Relative to changes to the minimum electric renewable portfolio standards.
The bill is expected to significantly impact state laws regarding renewable energy compliance, shifting the landscapes for electric utilities, competitive suppliers, and community aggregators. By lowering the RPS requirements, it is projected that the compliance costs for these entities will decrease, resulting in changes to electricity pricing for consumers. The fiscal note estimates that this reduction could lead to several million dollars in decreased compliance costs and a corresponding decline in state revenue from alternative compliance payments (ACPs). Local and county expenditures will also likely decrease but remain hard to quantify due to variability in consumption data.
House Bill 219 aims to phase out the minimum electric renewable portfolio standard (RPS) in New Hampshire over a defined period, leading to the reduction of mandated renewable energy purchases by electricity providers. Specifically, the bill requires the Department of Energy to implement a 20% annual reduction in the minimum percentages for renewable generation beginning in 2026, ultimately leading to the complete repeal of the current minimum standards by 2030. This aligns with a broader trend of reevaluating renewable energy mandates in light of economic considerations and market conditions.
The sentiment surrounding HB 219 is mixed. Proponents, predominantly from the business community and some government sectors, argue that loosening the renewable standards will alleviate financial burdens on energy providers and ultimately benefit consumers by lowering electricity costs. Conversely, opponents—often from environmental advocacy groups—raise concerns that reducing the portfolio standards may stymie progress toward sustainable energy goals, hinder investment in renewable technologies, and negatively impact environmental protections.
Notable points of contention regarding HB 219 involve the balance between economic incentives and environmental preservation. Critics argue that the phasing out of the RPS undermines New Hampshire's commitment to renewable energy and could impede its long-term sustainability initiatives. They emphasize that the revenues generated from the current standards support essential energy programs and innovations. In contrast, supporters contend that economic realities necessitate the change to respond to market dynamics, and they believe that the state can maintain its renewable energy efforts without strict mandates.