Bill Text: NH HB630 | 2013 | Regular Session | Amended
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-Amended.html
HB 630-FN – AS AMENDED BY THE HOUSE
20Mar2013… 0712h
2013 SESSION
09/01
HOUSE BILL 630-FN
AN ACT relative to the use of proceeds from the regional greenhouse gas initiative program.
SPONSORS: Rep. Barry, Hills 21
COMMITTEE: Science, Technology and Energy
This bill requires the public utilities commission to allocate certain proceeds from the energy efficiency fund to the low-income core energy efficiency 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
20Mar2013… 0712h
13-0230
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT relative to the use of proceeds from the regional greenhouse gas initiative program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Use of Auction Proceeds. Amend RSA 125-O:23, III to read as follows:
III. All remaining proceeds received by the state from the sale of allowances shall be allocated by the commission as an additional source of funding to electric distribution companies for core energy efficiency programs that are funded by SBC funds. In allocating the proceeds, the commission shall first allocate at least 20 percent of the amount of the proceeds to the low-income core energy efficiency program.
2 Effective Date. This act shall take effect July 1, 2013.
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.
