HB 605-FN - AS INTRODUCED
2023 SESSION
23-0491
10/04
HOUSE BILL 605-FN
AN ACT relative to solar generation under the renewable portfolio standards.
SPONSORS: Rep. Raynolds, Rock. 39
COMMITTEE: Science, Technology and Energy
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ANALYSIS
This bill revises the minimum percentages for solar electrical generation included in the renewable portfolio standards for 2024 through 2050 and after.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0491
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to solar generation under the 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% 3.8% 5% 6% 15% (*)
Class II 0.0% 0.0% 0.04% 0.08% 0.15% 0.2% 0.3% 0.3% [0.7%] 3% min (**)
Class III 3.5% 4.5% 5.5% 6.5% 1.4% 1.5% 3.0% 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 0.4 percent in 2014, 0.6 percent in 2015, 0.8 percent in 2016, and increased annually by 0.2 percent per year from 2017 through 2023, after which it shall remain unchanged. [Class II shall increase to 0.5 percent beginning in 2018, 0.6 percent beginning in 2019, and 0.7 percent beginning in 2020, otherwise]. Classes [II-IV] III and IV shall remain at the same percentages from 2015 through 2025 except as provided in RSA 362-F:4, V-VI.
** Class II percentages shall be as follows:
Year Minimum %
2024 2.5
2025 3.0
2026 3.5
2027 4.0
2028 5.0
2029 6.0
2030 and after 7.5
2035 and after 10
2040 and after 15
2045 and after 20
2050 and after 25
2 Effective Date. This act shall take effect 60 days after its passage.
23-0491
Revised 1/12/23
HB 605-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to solar generation under the renewable portfolio standards.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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STATE: | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ X ] General [ ] Education [ X ] Highway [ X ] Other - Renewable Energy Fund, Various Government Funds | |||
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COUNTY: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
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LOCAL: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
METHODOLOGY:
This bill revises the minimum percentages for solar electrical generation included in the renewable portfolio standards for 2024 through 2050 and after.
The Department of Energy indicates this bill would increase Class II obligation for the Renewable Portfolio Standard (RPS) for providers of electricity. Class II is generation from solar facilities that began operation after January 1, 2006. Current law requires providers of electricity to obtain renewable energy certificates (RECs) or make alternative compliance payments to cover 0.7% of their total megawatt hours of electricity supplied. This bill would increase that figure from 0.7% in 2023, to 2.5% in 2024, gradually increasing to 25% by 2050. With the increase in the renewable portfolio standard requirements for Class II, it is assumed that some of the increase would be met through alternative compliance payments (ACPs). The rate for ACPs for Class II for 2022 is $59.12. This rate is indexed to ½ of the CPI and adjusted every year. Those ACPs are deposited into the Renewable Energy Fund. It is impossible to determine what portion of these increases would be met with the purchase or renewable energy certificates (RECs) or ACPs, therefore the impact to state revenues is an indeterminable increase. If all of the increased obligation is covered through the purchase of RECs, there would be no impact to state revenues.
The increase in Class II requirements would result in an indeterminable increase in electricity costs either through increased purchases of RECs or payment of ACPs. Cost of compliance with the state’s renewable portfolio standard is recoverable by electric distribution utilities and those increased costs that result would be passed through to the ratepayers, increasing electricity rates, thereby increasing expenditures for state, county, and local units of government by an indeterminable amount. It is unknown how much of the new obligation will be met through RECs or ACPs, therfore the amount of increase is indeterminable.
If the entire increase were met through ACPs, the total sale of electricity remains constant at 2021 levels, and a 2% annual inflation rate is assumed over the period, the impact on the statewide cost of electricity would be as follows:
2024, 2.5%: $11,555,600
2026, 3.5%: $18,336,078
2028, 5.0%: $28,726,643
2030, 7.5%: $46,340,363
These amounts represent the maximum potential increase in statewide electricity costs. The market for RECs fluctuates depending on supply and demand. This makes it impossible to project the amount of RECs available for purchase and their price. Because of this it is not possible to project the portion of the new obligation that would be met by RECs versus ACPs, the cost to acquire those RECs, or a minimum cost impact.
It is assumed that any fiscal impact would occur after FY 2023.
AGENCIES CONTACTED:
Department of Energy