HB 614-FN - AS INTRODUCED
2021 SESSION
21-0468
10/06
HOUSE BILL 614-FN
AN ACT exempting the state and political subdivisions from payment of the costs of
compliance with the renewable portfolio standard.
SPONSORS: Rep. Vose, Rock. 9; Rep. Pearl, Merr. 26; Rep. Lang, Belk. 4; Rep. Cordelli, Carr.
4; Rep. Harvey-Bolia, Belk. 4; Rep. Edwards, Rock. 4; Rep. Binford, Graf. 15
COMMITTEE: Science, Technology and Energy
─────────────────────────────────────────────────────────────────
ANALYSIS
This bill requires that the state and political subdivisions be exempted from paying the portion
of electricity rates that covers the cost of compliance with the renewable portfolio standard.
Providers of electricity shall recover those payments by subtracting exempted amounts from
alternative compliance payments to the renewable energy fund.
---------------------------------------------------------------------------
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
 HB 614-FN - AS INTRODUCED
21-0468
10/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT exempting the state and political subdivisions from payment of the costs of
compliance with the renewable portfolio standard.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 1 New Paragraph; Electrical Rates and Charges; Exemption For State and Political
2 Subdivisions. Amend RSA 378:49 by inserting after paragraph III the following new paragraph:
3 IV.(a) The public utilities commission shall, after notice and hearing, by order or rule,
4 approve a standard format and methodology that providers of electricity, as defined in RSA 362-F:2,
5 XIV, shall use in exempting the state and its political subdivisions from paying the portion of
6 electricity rates that covers the cost of compliance with the renewable portfolio standard (RPS)
7 under RSA 362-F.
8 (b) The total amount exempted from payment under subparagraph (a) for each provider
9 of electricity shall be subtracted by such provider from amounts due under RSA 362-F:10, II for
10 alternate compliance payments to the renewable energy fund.
11 (c) A political subdivision of the state may, by a majority vote of its governing body, elect
12 to continue payment of the amounts identified as costs of compliance with the renewable portfolio
13 standard under RSA 362-F.
14 2 Effective Date. This act shall take effect January 1, 2022.
 LBA
21-0468
1/13/21
HB 614-FN- FISCAL NOTE
AS INTRODUCED
AN ACT exempting the state and political subdivisions from payment of the costs of
compliance with the renewable portfolio standard.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
Estimated Increase / (Decrease)
STATE: FY 2021 FY 2022 FY 2023 FY 2024
Appropriation $0 $0 $0 $0
Revenue $0 Indeterminable Indeterminable Indeterminable
Expenditures $0 Indeterminable Indeterminable Indeterminable
[ X ] General [ ] Education [ ] Highway [ X ] Other -
Funding Source:
Renewable Energy Fund
LOCAL:
Revenue $0 $0 $0 $0
Indeterminable Indeterminable Indeterminable
Expenditures $0
Decrease Decrease Decrease
METHODOLOGY:
This bill exempts the state and political subdivisions from paying the portion of electricity rates
that covers the cost of compliance with the renewable portfolio standard (RPS). Providers of
electricity shall recover those payments by subtracting exempted amounts from alternative
compliance payments to the renewable energy fund.
The PUC states it will be required to develop and approve a standard that electricity providers
must use to exempt the State and political subdivisions from paying these costs. The governing
body of a political subdivisions will be able to continue participation in the RPS by paying for
these compliance costs via their electric bills but the State would not be able to elect this option.
There may be some decrease in the electric bills of the State and political subdivisions who do
not opt out of the exemption. The PUC does not know which suppliers serve which political
subdivisions or the amount of energy purchases by any political subdivision. There may be a
decrease in funds allocated to the Renewable Energy Fund.
RPS compliance costs include both the cost of renewable energy certificates (RECs) purchased
from renewable energy facilities through the regional market and the cost of alternative
compliance payments (ACPs) paid to the Commission in lieu of such REC purchases. Providers
 of electricity must either purchase RECs or make an ACP to satisfy the RPS statutory
requirements. ACPs fund the Renewable Energy Fund (REF), which in turn, through
Commission-approved rebate and grant programs, provides incentives for renewable energy
project development within the State. Although it appears electricity providers are intended to
be protected from incurring the cost of the RPS exemption, the bill does not clearly include the
cost of REC's as a compliance cost to be subtracted from an electricity provider's cost of the
exemption.
The Municipal Association does not have information on the total electricity costs paid by
municipalities or the amount of those costs for compliance, so any impact on municipal
expenditures from this bill is indeterminable.
AGENCIES CONTACTED:
New Hampshire Municipal Association and Public Utilities Commission


Statutes affected:
Introduced: 378:49
latest version: 378:49