New Hampshire sets yearly carbon budgets and allows energy contracts

The law sets yearly budgets for allowances to release carbon dioxide. The budgets apply to New Hampshire's Regional Greenhouse Gas Initiative, a program that requires covered pollution sources to hold carbon allowances. Each allowance permits one ton of carbon dioxide emissions. Extra allowances can be offered outside these budgets when auction prices reach set levels. The yearly budgets are 3,367,373 allowances in 2026, 2,993,220 in 2027, 2,619,068 in 2028, 2,244,915 in 2029, and 1,870,763 in 2030 and each year afterward.

The state agency overseeing carbon allowances must offer extra allowances for sale when auction prices reach set levels. These allowances sit outside the regular yearly carbon budget. The first price level makes up to 503,667 extra allowances available. The second makes up to 503,667 more available. The two price levels are $19.50 and $29.25 in 2027, $20.87 and $31.30 in 2028, $22.33 and $33.49 in 2029, and $23.89 and $35.83 in 2030. After 2030, each trigger price rises 7% annually, rounded to the nearest cent, until lawmakers act again. Allowances sold from the reserve must be replaced so the full 1,007,214 are available, if needed, the following calendar year.

Investor-owned electric utilities may seek Public Utilities Commission approval for multi-year energy purchase agreements. Existing sources include generators serving New England's regional electricity market. Advanced nuclear reactors must meet the federal definition referenced in the law. Approval requires notice and a hearing. The commission must find the agreements fair, reasonable, and in the public interest. One route allows up to 3 million megawatt-hours statewide yearly from existing, new, or added generation. Each source has a yearly limit of 1 million, or 2 million for advanced nuclear reactors. Another route allows up to 2 million megawatt-hours statewide yearly from new or added generation. Buying at least 1 million from advanced nuclear reactors allows another 1 million from existing, new, or added generation. Utilities choosing this process must issue requests for proposals no later than June 30, 2040, and seek agreement approval no later than June 30, 2041.

New Hampshire's nuclear development coordinator must coordinate studies and produce required reports. The coordinator links New Hampshire's nuclear studies and proposals with work in other states and with federal nuclear policies and regulations. The coordinator may manage funding, oversee nuclear incentive programs, and educate the public, particularly about safety. The law took effect September 13, 2026.