TITLE I
THE STATE AND ITS GOVERNMENT

Chapter 12-P
DEPARTMENT OF ENERGY

Section 12-P:1

    12-P:1 Definitions. –
In this chapter:
I. "Commission" means the public utilities commission.
II. "Commissioner" means the commissioner of energy.
III. "Department" means the department of energy.

Source. 2021, 91:187, eff. July 1, 2021.

Section 12-P:2

    12-P:2 Establishment; Purpose. –
I. There shall be a department of energy under the executive direction of a commissioner of energy and consisting of the divisions of administration, policy and programs, enforcement, and regulatory support.
II. The purpose of this chapter is to improve the administration of state government by providing unified direction of policies, programs, and personnel in the field of energy and utilities, making possible increased efficiency and economies from integrated administration and operation of the various energy and utility related functions of the state government.
III. In addition to its other functions, it shall be the duty of the department of energy to provide all necessary administrative, technical, and staff support to the public utilities commission to assist the commission in carrying out its regulatory and adjudicative functions.
IV. The department shall have the authority to investigate any matter that may come before the public utilities commission and to appear before the commission to advocate for the department's position and for the purposes of providing a complete record for consideration by the commission.
V. The department shall develop strategies, concepts, and tools to enhance outreach and education programs to increase knowledge and awareness about energy efficiency and sustainable energy among New Hampshire residents and businesses.
VI. The department shall 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.

Source. 2021, 91:187, eff. July 1, 2021. 2023, 233:4, eff. Oct. 7, 2023.

Section 12-P:3

    12-P:3 General Provisions. –
I. Upon the recommendation of the commissioner after consultation with division directors concerned, the governor and council are authorized to approve revisions in internal administrative departmental organization as the governor and council find from time to time may improve or make more economical the administration of the department.
II. The department of energy is authorized to work with the department of business and economic affairs, the public utilities commission, and the department of administrative services to coordinate the implementation of the establishment of the department, and to transfer appropriations and create the proper expenditure lines, if needed, for the establishment of their respective operations, including but not limited to the relocation of personnel, work stations, books, papers, personnel record files, and equipment, with the approval of the governor and council and of the director of personnel.
III. The department shall have the authority to petition for any proceeding before the public utilities commission and shall automatically be a party to all proceedings before the commission. Any person or party that initiates a proceeding before the public utilities commission by petition or otherwise shall provide a copy to the department at the time of filing. Any person or party filing confidential information in any proceeding in which the department may appear, or exchanging confidential information in discovery or otherwise, shall provide the department with such confidential information. In adjudicative proceedings as defined by RSA 541-A:1, I, the public utilities commission and the department shall be subject to RSA 541-A:36.

Source. 2021, 91:187, eff. July 1, 2021. 2022, 245:1, 2, eff. Aug. 20, 2022.

Section 12-P:4

    12-P:4 Commissioner; Deputy Commissioner; Directors; General Counsel. –
I. The commissioner of the department of energy shall be appointed by the governor, with the consent of the council, and shall serve for a term of 4 years. The commissioner shall be qualified to hold that position by reason of education and experience. Directors of departmental divisions and the general counsel shall be subject to the supervisory authority of the commissioner, which authority shall include power to establish department and divisional policy as well as to control the actual operations of the department and all divisions therein. The commissioner is authorized to establish any advisory committees and programs which the commissioner may deem necessary to carry out the mission and operations of the department.
II. The commissioner of energy shall nominate a deputy commissioner of energy for appointment by the governor and council. The deputy commissioner shall hold office for 4 years and until a successor has been appointed and qualified. The deputy commissioner shall be qualified to hold that position by reason of education and experience. The deputy commissioner shall perform such duties as the commissioner may assign. The deputy commissioner shall perform the duties of the commissioner if for any reason the commissioner is unable to do so.
III. Division directors shall be appointed to initial terms as stated below, and then subsequently to terms of 4 years. Terms notwithstanding, each division director shall serve until a successor has been appointed and qualified.
III-a. The commissioner shall appoint a general counsel, who shall serve at the pleasure of the commissioner. The general counsel shall perform such duties and exercise such powers as the commissioner may authorize.
(a) The commissioner shall nominate for appointment by the governor and council a director of the division of policy and programs for an initial term of one year. All subsequent terms shall be 4 years. The director of the division of policy and programs shall be qualified to hold that position by reason of education and experience.
(b) The commissioner shall nominate for appointment by the governor and council a director of the division of administration for an initial term of 2 years. All subsequent terms shall be 4 years. The director of the division of administration shall be qualified to hold that position by reason of education and experience.
(c) The commissioner shall nominate for appointment by the governor and council a director of the division of enforcement for an initial term of 3 years. All subsequent terms shall be 4 years. The director of the division of enforcement shall be qualified to hold that position by reason of education and experience.
(d) The commissioner shall nominate for appointment by the governor and council a director of the division of regulatory support for an initial term of 3 years. All subsequent terms shall be 4 years. The director of the division of regulatory support shall be qualified to hold that position by reason of education and experience.
IV. The salaries of the commissioner, the deputy commissioner, and each division director shall be as specified in RSA 94:1-a.

Source. 2021, 91:187, eff. July 1, 2021. 2023, 79:125, eff. July 1, 2023.

Section 12-P:5

    12-P:5 Duties of Commissioner. –
In addition to the powers, duties, and functions otherwise vested by law in the commissioner of the department of energy, the commissioner, except as otherwise provided in this chapter, shall:
I. Represent the public interest in the administration of the functions of the department of energy and be responsible to the governor, the general court, and the public for such administration.
II. Provide for, in consultation with the commissioner of the department of administrative services and the state treasurer, a system of accounts and reports which will ensure the integrity and lawful use of all fees, funds, and revenues collected by the department, the use of which is restricted by state or federal law.
III. Have the authority to receive, administer, and internally audit all present and future federal and state energy-related grant programs.
IV. Have the authority to adopt rules, pursuant to RSA 541-A, necessary to assure the continuance or granting of federal funds or other assistance intended to promote the administration of this chapter, not otherwise provided for by law, and to adopt all rules necessary to implement the specific statutes administered by the department or by any division or unit within the department, whether the rulemaking authority delegated by the legislature is granted to the commissioner, the department, or any administrative unit or subordinate official of the department. Where the commissioner has adopted rules under this paragraph, the department shall not be subject to RSA 541-A:29 or RSA 541-A:29-a.
V. Have the authority to reorganize rules of the department to conform to the requirements of RSA 541-A and the uniform drafting and numbering system adopted by the division of administrative rules, office of legislative services. Reference changes shall be limited to title, chapter, part, and section designations and numbers and substitution of terms reflecting reorganization of the department to the existing statutory structure, and shall be made subject to review by the division of administrative rules, office of legislative services for consistency and accuracy of such changes. Such reference changes shall be integrated into the rules and such amendments to the rules shall become effective when notice of these reference changes is published by the director of legislative services in the rulemaking register. Reference changes made prior to July 1, 2022, shall be exempt from the procedures and requirements of RSA 541-A. Changes authorized under this section shall not affect the adoption or expiration date of rules changed under this section.
VI. Collect and account for all fees, funds, taxes, or assessments levied upon any person subject to the jurisdiction of the department of energy and the public utilities commission. Notwithstanding any other provision of law, if the expenditure of additional funds over budget estimates is necessary for the proper functioning of the department of energy, the governor and council, with the prior approval of the fiscal committee of the general court, upon request from the department of energy, may authorize an additional assessment pursuant to RSA 363-A for such purpose.
VII. Ensure that the department provides all necessary support to the public utilities commission, the site evaluation committee, office of the consumer advocate, and any other entity that is administratively attached to the department.

Source. 2021, 91:187, eff. July 1, 2021. 2022, 245:3, 4, eff. Aug. 20, 2022. 2023, 79:115, eff. July 1, 2023.

Section 12-P:6

    12-P:6 Division of Administration. – There is established within the department the division of administration, under the supervision of an unclassified director of the division of administration. The division, through its officials, shall be responsible for all functions, duties, and responsibilities which may be assigned to it by the commissioner or laws enacted by the general court.

Source. 2021, 91:187, eff. July 1, 2021.

Section 12-P:7

    12-P:7 Division of Policy and Programs. – There is established within the department the division of policy and programs, under the supervision of an unclassified director of the division of policy and programs. The division, through its officials, shall be responsible for all functions, duties, and responsibilities which may be assigned to it by the commissioner or laws enacted by the general court. In addition, the division shall administer fuel assistance contracts and weatherization contracts. In administering fuel assistance and weatherization contracts, the division shall ensure that when an individual applies for fuel assistance or weatherization, the individual shall be provided with application forms and information about the Link-Up New Hampshire and Lifeline Telephone Assistance programs, and shall be provided assistance in applying for these programs.

Source. 2021, 91:187, eff. July 1, 2021.

Section 12-P:7-a

    12-P:7-a State Energy Strategy. –
I. The division of policy and programs, with approval of the commissioner, and with assistance from an independent consultant and with input from the public and interested parties, shall prepare a 10-year energy strategy for the state. The division shall review the strategy and consider any necessary updates in consultation with the senate energy and natural resources committee and the house science, technology and energy committee, after opportunity for public comment, at least every 3 years starting in 2021. The state energy strategy shall include, but not be limited to, sections on the following:
(a) The projected demand for consumption of electricity, natural gas, and other fuels for heating and other related uses.
(b) Existing and proposed electricity and natural gas generation and transmission facilities, the effects of future retirements and new resources, and consideration of possible alternatives.
(c) Renewable energy and fuel diversity.
(d) Small-scale and distributed energy resources, energy storage technologies, and their potential in the state.
(e) The role of energy efficiency, demand response, and other demand-side resources in meeting the state's energy needs.
(f) The processes for siting energy facilities in the state and the criteria used by the site evaluation committee in giving adequate consideration to the protection of the state's ecosystems and visual, historic, and aesthetic resources in siting processes.
(g) The relationship between land use and transportation policies and programs on electricity and thermal energy needs in the state.
(h) New Hampshire's role in the regional electric markets, how the regional market affects the state's energy policy goals, and how the state can most effectively participate at the regional level.
II. The strategy shall include a review of all state policies related to energy, including the issues in paragraph I, and recommendations for policy changes and priorities necessary to ensure the reliability, safety, fuel diversity, and affordability of New Hampshire's energy sources, while protecting natural, historic, and aesthetic resources and encouraging local and renewable energy resources. The strategy shall also include consideration of the extent to which demand-side measures including efficiency, conservation, demand response, and load management can cost-effectively meet the state's energy needs, and proposals to increase the use of such demand resources to reduce energy costs and increase economic benefits to the state.
III. The strategy development process shall include review and consideration of relevant studies and plans, including but not limited to those developed by the independent system operator of New England (ISO-NE), the public utilities commission, the energy efficiency and sustainable energy board, legislative study committees and commissions, and other state and regional organizations as appropriate. The strategy shall also include consideration of new technologies and their potential impact on the state's energy future.

Source. 2021, 91:187, eff. July 1, 2021.

Section 12-P:7-b

    12-P:7-b Office of Offshore Wind Industry Development Established. –
I. There is established in the department of energy the office of offshore wind industry development. The office shall be under the supervision of a classified director of the office of offshore wind industry development, who shall serve under the supervision of the commissioner. The director shall provide administrative oversight and ensure that the responsibilities of the office described in this section are fulfilled.
II. The office of offshore wind industry development shall:
(a) Support the work of the New Hampshire members of the Intergovernmental Renewable Energy Task Force administered by the federal Bureau of Ocean Energy Management (BOEM).
(b) Support the work of the offshore wind commission established in RSA 374-F:10.
(c) Assist the offshore wind commission to develop and implement offshore wind development strategies including:
(1) Assessment of port facilities.
(2) Economic impact analyses.
(3) Supply chain analyses.
(4) Outcome and performance measurements.
(d) Collaborate with key state agencies and partners on offshore wind industry development initiatives.
(e) Coordinate offshore wind industry economic development policy, including:
(1) Development of workforce.
(2) Identification of and recruitment of offshore wind development employers.
(3) Identification and recruitment of offshore wind supply chain employers.
(4) Promotion of New Hampshire's benefits to the various components of the offshore wind industry.
(5) Provide updates and guidance to the general court with regard to policy and funding.
(f) Advise the governor, state agencies, the public utilities commission, and the legislature on the development of clean energy resources in the Gulf of Maine and the purchase of power by New Hampshire public utilities from these resources.

Source. 2021, 91:187, eff. July 1, 2021. 2022, 177:1, eff. June 7, 2022.

Section 12-P:8

    12-P:8 Division of Enforcement. – There is established within the department the division of enforcement, under the supervision of an unclassified director of the division of enforcement. The division, through its officials, shall be responsible for all functions, duties, and responsibilities which may be assigned to it by the commissioner or laws enacted by the general court.

Source. 2021, 91:187, eff. July 1, 2021.

Section 12-P:9

    12-P:9 Division of Regulatory Support. – There is established within the department the division of regulatory support, under the supervision of an unclassified director of the division of regulatory support. The division, through its officials, shall be responsible for all functions, duties, and responsibilities which may be assigned to it by the commissioner or laws enacted by the general court.

Source. 2021, 91:187, eff. July 1, 2021. 2022, 245:5, eff. Aug. 20, 2022.

Section 12-P:10

    12-P:10 Specific Answers. – The department or the commission may require any public utility or entity subject to its jurisdiction to make specific answers to questions upon which the department or commission may need information.

Source. 2021, 91:187, eff. July 1, 2021.

Section 12-P:11

    12-P:11 Transfer of Functions, Powers, Duties. – All of the functions, powers, duties, records, personnel, and property of the public utilities commission incorporated in the statutes establishing the department of energy and which replace the authority of the commission with the authority of the department of energy, are hereby transferred, as of July 1, 2021, to the department of energy.

Source. 2021, 91:187, eff. July 1, 2021.

Section 12-P:12

    12-P:12 Repealed by 2022, 245:34, I, eff. Aug. 20, 2022. –

Section 12-P:13

    12-P:13 Pipeline Operation Safety. –
I. The department of energy shall apply annually to the Pipeline and Hazardous Materials Safety Administration of the United States Department of Transportation for authorization to take such actions on its behalf to oversee pipeline operation safety, security, monitoring, and compliance through an inspection process.
II. The department of energy shall report annually to the house science, technology, and energy committee prior to October 1 on the status of pipeline safety, new and proposed projects, any deficiency in state law that limits the department's ability to oversee interstate pipelines, or state regulations for pipelines that do not meet the minimum federal standard.

Source. 2021, 91:187, eff. July 1, 2021.

Section 12-P:14

    12-P:14 Transfer of Rules, Orders, Approvals. – Existing rules, orders, and approvals of the public utilities commission which are associated with any functions, powers, and duties, transferred to the department of energy pursuant to RSA 12-P:11 or any other statutory provision, shall continue in effect notwithstanding any provision of RSA 541-A:17, II to the contrary, and be enforced by the commissioner of the department of energy or the commission, as applicable, until they otherwise expire or are repealed or amended in accordance with applicable law, or for a period of 5 years, whichever occurs first. To the extent the department acts pursuant to an existing rule, order, or approval, the department shall not be subject to RSA 541-A:29 or RSA 541-A:29-a.

Source. 2021, 91:187, eff. July 1, 2021. 2022, 245:6, eff. Aug. 20, 2022.

Section 12-P:15

    12-P:15 Suppliers of Natural Gas and Aggregators of Natural Gas Customers; Rulemaking. –
I. The department is authorized to adopt rules, pursuant to RSA 541-A, establishing requirements for suppliers of natural gas and the aggregators of natural gas customers, including registration of such suppliers and aggregators before soliciting or doing business in the state, registration fees, disclosure of information to customers, standards of conduct, submission to commission jurisdiction for mediation and resolution of disputes, imposition of penalties for failure to comply with commission requirements, and consumer protection and assistance requirements.
II. The department of energy shall adopt rules under RSA 541-A which require all natural gas companies to report to the department, the senate president, and the speaker of the house of representatives, in a uniform manner, lost and unaccounted for gas for each year.
(a) Such rules shall include a method using operational and billing data to determine the total amount of lost and unaccounted for gas and to identify and measure each of its components.
(b) The department may grant waivers from the rules as necessary for the development of innovative projects to reduce lost and unaccounted for gas. Such innovative projects shall be intended to reduce costs to ratepayers and to reduce greenhouse gas emissions. An application for a waiver shall include the goals of the innovative project, the expected cost, the expected benefit to ratepayers and the expected reduction in greenhouse gas emissions.
(c) For the purposes of this paragraph, "lost and unaccounted for gas" shall mean an amount of gas that is the difference between the total gas purchased by a gas company and the sum of: (1) total gas delivered to customers; and (2) total gas used by a gas company in the conduct of its operations.
III. This section shall not in any way affect the utility or non-utility status of any supplier of natural gas or aggregator of natural gas customers, nor shall it be construed to limit the commission's and the department of energy's existing authority with regard to the regulation of gas utilities or the scope of the commission's and the department's authority in considering whether to expand the availability of competitive natural gas supplies through the distribution system of gas utilities.

Source. 2021, 91:187, eff. July 1, 2021.

Section 12-P:16

    12-P:16 Grid Modernization Advisory Group. –
I. The department of energy shall establish and support a grid modernization advisory group (GMAG) consisting of the following voting members:
(a) The commissioner of the department of energy, or designee.
(b) The consumer advocate, or designee.
(c) Representatives of each of the electric distribution utilities regulated by the public utilities commission and the New Hampshire Electric Cooperative.
(d) Two representatives of distributed energy providers, including at least one with experience interconnecting distributed generation and one with experience interconnecting distributed storage, appointed by the commissioner of the department of energy.
(e) A representative of a municipal aggregation supplier, appointed by the commissioner of the department of energy.
(f) A representative of a not-for-profit organization representing clean energy, environmental, or consumer issues appointed by the commissioner of the department of energy.
(g) A representative of the Business and Industry Association, appointed by that organization.
II. (a) The grid modernization advisory group shall consider and provide recommendations to the department and the legislature on issues including, but not limited to:
(1) Grid modernization as defined in RSA 374-F:2;
(2) Transactive energy and distributed energy resources including advanced meter infrastructure (AMI);
(3) Settlement of appropriate price signals for transactive energy at the distribution system level for distributed energy resources;
(4) Appropriate customer and distributed energy resources access to temporal price signals.
(b) The GMAG shall review different cost structures that enable a reasonable portion of costs of distributed generation and storage interconnections to be shared by entities that interconnect future distributed generation or storage to the distribution grid to the extent that such subsequent interconnection is enabled by the investment or costs incurred by the prior entity or entities that interconnect. The GMAG shall provide recommendations to address this issue by September 1, 2024.
(c) The department of energy may obtain the services of a consultant for technical support concerning distribution systems and transactive energy to support department of energy staff, the consumer advocate, and the GMAG. The department of energy shall charge a special assessment for any such amounts for this consultant against any utility participating in the grid modernization advisory group and the public utilities commission shall provide for the timely recovery of such amounts for the affected utility.
III. A quorum shall be a majority of filled positions.
IV. The grid modernization advisory group shall report annually on November 1 on its meetings and any recommendations for legislation, rules, and practices, to the governor, senate president, speaker of the house of representatives, chair of the house and senate committees with jurisdiction over utilities, and the chair of the public utilities commission.

Source. 2023, 243:2, eff. Oct. 7, 2023.