Bill Text: NH HB630 | 2013 | Regular Session | Introduced
Bill Title: Relative to the use of proceeds from the regional greenhouse gas initiative program.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2013-07-17 - Signed By Governor 07/16/2013; Effective 01/01/2014; Chapter 0240 [HB630 Detail]
Download: New_Hampshire-2013-HB630-Introduced.html
HB 630-FN – AS INTRODUCED
2013 SESSION
09/01
HOUSE BILL 630-FN
AN ACT repealing the New Hampshire regional greenhouse gas initiative program.
SPONSORS: Rep. Barry, Hills 21
COMMITTEE: Science, Technology and Energy
This bill repeals the New Hampshire regional greenhouse gas initiative program.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13-0230
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT repealing the New Hampshire regional greenhouse gas initiative program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Repeal. The following are repealed:
I. RSA 125-O:3, III(d), relative to carbon dioxide cap.
II. RSA 125-O:20 through 125-O:28, relative to the regional greenhouse gas initiative.
III. 2012, 281:11 through 281:17, relative to the contingent repeal of the regional greenhouse gas initiative program.
2 Powers and Duties of Commissioner; Reference Deletion Related to Contingency. Amend RSA 125-O:6, I to read as follows:
I. Develop a trading and banking program to provide appropriate compliance flexibility in meeting the emission caps established under RSA 125-O:3, III [and allowance requirements of RSA 125-O:21 and RSA 125-O:22], and to encourage earlier and greater emissions reductions and the development of new emission control technologies in order to maximize the cost-effectiveness with which the environmental benefits of this chapter are achieved.
3 Rulemaking Authority; Changes Related to Contingent Repeal. Amend RSA 125-O:8 to read as follows:
125-O:8 Rulemaking Authority.
[I.] The commissioner shall adopt rules under RSA 541-A, commencing no later than 180 days after the effective date of this section, relative to:
[(a)] I. The establishment of trading and banking programs as authorized by RSA 125-O:6, I.
[(b)] II. The establishment of a method for allocating allowances and other emissions reduction units or mechanisms as authorized by RSA 125-O:3, II and III.
[(c)] III. Emissions and allowance monitoring, tracking, recordkeeping, reporting, and other such actions as may be necessary to verify compliance with this chapter.
[(d) The method and requirements for auctioning budget allowances under RSA 125-O:21, which may use regional organizations.
(e) Defining eligible projects for early reduction allowances under RSA 125-O:21, IV, and establishing criteria to quantify and grant such allowances.
(f) Defining eligible projects for offset allowances under RSA 125-O:21, V, and establishing criteria to quantify and grant such allowances, including the accreditation of third-party verifiers.
(g) The forms and information required on applications for a temporary or operating permit required under RSA 125-O:22.
II. The public utilities commission shall adopt rules, under RSA 541-A, to administer the greenhouse gas emissions reduction fund pursuant to RSA 125-O:23.]
4 Compliance Dates; Reference Deletions Related to Contingent Repeal. Amend RSA 125-O:9 to read as follows:
125-O:9 Compliance Dates. The owner or operator of each affected source shall comply with the provisions of this chapter, excluding the subdivision on mercury emissions, RSA 125-O:11 through 125-O:18, [and the subdivision for CO2 emissions, RSA 125-O:19 through RSA 125-O:28,] by December 31, 2006.
5 Non-Severability; Reference Deletions Related to Contingent Repeal. Amend RSA 125-O:10 to read as follows:
125-O:10 Non-Severability. No provision of [RSA 125-O:1 through RSA 125-O:18 of] this chapter shall be implemented in a manner inconsistent with the integrated, multi-pollutant strategy [or RSA 125-O:1 through RSA 125-O:18] of this chapter, and to this end, the provisions of [RSA 125-O:1 through RSA 125-O:18 of] this chapter are not severable.
6 Compliance. The repeal of the regional greenhouse gas initiative program under section 1 of this act shall not affect each affected CO2 source’s obligation to satisfy the program’s requirements for the compliance period ending December 31, 2012, including those contained in adopted rules. All means of enforcement shall remain in place for these requirements, including the provisions of RSA 125-O:7 and any permit issued or modified by the department of environmental services in accordance with RSA 125-O:22, IV.
7 Effective Date. This act shall take effect upon its passage.
LBAO
13-0230
Revised 01/28/13
HB 630 FISCAL NOTE
AN ACT repealing the New Hampshire regional greenhouse gas initiative program.
FISCAL IMPACT:
The Public Utilities Commission and Department of Environmental Services states this bill, as introduced, may decrease state restricted revenue and expenditures by $3,960,000 in FY 2013 and by $7,920,000 in FY 2014 and each year thereafter and may decrease county and local revenue and expenditures by an indeterminable amount in FY 2013 and each year thereafter.
METHODOLOGY:
The Public Utilities Commission and Department of Environmental Services state this bill will repeal the New Hampshire regional greenhouse gas initiative program as of January 1, 2013 so electric generation facilities located in New Hampshire would no longer be required to purchase regional greenhouse gas initiative allowances. As part of the repeal of the program, the Energy Efficiency Fund, which is funded by the sale of New Hampshire regional greenhouse gas initiative allowances, is also repealed by this bill. This fund is used primarily to fund energy efficiency projects for state citizens, businesses, nonprofits, and governmental entities. These funds are also used to pay for the costs associated to administer the program. Assuming the 4 million New Hampshire allowances sell at the auction floor price of $1.98 per allowance, state restricted revenue and expenditures would decrease by $3,960,000 in FY 2013 and by $7,920,000 in FY 2014 and each year thereafter. There would also be an indeterminable decrease in county and local revenue and expenditures. The amount of revenue collected from auction proceeds over $1 are refunded to default service customers and the amount up to a $1 is used for CORE energy programs, after deducting administrative expenses (in FY 2012 administrative expenses were $388,000 ($165,000 for the Commission, $220,000 for the Department, and $3,000 for other state agencies)).
The Commission and Department assume RGGI will stay in effect throughout the other New England states where generators would continue to purchase RGGI allowances and incorporate that cost into their dispatch bids on the wholesale market. PSNH is the only utility in New Hampshire with a generation facility required to purchase RGGI allowances, therefore PSNH may experience a reduction in its direct cost to purchase allowances for the generation that it owns to serve its default service customers. PSNH will continue to receive 1.5 million free allowances under the Clean Power Act Bonus Allowance Program per year in 2013 and 2014, and PSNH may not need to buy as many allowances for its regulated power plant emissions in those years. Due to the 1.5 million bonus allowances and PSNH’s projected operation of fossil fuel plants, its compliance obligation in 2015 and each year thereafter is estimated to be $875,000. Based on information provided by the Department of Administrative Services, the state owned facilities purchased approximately 103,000,000 kilowatt hours of electricity, of which approximately 72,000,000 kilowatt hours comes from a competitive supplier whose price would not necessarily be impacted by this bill. The repeal of the regional greenhouse gas initiative program will have little impact on the electric rates in New Hampshire. Therefore, there would be little to no impact on state, county and local government electricity rates.
