CHAPTER 364

SB 140 – FINAL VERSION

04/12/07 1146s

07Jun2007… 1939h

2007 SESSION

07-1167

06/03

SENATE BILL 140

AN ACT relative to transmission upgrades, the process for siting renewable generation facilities, and the study of demand response programs and distributed generation.

SPONSORS: Sen. Letourneau, Dist 19; Sen. Gallus, Dist 1; Sen. Odell, Dist 8; Rep. Theberge, Coos 4; Rep. Remick, Coos 2

COMMITTEE: Energy, Environment and Economic Development

AMENDED ANALYSIS

This bill:

I. Defines “renewable energy facility.”

II. Extends the powers of the site evaluation committee.

III. Establishes time frames for reviewing applications for renewable energy facilities.

IV. Expands the duties of the state energy policy commission.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

04/12/07 1146s

07Jun2007… 1939h

07-1167

06/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to transmission upgrades, the process for siting renewable generation facilities, and the study of demand response programs and distributed generation.

Be it Enacted by the Senate and House of Representatives in General Court convened:

364:1 Transmission Infrastructure; Action by Public Utilities Commission. It is in the public interest and to the benefit of New Hampshire to encourage the development of renewable energy. In order to develop substantial electric generation from renewable energy, existing transmission infrastructure, particularly in the northern part of the state, will need to be upgraded or replaced or new transmission facilities will need to be built. Appropriate upgrades to the transmission infrastructure are important to economic development. The public utilities commission, in furtherance of its duties under RSA 374-F:8, shall facilitate discussions among parties interested in the upgrade of electricity transmission in the northern part of the state. The public utilities commission shall file a report with the general court by December 1, 2007 that describes: the existing electricity transmission system in New Hampshire; the current process for siting, constructing, and financing transmission upgrades and expansion; the approximate costs of potentially appropriate transmission upgrades; approaches pursued by other states to encourage transmission expansion related to renewable generation; and actions the public utilities commission has taken to advance New Hampshire interests with respect to transmission.

364:2 Public Utilities Commission Participation in Regional and National Activities. RSA 374-F:8 is repealed and reenacted to read as follows:

374-F:8 Participation in Regional Activities. The commission shall advocate for New Hampshire interests before the Federal Energy Regulatory Commission and other regional and federal bodies. The commission shall participate in the activities of the New England Conference of Public Utility Commissioners, the National Association of Regulatory Utility Commissioners, and the New England States Committee on Electricity, or other similar organizations, and work with the New England Independent System Operator and NEPOOL to advance the interests of New Hampshire with respect to wholesale electric issues, including policy goals relating to fuel diversity, renewable energy, and energy efficiency, and to assure nondiscriminatory open access to a safe, adequate, and reliable transmission system at just and reasonable prices.

364:3 New Paragraph; Definitions. Amend RSA 162-H:2 by inserting after paragraph XI the following new paragraph:

XII. “Renewable energy facility” means electric generating station equipment and associated facilities designed for, or capable of, operation at a nameplate capacity of greater than 30 megawatts but less than 120 megawatts and powered by wind energy, geothermal energy, hydrogen derived from biomass fuels or methane gas, ocean thermal, wave, current, or tidal energy, methane gas, biomass technologies, solar technologies, or hydroelectric energy. “Renewable energy facility” shall also include electric generating station equipment and associated facilities of 30 megawatts or less nameplate capacity but at least 5 megawatts which the committee determines requires a certificate, consistent with the findings and purposes set forth in RSA 162-H:1, either on its own motion or by petition of the applicant or 2 or more petitioners as defined in RSA 162-H:2, XI.

364:4 Site Evaluation Committee. Amend RSA 162-H:3 to read as follows:

162-H:3 Site Evaluation Committee. The site evaluation committee shall consist of the commissioner of the department of environmental services or assistant commissioner as designee, the director of the division of water, the commissioner of the department of resources and economic development or the director of the division of economic development as designee, the commissioner of the department of health and human services or one of the 2 most senior administrators within the department responsible for management of public health services as designee, the executive director of the fish and game department, the director of the office of energy and planning or deputy director as designee, the director of the division of parks and recreation, the director of the division of forests and lands, the director of the division of air resources, the [director of the governor’s office of energy and community services or deputy director as designee, the] commissioner of the department of transportation or assistant commissioner as designee, the commissioners of the public utilities commission, and a staff engineer designated by the commissioners of the public utilities commission. The commissioner of the department of environmental services shall be chairperson of the committee, and the chairperson of the public utilities commission shall be vice-chairperson.

364:5 New Paragraph; Site Evaluation Committee; Review of Renewable Energy Projects. Amend RSA 162-H:4 by inserting after paragraph IV the following new paragraph:

V.(a) The committee shall file with the director of legislative services initial proposed procedural rules no later than December 31, 2007, that, to the extent practicable, streamline the filing requirements for renewable energy facilities. Prior to the effective date of such procedural rules, the committee shall consider applications by applying the attorney general’s model procedural rules under RSA 541-A:30-a, V.

(b) Once an application has been accepted in accordance with RSA 162-H:6-a, the chairperson shall designate a subcommittee of no fewer than 7 members that shall consider and approve or reject all applications for renewable energy facilities. The subcommittee shall include the chairperson or the vice-chairperson of the committee, and at least 3 members selected from among the department of environmental services, the department of resources and economic development, and the fish and game department. A majority vote of the subcommittee shall be sufficient to issue a certificate, issue a certificate with conditions, or deny a certificate under this chapter. With the exception of the chairperson or vice-chairperson, each member of the committee may designate an employee from his or her agency to assume his or her responsibilities as a subcommittee member for the purposes of this subparagraph, provided that such designee shall be a senior administrator within the agency, department, or division that the member represents under RSA 162-H:3. To the extent that they do not conflict with the provisions of this subparagraph or RSA 162-H:6-a, all other provisions of this chapter shall apply to the review of a renewable energy facility.

364:6 New Section; Time Frames for Review of Renewable Energy Projects. Amend RSA 162-H by inserting after section 6 the following new section:

162-H:6-a Time Frames for Review of Renewable Energy Facilities.

I. Upon the filing of an application for a certificate for a renewable energy facility, the chairperson shall expeditiously forward to each of the other state agencies having jurisdiction, under state or federal law, to regulate the construction or operation of the proposed facility, a copy of the parts of the application that are relevant to its jurisdiction. Upon the filing of the copy, each of the other state agencies shall conduct a preliminary review as described in RSA 162-H:7, IV. To qualify for the time frames for review specified in this section, an application for a renewable energy facility shall include testimony, exhibits, and sufficient information to satisfy the application requirements of each state agency having jurisdiction, under state or federal law, to regulate the construction or operation of the proposed facility, and shall include each agency’s completed application forms.

II. Upon the filing of an application for a certificate for a renewable energy facility, the chairperson or designee shall expeditiously conduct a preliminary review to ascertain whether the application contains sufficient information to carry out the purposes of this chapter. The chairperson or designee shall require as much information as he or she deems necessary to review the application and may take other administrative or procedural actions on behalf of the committee to aid in the orderly conduct of the proceeding.

III. The chairperson of the committee or designee shall decide whether or not to accept the application within 30 days of filing. Once an application has been accepted the chairperson shall designate a subcommittee as provided in RSA 162-H:4, V.

IV. After acceptance of the application, the subcommittee, upon 30 days notice, shall promptly hold at least one public hearing in each county in which the proposed facility is to be located.

V. All participating state agencies shall report their progress to the subcommittee within 90 days of the acceptance of the application, outlining draft permit conditions and specifying additional data requirements necessary to make a final decision.

VI. All participating state agencies shall make and submit to the subcommittee a final decision on the parts of the application that relate to its jurisdiction, no later than 180 days after the application has been accepted.

VII. Within 30 days of the submission of final decisions under paragraph VI, the subcommittee shall hold a public hearing on the merits of the application, which shall be part of an adjudicative proceeding as provided under RSA 162-H:10, II. At such public hearing, the subcommittee shall hear testimony and receive evidence submitted on behalf of the applicant, any intervenors, agencies with jurisdiction, and members of the public represented by counsel for the public appointed under RSA 162-H:9. At such public hearing the subcommittee may also receive comment from any member of the public on the application.

VIII. Within 240 days of the acceptance of an application, the subcommittee shall issue or deny a certificate for a renewable energy facility.

IX. If the subcommittee at any time during its deliberations relative to an application for a certificate deems it to be in the public interest, it may temporarily suspend its deliberations and enlarge the time frame established under this section to issue or deny a certificate.

364:7 Public Hearings. Amend RSA 162-H:10, II to read as follows:

II. Except for informational hearings, subsequent hearings shall be in the nature of [adversary] adjudicative proceedings and may be held in the county or one of the counties in which the proposed facility is to be located or in Concord, New Hampshire, as determined by the site evaluation committee. The committee shall give adequate public notice of the time and place of each subsequent session.

364:8 State Energy Policy Commission; Membership. Amend 2006, 257:2, I(b) to read as follows:

(b) [Four] Eight members of the house of representatives, at least 4 of whom shall be members of the science, technology and energy committee, appointed by the speaker of the house of representatives.

364:9 New Paragraphs; State Energy Policy Commission; Duties. Amend 2006, 257:3 by inserting after paragraph V the following new paragraphs:

VI. Whether the state should allow electric distribution companies to invest in small scale generation resources as part of a strategy for balancing load and distribution, reducing transmission line losses, minimizing transmission and distribution costs, improving energy conservation, and enhancing renewable energy.

VII. Demand management and response mechanisms and programs.

364:10 Report. Amend 2006, 257:5 to read as follows:

257:5 Report. The commission shall report its findings and any recommendations for proposed legislation to the president of the senate, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library in the form of [an] interim [report] reports on or before December 1, 2006 and December 1, 2007 and a final report on or before December 1, [2007] 2008.

364:11 Effective Date. This act shall take effect upon its passage.

Approved: July 17, 2007

Effective: July 17, 2007