HB 543-FN – AS INTRODUCED
2011 SESSION
09/10
HOUSE BILL 543-FN
AN ACT relative to biomass combined heat and electricity facilities.
SPONSORS: Rep. Rappaport, Coos 1; Rep. Kaen, Straf 7; Rep. Holden, Hills 4; Rep. Remick, Coos 2; Sen. Bradley, Dist 3; Sen. Merrill, Dist 21; Sen. Gallus, Dist 1
COMMITTEE: Science, Technology and Energy
This bill recognizes biomass combined heat and electricity facilities under the electric renewable portfolio standard 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0834
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to biomass combined heat and electricity facilities.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Electric Renewable Energy Classes; Biomass Combined Heat and Electricity Facilities Excluded From Class I. Amend RSA 362-F:4, I(g)-(j) to read as follows:
(g) The production of both electricity and thermal energy on an electricity equivalent basis from biomass combined heat and electricity facilities. In such case, renewable energy credits shall be awarded according to the following combined heat and power output efficiency thresholds:
(1) 0-40 percent – one renewable energy certificate per megawatt-hour of electricity and thermal energy equivalent;
(2) 41-60 percent – 1.25 renewable energy certificates per megawatt-hour of electricity and thermal energy equivalent;
(3) 61-80 percent – 1.5 renewable energy certificates per megawatt-hour of electricity and thermal energy equivalent; and
(4) 81 percent or greater – 2 renewable energy certificates per megawatt-hour of electricity and thermal energy equivalent.
(h) The equivalent displacement of electricity, as determined by the commission, by end-use customers, from solar hot water heating systems used instead of electric hot water heating.
[(h)] (i) Class II sources to the extent that they are not otherwise used to satisfy the minimum portfolio standards of other classes.
[(i)] (j) The incremental new production of electricity in any year from an eligible biomass or methane source or any hydroelectric generating facility licensed or exempted by Federal Energy Regulatory Commission (FERC), regardless of gross nameplate capacity, over its historical generation baseline, provided the commission certifies demonstrable completion of capital investments attributable to the efficiency improvements, additions of capacity, or increased renewable energy output that are sufficient to, were intended to, and can be demonstrated to increase annual renewable electricity output. The determination of incremental production shall not be based on any operational changes at such facility but rather on capital investments in efficiency improvements or additions of capacity.
[(j)] (k) The production of electricity from a class III or IV source that has begun operation as a new facility by demonstrating that 80 percent of its resulting tax basis of the source's plant and equipment, but not its property and intangible assets, is derived from capital investment directly related to restoring generation or increasing capacity including department permitting requirements for new plants. Such production shall not qualify for class III or IV certificates.
2 Class III Electric Renewable Energy; Inclusion of Biomass Combined Heat and Electricity Facilities. Amend RSA 362-F:4, III(a) to read as follows:
(a) Eligible biomass technologies, including both the production of electricity and thermal energy from biomass combined heat and electric facilities, having a gross nameplate capacity of 25 MWs or less.
3 New Paragraph; Rulemaking; Electric Renewable Portfolio Standard Program. Amend RSA 362-F:13 by inserting after paragraph V the following new paragraph:
V-a. Establish procedures for verifying the combined heat and electric output efficiency and thermal energy equivalency from biomass combined heat and power facilities.
4 Definitions; Reference Change. Amend RSA 362-F:2, XV to read as follows:
XV. “Renewable energy source,” “renewable source,” or “source” means a class I, II, III, or IV source of electricity or electricity displacement by a class I source under RSA 362-F:4, I[(g)] (h). An electrical generating facility, while selling its electrical output at long-term rates established before January 1, 2007 by orders of the commission under RSA 362-A:4, shall not be considered a renewable source.
5 Effective Date. This act shall take effect 60 days after its passage.
LBAO
11-0834
01/20/11
HB 543-FN - FISCAL NOTE
AN ACT relative to biomass combined heat and electricity facilities.
FISCAL IMPACT:
The Public Utilities Commission states this bill may decrease state, county and local expenditures in FY 2011 and in each fiscal year thereafter. There is no fiscal impact on state, county, and local revenue.
METHODOLOGY:
The Public Utilities Commission states this bill allows the production of both electricity and thermal energy from biomass to be eligible to receive class I or III renewable energy certificates (REC). The Commission states the cost of the renewable portfolio standard (RPS) program is determined by the minimum renewable energy requirements that each electricity provider must meet through the acquisition of RECs and the costs incurred by electricity providers, and ultimately ratepayers, is also determined by the market price of these RECs. The Commission is unable to predict the number of qualified facilities that would invest in thermal capture technologies and their resulting output and the impact on the existing impact on the REC market. The Commission assumes any increase to class I or III REC eligibility resulting from the passage of this bill may decrease prices and result in a decrease in the cost incurred by electricity providers, and as a result, may reduce electricity rates paid by state, county and local government entities.
The Department of Environmental Services states the renewable portfolio standard (RPS) program does not impose any measurable costs on state or local governments and therefore there would be no additional costs from this bill.