Sununu poised for veto override fight

LACONIA — Gov. Chris Sununu, facing a coordinated effort to overturn his vetoes of two energy-related bills, says both pieces of legislation would drive up power costs at a time when the state needs to reduce electrical rates to attract new business.

One of those measures, Senate Bill 365, would require utilities to pay above-market rates to the state’s six biomass, or wood-burning, power plants.

Backers of the veto override say jobs are at stake.

A Plymouth State University study found 120 people employed directly by the plants, with 583 commercial loggers supplying them. It found another 228 employed in service and support positions. Taken together, they amount to a total payroll of $50.9 million and contribute $254.5 million in economic activity in the state.

In an interview at The Laconia Daily Sun on Wednesday, Sununu said the plants are generally foreign owned, they are aging and some have deferred maintenance issues and are losing money. Even if the bill were to pass, there is no guarantee they could stay open.

High energy costs can lead to overall reductions in manufacturing sector employment, and the bill would drive up those costs by $25 million a year over the next three years, the governor said.

He acknowledged about 1,000 people depend on these plants for jobs.

“That’s a lot of people,” he said. “That is not an easy decision to make.

“But then compare it to the 150,000 manufacturing employees we have in the state. You lose just 1 percent of that and it drastically outweighs the employee retention benefit you would get with the biomass plants.”

He also said the state has a 2.7 percent unemployment rate, so workers should have the ability to transition to new jobs.

“If you ever have the courage to say we need to go in different direction, now is the time,” he said. “So we have other job opportunities there. It’s not like we’re just letting the employees go and we’re wishing them well. We have an opportunity to move them into other areas.

“That’s a big leap. That’s asking a lot of a family. I get it. But to ask the state to keep taxing everybody 25 million a year in perpetuity for an industry that has no financial stability model whatsoever, is just ‘Give us more. Give us more.’”

When the Legislature returns on Sept. 13, they will also consider an override of the governor’s veto of Senate Bill 446, which would require utilities to buy electricity from solar energy generators at above-wholesale rates. It would raise qualifying solar projects from 1 megawatt to 5 megawatts.

Mayors from all of New Hampshire’s cities, except Concord, are signing on to a letter asking Legislative leaders to override the two vetoes.

“We believe strongly that clean and local renewable energy and greater efficiency in how we use all energy will be vitally important to our cities’ future economic vitality and environmental quality,” the letter states.

“As such, we favor policies enacted at the state level that reinforce existing renewable electric generation, foster expansion of new renewable energy technologies through net metering, and greater investments in efficiency.”

“Hundreds of millions of dollars in solar and hydropower projects are now at risk of not being realized because of this situation. This is an error which can still be corrected.”

Sununu’s opposition to the renewable energy bill also derives from his concerns about the state’s power costs, which are about 50 percent above the national average. He said this bill would cost ratepayers $5 million to $10 million annually, which he terms “a handout to large scale energy developers.”

Critics of Sununu’s vetoes say the state needs to bring more power online, and these bills will do that.

Sununu, who favored the Northern Pass project to bring Canadian hydropower to New England, said that proposal appears to be dead, but there is still potential for tapping this power source in the future.

He also favors improving natural gas infrastructure in the state and says solar power can be helpful in some applications.

“Diversified power sources are great, but you have to weigh the social, environmental and economic effects,” he said. “I want to do more solar power for low-income families.

“I don’t believe in these massive solar arrays that only put money in the pocket of solar array generators. I want to help people living in apartment buildings or the elderly on fixed incomes who have to pay for this. Those are the ones we need to be subsidizing. They need the financial flexibility.”

On other issues, Sununu said:

• He commends President Donald Trump for trying to reach better trade deals even though resulting tariff increases have hurt some New Hampshire businesses in the short run. “I don’t agree with everything he says, of course,” the governor said. “My wife doesn’t agree with everything I say.”

• There have been some improvements at the state Division for Children Youth and Families. The goal is to have enhanced prevention services “so when there is a problem we get to it before it’s a crisis.” He also said, “for the first time in years, a couple months ago, we had more children leave foster care than entered foster care.”

• He favors measures that could help retain college students in New Hampshire and help them pay down their student loans. “I don’t believe in free college for everyone. I can’t think of a dumber idea, to be honest, because as soon as something becomes free, that means Washington is paying for it, which means Washington is running it, and by the way Washington doesn’t run anything well.”