initially be in exempt status unless the governing body of the political subdivision subsequently chooses to opt in under subparagraph (c).
(b) Providers of electricity shall not be subject to compliance under RSA 362-F:3 for electricity sales that have been exempted pursuant to subparagraph (a).
(c) By October 15 of each year, each provider of electricity doing business with political subdivisions of the state shall notify these entities of their current opt-out/opt-in status. Any political subdivision, by a majority vote of its governing body, may elect to opt-in to continue payment of the amounts identified as costs of compliance with the renewable portfolio standard under RSA 362-F. Otherwise, the subdivision will remain exempt under subparagraph (a). Reversing this opt-in decision also requires a majority vote of the governing body.
(d) For purposes of this paragraph, "political subdivision" means any electricity account holder that operates as an agency of the state, a county, a municipality, a school district, or a village district.
2 Effective Date. This act shall take effect July 1, 2022.
21-0468
1/13/21
HB 614-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | Indeterminable | Indeterminable | Indeterminable |
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - Renewable Energy Fund | |||
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LOCAL: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease |
METHODOLOGY:
This bill exempts the state and political subdivisions from paying the portion of electricity rates that covers the cost of compliance with the renewable portfolio standard (RPS). Providers of electricity shall recover those payments by subtracting exempted amounts from alternative compliance payments to the renewable energy fund.
The PUC states it will be required to develop and approve a standard that electricity providers must use to exempt the State and political subdivisions from paying these costs. The governing body of a political subdivisions will be able to continue participation in the RPS by paying for these compliance costs via their electric bills but the State would not be able to elect this option. There may be some decrease in the electric bills of the State and political subdivisions who do not opt out of the exemption. The PUC does not know which suppliers serve which political subdivisions or the amount of energy purchases by any political subdivision. There may be a decrease in funds allocated to the Renewable Energy Fund.
RPS compliance costs include both the cost of renewable energy certificates (RECs) purchased from renewable energy facilities through the regional market and the cost of alternative compliance payments (ACPs) paid to the Commission in lieu of such REC purchases. Providers of electricity must either purchase RECs or make an ACP to satisfy the RPS statutory requirements. ACPs fund the Renewable Energy Fund (REF), which in turn, through Commission-approved rebate and grant programs, provides incentives for renewable energy project development within the State. Although it appears electricity providers are intended to be protected from incurring the cost of the RPS exemption, the bill does not clearly include the cost of REC's as a compliance cost to be subtracted from an electricity provider's cost of the exemption.
The Municipal Association does not have information on the total electricity costs paid by municipalities or the amount of those costs for compliance, so any impact on municipal expenditures from this bill is indeterminable.
AGENCIES CONTACTED:
New Hampshire Municipal Association and Public Utilities Commission
