This bill seeks to amend the classification of biomass technologies within the state's renewable portfolio standards (RPS) by aligning all eligible biomass technologies to Class III. Key provisions include increasing the Class III obligation from 8% to 9% and decreasing the Class I obligation from 15% to 12% starting in 2025. The bill also eliminates existing operational date restrictions for certain biomass facilities and introduces a new eligibility criterion for biomass facilities with a gross nameplate capacity of 75 MW located in Coos County, which is recognized as a distressed economy area. Additionally, it modifies various sections of RSA 362-F, including the removal of specific language regarding eligible biomass technologies and the adjustment of definitions and requirements for renewable energy classes. Notably, the bill deletes the previous Class III and IV renewable portfolio standards requirements and increases the Class III payment from $31.50 to $45.

Furthermore, the bill proposes changes to the Renewable Energy Fund (REF) by altering the Renewable Energy Certificate (REC) purchase obligations for Class I and Class III resources. The reclassification of biomass resources may lead to fluctuations in the supply, demand, and pricing of RECs, which are crucial for compliance. The REF generates revenue primarily through alternative compliance payments (ACPs) made by providers unable to acquire sufficient RECs. The Department of Energy has indicated that the bill's impact on state revenues and electricity expenditures is indeterminable due to the complexities of the REC market. Changes in the state's annual electricity purchases, which total approximately 77,000 MWh, could affect costs based on fluctuations in REC-related components of electric rates, but the Department cannot predict whether these changes will result in increased or decreased overall electricity costs for the state or local entities.

Statutes affected:
Introduced: 362-F:3, 362-F:4, 362-F:10
SB539 text: 362-F:3, 362-F:4, 362-F:10