A bill to make more local energy available for local energy programs failed

A change that could help local energy programs make greater use of local renewable energy failed in the House after opposition from the state Department of Energy.

House Bill 1600, introduced at the request of the Community Power Coalition of New Hampshire, would establish a path for solar panels or other on-site energy sources of up to five megawatts to support local energy programs.

The bill’s lead sponsor and other community energy advocates say they will continue to work with the state Department of Energy to make changes that will allow local energy programs to use more local renewable energy sources.

The power of communities in New Hampshire is growing rapidly. There are currently 57 municipalities and two county members participating in the coalition, and approximately 29 other communities are working with consultants from Standard Power to implement their community energy programs.

These programs allow cities to provide electricity to their residents instead of a traditional utility company. The utility company continues to supply electricity.

Since the inception of community energy programs in New Hampshire, advocates have argued that it could support the development of more local renewable energy resources, accelerating the state’s clean energy transition.

Efforts to expand the use of renewable energy sources in community energy programs passed with bipartisan support in the House. However, while the change was being considered by the Senate, officials with the New Hampshire Department of Energy wrote a letter opposing the change.

“We are concerned that this significant change in the state’s approach requires much more thorough review,” said Chris Ellms, the department’s deputy commissioner.

Ellms also noted that regulators wanted to consider how this change fits into ongoing discussions about net metering – the way many renewable energy projects are compensated for the energy they produce – currently taking place at the state Utilities Commission Municipal.

While the bill was in the Senate, lawmakers amended it to create a study committee. After subsequent review by both the House and Senate, both bodies approved a stripped-down version of HB 1600, making only a minor change to existing law.

Clifton Below, chairman of the Community Power Coalition, said the bill would pave the way for programs to begin using locally produced electricity to serve customers.

Dozens of developers have proposed projects ranging from 1 to 5 megawatts — too small to sell on the New England wholesale market, but large enough to provide significant power to the community.

The only way these utilities can currently sell their power, as he states below, is for them to be compensated based on the utility’s default service rate and provide credits to city buildings or school districts. HB 1600 would allow developers to receive compensation from a municipal energy aggregator that effectively meets the energy needs of recipients of these programs.

Developers, Below said, approached the Community Energy Coalition about potential projects when legislative change seemed possible.

“Potentially entering into agreements with some of these projects to offset the local load could be a very effective way to both increase the number of such projects, but do so in a way that is financially responsible and does not create cost shifting issues,” he said.

Josh Elliott, director of policy and programs at the New Hampshire Department of Energy, said the bill contains too many open questions.

“We have no reservations about what their prime mover is, but we have to make sure that in this context, within this regulatory structure, we don’t accidentally open the doors so that someone else can pass the bus,” he added. he said.

Supporters say they were responding to the state’s concerns. And for some lawmakers, this landmark challenge seemed like a delay for no apparent reason.

“The fact is that any bill can have unclear, unintended consequences,” said Tom Cormen, a Lebanese Democrat and the bill’s chief sponsor. “You could make that argument against any bill.”

Cormen said he will make another legislative effort next year.