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SB 233-FN - AS AMENDED BY THE SENATE

 

03/06/2025   0544s

2025 SESSION

25-1148

06/05

 

SENATE BILL 233-FN

 

AN ACT establishing an energy reliability and large-scale storage task force.

 

SPONSORS: Sen. Watters, Dist 4; Sen. Rosenwald, Dist 13; Sen. Altschiller, Dist 24; Sen. Avard, Dist 12; Sen. Fenton, Dist 10; Sen. Perkins Kwoka, Dist 21

 

COMMITTEE: Energy and Natural Resources

 

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AMENDED ANALYSIS

 

This bill establishes the energy reliability and large-scale storage task force to develop market-based solutions and programs for electric system reliability using energy storage.  The bill also repeals RSA 374-H:3 related to the department of energy investigation of energy storage.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/06/2025   0544s 25-1148

06/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Five

 

AN ACT establishing an energy reliability and large-scale storage task force.

 

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

 

1  Statement of Findings.  The general court finds:

I.  New Hampshire and the region's electricity market is increasingly challenged by reliability shortages.  The growth in electricity demand, loss of generating capacity, and development of intermittent generating resources are creating potential shortages of electric energy during peak demand.  Existing reliability programs and facilities rely primarily on expensive fossil-fuel peaking facilities.

II.  New Hampshire's electric industry restructuring policy principles, found in RSA 374-F:1, identify system reliability as a critical responsibility for the state and market participants, and they encourage state investigation and actions to address growing reliability concerns.

III.  The emergence of long-duration storage technologies, including lithium-ion batteries, flow batteries, and iron-air storage, offers important resources for the state to address short-term and long-term reliability needs.  To investigate the future role of large-scale storage in addressing reliability, a public-private task force shall be created to identify market and regulatory barriers, investigate the current and future reliability challenges for New Hampshire and the region, and identify market-based solutions to support the growth of storage as a means of enhancing system reliability, stability, and affordability.

2  New Chapter; Energy Reliability and Large-Scale Storage Task Force.  Amend RSA by inserting after chapter 374-H the following new chapter:

CHAPTER 374-I

ENERGY RELIABILITY AND LARGE-SCALE STORAGE TASK FORCE

374-I:1  Definitions.  In this chapter:

I.  "Energy storage system" means any technology that is capable of absorbing energy, storing the energy for a period of time, and redelivering the energy.

II.  "Reliability duration energy storage system" means an energy storage system capable of continuously discharging electricity at its full rated capacity for more than 2 and up to 10 hours.

III.  "Long-duration energy storage system" means an energy storage system capable of continuously discharging electricity at its full rated capacity for more than 10 hours.

IV.  "Multiday energy storage system" means an energy storage system capable of continuously discharging electricity at its full rated capacity for more than 24 hours.

374-I:2  Energy Reliability Task Force Established.

I.  There is established the energy reliability task force.  This public-private task force will focus on the development of enhanced market-based structures and programs to support electric system reliability using energy storage solutions and facilities.  The task force shall be administratively attached to the department of energy.

II.  Notwithstanding RSA 14:49, the members of the task force shall be as follows:

(a)  Two members of the house of representatives, appointed by the speaker of the house of representatives.

(b)  One member of the senate, appointed by the president of the senate.

(c)  One representative of the department of energy, appointed by the commissioner.

(d)  One representative of the business community, appointed by the president of the Business and Industry Association.

(e)  Three public members representing developers of energy storage systems, appointed by the governor.

(f)  One member from the electric utilities industry, appointed by the governor.

III.  Members of the task force shall receive mileage at the legislative rate when attending to the duties of the commission.

IV.  The task force shall undertake the following duties:

(a)  Investigate the current and growing electricity reliability challenges in the New Hampshire and New England markets.

(b)  Identify the role of energy storage in addressing short-term and long-term reliability issues.

(c)  Develop market-based solutions to incentivize the development and interconnection of large-scale energy storage systems designed to enhance reliability.

(d)  Evaluate the use of an indexing storage credit model to incentivize storage market development.

V.  The members of the task force shall elect a chairperson from among the members.  The first meeting of the task force shall be called by the senate member.  The first meeting of the task force shall be held within 30 days of the effective date of this section.  Five members of the task force shall constitute a quorum.

VI.  The task force shall issue an interim report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before December 1, 2025 and a final report on or before June 1, 2026.

3  Definitions; Electric Utility Investment in Distributed Energy Resources.  Amend RSA 374-G:2, II(b) to read as follows:

(b)  Any "electric generation equipment" that qualifies as energy storage [as defined in RSA 374-H:1, III] shall not be subject to any of the requirements of RSA 374-G:3.

4  Definitions; Electric Utility Restructuring.  Amend RSA 374-F:2, IX to read as follows:

IX.  "Distributed storage" or "DS" means qualifying storage systems as defined in RSA 362-A:1-a, IX-a, or grid-integrated electric vehicles when they are interconnected to a New Hampshire jurisdictional distribution grid behind a retail electric meter,[ or energy storage as defined in RSA 374-H:1, III,] that are not participating in any wholesale energy markets administered by ISO New England as a registered asset or otherwise.

5  Repeal.  The following are repealed:

I.  RSA 374-I, relative to the energy reliability task force.

II.  RSA 374-H:3, relative to the department of energy investigation of energy storage.

6  Effective Date.

I.  Paragraph I of section 5 shall take effect July 1, 2026.

II.  The remainder of this act shall take effect July 1, 2025.

 

LBA

25-1148

3/7/25

 

SB 233-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2025-0544s)

 

AN ACT establishing an energy reliability and large-scale storage task force.

 

FISCAL IMPACT:   

 

 

Estimated State Impact

 

FY 2025

FY 2026

FY 2027

FY 2028

Revenue

$0

$0

$0

$0

Revenue Fund(s)

None

Expenditures*

$0

Indeterminable Increase

$0

$0

Funding Source(s)

Department of Energy's Operating Budget

Appropriations*

$0

 

$0

$0

Funding Source(s)

None

*Expenditure = Cost of bill                *Appropriation = Authorized funding to cover cost of bill

 

METHODOLOGY:

This bill establishes an energy reliability task force within the Department of Energy, which will be responsible for completing several specific duties and submitting an interim report by December 1, 2025 and a final report June 1, 2026. The Department of Energy is unable to estimate the total expenditures that will be incurred during the task force's duration.

 

AGENCIES CONTACTED:

Department of Energy