This bill amends RSA 362-F:10 to set the Alternative Compliance Payment (ACP) rates for all classes of the Renewable Portfolio Standard (RPS)—Class I, II, III, and IV—to $0, effective January 1, 2027. The current law specifies ACP rates of $55 for Class I and II, $31.50 for Class III, and $26.50 for Class IV, which are now being deleted and replaced with the new rate of $0. This change eliminates the financial penalties for electric service providers who fail to procure sufficient Renewable Energy Certificates (RECs) for compliance, effectively collapsing the REC market and removing a significant revenue source for the Renewable Energy Fund (REF).

The fiscal impact of this bill is significant, as it is projected to reduce REF revenue to $0 by mid-FY 2028, which would halt all REF-funded programs, including grants for non-residential projects and low-moderate income solar initiatives. The Department of Energy indicates that the average ACP revenue over the past five years has been approximately $6.7 million annually, and the elimination of this revenue stream could lead to the loss of nine full-time positions currently funded by the REF. While the bill may decrease electricity costs for the State and other ratepayers by eliminating REC procurement costs, the long-term economic effects on the renewable energy sector remain uncertain.

Statutes affected:
Introduced: 362-F:10
HB1542 text: 362-F:10