This bill amends New Hampshire's participation in the Regional Greenhouse Gas Initiative (RGGI) by revising the carbon dioxide emissions budget allowances for the years 2027 through 2030. Specifically, it reduces the budget allowances from previous levels, with the new allowances set at 2,993,220 tons for 2027, 2,619,068 tons for 2028, 2,244,915 tons for 2029, and 1,870,763 tons for 2030 and thereafter. Additionally, the bill introduces two cost containment allowance levels, which will be triggered at specific auction price thresholds, allowing for the sale of additional allowances to help manage costs during periods of high prices. The bill also repeals certain definitions related to early reduction allowances and offset allowances, streamlining the regulatory framework.

The fiscal impact of the bill is indeterminable, as future auction prices will depend on market conditions. However, it is expected that the revised allowance structure will lead to auction proceeds in the range of $33 million to $46 million annually during the 2028-2030 period, which is a decrease from historical revenues of approximately $66 million per year. Despite this reduction, the bill aims to maintain ratepayer benefits through rebates funded by auction proceeds, thereby avoiding a complete loss of revenue that would occur under current law if the state did not align with RGGI requirements. Overall, the bill seeks to implement the third RGGI Program Review while ensuring continued participation and consumer protections.

Statutes affected:
Introduced: 125-O:20, 125-O:21, 125-O:22
HB1738 text: 125-O:20, 125-O:21, 125-O:22