Bill Text: NH HB542 | 2013 | Regular Session | Amended
Bill Title: Relative to the renewable energy fund and regulation of telephone, Voice Over Internet Protocol, and IP-enabled service providers and relative to electric renewable portfolio standards.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2013-07-29 - Law Without Signature 07/27/2013; Effective 07/27/2013; Chapter 0279; NH Constitution, Art.44, Pt.II [HB542 Detail]
Download: New_Hampshire-2013-HB542-Amended.html
HB 542 – AS AMENDED BY THE HOUSE
20Mar2013… 0634h
2013 SESSION
09/10
HOUSE BILL 542
AN ACT relative to electric renewable portfolio standards.
SPONSORS: Rep. Kaen, Straf 5; Rep. Watrous, Merr 16; Rep. Pastor, Graf 12
COMMITTEE: Science, Technology and Energy
This bill makes certain changes to electric renewable portfolio standards and payments to the renewable energy 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
20Mar2013… 0634h
13-0590
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT relative to electric renewable portfolio standards.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Minimum Electric Renewable Portfolio Standards. Amend RSA 362-F:3 to read as follows:
362-F:3 Minimum Electric Renewable Portfolio Standards. For each year specified in the table below, each provider of electricity shall obtain and retire certificates sufficient in number and class type to meet or exceed the following percentages of total megawatt-hours of electricity supplied by the provider to its end-use customers that year, except to the extent that the provider makes payments to the renewable energy fund under RSA 362-F:10, II:
2008 2009 2010 2011 2012 2013 2014 2015 2025
and thereafter
Class I 0.0% 0.5% 1% 2% 3% 4% 5% 6% 15% (*)
Class II 0.0% 0.0% 0.04% 0.08% 0.15% 0.2% 0.3% 0.3% 0.3%
Class III 3.5% 4.5% 5.5% 6.5% 6.5% 6.5% 7.0% 8.0% 8.0%
Class IV 0.5% 1% 1% 1% 1% 1.3% 1.4% 1.5% 1.5%
*Class I increases an additional 0.9 percent per year from 2015 through 2025. A set percentage of the class I totals shall be satisfied annually by the acquisition of renewable energy certificates from qualifying renewable energy technologies producing useful thermal energy as defined in RSA 362-F:2, XV-a. The set percentage shall be 0.2 percent in 2013, 0.4 percent in 2014, and increased annually by 0.2 percent per year from 2015 through 2025. Classes II-IV remain at the same percentages from 2015 through 2025 except as provided in RSA 362-F:4, V-VI.
2 Renewable Energy Fund. Amend RSA 362-F:10, I-V to read as follows:
I. There is hereby established a renewable energy fund. This nonlapsing, special fund shall be continually appropriated to the commission to be expended in accordance with this section. The state treasurer shall invest the moneys deposited therein as provided by law. Income received on investments made by the state treasurer shall also be credited to the fund. All payments to be made under this section shall be deposited in the fund. The moneys paid into the fund under paragraph II of this section, excluding class II moneys, shall be used by the commission to support thermal and electrical renewable energy initiatives. Class II moneys shall [only] primarily be used to support solar energy technologies in New Hampshire. All initiatives supported out of these funds shall be subject to audit by the commission as deemed necessary. All fund moneys including those from class II may be used to administer this chapter, but all new employee positions shall be approved by the fiscal committee of the general court. No new employees shall be hired by the commission due to the inclusion of useful thermal energy in class I production.
II. In lieu of meeting the portfolio requirements of RSA 362-F:3 for a given year if, and to the extent sufficient certificates are not otherwise available at a price below the amounts specified in this paragraph, an electricity provider may, at the time of report submission for that year under RSA 362-F:8, make payment to the commission at the following rates for each megawatt-hour not met for a given class obligation through the acquisition of certificates:
(a) Class I--[$55] $65.43, except for that portion of the class electric renewable portfolio standards to be met by qualifying renewable energy technologies producing useful thermal energy under RSA 362-F:3 which shall be $25 beginning January 1, 2013.
(b) Class II--[$55] $171.83.
(c) Class III--[$31.50] $32.08.
(d) Class IV--[$26.50] $32.08.
III. Beginning in [2013] 2014, the commission shall adjust these rates by January 31 of each year using the Consumer Price Index as published by the Bureau of Labor Statistics of the United States Department of Labor [for classes III and IV and 1/2 of such Index for classes I and II].
IV. The commission shall make an annual report by October 1 of each year, beginning in 2009, to the legislative oversight committee on electric utility restructuring under RSA 374-F:5 detailing how the renewable energy fund is being used and any recommended changes to such use. The report shall also include information on the total peak generating capacity that is net energy metered under RSA 362-A:9 within the franchise area of each electric distribution utility, and the percentage this represents of the amount that is allowed to be net metered within each franchise area.
V. The public utilities commission shall make and administer a one-time incentive payment of $3 per watt of nominal generation capacity up to a maximum payment of $6,000, or 50 percent of system costs, whichever is less, per facility to any residential owner of a small renewable generation facility, that would qualify as a Class I or Class II source of electricity, has a total peak generation capacity of [less than 5] 10 kilowatts or fewer, begins operation on or after July 1, 2008, and is located on or at the owner’s residence.
3 Effective Date. This act shall take effect 60 days after its passage.
LBAO
13-0590
Amended 04/29/13
HB 542 FISCAL NOTE
AN ACT relative to electric renewable portfolio standards.
FISCAL IMPACT:
The Public Utilities Commission states this bill, as amended by the House (Amendment #2013-0634h), may increase state, county, and local expenditures, and state restricted revenues by an indeterminable amount in FY 2016 and each fiscal year thereafter. There will be no fiscal impact on county and local revenues.
METHODOLOGY:
The Public Utilities Commission states the proposed legislation increases the alternative compliance payments (ACP) for renewable energy certificates (REC) as of January 1, 2014. The Commission states the ensuing fiscal impact would be experienced beginning in FY 2016 as the current renewable portfolio standard laws require electricity suppliers to file their annual compliance reports and submit any ACP payments on July 1 of the year following a given compliance (calendar) year. The Commission notes the proposed legislation raises ACP rates as follows:
Type of ACP
Current Price
Proposed Price
Class I
$55.00
$65.43
Class II
$55.00
$171.83
Class III
$31.50
$32.08
Class IV
$26.50
$32.08
The Commission is unable to estimate to what extent the increased ACP rates will impact compliance costs associated with electrical generation and consequently electric rates in the state. The Commission notes ACPs act as a price ceiling for RECs and that since inception in 2008, RECs have not typically traded at ACP levels.
The Commission states to the extent increased ACP rates result in increased compliance costs and electric rates, state, county, and local expenditures may increase in FY 2016 and each fiscal year thereafter. The Commission also notes REC requirements as a percentage of power generated increase incrementally through 2015 and again in 2025. The Commission states to the extent the increased REC requirements result in the demand for RECs exceeding the supply (thereby increasing the demand for ACPs), state restricted revenues will increase.
