RPS (Renewable Portfolio Standards)
The RPS bill, HB873 sponsored by Representative Suzanne Harvey and Senator Martha Fuller Clark, will require our utilities to buy an increasing percentage of clean, renewable energy as part of their mix. It will stimulate the market for windfarms, wood-burning plants, and other green energy sources in the state, and every time we pay our electric bills we will be buying some green energy. A study by UNH showed that the increased cost on electric bills would be very minimal, and we would be protecting ourselves from the rising costs of natural gas, which generates much of our electricity at the moment.
A broad range of resources are allowed in the bill, and we will have a special carve-out for solar energy systems to be sure to help jump start the solar industry in the state. The amount of solar is small, but many of the states have increased their requirements over the years, and the Public Utilities Commission will review the rates periodically. Resources are grouped into four classes with differing requirements for each class (see table below).
Class I is for new renewables which begin operation after 1/1/06 and includes wind, geothermal, hydrogen derived from biomass fuels or methane gas, ocean thermal, wave, current, or tidal energy, methane gas and eligible biomass technologies. Class II is the set-aside for new solar electric systems that begin operation after 1/1/06. (Solar is also included in Class I but would normally not be used because it is more expensive.) Class III is for existing biomass/methane which began operation before 1/1/06, and Class IV is for existing small hydroelectric systems which began operation before 1/1/06.
By 2025 new renewables will be 16% of each utility's generation, solar will be 0.3%, new biomass/methane will be 6.5% and existing hydro will be 1% - for a total of 23.8%. The utilities will trade Renewable Energy Credits (RECs) on the generation information system (GIS) administered by ISO-New England and the New England Power Pool (NEPOOL). The RECs for the classes will be: $57.12 for new renewables, $150 for solar, $28 for existing biomass, and $28 for existing hydro. The cost of solar RECs is high because it is a new but an important industry that needs more help.
| Class | Type | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2025 | RECs |
|---|---|---|---|---|---|---|---|---|---|---|---|
| I | New Re-ewables | 0.0% | 0.5% | 1% | 2% | 3% | 4% | 5% | 6% | 16%* | $57.12 |
| II | Solar Electric | 0.0% | 0.0% | 0.4% | 0.8% | 0.15% | 0.2% | 0.3% | 0.3% | 0.3% | $150 |
| III | Existing Biomass | 3.5% | 4.5% | 5/5% | 6.5% | 6.5% | 6/5% | 6.5% | 6.5% | 6.5% | $28 |
| IV | Existing Hydro | 0.5% | 1% | 1% | 1% | 1% | 1% | 1% | 1% | 1% | $28 |
*Class I increases an additional one percent per year from 2015 through 2025. The others stay the same. |
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If the utility cannot meet the requirement they can pay an Alternate Compliance Penalty (ACP) equal to the RECs, which will go into a fund that will be administered by the Public Utilities Commission and used for renewable energy initiatives. The ACPs for solar must be used only for solar initiatives.
The bill requires that a study committee meets this summer and recommends legislation by 11/30/07 on a thermal renewable portfolio standard that will promote the use of high efficiency low-emission thermal renewable energy technology and fuels such as wood pellets. There is no provision for solar hot water systems, but they are currently funded by the federal tax credit which allows a $2000 credit that goes a long way towards the usual cost of a system of around $6000.
To read the text of the bill, go to http://www.gencourt.state.nh.us/ns/billstatus/default.asp and enter HB873 (no space before the numbers) in the window on the left marked "Bill Number". Hit "enter" and then click on "bill text".
