GOING DEEPER

---

Efforts to Strengthen EESE Board, Capture all Cost Effective Efficiency Advance in New Hampshire

New Hampshire, like many of its neighboring states in the Northeast, is deeply involved in efforts to harness the power of energy efficiency and fight climate change. In 2008 the New Hampshire legislature created the Energy Efficiency & Sustainable Energy (EESE) Board, pursuant to RSA 125-O:5-a. The purpose of the EESE Board, which is administratively attached to the Public Utilities Commission, is “to promote and coordinate energy efficiency, demand response, and sustainable energy programs in the state.”  Its duties include providing guidance on the best uses of fund from the Greenhouse Gas Initiative’s (RGGI) Emissions Reduction Fund and from American Recovery and Reinvestment Act (ARRA), both of which have led to dramatic increases in efficiency dollars in the last year.

The Board’s 2009 Annual Report determined that energy efficiency is the cleanest and least expensive energy resource, and that New Hampshire must do much more to take advantage of it. The report recommended that the Board create a plan for energy efficiency and sustainable energy that builds on existing successful programs, increases awareness of energy efficiency and sustainable energy, and improves coordination of these programs. The Board convened working groups divided into these five program areas:

• Enhanced Delivery System for Energy Efficiency and Sustainable Energy
• Coordinated Municipal Energy Assistance
• Outreach and Public Education
• “Beacon” Communities (models of integrated efficiency, renewable energy and sustainability)
• Clean Energy Job Training and Workforce Development

 

The work plan is also intended to contribute to the goals in the New Hampshire Climate Action Plan, which was completed in March 2009. The Climate Action Plan lists emissions reduction targets and specific policies related to energy efficiency including upgrading and improving compliance with building energy codes, increasing penetration of high efficiency equipment and combined heat and power systems, and maximizing energy efficiency as a resource.

Indeed, capturing of all cost effective efficiency was a major topic of discussion with the EESE Board, and a policy that NEEP supports strongly (see related note in Seen and Heard).

Strengthening the EESE Board
The creation of the EESE Board was intended to bring to New Hampshire a stakeholder advisory process similar to those that have been in operation in all other New England states to more broadly deploy energy efficiency as a clean, affordable and reliable resource to serve the state’s residents and businesses.

But one significant difference between the other boards and the EESE Board is that other states provided for funds to hire technical consultants specifically to review and provide input to their regulatory commissions on those states’ ratepayer-funded energy efficiency programs.  In New Hampshire, the EESE Board does not have the same authority to oversee and provide recommendations on the CORE efficiency programs and lacks any permanent funding source. To remedy this, the Board has requested funding of at least $100,000 per year for three years to provide for the hiring of expert technical consultants.

Together with the advancement of an all cost effective efficiency procurement policy, NEEP urges the development of legislation to fund the EESE Board to retain its own technical advisors. These advisors could review and make recommendations to the Board on the CORE efficiency programs and any other relevant public policy measure.

New Hampshire is making significant strides toward advancing energy efficiency, saving rate payers money, creating jobs and reducing greenhouse gas emissions. Rate mechanisms including shareholder incentives, and recently approved yet untested revenue decoupling can help align interests of utilities, ratepayers and the public good.