TITLE X
PUBLIC HEALTH

Chapter 125-O
MULTIPLE POLLUTANT REDUCTION PROGRAM

Section 125-O:1

    125-O:1 Findings and Purpose. –
I. The general court finds that while air quality has improved in recent years, scientific advances have demonstrated that adequate protection of public health, environmental quality, and economic well-being-the 3 cornerstones of New Hampshire's quality of life-requires additional, concerted reductions in air pollutant emissions. The general court also finds that the state's tradition of environmental leadership-setting an example for similarly feasible air pollution reductions from upwind jurisdictions-is also well served by additional emission reductions.
II. Recent studies and scientific evidence, documented in the New Hampshire Clean Power Strategy issued in January 2001 by the department of environmental services, indicates that significant negative human health and ecosystem impacts continue to be caused by air pollution. The general court finds that the substantial quantities of several harmful air pollutants that continue to be emitted from existing fossil fuel burning steam electric power plants, despite recent reductions in the emission of certain air pollutants from some of these facilities, contribute to these harmful impacts and that additional emissions reductions from these sources are warranted.
III. Specifically, the general court finds that aggressive further reductions in emissions of sulfur dioxide (SO2), oxides of nitrogen (NOx), mercury, and carbon dioxide (CO2) must be pursued. These pollutants are primarily responsible for the human health and ecosystem impacts documented in the New Hampshire Clean Power Strategy issued in January 2001 by the department of environmental services.
IV. The general court finds that, as demonstrated by recent analyses, a high quality-of-life environment has been, and will continue to be, essential to New Hampshire's economic well-being. The general court further finds that protecting New Hampshire's high quality-of-life environment by reducing air pollutant emissions returns substantial economic benefit to the state through avoided health care costs; greater tourism resulting from healthier lakes and improved vistas; more visits by fishermen, hunters, and wildlife viewers to wildlife ecosystems, and a more productive forest and agricultural sector.
V. For the above reasons and others, the general court finds that substantial additional reductions in emissions of SO2, NOx, mercury, and CO2 must be required of New Hampshire's existing fossil fuel burning steam electric power plants. Due to the collateral benefits and economies of scale associated with reducing multiple pollutant emissions at the same time, the general court finds that such aggressive emission reductions are both feasible and cost-effective if implemented simultaneously through a comprehensive, integrated power plant strategy.
VI. The general court also finds that the environmental benefits of air pollutant reductions can be most cost-effectively achieved if implemented in a fashion that allows for regulatory and compliance flexibility under a strictly limited overall emissions cap. Specifically, market-based approaches, such as trading and banking of emission reductions within a cap-and-trade system, allow sources to choose the most cost-effective ways to comply with established emission reduction requirements. This approach also provides sources with an incentive to reduce air pollutant emissions sooner and by greater amounts, promotes the development and use of innovative new emission control technologies, and specifies to the greatest extent possible performance results regarding environmental improvement rather than dictating expensive, facility-specific, command-and-control regulatory requirements. The general court acknowledges that future federal regulations may mandate some facility-specific requirements regarding mercury reductions.
VII. The general court also finds that energy conservation results in direct reductions in air pollutant emissions. Thus, incentives for energy conservation are an important component of an overall clean power strategy. The general court recognizes that energy conservation expenditures made by utilities using system benefits charge funds can benefit all citizens and ratepayers.

Source. 2002, 130:2, eff. July 1, 2002.

Section 125-O:2

    125-O:2 Definitions. –
In this chapter:
I. "Affected sources" means existing fossil fuel burning steam electric power plant units in this state, specifically Merrimack Units 1 and 2 in Bow; Schiller Units 4, 5, and 6 in Portsmouth; and Newington Unit 1 in Newington, excluding any of these units that may be repowered.
II. "Allowance" means a limited authorization to emit one ton of SO2, one ton of NOx, one pound of mercury, or one ton of CO2 during a specified year.
III. "Commissioner" means the commissioner of the department of environmental services.
IV. "Department" means the department of environmental services.
V. "Discrete emission reduction" or "DER" means an emission reduction generated over a discrete period of time, and measured in weight (e.g., tons).
VI. "Ozone transport region" means the ozone transport region as established by section 184(a) of the Clean Air Act, 42 U.S.C. section 7511c.
VII. "Person" means any individual, partnership, firm or co-partnership, association, company, trust, corporation, department, bureau, agency, private or municipal corporation, or any political subdivision of the state, the United States or political subdivisions or agencies thereof, or any other entity recognized by law as subject to rights and duties.
VIII. "Renewable energy" means energy derived from hydro, geothermal, wind, solar thermal, photovoltaic, biomass, methane waste, tidal, or other source approved by the department.
IX. "Repowered unit" means an affected source that has installed qualifying repowering technology as defined by 40 C.F.R. part 72, or has replaced a unit by a new unit, provided the new replacement unit:
(a) Is on the same or contiguous property as the replaced unit, regardless of owner;
(b) Has a maximum power output rate equal to or greater than the maximum power output rate of the replaced unit; and
(c) Is designed to control, or is equipped with best available technology to control, emissions of multiple pollutants simultaneously, and in conformity with the emissions rates and reductions used to establish RSA 125-O:3.
IX-a. "Sustainable energy" means energy that supplies present energy needs without permanently depleting resources, while considering environmental impacts, and without compromising the ability of future generations to meet their own energy needs.
X. "System benefits charge funds" or "SBC funds" means revenues collected by Public Service Company of New Hampshire (PSNH) (currently at a rate of 1.8 mills ($0.0018) per retail kilowatt-hour sold as set by the general court in 2001, 29:14) to fund energy efficiency and conservation and load management programs approved by the public utilities commission.

Source. 2002, 130:2. 2009, 171:1, eff. Sept. 11, 2009.

Section 125-O:3

    125-O:3 Integrated Power Plant Strategy. –
I. The department shall implement an integrated, multi-pollutant strategy to reduce air emissions from affected sources.
II. The integrated, multi-pollutant strategy shall be implemented in a market-based fashion that allows trading and banking of emission reductions to comply with the overall statewide annual emission caps established under RSA 125-O:3, III. Allowances, up to the amount of these caps, shall be allocated to each affected source based on the output of each affected source. The department shall make publicly available all allocations prior to the effective date of such allocations.
III. The strategy shall include implementation of the following statewide annual emissions caps:
(a) 7,289 tons annually applicable to total sulfur dioxide (SO2) emissions from the affected sources;
(b) 3,644 tons annually applicable to total oxides of nitrogen (NOx) emissions from the affected sources;
(c) [Repealed.]

[Paragraph III(d) repealed by 2012, 281:11, I, effective as provided by 2012, 281:17.]


(d) 5,425,866 tons annually applicable to total carbon dioxide (CO2) emissions from the affected sources until December 31, 2008.

Source. 2002, 130:2. 2006, 105:2, I. 2008, 182:3. 2012, 281:11, I, eff. as provided by 2012, 281:17.

Section 125-O:4

    125-O:4 Compliance. –
I. The owner or operator of each affected source shall file a compliance plan with the department describing the technologies, operational modifications, market-based approaches, or other methods that will be used to comply with the emission caps established under RSA 125-O:3, III. Compliance plans shall also include a report of the mercury content analysis program results required under RSA 125-O:4, II and a report of the stack testing results for mercury emissions from Merrimack Units 1 and 2 and either Schiller Unit 4, 5, or 6 required under RSA 125-O:4, III. An initial compliance plan shall be filed no later than one year after the effective date of this section. Amended compliance plans shall be submitted to the department 45 days prior to the implementation of any change to the plan.
II. The owner or operator of each affected source burning coal as fuel shall conduct a mercury content analysis program. This program shall consist of monthly fuel samples and analyses for at least 12 consecutive months and the submittal of a final report to the department no later than one year after the effective date of this section.
III. Stack testing for mercury emissions from Merrimack Units 1 and 2 and either Schiller Unit 4, 5, or 6 shall be completed using a department approved test method no later than one year after the effective date of this section. The owner or operator shall submit a test protocol to the department at least 45 days prior to the commencement of stack testing.
IV. Compliance with the emission caps established under RSA 125-O:3, III may be demonstrated by making emission reductions at the affected sources, using compliance market-based approaches, or other methods acceptable to the department.
(a)(1) Affected sources may use SO2 allowances from federal or regional trading and banking programs and incentive programs established under this chapter to comply with the SO2 emission cap established under RSA 125-O:3, III. In addition, allowances or credits from other programs may be acceptable as determined by the department.
(2) Affected sources shall transfer to the department all annual allocations provided under the federal acid rain program. Affected sources shall receive from the department SO2 allowances equivalent to the cap established in RSA 125-O:3, III. Additionally, in order to promote local reductions, for each year after the compliance date that combined SO2 emissions from affected sources are below the annual average emissions for the previous 3 years, affected sources shall receive additional SO2 allowances in a combined amount equal to the difference between the current year emissions and the average annual emissions for the previous 3 years.
(3) Further, in order to encourage reductions in upwind emissions and thereby provide greater benefit to air quality in New Hampshire, for each 0.80 allowance purchased by an affected source under the federal acid rain program and utilized for compliance with the provisions of this chapter which originates from within the ozone transport region, the affected source shall receive an additional 0.20 allowance from the department.
(4) The combined sum of all allowances received by the affected sources under subparagraphs (a)(2) and (a)(3) shall not exceed 20,000 in any given year, and shall be credited to the affected sources' accounts in the year following each annual compliance period.
(b) Affected sources may use NOx allowances from federal or regional trading and banking programs, or other programs acceptable to the department, and NOx discrete emissions reductions by affected sources other than Merrimack Units 1 and 2 from state trading and banking programs, to comply with the NOx emission cap established under RSA 125-O:3, III. NOx discrete emissions reductions may only be used to comply with that portion of the NOx emission cap established under RSA 125-O:3, III which does not apply to emissions between May 1 and September 30 of any calendar year.
(c) Affected sources may use CO2 allowances from federal or regional trading and banking programs, or other programs acceptable to the department, to comply with the CO2 emission cap established under RSA 125-O:3, III. Early reductions of CO2 may be banked for future use in regional or national trading programs or to meet the emission caps established under RSA 125-O:3, III.
(d) [Repealed.]
V. The owner or operator of each affected source shall be allowed to recover all prudent costs associated with compliance in a manner consistent with RSA 374-F, RSA 369-B, and the Agreement to Settle PSNH Restructuring, dated August 2, 1999, Revised and Conformed in Compliance with NHPUC Order No. 23,549.

Source. 2002, 130:2. 2006, 105:2, II, eff. June 8, 2006.

Section 125-O:5

    125-O:5 Energy Efficiency, Renewable Energy, and Conservation and Load Management Incentive. –
I. In order to encourage energy efficiency, energy conservation, renewable energy, and the reductions in local emissions which result, the integrated multi-pollutant strategy shall promote energy efficiency and conservation through conservation and load management programs.
II. Public Service Company of New Hampshire (PSNH) may utilize SBC funds equivalent to the unencumbered amount, if any, rolled over from the prior program year for energy efficiency projects at facilities owned and operated by PSNH, provided that the company made a good faith effort in the prior program year to meet the goals approved by the public utilities commission for its core energy efficiency programs, and provided that the SBC funds used by PSNH shall not exceed 2 percent of all SBC funds collected in the prior program year. PSNH may utilize these funds to implement approved core energy efficiency initiatives or measures at PSNH's facilities that are cost effective and which enhance the efficient use of energy at PSNH facilities. Any energy savings resulting from the use of these funds by PSNH at its facilities will not be included in the calculation of PSNH's energy efficiency program goals, any shareholder incentive, or any other incentive program. In any year that PSNH utilizes SBC funds, PSNH shall submit a report to the public utilities commission and the department detailing how these funds were utilized, and will make the report available to interested parties. Any party may request that the public utilities commission schedule a hearing to review these reports and the expenditure by PSNH of rolled over SBC funds at its facilities.
III. [Repealed.]

Source. 2002, 130:2. 2008, 182:10, eff. June 11, 2008.

Section 125-O:5-a

    125-O:5-a Energy Efficiency and Sustainable Energy Board. –
I. An energy efficiency and sustainable energy board is hereby created to promote and coordinate energy efficiency, demand response, and sustainable energy programs in the state. The board's duties shall include but not be limited to:
(a) Review available energy efficiency, conservation, demand response, and sustainable energy programs and incentives and compile a report of such resources in New Hampshire.
(b) Develop a plan to achieve the state's energy efficiency potential for all fuels, including setting goals and targets for energy efficiency that are meaningful and achievable.
(c) Develop a plan for economic and environmental sustainability of the state's energy system including the development of high efficiency clean energy resources that are either renewable or have low net greenhouse gas emissions.
(d) [Repealed.]
(e) Explore opportunities to coordinate programs targeted at saving more than one fuel resource, including conversion to renewable resources and coordination between natural gas and other programs which seek to reduce the overall use of nonrenewable fuels.
(f) Develop tools to enhance outreach and education programs to increase knowledge about energy efficiency and sustainable energy among New Hampshire residents and businesses.
(g) Expand upon the state government's efficiency programs to ensure that the state is providing leadership on energy efficiency and sustainable energy including reduction of its energy use and fuel costs.
(h) Encourage municipalities and counties to increase investments in energy efficiency and sustainable energy through financing tools, and to create local energy committees.
(i) Work with community action agencies and the office of planning and development to explore ways to ensure that all customers participating in programs for low-income customers and the Low Income Home Energy Assistance Program (LIHEAP) have access to energy efficiency improvements, and where appropriate, renewable energy resources, in order to reduce their energy bills.
(j) Investigate potential sources of funding for energy efficiency and sustainable energy development and delivery mechanisms for such programs, coordinate efforts between funding sources to reduce duplication and enhance collaboration, and review investment strategies to increase access to energy efficiency and renewable energy resources.
II. The members of the board shall be as follows:
(a) The chairman of the public utilities commission, or designee.
(b) The commissioner of the department of energy, or designee.
(c) The consumer advocate, or designee.
(d) The commissioner of the department of environmental services, or designee.
(e) The commissioner of the department of business and economic affairs, or designee.
(f) The president of the Business and Industry Association of New Hampshire, or designee.
(g) The executive director of the New Hampshire Municipal Association, or designee.
(h) The executive director of New Hampshire Legal Assistance, or designee.
(i) The president of the Homebuilders __ampersand__ Remodelers Association of New Hampshire, or designee.
(j) Two members of the house science, technology and energy committee appointed by the speaker of the house of representatives.
(k) One member of the senate energy, environment and economic development committee, appointed by the president of the senate.
(l) Three representatives from not-for-profit groups representing energy, environmental, consumer, or public health issues and knowledgeable in energy conservation policies and programs, appointed by the commissioner of the department of energy.
(m) The commissioner of the department of administrative services, or designee.
(n) The state fire marshal, or designee.
(o) The executive director of the New Hampshire housing finance authority, or designee.
III. The board shall include, as nonvoting participants, the following:
(a) One representative from each utility-administered electric and natural gas energy efficiency program appointed by the commissioner of the department of energy.
(b) A representative of energy services companies delivering energy efficiency services to residential and business customers, appointed by the commissioner of the department of energy.
(c) A representative of a business or association of businesses selling or installing sustainable or renewable energy systems, appointed by the commissioner of the department of energy.
(d) A representative from the investment community with expertise in efficiency investments and financing, appointed by the commissioner of the department of energy.
IV. The chairman of the public utilities commission shall call the first meeting of the board. The board shall elect a chairperson from among its members. Seven members of the board shall constitute a quorum. The board shall make an annual report on December 1 to the governor, the speaker of the house of representatives, the president of the senate, the house science, technology and energy committee, the senate energy, environment and economic development committee, the department of energy, and the public utilities commission, to provide an update on its activities and recommendations for action including possible legislation.
V. The board shall be administratively attached to the department of energy under RSA 21-G:10.
VI. Legislative members of the commission shall receive mileage at the legislative rate when attending to the duties of the board.
VII. No member of the board shall vote on a matter in which the member, his or her spouse or dependent, or the organization or entity represented by or employing the member, has a private interest which may directly or indirectly affect or influence the performance of his or her duties.

Source. 2008, 292:1. 2012, 281:10, I, eff. Jan. 1, 2013. 2017, 156:14, II, 64, eff. July 1, 2017. 2021, 91:198, 220, eff. July 1, 2021.

Section 125-O:6

    125-O:6 Powers and Duties of the Commissioner. –
The commissioner may:

[Paragraph I effective until the date that the commissioner of the department of environmental services certifies to the secretary of state and the director of the office of legislative services that certain states have terminated or have authorized termination of their participation in the regional greenhouse gas initiative; see also paragraph I set out below.]


I. Develop a trading and banking program to provide appropriate compliance flexibility in meeting the emission caps established under RSA 125-O:3, III and allowance requirements of RSA 125-O:21 and RSA 125-O:22, and to encourage earlier and greater emissions reductions and the development of new emission control technologies in order to maximize the cost-effectiveness with which the environmental benefits of this chapter are achieved.

[Paragraph I effective the date that the commissioner of the department of environmental services certifies to the secretary of state and the director of the office of legislative services that certain states have terminated or have authorized termination of their participation in the regional greenhouse gas initiative; see also paragraph I set out above.]


I. Develop a trading and banking program to provide appropriate compliance flexibility in meeting the emission caps established under RSA 125-O:3, III, and to encourage earlier and greater emissions reductions and the development of new emission control technologies in order to maximize the cost-effectiveness with which the environmental benefits of this chapter are achieved.
II. Propose to the general court for legislative enactment a program to reduce emissions that impair visibility in mandatory Class I Federal Areas, including the Great Gulf Wilderness Area and the Presidential-Dry River Wilderness, if evaluation and assessment of the program established under 125-O:6, I reveals after its implementation that further reductions of emissions that impair visibility are necessary. Any program proposed under this paragraph shall be at least as stringent as that specified in the Clean Air Act, amendments thereto, and regulations promulgated thereunder.
III. Propose to the general court for legislative enactment appropriate processes to encourage pollution prevention, energy efficiency, and other methods to cost-effectively achieve emissions reductions.

Source. 2002, 130:2. 2008, 182:4. 2012, 281:12, eff. as provided by 2012, 281:17.

Section 125-O:7

    125-O:7 Enforcement. –
I. Any violation of any provision of this chapter, or of any rule adopted under this chapter, shall be subject to enforcement by injunction, including mandatory injunction, issued by the superior court upon application of the attorney general. Any such violation shall also be subject to a civil forfeiture to the state of not more than $25,000 for each violation, and for each day of a continuing violation.
II. Any person who knowingly violates any of the provisions of this chapter, or any rule adopted under this chapter, shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other person.
III. The commissioner, after notice and hearing pursuant to RSA 541-A, may impose an administrative fine not to exceed $2,000 for each offense upon any person who violates any provision of this chapter or any rule adopted pursuant to this chapter. Rehearings and appeals from a decision of the commissioner under this paragraph shall be in accordance with RSA 541. Any administrative fine imposed under this paragraph shall not preclude the imposition of further penalties under this chapter. The proceeds of administrative fines imposed pursuant to this paragraph shall be deposited in the general fund.
(a) Notice and hearing prior to the imposition of an administrative fine shall be in accordance with RSA 541-A and procedural rules adopted by the commissioner pursuant to RSA 541-A:16.
(b) The commissioner shall determine fines based on the following:
(1) For a minor deviation from a requirement causing minor potential for harm, the fine shall be not less than $100 and not more than $1,000.
(2) For a minor deviation from a requirement causing moderate potential for harm, the fine shall be not less than $601 and not more than $1,250.
(3) For a minor deviation from a requirement causing major potential for harm, the fine shall be not less than $851 and not more than $1,500.
(4) For a moderate deviation from a requirement causing minor potential for harm, the fine shall be not less than $601 and not more than $1,250.
(5) For a moderate deviation from a requirement causing moderate potential for harm, the fine shall be not less than $851 and not more than $1,500.
(6) For a moderate deviation from a requirement causing major potential for harm, the fine shall be not less than $1,251 and not more than $1,750.
(7) For a major deviation from a requirement causing minor potential for harm, the fine shall be not less than $851 and not more than $1,500.
(8) For a major deviation from a requirement causing moderate potential for harm, the fine shall be not less than $1,251 and not more than $1,750.
(9) For a major deviation from a requirement causing major potential for harm, the fine shall be not less than $1,501 and not more than $2,000.
(c) The commissioner may assess additional fines for repeat violations.

Source. 2002, 130:2, eff. July 1, 2002.

Section 125-O:8


[RSA 125-O:8 effective until the date that the commissioner of the department of environmental services certifies to the secretary of state and the director of the office of legislative services that certain states have terminated or have authorized termination of their participation in the regional greenhouse gas initiative; see also RSA 125-O:8 set out below.]
    125-O:8 Rulemaking Authority. –
I. The commissioner shall adopt rules under RSA 541-A, commencing no later than 180 days after the effective date of this section, relative to:
(a) The establishment of trading and banking programs as authorized by RSA 125-O:6, I.
(b) The establishment of a method for allocating allowances and other emissions reduction units or mechanisms as authorized by RSA 125-O:3, II and III.
(c) Emissions and allowance monitoring, tracking, recordkeeping, reporting, and other such actions as may be necessary to verify compliance with this chapter.
(d) The method and requirements for auctioning budget allowances under RSA 125-O:21, which may use regional organizations.
(e) The forms and information required on applications for a temporary or operating permit required under RSA 125-O:22.
II. The public utilities commission shall adopt rules, under RSA 541-A, to administer the energy efficiency fund and auction proceeds received pursuant to RSA 125-O:23.

[RSA 125-O:8 effective the date that the commissioner of the department of environmental services certifies to the secretary of state and the director of the office of legislative services that certain states have terminated or have authorized termination of their participation in the regional greenhouse gas initiative; see also RSA 125-O:8 set out above.]


125-O:8 Rulemaking Authority. –
The commissioner shall adopt rules under RSA 541-A, commencing no later than 180 days after the effective date of this section, relative to:
I. The establishment of trading and banking programs as authorized by RSA 125-O:6, I.
II. The establishment of a method for allocating allowances and other emissions reduction units or mechanisms as authorized by RSA 125-O:3, II and III.
III. Emissions and allowance monitoring, tracking, recordkeeping, reporting, and other such actions as may be necessary to verify compliance with this chapter.

Source. 2002, 130:2. 2008, 182:5. 2012, 281:2, eff. Jan. 1, 2013; 281:13, eff. as provided by 2012, 281:17.

Section 125-O:9


[RSA 125-O:9 effective until the date that the commissioner of the department of environmental services certifies to the secretary of state and the director of the office of legislative services that certain states have terminated or have authorized termination of their participation in the regional greenhouse gas initiative; see also RSA 125-O:9 set out below.]
    125-O:9 Compliance Dates. – The owner or operator of each affected source shall comply with the provisions of this chapter, excluding the subdivision on mercury emissions, RSA 125-O:11 through 125-O:18, and the subdivision for CO2 emissions, RSA 125-O:19 through RSA 125-O:28, by December 31, 2006.

[RSA 125-O:9 effective the date that the commissioner of the department of environmental services certifies to the secretary of state and the director of the office of legislative services that certain states have terminated or have authorized termination of their participation in the regional greenhouse gas initiative; see also RSA 125-O:9 set out above.]


125-O:9 Compliance Dates. –
The owner or operator of each affected source shall comply with the provisions of this chapter, excluding the subdivision on mercury emissions, RSA 125-O:11 through 125-O:18, by December 31, 2006.

Source. 2002, 130:2. 2006, 105:3. 2008, 182:6. 2012, 281:14, eff. as provided by 2012, 281:17.

Section 125-O:10


[RSA 125-O:10 effective until the date that the commissioner of the department of environmental services certifies to the secretary of state and the director of the office of legislative services that certain states have terminated or have authorized termination of their participation in the regional greenhouse gas initiative; see also RSA 125-O:10 set out below.]
    125-O:10 Non-Severability. – No provision of RSA 125-O:1 through RSA 125-O:18 of this chapter shall be implemented in a manner inconsistent with the integrated, multi-pollutant strategy or RSA 125-O:1 through RSA 125-O:18 of this chapter, and to this end, the provisions of RSA 125-O:1 through RSA 125-O:18 of this chapter are not severable.

[RSA 125-O:10 effective the date that the commissioner of the department of environmental services certifies to the secretary of state and the director of the office of legislative services that certain states have terminated or have authorized termination of their participation in the regional greenhouse gas initiative; see also RSA 125-O:10 set out above.]


125-O:10 Non-Severability. –
No provision of this chapter shall be implemented in a manner inconsistent with the integrated, multi-pollutant strategy of this chapter, and to this end, the provisions of this chapter are not severable.

Source. 2002, 130:2. 2008, 182:7. 2012, 281:15, eff. as provided by 2012, 281:17.

Mercury Emissions

Section 125-O:11

    125-O:11 Statement of Purpose and Findings. –
The general court finds that:
I. It is in the public interest to achieve significant reductions in mercury emissions at the coal-burning electric power plants in the state as soon as possible. The requirements of this subdivision will prevent, at a minimum, 80 percent of the aggregated mercury content of the coal burned at these plants from being emitted into the air by no later than the year 2013. To accomplish this objective, the best known commercially available technology shall be installed at Merrimack Station no later than July 1, 2013.
II. The department of environmental services has determined that the best known commercially available technology is a wet flue gas desulphurization system, hereafter "scrubber technology," as it best balances the procurement, installation, operation, and plant efficiency costs with the projected reductions in mercury and other pollutants from the flue gas streams of Merrimack Units 1 and 2. Scrubber technology achieves significant emissions reduction benefits, including but not limited to, cost effective reductions in sulfur dioxide, sulfur trioxide, small particulate matter, and improved visibility (regional haze).
III. After scrubber technology is installed at Merrimack Station, and after a period of operation has reliably established a consistent level of mercury removal at or greater than 80 percent, the department will ensure through monitoring that that level of mercury removal is sustained, consistent with the proven operational capability of the system at Merrimack Station.
IV. To ensure that an ongoing and steadfast effort is made to implement practicable technological or operational solutions to achieve significant mercury reductions prior to the construction and operation of the scrubber technology at Merrimack Station, the owner of the affected coal-burning sources shall work to bring about such early reductions and shall be provided incentives to do so.
V. The installation of scrubber technology will not only reduce mercury emissions significantly but will do so without jeopardizing electric reliability and with reasonable costs to consumers.
VI. The installation of such technology is in the public interest of the citizens of New Hampshire and the customers of the affected sources.
VII. Notwithstanding the provisions of RSA 125-O:1, VI, the purchase of mercury credits or allowances to comply with the mercury reduction requirements of this subdivision or the sale of mercury credits or allowances earned under this subdivision is not in the public interest.
VIII. The mercury reduction requirements set forth in this subdivision represent a careful, thoughtful balancing of cost, benefits, and technological feasibility and therefore the requirements shall be viewed as an integrated strategy of non-severable components.

Source. 2006, 105:1, eff. June 8, 2006.

Section 125-O:12

    125-O:12 Definitions. –
In this subdivision:
I. "Affected sources" means existing coal-burning power plant units in this state, specifically Merrimack Units 1 and 2 in Bow and Schiller Units 4, 5, and 6 in Portsmouth.
II. "Baseline mercury emissions" means the total annual mercury emissions from all of the affected sources, calculated in accordance with RSA 125-O:14, II.
III. "Baseline mercury input" means the total annual mercury input found in the coal used by all of the affected sources, calculated in accordance with RSA 125-O:14, I.
IV. "Owner" means the owner or owners of the affected sources.
V. "Scrubber technology" means a wet flue gas desulphurization system.

Source. 2006, 105:1, eff. June 8, 2006.

Section 125-O:13

    125-O:13 Compliance. –
I. The owner shall install and have operational scrubber technology to control mercury emissions at Merrimack Units 1 and 2 no later than July 1, 2013. The achievement of this requirement is contingent upon obtaining all necessary permits and approvals from federal, state, and local regulatory agencies and bodies; however, all such regulatory agencies and bodies are encouraged to give due consideration to the general court's finding that the installation and operation of scrubber technology at Merrimack Station is in the public interest. The owner shall make appropriate initial filings with the department and the public utilities commission, if applicable, within one year of the effective date of this section, and with any other applicable regulatory agency or body in a timely manner.
II. Total mercury emissions from the affected sources shall be at least 80 percent less on an annual basis than the baseline mercury input, as defined in RSA 125-O:12, III, beginning on July 1, 2013.
III. Prior to July 1, 2013, the owner shall test and implement, as practicable, mercury reduction control technologies or methods to achieve early reductions in mercury emissions below the baseline mercury emissions. The owner shall report the results of any testing to the department and shall submit a plan for department approval before commencing implementation.
IV. If the net power output (as measured in megawatts) from Merrimack Station is reduced, due to the power consumption requirements or operational inefficiencies of the installed scrubber technology, the owner may invest in capital improvements at Merrimack Station that increase its net capability, within the requirements and regulations of programs enforceable by the state or federal government, or both.
V. Mercury reductions achieved through the operation of the scrubber technology greater than 80 percent shall be sustained insofar as the proven operational capability of the system, as installed, allows. The department, in consultation with the owner, shall determine the maximum sustainable rate of mercury emissions reductions and incorporate such rate as a condition of operational permits issued by the department for Merrimack Units 1 and 2. This requirement in no way affects the ability of the owner to earn over-compliance credits consistent with RSA 125-O:16, II.
VI. The purchase of mercury emissions allowances or credits from any established emissions allowance or credit program shall not be allowed for compliance with the mercury reduction requirements of this chapter.
VII. If the mercury reduction requirement of paragraph II is not achieved in any year after the July 1, 2013 implementation date, and after full operation of the scrubber technology, then the owner may utilize early emissions reduction credits or over-compliance credits, or both, to make up any shortfall, and thereby be in compliance.
VIII. If the mercury reduction requirement of paragraph II is not achieved by the owner in any year after the July 1, 2013 implementation date despite the owner's installation and full operation of scrubber technology, consistent with good operational practice, and the owner's exhaustion of any available early emissions reduction or over-compliance credits, then the owner shall be deemed in violation of this section unless it submits a plan to the department, within 30 days of such noncompliance, and subsequently obtains approval of that plan for achieving compliance within one year from the date of such noncompliance. The department may impose conditions for approval of such plan.
IX. The owner shall report by June 30, 2007 and annually thereafter, to the legislative oversight committee to monitor the transformation of delivery of electric services, established under RSA 374-F:5, and the chairpersons of the house science, technology and energy committee and the senate energy and natural resources committee, on the progress and status of complying with the requirements of paragraphs I and III, relative to achieving early reductions in mercury emissions and also installing and operating the scrubber technology including any updated cost information. The last report required shall be after the department has made a determination, under paragraph V, on the maximum sustainable rate of mercury emissions reductions by the scrubber technology.

Source. 2006, 105:1, eff. June 8, 2006. 2018, 253:2, eff. Aug. 11, 2018.

Section 125-O:14

    125-O:14 Measurement of Baseline Mercury Input and Emissions. –
I. Baseline mercury input shall be determined as follows:
(a) No later than the first day of the second month following the effective date of this section, and continuing for 12 months thereafter, a representative monthly sample of the coal used traditionally (not to include trial or test coal blends) by each affected source shall be collected from each of the units identified in subparagraph (b) and analyzed to determine the average mercury content of the fuel for each unit expressed in pounds of mercury input per ton of coal combusted at each affected source. The mercury content of the coal derived from these analyses for each affected source shall be multiplied by the average annual throughput of coal for the period 2003, 2004, and 2005 (average tons of coal combusted per year) for each respective affected source to yield the average pounds of mercury input per year into each affected source. The sum of these annual input pound averages from each affected source shall equal the baseline mercury input.
(b) Determination of the mercury content of the coal shall follow appropriate ASTM testing procedures (ASTM D3684-01). For purposes of baseline mercury input determination, coal sampling shall occur at Merrimack Unit 1 and Unit 2, and at either Schiller Unit 4 or Unit 6, which shall serve to represent all Schiller units. At least 4 of the samples taken from each of these units shall correspond with the stack testing done at each of these units under paragraph II.
II. Baseline mercury emissions shall be determined as follows:
(a) A minimum of 4 stack tests shall be conducted at each of the units specified in subparagraph (b) using appropriate testing protocols, to determine a statistically valid average mercury emissions rate for each unit expressed in pounds of mercury emitted per ton of coal combusted at each affected source. The rate for each affected source shall be multiplied by the average annual throughput of coal for the period 2003, 2004, and 2005 (average tons of coal combusted per year) for each respective affected source to yield the average pounds of mercury emitted per year from each affected source. The sum of these annual emitted pound averages from each affected source shall equal the baseline mercury emissions.
(b) For purposes of the baseline mercury emissions determination, stack tests shall be conducted at Merrimack Unit 1 and Unit 2, and at either Schiller Unit 4 or Unit 6, which shall serve to represent all Schiller units. If mercury emissions improvements are made or are being made during the testing period, the stack tests shall be conducted without the improvements running at the time of the tests.
III. The owner shall provide its plans to accomplish the testing requirements under paragraphs I and II to the department for its approval. The owner shall provide written reports to the department, for verification and approval, that include the test results and calculations used to determine:
(a) The baseline mercury input. The owner shall submit the report no later than 15 months following the effective date of this section.
(b) The baseline mercury emissions. The owner shall submit the report no later than 18 months following the effective date of this section.

Source. 2006, 105:1, eff. June 8, 2006.

Section 125-O:15

    125-O:15 Monitoring of Mercury Emissions. – Prior to the availability and operation of continuous emissions monitoring (CEM) systems, and subsequent to the baseline emissions testing under RSA 125-O:14, II, stack tests or another methodology approved by the department shall be conducted twice per year to determine mercury emissions levels from the affected sources. Any stack tests performed shall employ a federally recognized and approved methodology, proposed by the owner and employing a test protocol approved by the department. When a federal performance specification takes effect, and a mercury CEM system capable of meeting the federal specifications becomes available, a mercury CEM system, approved by the department, shall be installed at Merrimack Units 1 and 2 and at other affected sources as deemed appropriate by the department.

Source. 2006, 105:1, eff. June 8, 2006.

Section 125-O:16

    125-O:16 Economic Performance Incentives. –
I. (a) The department shall issue to the owner early emissions reduction credits in the form of credits or fractions thereof for each pound of mercury or fraction thereof reduced below the baseline mercury emissions, on an annual basis, in the period prior to July 1, 2013. Ratios of early reductions credits to pounds of mercury reduced shall be as follows: 1.5 credits per pound reduced prior to July 1, 2008; 1.25 credits per pound for reductions between July 1, 2008 and December 31, 2010; and 1.1 credits per pound for reductions between January 1, 2011 and July 1, 2013.
(b) Reductions shall be calculated based upon the results of stack tests conducted, measurement by continuous emission monitoring, or other methodology approved by the department to confirm emissions during the time of operation of mercury reduction technology. Early emissions reduction credits may be banked by the owner or utilized after July 1, 2013 to meet the reduction requirement of RSA 125-O:13, II as allowed under RSA 125-O:13, VII. Early emissions reduction credits are not sellable or transferable to non-affected sources; however, upon the July 1, 2013 compliance date, the owner may request a one-for-one conversion of early emissions reduction credits to over-compliance credits.
(c) Should a federal rule applicable to mercury emissions at one or more of the affected sources be enacted with an implementation date prior to July 1, 2013, then early reduction credits may only be earned for emissions reductions that exceed the level required by the federal rule of the affected sources in aggregate or the baseline mercury emissions level, whichever is lower, at the same ratios listed in subparagraph (a).
(d) Early emissions reduction credits shall not be used for compliance with the requirement of RSA 125-O:13, II prior to the installation of scrubber technology, and shall not be used as a means to delay the installation of the scrubber technology.
II. (a) The department shall issue to the owner over-compliance credits in the form of credits or fractions thereof for each pound of mercury or fraction thereof reduced in excess of the emissions reduction requirement of RSA 125-O:13, II, on an annual basis, following the compliance date of July 1, 2013. The ratios of over-compliance credits to excess pounds of mercury reduced shall be as follows: 0.5 credits per pound reduced for reductions between 80 and 85 percent; 1 credit per pound reduced for reductions between 85 and 90 percent reduction; and 1.5 credits per pound reduced for reductions of 90 percent or greater. Over-compliance credits may be banked for future use. The requirements of RSA 125-O:13, V shall not alter the emissions levels at which over-compliance credits are earned.
(b) Should a federal rule applicable to mercury emissions at one or more of the affected sources be enacted, then over-compliance credits may only be earned for emissions reductions that exceed the level required by the federal rule of the affected sources in aggregate or the requirement of RSA 125-O:13, II, whichever is lower, at the same ratios listed in subparagraph (a).
(c) At the request of the owner of an affected source, over-compliance credits may be surrendered by the owner to the department and SO2 allowances shall be transferred to the owner at a rate of 55 tons SO2 allowances for every one over-compliance credit. Transfer shall be limited to a maximum of 20,000 total tons SO2 allowances transferred in a given year, defined as the sum of all SO2 allowances received by the affected sources under RSA 125-O:4, IV(a)(2) and IV(a)(3), and under this subparagraph. SO2 allowances shall be credited to the affected sources' accounts in the following year in accordance with RSA 125-O:4, IV(a)(4).

Source. 2006, 105:1, eff. June 8, 2006.

Section 125-O:17

    125-O:17 Variances. –
The owner may request a variance from the mercury emissions reduction requirements of this subdivision by submitting a written request to the department. The request shall provide sufficient information concerning the conditions or special circumstances on which the variance request is based to demonstrate to the satisfaction of the department that variance from the applicable requirements is necessary.
I. Where an alternative schedule is sought, the owner shall submit a proposed schedule which demonstrates reasonable further progress and contains a date for final compliance as soon as practicable. If the department deems such a delay is reasonable under the cited circumstances, it shall grant the requested variance.
II. Where an alternative reduction requirement is sought, the owner shall submit information to substantiate an energy supply crisis, a major fuel disruption, an unanticipated or unavoidable disruption in the operations of the affected sources, or technological or economic infeasibility. The department, after consultation with the public utilities commission, shall grant or deny the requested variance. If requested by the owner, the department shall provide the owner with an opportunity for a hearing on the request.

Source. 2006, 105:1, eff. June 8, 2006.

Section 125-O:18

    125-O:18 Cost Recovery. – If the owner is a regulated utility, the owner shall be allowed to recover all prudent costs of complying with the requirements of this subdivision in a manner approved by the public utilities commission. During ownership and operation by the regulated utility, such costs shall be recovered via the utility's default service charge. In the event of divestiture of affected sources by the regulated utility, such divestiture and recovery of costs shall be governed by the provisions of RSA 369:B:3-a.

Source. 2006, 105:1, eff. June 8, 2006.

Regional Greenhouse Gas Initiative

Section 125-O:19

    125-O:19 Repealed by 2012, 281:10, II, eff. Jan. 1, 2013. –

Section 125-O:20


[RSA 125-O:20 repealed by 2012, 281:11, II, effective as provided by 2012, 281:17.]
    125-O:20 Definitions. –
In this subdivision:
I. "Affected CO2 source" means any source with one or more fossil fuel-fired electricity generating units having a nameplate rated capacity equal to or greater than 25 megawatts.
II. "Budget allowances" means those RGGI allowances comprising the state annual budget for CO2 emissions specified in RSA 125-O:21, II.
III. "Commission" means the public utilities commission.
IV. "Compliance period" means a 3 calendar year time period. The first compliance period is from January 1, 2009 to December 31, 2011. Each subsequent sequential 3 calendar year period is a separate compliance period.
V. [Repealed.]
VI. "Department" means the department of environmental services.
VII. "Early reduction allowances" means allowances provided to affected CO2 sources for eligible projects undertaken which have the effect of reducing emissions at the affected CO2 source by an absolute reduction of emissions during calendar years 2006, 2007, and 2008, from a baseline approved by the department, through emission rate improvements or permanently reducing utilization of one or more units at a source.
VII-a. "FCPBA" means "first compliance period banked allowances" which equals all of the 2009, 2010, and 2011 vintage RGGI allowances that are banked by any person, excluding any state participating in the RGGI program, as of January 1, 2014, multiplied by 8,620,460 and divided by the product of 165,184,246 times 7.
VIII. [Repealed.]
IX. "Market settling period" means the first 14 months of any compliance period.
X. "Offset allowances" means allowances issued to projects determined to be eligible by the department undertaken outside of the electric power sector to reduce CO2 or CO2 equivalent emissions.
XI. "PSNH" means Public Service Company of New Hampshire or any successor to the company's public utility franchise.
XII. "Regional greenhouse gas initiative" or "RGGI" or "RGGI program" means the program to implement the memorandum of understanding (MOU) between signatory states, dated December 20, 2005, as amended, and the corresponding model rule as amended February 7, 2013, and as amended December 19, 2017, to establish a regional CO2 emissions budget and allowance trading program for emissions from fossil fuel-fired electricity generating units.
XIII. "Regional organization" means a non-profit organization formed by the signatory states to RGGI to provide technical and administrative assistance for such things as: emissions and allowance tracking, offsets development and implementation, allowance market monitoring, and data collection. The organization shall have no regulatory or enforcement authority.
XIV. "Retire" means submitting a RGGI allowance to the department for compliance or other purpose or retaining a RGGI allowance by the department such that the allowance may never be sold or otherwise used again.
XV. "RGGI allowance" means a limited authorization to emit one ton of CO2 issued by the department or other state with a program that the department determines is in accordance with this subdivision or the RGGI program, including emissions limitations as documented by the regional organization, and shall include budget allowances, offset allowances, and early reduction allowances.
XV-a. "SCPBA" means "second compliance period banked allowances" which equals all of the 2012 and 2013 vintage RGGI allowances that are banked by any person, excluding any state participating in the RGGI program, as of March 15, 2014, minus the total 2012 __ampersand__ 2013 CO2 emissions from all regional sources subject to RGGI, multiplied by 8,620,460 and divided by the product of 165,184,246 times 6.
XVI. [Repealed.]
XVII. [Repealed.]
XVIII. "Third adjustment for banked allowances" or "TBA" means an adjustment applied to the New Hampshire RGGI program base budget for allocation years 2021 through 2025 to address allowances held in general and compliance accounts, including compliance accounts established pursuant to the RGGI program but not including accounts opened by participating states, that are in addition to the aggregate quantity of emissions from all affected CO2 sources in all of the participating states at the end of the fourth control period in 2020 and as reflected in the CO2 Allowance Tracking System on March, 15, 2021.

Source. 2008, 182:2. 2013, 236:2-5, 15, eff. Jan. 1, 2014. 2019, 184:2-4, eff. Sept. 8, 2019.

Section 125-O:21


[RSA 125-O:21 repealed by 2012, 281:11, II, effective as provided by 2012, 281:17.]
    125-O:21 Carbon Dioxide Emissions Budget Trading Program. –
I. The department shall establish and enforce a CO2 emissions budget trading program consistent with this subdivision that shall be in substantial accordance with the RGGI program.
II. The program shall include a statewide budget allowance total for each year calculated as follows:
 
2019 4,184,333 minus FCPBA minus SCPBA
2020 4,079,725 minus FCPBA minus SCPBA
2021 3,960,999 minus TBA
2022 3,842,274 minus TBA
2023 3,723,549 minus TBA
2024 3,604,823 minus TBA
2025 3,486,098 minus TBA
2026 3,367,373
2027 3,248,648
2028 3,129,922
2029 3,011,197
2030 and thereafter 2,892,472
 

III. The department shall make available for sale at one or more auctions all of the budget allowances for a given year, except for those granted or reserved under RSA 125-O:22, VI and RSA 125-O:25. The department may also make available for sale at one or more auctions a portion of future year budget allowances. Such auctions may be conducted in coordination with other states. Revenues from the sale of allowances shall be deposited in the energy efficiency fund established under RSA 125-O:23.
III-a. Budget allowances that are required to be made available for sale at auction under paragraph III, but remain unsold, shall not be retired by the department, and may be used for cost containment purposes under RSA 125-O:29.
IV. [Repealed.]
V. [Repealed.]
VI. The department and the commission shall report on an annual basis to the air pollution advisory committee under RSA 125-J:11 and the legislative oversight committee to monitor the transformation of delivery of electric services under RSA 374-F:5, on the status of the implementation of RGGI in New Hampshire, with emphasis on the prices and availability of RGGI allowances to affected CO2 sources, consumer protection mechanisms, and the trends in electric rates for New Hampshire businesses and ratepayers. The report shall include but not be limited to:
(a) The number of allowances sold in the RGGI program and the type of entities purchasing allowances;
(b) The number of unsold allowances in the RGGI program;
(c) The available price data of allowances from the regional auction and secondary markets;
(d) Market monitoring reports;
(e) The CO2 emissions by affected source, state, and RGGI region;
(f) The spending of revenues from auction allowances by each RGGI state; and
(g) [Repealed.]
(h) The status of any proposed or adopted federal CO2 cap and trade program, the impact on New Hampshire's RGGI program, and recommendations for any proposed legislation necessary to accommodate the federal program; and
(i) Effectiveness of allowance price control and consumer protection mechanisms, including, but not limited to, cost containment reserves, cost thresholds, and consumer rebates.
VII. The department may establish and enforce the CO2 emissions budget trading program in cooperation and coordination with other states or countries that are participating in regional, national or international CO2 emissions trading programs with the same or similar purpose including:
(a) Entering into any agreement or arrangement with the representatives of other states, including the formation of a for-profit or non-profit corporation, any form of association or any other form of organization, in this or another state; and
(b) Participating in any such corporation, association, or organization, and in any activity in furtherance of the purposes of this subdivision, in any capacity including, but not limited to, as directors or officers.
VIII. Any actions taken under this subdivision by the department or the commission shall not constitute a waiver of sovereign immunity and shall not be deemed consent to suit outside of New Hampshire.

Source. 2008, 182:2. 2012, 281:3, 10, III. 2013, 236:6-9, eff. Jan. 1, 2014. 2018, 253:3, eff. Aug. 11, 2018. 2019, 184:5, 6, 9, 10, I, eff. Sept. 8, 2019.

Section 125-O:22


[RSA 125-O:22 repealed by 2012, 281:11, II, effective as provided by 2012, 281:17.]
    125-O:22 Compliance; Permit Required. –
I. Each affected CO2 source shall obtain and retire a quantity of RGGI allowances equivalent to its CO2 emissions from fossil-fuel fired generation for each compliance period. Such retirement shall be done in stages. At the end of both the first and second year of the compliance period, RGGI allowances equal to 1/2 of the affected source's CO2 emissions during each respective year shall be retired. At the end of the third year of the compliance period, the balance of the total allowances due shall be retired. The retirement of allowances at the end of the first and second year shall not apply to the compliance period ending December 31, 2014.
II. An affected CO2 source may use offset allowances for up to 3.3 percent of its compliance obligation.
III. Purchasers or acquirers of RGGI allowances may retain unused RGGI allowances without limit. Affected CO2 sources may use retained RGGI allowances in future compliance periods.
IV. No person shall operate an affected CO2 source without a temporary or operating permit issued by the department in accordance with this chapter and RSA 125-C. An affected CO2 source that is in operation upon the effective date of this subdivision, shall submit a complete application for a permit modification to the department no later than January 1, 2009. Applications for permits shall be upon such forms, and shall include such information as the commissioner requires under rules adopted pursuant to RSA 541-A. The commissioner shall act upon a permit application within a reasonable period of time.
V. In addition to the provisions set forth in RSA 125-O:7, an affected CO2 source that fails to obtain and retire sufficient RGGI allowances during a compliance period, in accordance with RSA 125-O:22, I, shall obtain and surrender 3 RGGI budget or early reduction allowances in the next compliance period for each RGGI allowance that the affected CO2 source was short in obtaining compliance.
VI. Budget allowances shall be provided to affected CO2 sources as needed and upon request for CO2 emissions in periods of operation during which an Operating Procedure 4 capacity deficiency alert is in force as established by the ISO New England Inc. The department shall reserve from auction for such emergency conditions a quantity of allowances equal to one percent of the annual budget allowances which shall be the maximum made available in a given year under this paragraph. The department shall directly sell these allowances to the affected CO2 sources at the last regional auction clearing price. Those allowances reserved but not sold in a given year as provided in this paragraph shall be auctioned the following calendar year.
VII. Upon recommendation of the commission, the governor with consent of the executive council may declare an emergency supply crisis, and the governor and council may allow affected CO2 sources to forgo strict compliance with paragraph I for a given compliance period and be given reprieve from any associated penalties, provided that those affected CO2 sources obtain and retire an additional number of allowances during the next compliance period equivalent to any shortfall in allowances that may have occurred for the compliance period during which the declared emergency was made.
VIII. A distribution company may recover the actual, prudent and reasonable costs of investments in carbon emissions reduction or capture technologies through its default service charge pursuant to RSA 369-B:3, IV(b)(1)(A), provided that the commission first determines that the investment is in the public interest.

Source. 2008, 182:2. 2013, 236:10, eff. Jan. 1, 2014.

Section 125-O:23

    125-O:23 Energy Efficiency Fund and Use of Auction Proceeds. –
I. There is hereby established an energy efficiency fund. This nonlapsing, special fund shall be continually appropriated to the department of energy to be expended in accordance with this section. The state treasurer shall invest the moneys deposited therein, as provided by law. Income received on investments made by the state treasurer shall also be credited to the fund. All programs supported by these funds shall be subject to audit by the department of energy as deemed necessary. A portion of the fund moneys shall be used to pay for department of energy and department of environmental services costs to administer this subdivision, including contributions for the state's share of the costs of the RGGI regional organization. No fund moneys shall be used by the department of energy or the department of environmental services to contract with outside consultants. The department of energy shall transfer from the fund to the department of environmental services such costs as may be budgeted and expended, or otherwise approved by the fiscal committee of the general court and the governor and council, for the department's cost of administering this subdivision.
II. All amounts in excess of the threshold price of $1 for any allowance sale shall be rebated to all retail electric ratepayers in the state on a per-kilowatt-hour basis, in a timely manner to be determined by the commission.
III. All remaining proceeds received by the state from the sale of allowances, excluding the amount used for department of energy and department of environmental services administration under paragraph I, shall be allocated by the commission as follows:
(a) At least 15 percent to the low-income core energy efficiency program.
(b) Beginning January 1, 2014, up to $2,000,000 annually to utility core programs for municipal and local government energy efficiency projects, including projects by local governments that have their own municipal utilities. Funding elements shall include, but not be limited to, funding for direct technical and project management assistance to identify and encourage comprehensive projects and incentives structured to assist municipal and local governments funding energy efficiency projects. In calendar years 2014, 2015, and 2016, any unused funds allocated to municipal and local government projects under this paragraph remaining at the end of the year shall roll over and be added to the new calendar year program funds and continue to be made available exclusively for municipal and local government projects. Beginning in calendar year 2017, and all subsequent years, funds allocated to municipal and local government projects under this paragraph shall be offered first to municipal and local governments as described in this paragraph for no less than 4 full calendar months. If, at the end of this time, municipal and local governments have not submitted requests for eligible projects that will expend the funds allocated to municipal and local government projects under this paragraph within that program year, the funds shall be offered on a first-come, first-serve basis to business and municipal customers who fund the system benefits charge.
(c) The remainder to all-fuels, comprehensive energy efficiency programs administered by qualified parties which may include electric distribution companies as selected through a competitive bid process. The funding shall be distributed among residential, commercial, and industrial customers based upon each customer class's electricity usage to the greatest extent practicable as determined by the commission. Bids shall be evaluated based on, but not limited to, the following criteria:
(1) A benefit/cost ratio analysis including all fuels.
(2) Demonstrated ability to provide a comprehensive, fuel neutral program.
(3) Demonstrated infrastructure to effectively deliver such program.
(4) Experience of the bidder in administering energy efficiency programs.
(5) Ability to reach out to customers.
(6) The validity of the energy saving assumptions described in the bid.
IV. The division of policy and programs of the department of energy shall conduct a competitive bid process for the selection of programs to be funded under subparagraph III(c), with such funding to begin January 1, 2015. The department of energy may petition the governor and council to extend existing contracts until such time as the competitive bids are approved by the governor and council, but in no event later than July 1, 2015. The competitive bid process shall be repeated every 3 years thereafter. Before extending any existing program, public comment on the proposed extension shall be accepted.
V. Each entity receiving funding under subparagraph III(c) shall file an annual report on the performance of the entity's program. The department of energy shall establish the format, content, and the methodologies used to provide the content of the reports. The department of energy shall make use of, as applicable and appropriate, the monitoring and verification requirements used in the natural gas and electric utility core programs. The annual reports shall be delivered to the governor, the president of the senate, the speaker of the house of representatives, the chairmen of the senate and house standing committees with jurisdiction over energy matters, the commissioner of the department of energy and the chairperson of the public utilities commission. The reports shall include, but not be limited to, the following:
(a) Program expenditures, including direct customer installation costs.
(b) Resulting actual and projected energy savings by fuel type and associated CO2 emissions reductions.
(c) Any measurement and verification data that corroborate projected savings.
(d) The number of customers served by the programs.
(e) Other data as required by the commission in order to determine program effectiveness.

Source. 2008, 182:2. 2009, 236:2. 2012, 281:4. 2013, 236:11, 240:1; 269:2. 2014, 330:1, 2, eff. Oct. 3, 2014. 2021, 91:293, eff. July 1, 2021.

Section 125-O:24

    125-O:24 Repealed by 2019, 184:10, eff. Sept. 8, 2019. –

Section 125-O:25


[RSA 125-O:25 repealed by 2012, 281:11, II, effective as provided by 2012, 281:17.]
    125-O:25 Set Aside for Voluntary Purchase of Renewable Energy Certificates. –
I. The department shall reserve from auction, for retirement purposes, a quantity of budget allowances, not to exceed one percent of the annual budget, equivalent to the CO2 emissions reductions associated with renewable energy certificates recognized under RSA 362-F and purchased voluntarily by electricity customers and not resold.
II. Budgeted allowances reserved under paragraph I not retired at the end of each year shall be auctioned the following calendar year.

Source. 2008, 182:2, eff. June 11, 2008.

Section 125-O:26


[RSA 125-O:26 repealed by 2012, 281:11, II, effective as provided by 2012, 281:17.]
    125-O:26 Auction of Budget Allowances. –
Any rules adopted by the department relative to auctions, pursuant to RSA 125-O:8, I(d), shall provide that they:
I. Shall be conducted based on the schedule and frequency adopted by the department in consultation with other entities participating in the RGGI program;
II. Shall include the sale of allowances for current years and may include the sale of allowances for future years to promote transparency and price stability in a manner to be determined by the department in coordination with the regional organization;
III. Shall include auction design elements that minimize allowance price volatility, guard against bidder collusion, and mitigate the potential for market manipulation;
IV. Shall include provisions to address, and to the extent practicable minimize, the potential for allowance market price volatility during the initial control period of the RGGI program;
V. Shall include provisions to ensure the continued market availability of allowances to entities regulated under a greenhouse gas emissions allowance trading program, taking into account the outcomes of auctions and monitoring of the allowance market, which may include the adoption of a flexible process that allows for ongoing modification of auction design and procedures in response to allowance market conditions and allowance market monitoring data, provided that the process allows for public comment and input; and
VI. May be open to all qualified participants, and all qualified participants may sell or otherwise agree to transfer any or all allowances to any eligible entity.

Source. 2008, 182:2. 2013, 236:12, eff. Jan. 1, 2014.

Section 125-O:27


[RSA 125-O:27 repealed by 2012, 281:11, II, effective as provided by 2012, 281:17.]
    125-O:27 Review of the New Hampshire RGGI Program. – At the time of each comprehensive review by the participating states, the commission and the department shall concurrently review New Hampshire specific elements of the RGGI program, and include the results of such review and any recommendations for revisions to the New Hampshire regional greenhouse gas initiative program under RSA 125-O:19-29, resulting from this review in the agencies' annual report under RSA 125-O:21, VI.

Source. 2008, 182:2. 2012, 281:5. 2013, 236:13, eff. Jan. 1, 2014. 2019, 184:7, eff. Sept. 8, 2019.

Section 125-O:28


[RSA 125-O:28 repealed by 2012, 281:11, II, effective as provided by 2012, 281:17.]
    125-O:28 Cost Recovery. – If the owner of an affected CO2 source is a public utility pursuant to RSA 362:2 that provides electric distribution service pursuant to RSA 374-F, the owner may recover through the utility's default service charge all prudently incurred costs of complying with the requirements of this subdivision in a manner approved by the commission. In the event PSNH sells an affected CO2 source, any cost recovery associated with this chapter shall be governed by RSA 369-B:3-a.

Source. 2008, 182:2, eff. June 11, 2008.

Section 125-O:29

    125-O:29 Cost Containment Allowances in Addition to the Budget. –
I. For the purposes of cost containment, the department shall make available for sale at one or more auctions up to the following amounts of allowances, that shall be in addition to the budget allowance total for the given year under RSA 125-O:21, II, if:
(a) The CO2 allowance auction price equals or exceeds $10.51 in 2019, up to 521,869 allowances;
(b) The CO2 allowance auction price equals or exceeds $10.77 in 2020, up to 521,869 allowances;
(c) The CO2 allowance auction price equals or exceeds $13 in 2021, up to 396,099 allowances;
(d) The CO2 allowance auction price equals or exceeds $13.91 in 2022, up to 384,227 allowances;
(e) The CO2 allowance auction price equals or exceeds $14.88 in 2023, up to 372,354 allowances;
(f) The CO2 allowance auction price equals or exceeds $15.92 in 2024, up to 360,482 allowances;
(g) The CO2 allowance auction price equals or exceeds $17.03 in 2025, up to 348,609 allowances;
(h) The CO2 allowance auction price equals or exceeds $18.22 in 2026, up to 336,737 allowances;
(i) The CO2 allowance auction price equals or exceeds $19.50 in 2027, up to 324,864 allowances;
(j) The CO2 allowance auction price equals or exceeds $20.87 in 2028, up to 312,992 allowances;
(k) The CO2 allowance auction price equals or exceeds $22.33 in 2029, up to 301,119 allowances;
(l) The CO2 allowance auction price equals or exceeds $23.89 in 2030, up to 289,247 allowances; or
(m) In any year thereafter, the CO2 allowance auction price equals or exceeds 1.07 multiplied by the auction price at which cost containment allowances were required to be made available in the previous calendar year rounded to the nearest whole cent, until further legislative action.
II. The allowances sold pursuant to paragraph I shall be replenished, such that the full 521,869 allowances, if needed, are available the following calendar year.

Source. 2013, 236:14, eff. Jan. 1, 2014. 2019, 184:8, eff. Sept. 8, 2019.