This bill proposes significant changes to the Renewable Portfolio Standards (RPS) by removing the classification of technologies that produce useful thermal energy from the definition of "renewable energy source." Specifically, it amends RSA 362-F:2, XV to delete the reference to useful thermal energy, thereby redefining renewable energy sources to only include classes I, II, III, and IV sources of electricity. Additionally, the bill modifies the minimum electric renewable portfolio standards in RSA 362-F:3, adjusting the percentage requirements for each class and effectively lowering the obligations for electricity providers. For instance, the Class I requirement is reduced from 15% to 6%, and Class II is adjusted from 0.7% to 0.3%. The bill also repeals provisions related to biomass technologies producing useful thermal energy and related definitions.

The fiscal impact of this bill is expected to be significant, with estimated decreases in revenue and expenditures for the state, counties, and local governments. The Department of Energy anticipates that the removal of useful thermal energy from the RPS will lead to reduced costs for electricity providers, which are likely to be passed on to consumers. The estimated decrease in Alternative Compliance Payments (ACPs) could total approximately $4.5 million, while the reduction in Renewable Energy Certificate (REC) costs may reach about $16 million. Overall, the bill is projected to result in an indeterminable decrease in state revenue and expenditures, with estimates ranging from $2.5 million to $4.5 million.

Statutes affected:
Introduced: 362-F:2, 362-F:3, 362-F:4