This bill proposes to amend the current law regarding the use of auction proceeds from the Regional Greenhouse Gas Initiative (RGGI) by increasing the threshold price for allowance sales eligible for rebate under the energy efficiency fund. Specifically, the bill seeks to raise the threshold from $1 to $3 per allowance sale. As a result, all amounts in excess of the new $3 threshold from any allowance sale would be rebated to all retail electric ratepayers in the state on a per-kilowatt-hour basis, with the timing to be determined by the commission. The act is set to take effect on January 1, 2024.

The fiscal note attached to the bill indicates that there would be no change in gross revenue to the state compared to current law, with auction proceeds revenue assumed to be constant at $43 million per year. However, the allocation of revenue would shift, with more funds going into the energy efficiency fund and less being rebated to ratepayers. In 2022, this would have meant an increase from $3.2 million to $9.6 million credited to the energy efficiency fund, with a corresponding decrease in rebates to ratepayers from $39.45 million to $33.05 million. This change could lead to a near-term increase in electricity costs for state, county, and local governments, but over the long term, it is expected to save money through increased investment in energy efficiency projects. The exact costs and savings are indeterminable at this time.

Statutes affected:
Introduced: 125-O:23