Establishing a committee to study New Hampshire's electric renewable portfolio standard and the renewable energy fund.
By eliminating the ACP, the bill effectively collapses the existing Renewable Energy Certificate (REC) market. The Department of Energy has noted that the average ACP revenue from the past five years amounts to approximately $6.7 million per year. This revenue supports various programs including non-residential project grants and community solar initiatives. Without these funds, a substantial number of REF programs would be discontinued unless future legislative actions provide alternative funding. The fiscal analysis indicates that the state could see a decrease in electricity costs due to the elimination of REC compliance costs, potentially saving around $420,000 annually.
House Bill 1542 relates to the compliance payments associated with the state's Renewable Portfolio Standards (RPS). The primary objective of this bill is to set the Alternative Compliance Payment (ACP) rates for all classes of the RPS to zero, effective January 1, 2027. This change is significant as ACPs are currently the primary revenue source for the Renewable Energy Fund (REF), which finances various renewable energy programs aimed at promoting sustainability and assisting low- to moderate-income households in accessing solar energy.
The sentiment surrounding HB1542 is quite mixed. Supporters argue that the elimination of the ACP will reduce overall electricity costs for consumers, potentially benefiting all ratepayers in New Hampshire. Conversely, opponents express concern over the long-term effects this bill could have on the renewable energy sector, specifically the loss of programs that support sustainability initiatives. They worry that by dismantling the funding structure for renewable energy projects, the state could regress in its efforts toward achieving clean energy goals.
There are notable points of contention regarding the implications of HB1542. Critics highlight that, by removing the penalty for non-compliance with the RPS, the bill undermines the incentive for electricity providers to invest in renewable energy certificates. This could dampen the growth of the renewable energy sector in New Hampshire. Furthermore, the Department of Energy reports that several full-time positions funded by the REF may also be jeopardized as their fiscal support evaporates, leading to a potential loss of expertise in managing renewable energy compliance and initiatives necessary for the state's progress toward cleaner energy.