HB1738 — (Second New Title) relative to ratepayer benefits from the regional greenhouse gas initiative and relative to energy procurement and nuclear regulatory duties.

CHAPTER 332 HB 1738-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 05/14/2026 1931s 4Jun2026...

CHAPTER 332 HB 1738-FN - VERSIONFINAL ADOPTEDVERSION BY BOTH BODIES 05/14/2026 1931s 4Jun2026...

1332:1 Multiple Pollutant Reduction Program;

2332:2 Carbon Dioxide Emissions Budget Trading Program.

[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] 2,993,220 2028 [3,129,922] 2,619,068 2029 [3,011,197] 2,244,915 HB 1738-FN - VERSION ADOPTED BY BOTH BODIES - Page 2 - 2030 and thereafter [2,892,472] 1,870,763 3332:3 Compliance;

CHAPTER 332 HB 1738-FN - FINAL VERSION - Page 2 - 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:22,125- 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.

4332:4 Cost Containment Allowances in Addition to the Budget.

5332:5 Repeal.

6332:6 Peaceful Uses of Atomic Energy;

HBIII.The 1738-FNcoordinator -of VERSIONnuclear ADOPTEDdevelopment BYand BOTHregulatory BODIESactivities -shall Pagehave 3the -duty III.to coordinate and produce the reports required by RSA 162-B:3, as well as coordinate the studies conducted, and the recommendations and proposals made, in this state with like activities in New England and other states and with the policies and regulations of the United States Nuclear Regulatory Commission.

TheThese coordinator of nuclear development and regulatory activities shallmay haveinclude the dutymanagement toof coordinatefunding and produceoversight theof reportsnuclear requiredincentive byCHAPTER RSA332 162-B:3,HB as1738-FN well- asFINAL coordinateVERSION the- studiesPage conducted,3 and- theprograms, recommendationssuch andas proposalsthose made,described inby thisRSA state374-F:11, withas likewell activitiesas inoutreach Newprograms Englandto andinform other states and witheducate the policiespublic, andparticularly regulationsregarding ofsafety. the United States Nuclear Regulatory Commission.

These332:7 activitiesNew mayParagraph; include the management of funding and oversight of nuclear incentive programs, such as those described by RSA 374-F:11, as well as outreach programs to inform and educate the public, particularly regarding safety.

7 New Paragraph;

8332:8 Purchased Power Agreements.

9332:9 Purchased Power Agreements.

10332:10 New Subparagraphs;

11332:11 Purchased Power Agreements.

HB 1738-FN - VERSION ADOPTED BY BOTH BODIES - Page 4 - II.

(a) Upon the petition of one or more electric distribution utilities, and after notice and hearing, the public utilities commission may authorize such utility or utilities to enter into multi-multi-year year agreements with new or incremental electric energy sources up to a total of 2 million megawatt hours statewide, on an annual basis, if it finds such agreements to be just and reasonable and in the public interest, provided that if at least 1 million megawatt hours are procured from advanced nuclear reactors as defined in RSA 374-F:2,374- CHAPTER 332 HB 1738-FN - FINAL VERSION - Page 4 - F:2, II-a, an additional 1 million megawatt hours may be procured from existing, new, or incremental electric energy sources for a total of up to 3 million megawatt hours statewide annually.

12332:12 Effective Date.

LBAApproved: 26-2643 5/19/26 HB 1738-FN- FISCAL NOTE AS AMENDED BY THE SENATE (AMENDMENT # 2026-1931s) AN ACT relative to ratepayer benefits from the regional greenhouse gas initiative and relative to net metering, energy procurement, and nuclear regulatory duties.

FISCALJuly IMPACT:15, 2026 Effective Date:

EstimatedSeptember State13, Impact FY 2026 FY 2027 FY 2028 FY 2029 Sections 1-5 Sections 1-5 Sections 1-5 Revenue $0 Indeterminable Indeterminable Indeterminable (see below) (see below) (see below) Energy Efficiency Fund Revenue Fund(s) All Sections All Sections All Sections Indeterminable Indeterminable Indeterminable (State's Utility (State's Utility (State's Utility Expenditures* $0 Costs) Costs) Costs) Sections 6-13 Sections 6-13 Sections 6-13 $126,000 $129,000 $135,000 (Utility (Utility (Utility Assessments) Assessments) Assessments) Funding Source(s) General Fund, Highway Fund, Various Agency Funds, and Utility Assessment per RSA 363-A Appropriations* $0 $0 $0 $0 Funding Source(s) None *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill Estimated Political Subdivision Impact FY 2026 FY 2027 FY 2028 FY 2029 County Revenue $0 $0 $0 $0 County Expenditures $0 Indeterminable Indeterminable Indeterminable Local Revenue $0 $0 $0 $0 Local Expenditures $0 Indeterminable Indeterminable Indeterminable METHODOLOGY:

Sections 1 thru 5 Sections 1 thru 5 of this bill updates New Hampshire’s participation in the Regional Greenhouse Gas Initiative by revising the carbon dioxide emissions allowance cap from 2027 through 2030 and maintaining the 2030 allowance level thereafter unless modified through a future program review.

The bill also revises the cost containment reserve by establishing two allowance tiers and associated trigger prices to provide additional price controls.

These changes are intended to implement the third RGGI Program Review as adopted by participating states.

The Department of Environmental Services and the Department of Energy, which together administer New Hampshire’s participation in RGGI state this bill implements the third RGGI Program Review adopted by all participating states and updates the allowance cap trajectory beginning in 2027, resulting in larger annual reductions in allowances through 2030 than under current law.

The bill also modifies the cost containment reserve by adding a second tier of allowances to provide additional consumer price protection during periods of high allowance prices.

The Departments state that revenue from RGGI allowance auctions is deposited into the Energy Efficiency Fund and is primarily used to provide rebates to electricity customers to offset the cost of allowance purchases reflected in wholesale electricity prices.

In calendar year 2024, New Hampshire received approximately $65,800,000 in auction proceeds, of which about $62,600,000 was returned to ratepayers, with the remaining funds used for energy efficiency programs and administrative costs.

The Departments explain that future RGGI auction prices are uncertain and depend on market conditions, making the fiscal impact of the revised allowance trajectory indeterminable.

Economic modeling conducted as part of the RGGI Program Review indicates that if this bill is enacted, allowance prices under the updated program could decrease somewhat during the 2028 through 2030 period.

Under the bill, New Hampshire would continue to participate in RGGI auctions and is expected to receive auction proceeds in the range of approximately $33,000,000 to $46,000,000 per year during that period, with the majority returned to consumers through bill rebates.

This would represent a reduction compared to historical auction revenues of approximately $66,000,000 per year, but would preserve continued auction participation.

However, the Departments state that under current law, beginning in 2027, New Hampshire’s allowance structure would no longer align with RGGI program requirements and allowances would not be offered for sale at auction, resulting in the loss of all RGGI auction revenue, estimated at approximately $65,800,000 annually.

While this bill would reduce auction proceeds relative to prior years, it would avoid the complete loss of auction revenue under current law and maintain continued ratepayer benefits through rebates, with the net impact on State, county, and municipal energy costs remaining indeterminable.

Sections 6 thru 13 Sections 6 thru 13 of this bill enables electric utilities to own, operate, and offer advanced nuclear resources, modifies net metering provisions, expands the capacity limits of community solar projects, and allows electric distribution utilities to enter into long-term energy contracts.

The Department of Energy states this bill modifies the responsibilities of the coordinator of nuclear development to include management of funding and outreach programs;

however, these changes will not result in significant additional costs.