SB 540 - AS AMENDED BY THE SENATE

02/15/2024   0556s

2024 SESSION

24-2860

10/05

SENATE BILL 540

AN ACT requiring the department of energy to investigate behind the meter and utility scale energy storage.

SPONSORS: Sen. Lang, Dist 2; Sen. Watters, Dist 4; Sen. Pearl, Dist 17; Sen. Murphy, Dist 16; Sen. Carson, Dist 14; Sen. Perkins Kwoka, Dist 21; Rep. Moffett, Merr. 4

COMMITTEE: Energy and Natural Resources

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ANALYSIS

This bill requires the department of energy to investigate ways to facilitate both behind the meter energy storage and utility scale energy storage in the state.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/15/2024   0556s 24-2860

10/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Four

AN ACT requiring the department of energy to investigate behind the meter and utility scale energy storage.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1. New Paragraph; Customer Energy Storage; Definitions. Amend RSA 374-H:1 by inserting after paragraph I the following new paragraph:

I-a. "Department" means the department of energy.

2  Customer Energy Storage; Department of Energy Investigation of Energy Storage.  RSA 374-H:3 is repealed and reenacted to read as follows:

374-H:3  Department of Energy Investigation of Energy Storage.

I.  The department shall investigate ways to facilitate both behind the meter energy storage and utility scale energy storage in the state.

II.  The department's investigative proceeding shall specifically consider the following for behind the meter energy storage:

(a)  How public policy can best establish accurate and efficient price signals for

energy storage projects that avoid actual transmission and distribution costs or

reduce wholesale electricity market prices.

(b)  How best to encourage both utility and non-utility investments in energy

storage projects.

(c)  Identify regulatory challenges outside of the utility context to behind the meter energy storage, such as, but not limited to, building code requirements.

(d)  Review programs and regulatory requirements in other jurisdictions to identify best practices for a potential program.

(e)  Any statutory or regulatory changes that might be needed to create, facilitate, and implement such a program.

(f)  Any other topic the department reasonably believes it should consider in order to diligently conduct the proceeding.

III.  The department's investigative proceeding shall specifically consider the following

for utility scale energy storage:

(a)  Review utility scale energy storage compensation mechanisms in other jurisdictions to identify best practices.

(b)  Identify market barriers to utility scale energy storage projects in the state.

(c)  Identify hurdles for the siting of utility scale energy storage projects in the state and identify solutions to overcome those hurdles.

(d)  How to encourage both utility and private sector investments in utility scale energy storage projects at the least cost to ratepayers.

(e)  How to fairly compensate energy storage projects that participate in wholesale electricity markets for actual avoided transmission and distribution costs in a manner that provides net savings to ratepayers.

(f)  Any statutory or regulatory changes that might be needed to facilitate utility energy storage in the state.

(g)  Any other topic the department reasonably believes it should consider in order to diligently conduct the proceeding.

IV.  The department shall report its findings and recommendations to the standing committees of the house of representatives and senate with jurisdiction over energy and utility matters no later than December 30, 2025, for the duties outlined in RSA 374-H:3, II, and no later than December 30, 2026, for the duties outlined in RSA 374-H:3, III.  The reports shall identify ways any recommended statutory changes can minimize any potential conflict with the restructuring policy principles of RSA 374-F, V.  The department shall engage any consultants necessary to complete its work by December 30, 2026, and assess electric distribution utilities for the cost thereof in conformance with RSA 365:37.

3  Effective Date.  This act shall take effect upon its passage.

LBA

24-2860

2/23/24

SB 540- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2024-0556s)

AN ACT requiring the department of energy to investigate behind the meter and utility scale energy storage.

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

METHODOLOGY:

This bill requires the Department of Energy to investigate ways to facilitate both behind the meter energy storage and utility scale energy storage in the state.

The Department of Energy states this bill, as amended by the Senate, would require the Department to conduct an investigation into energy storage.  The investigation would be divided into two portions, one focused on residential, behind the meter storage with a report due December 30, 2025, and a second focused on utility scale storage, with due date of December 30, 2026.  The bill includes language allowing the Department to engage consultants to assist with this work and directs the Department to assess the electric distribution utilities for the costs incurred.  The Department indicates it regularly engages with consultants for similar investigations, although scope and complexity vary.  Those investigations typically cost around $250,000, forming the basis for the estimated fiscal impact of $125,000 in FY 2025 and $125,000 in FY 2026.

The Public Utilities Commission states this bill would have no fiscal impact on the Commission.  The Commission indicates it has no information regarding any potential fiscal impact on a county or local level.

AGENCIES CONTACTED:

Department of Energy and Public Utilities Commission