HB 1697-FN - AS INTRODUCED
2024 SESSION
24-3134
08/10
HOUSE BILL 1697-FN
SPONSORS: Rep. A. Davis, Coos 2; Rep. Ouellet, Coos 3; Rep. Tierney, Coos 1; Rep. S. King, Coos 4; Rep. Cascadden, Coos 5; Rep. Noel, Coos 5
COMMITTEE: Science, Technology and Energy
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ANALYSIS
This bill suspends New Hampshire's participation in emissions reduction credit programs administered by the department of environmental services for a period of 2 years.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-3134
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Suspension of Emissions Trading Programs; Department of Environmental Services. The department of environmental services shall suspend administration and participation in the emissions trading programs under RSA 125-J and RSA 125-O or any other carbon credit emissions reduction program for a period of 2 years from the effective date of this act to enable the general court to develop a plan for the use of natural resources.
2 Effective Date. This act shall take effect upon its passage.
24-3134
11/26/23
HB 1697-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease | $0 | ||
Revenue Fund(s) | Energy Efficiency Fund
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Expenditures | Indeterminable | Indeterminable | Indeterminable | $0 | ||
Funding Source(s) | Energy Efficiency Fund Various Government Funds | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A • Does this bill authorize new positions to implement this bill? [X] No | ||||||
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Estimated Political Subdivision Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
County Revenue | $0 | $0 | $0 | $0 | ||
County Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | $0 | ||
Local Revenue | $0 | $0 | $0 | $0 | ||
Local Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | $0 | ||
METHODOLOGY:
This bill suspends New Hampshire's participation in emissions reduction credit programs administered by the Department of Environmental Services for a period of 2 years. The Department of Environmental Services states this bill would eliminate the revenue to New Hampshire from the quarterly Regional Greenhouse Gas Initiative (RGGI) allowance auctions which are deposited in the Energy Efficiency Fund (RSA 125-O:23). It would also suspend activity in emissions reduction trading programs pursuant to RSA 125-J. These programs primarily involve emissions source to source credit trading and banking. While the Department holds some credits from source closures, financial transactions of these are extremely rare, so there would be minimal fiscal impact to the State related to this program. It would however be extremely disruptive to sources banking and trading such credits.
The Department indicates RGGI allowance auction prices have been trending slightly upward, likely in response to annual reductions in the number of allowances (the allowance “cap”). The Department assumes revenues for the second of half FY 2024 (Spring 2024) may be minimally impacted depending on when the bill becomes law. Revenue loss for FY 2025 would be conservatively estimated at $40 million, and $20 million for the first half of FY 2026.
Total RGGI auction proceeds for calendar year 2022 were $43,246,614. Approximately $40 million of this amount was rebated to commercial and residential electricity customers. Loss of these rebates would increase electricity rates by an unknown amount, impacting state, county and local government electricity costs, increasing expenditures by an indeterminable amount. The Department also notes that certain Department of Energy and Department of Environmental Services personnel expenses are charged to the Energy Efficiency Fund.
AGENCIES CONTACTED:
Department of Environmental Services