Lawmakers seek fix after budget language clash over renewable energy fund; legal challenge flagged

Senate Bill 599 was introduced to correct a legislative conflict that left the state budgeted to transfer some uncommitted Renewable Energy Fund monies to the general fund but later-enacted language effectively restored the fund’s original purpose.

Senator Howard Pearl told the committee that House Bill 2 directed the Department of Energy to transfer up to $1 million annually of uncommitted Renewable Energy Fund money to the general fund for two fiscal years (a budgetary lapse the Senate assumed in planning). Later, House Bill 682 amended the same statute and — because it took effect later — unintentionally overrode that budget language, restoring the fund’s prior statutory dedication and preventing the assumed general-fund transfer of roughly $4 million per year.

Department of Energy staff confirmed the department implemented House Bill 2 transfers for FY26–27 and reported that almost $18 million had been moved to the general fund under the earlier budget language. Conservation Law Foundation counsel Nick Craigoff told the committee that transferring alternative compliance payments (the fund’s revenue source) into the general fund risks converting a lawful regulatory fee into a general revenue tax that could violate the New Hampshire Constitution (citing the property/uniformity clauses). He urged the committee to reject the transfer proposal.

Other legislators and commenters urged preserving the Renewable Energy Fund to support projects and residential solar programs. Senator Pearl and the department said legislative action is required to reconcile the two statutes, and SB599 was filed to do that.

What’s next: Committee testimony concluded and the bill will be considered in committee. Constitutional concerns raised during testimony could prompt legal review or legislative change.