2013 -- H 5801 SUBSTITUTE A

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LC01728/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO HEALTH AND SAFETY -- ENERGY INDEPENDENCE

     

     

     Introduced By: Representatives Handy, Ackerman, Gallison, Palangio, and Cimini

     Date Introduced: February 28, 2013

     Referred To: House Environment and Natural Resources

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby

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amended by adding thereto the following chapter:

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     CHAPTER 88

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     RHODE ISLAND ENERGY INDEPENDENCE AND CLIMATE SOLUTIONS ACT

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     23-88-1. Short title. -- This chapter shall be known and may be cited as the "Rhode

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Island Energy Independence and Climate Solutions Act."

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     23-88-2. Legislative findings. -- It is hereby found and declared by the general assembly

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as follows:

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     (1) Global warming poses a serious threat to the environment, economic well-being,

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public health, and natural resources of Rhode Island. Scientists predict global warming will

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exacerbate air quality problems, decrease or eliminate the habitat of indigenous plants and

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animals, trigger accelerated beach erosion and sea level rise resulting in the displacement of

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businesses, residences and key infrastructure like bridges and drinking water and wastewater

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treatment plants, damage marine and freshwater ecosystems and the natural environment, and

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increase the variety and incidence of infectious diseases, asthma, and other human health-related

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problems.

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     (2) Global warming will also have measurable and detrimental effects on key sectors of

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Rhode Island's economy including agriculture, tourism and recreational and commercial fishing.

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     (3) Because greenhouse gas emissions come almost exclusively from burning fossil fuels,

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reducing emissions of greenhouse gasses in Rhode Island will promote energy independence,

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strengthening our economy, creating local jobs, and keeping our energy dollars here at home.

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     (4) Rhode Island has shown leadership on energy conservation and environmental

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stewardship efforts, including the areas of air quality protection, energy efficiency, renewable

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energy, natural resource conservation, and global warming standards for passenger vehicles and

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electricity consumption. The program established by this chapter will continue a tradition of

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environmental leadership by bringing Rhode Island to the forefront of national and international

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efforts to reduce global warming emissions and aligning Rhode Island's global warming policy

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with the steps scientists say are necessary to address the problem of global warming.

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     (5) In 2001 the New England governors and Eastern Canadian premiers adopted a climate

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change action plan setting targets for reductions in greenhouse gas emissions for the short and

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long-term. Although the action plan did result in some activity to reduce emissions, neither Rhode

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Island nor the region are on track to achieve the voluntary limits set in the action plan, and in

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most states green house gas emissions are continuing to increase. The general assembly

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recognizes that voluntary limits have clearly not resulted in the reductions necessary to avoid the

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most severe damage to our state and our planet from global warming.

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     (6) The state of Rhode Island recognizes that national and international action will be

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necessary to address the issue of global warming. However, the state of Rhode Island recognizes

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that it has a moral obligation and an economic interest in doing its part to achieve the emission

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reductions that scientists say are necessary to address local as well as global impacts of warming.

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Moreover, Rhode Island recognizes that action taken by the state to reduce emissions contributing

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to global warming will have far-reaching effects by encouraging other states and the federal

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government to take action. Rhode Island has worked and will continue to work with other states

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to address the problem of global warming, and hereby joins with other states that have adopted

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enforceable limits on global warming pollution.

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     (7) By exercising a leadership role, Rhode Island will position its economy, educational

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institutions, technology centers, financial institutions, and businesses to benefit from national and

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international efforts to reduce global warming pollution. More importantly, investing in the

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development of innovative and pioneering technologies will assist Rhode Island in achieving the

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2024 and 2050 statewide limits on global warming pollution established by this chapter and will

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provide an opportunity for the state to take a global economic and technological leadership role in

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reducing global warming pollution.

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     (8) It is the intent of the legislature that the department coordinate with other state

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agencies and entities, as well as consult with the environmental justice community, industry

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sectors, business groups, academic institutions, environmental organizations, and other

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stakeholders in implementing the provisions of this chapter.

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     (9) It is the intent of the legislature that the department and other agencies and entities

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that take action to meet the statewide greenhouse gas emission limits established pursuant to this

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chapter do so in a manner that minimizes long-term costs and maximizes long-term benefits for

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Rhode Island's economy, improves and modernizes Rhode Island's energy infrastructure,

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improves electric system reliability, takes advantage of the opportunity for growth of renewable,

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efficiency and other innovative businesses in Rhode Island, and maximizes additional

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environmental and economic benefits for Rhode Island.

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     23-88-3. Definitions. – As used in this chapter:

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     (1) "Carbon dioxide equivalent" means the amount of carbon dioxide by weight that

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would produce the same global warming impact as the given weight of another greenhouse gas,

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based on the best available science, including from the intergovernmental panel on climate

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change.

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     (2) "Cost effective" means the cost per unit of reduced emissions of greenhouse gases

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expressed in carbon dioxide equivalents.

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     (3) "Department" means the Rhode Island department of environmental management.

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     (4) "Direct emission reduction" means a greenhouse gas emission reduction made by a

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greenhouse gas emission source at that source.

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     (5) "Emissions reduction measure" means programs, measures and standards authorized

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pursuant to this chapter, applicable to sources or categories of sources that are designed to reduce

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emissions of greenhouse gases.

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     (6) "Greenhouse gas" or "greenhouse gases" includes all of the following gases: carbon

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dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride

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and any additional substances that the department determines are significant contributors to

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global warming.

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     (7) "Greenhouse gas emission source" or "source" means any source, or category of

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sources, of greenhouse gas emissions whose emissions are at a level of significance, as

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determined by the department, that its participation in the program established under this chapter

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will enable the department to effectively reduce greenhouse gas emissions and monitor

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compliance with the statewide greenhouse gas emissions limit.

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     (8) "Leakage" means an increase in greenhouse gas emissions related to domestic power

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use from generation sources located outside of the state that are not subject to state, interstate or

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regional greenhouse gas emissions limits that apply to generation sources located within the state.

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     (9) "Office" means the Rhode Island office of energy resources.

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     (10) "State funds" means direct or indirect expenditure of state monies, including any tax

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reductions, tax stabilization or other state financial benefits.

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     (11) "Statewide greenhouse gas emissions" means the total annual emissions of

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greenhouse gases in the state. In the case of electrical generation, statewide greenhouse gas

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emissions includes all emissions of greenhouse gases from the generation of electricity delivered

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to and consumed in Rhode Island, accounting for transmission and distribution line losses,

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whether the electricity is generated in state or imported. Statewide emissions shall be expressed in

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tons of carbon dioxide equivalents.

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     (12) "Statewide greenhouse gas emissions limit" or "statewide emissions limit" means the

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maximum allowable level of statewide greenhouse gas emissions in a given year, as determined

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by the department pursuant to section 23-88-5.

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     (13) "1990 level of statewide greenhouse gas emissions" means the statewide greenhouse

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gas emissions for 1990 as established by the department under section 23-88-5.

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     (14) "2019 limit" means the level of greenhouse gas emissions for 2019 established by

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the department under section 23-88-5.

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     (15) "2024 limit" means the level of greenhouse gas emissions equal to the twenty

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percent (20%) less than the 1990 level of statewide greenhouse gas emissions, established by the

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department under section 23-88-5.

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     (16) "2050 limit" means the level of greenhouse gas emissions equal to eighty percent

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(80%) less than the 1990 level of statewide greenhouse gas emissions, established by the

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department under section 23-88-5.

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     23-88-4. Mandatory greenhouse gas reporting. – (a) No later than January 30, 2015,

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the department shall adopt rules and regulations that require the annual reporting and verification

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of greenhouse gas emissions and that provide for the monitoring and enforcement of compliance

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with the reporting and verification requirements.

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     (b) The rules and regulations adopted pursuant to this section shall:

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     (1) Require the monitoring and annual reporting of greenhouse gas emissions from

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greenhouse gas emission sources, beginning with the sources or categories of sources that

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contribute most to statewide greenhouse gas emissions;

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     (2) Include greenhouse gas emissions from the generation of electricity that is consumed

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in the state, regardless of whether it is generated in state, including transmission and distribution

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line losses;

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     (3) Ensure rigorous and consistent accounting of emissions, and provide reporting tools

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and formats to ensure collection of necessary data; and

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     (4) Ensure that greenhouse gas emission sources maintain comprehensive records of all

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reported greenhouse gas emissions.

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     (c) The department shall:

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     (1) Periodically review the requirements in rules promulgated under this section and

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update the rules, as necessary;

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     (2) Review existing and proposed international, federal, regional and state greenhouse

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gas emission reporting programs and make reasonable efforts to promote consistency among the

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programs established pursuant to this section and other programs, and to streamline reporting

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requirements on greenhouse gas emission sources; and

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     (3) Require reporting in the form and format that is most useful in allowing the

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department to track emissions and to prepare the reports required in section 23-88-10.

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     (d) The department shall consider, on an annual basis, requiring the expansion of

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reporting to other sources of direct or indirect emissions. A decision for or against an expansion

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of reporting and an explanation of such decision shall be included in the report required pursuant

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to section 23-88-10.

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     23-88-5. Statewide greenhouse gas emissions limits. -- (a) Statewide greenhouse gas

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emissions limits shall be established by the department and implemented according to the

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following schedule:

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     (1) No later than January 1, 2019, statewide greenhouse gas emissions shall be reduced to

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or below the 2019 limit;

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     (2) No later than January 1, 2024, statewide greenhouse gas emissions shall be reduced to

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or below the 2024 limit;

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     (3) No later than January 1, 2050, statewide greenhouse gas emissions shall be reduced to

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or below the 2050 limit and shall not exceed that level thereafter.

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     (b) The department, in consultation with the office of energy resources, shall also adopt

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strategies for achieving the 2019 limit, the 2024 limit and the 2050 limit.

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     23-88-6. Greenhouse gas emissions reductions. -- (a)(1) Strategies and plans. - In

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consultation with the office of energy resources, the department shall prepare and approve, no

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later than January 1, 2016, a strategy for achieving the 2019 limit.

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     (2) In consultation with the office of energy resources, the department shall prepare and

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approve, no later than January 1, 2017, a strategy for achieving the 2024 limit.

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     (3) In consultation with the office of energy resources, the department shall prepare and

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approve, no later than January 1, 2018, a strategy for achieving the 2050 limit.

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     (4) The strategies provided shall describe proposed legislation and regulations from the

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department, the department of transportation, the office, and any other state agencies or entities

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from which action is needed to achieve the goals, set forth in the chapter, as well as other

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emission reduction measures to be taken by state entities as necessary and appropriate to achieve

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these goals. The strategies shall include regulations, economic incentives and/or other enforceable

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mechanisms to reduce vehicle miles traveled.

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     (5) The department and office shall provide opportunities for public input into the

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strategies and for comment on the proposed goals before the goals and strategies are approved.

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     (6) By December 1, 2013 The office of energy resources shall recommend whether, and

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if so in what form, an interstate compact within the New England ISO and other interested states

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shall be entered into and that would promote collective and cooperative interstate activity to

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promote the objectives of this chapter.

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     (7) The department and other state agencies taking action under this chapter shall seek to

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identify the most effective strategies and methods to reduce greenhouse gases, to manage

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greenhouse gas control programs, and to facilitate the development of integrated regional,

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national, and international greenhouse gas reduction programs, and for this purpose shall look to

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examples from other states and other nations.

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     (8) The department shall consult with the public utilities commission and the office of

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energy resources on the elements of the plan that pertain to energy related matters, including the

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consumption of electricity, development of renewable energy sources, any standards or

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requirements that are based on the amounts of electricity that an electric provider sells to retail

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customers, or the provision of reliable and affordable electrical service to ensure that the

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greenhouse gas emission reduction activities in the plan are additional and not duplicative. The

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office of energy resources shall develop and/or incorporate such elements into the energy element

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of the state guide plan it develops and incorporate the emissions reductions goals of this chapter,

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as established in section 23-88-5, in the energy planning goals.

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     (9) The department shall consult with the Rhode Island public transit authority, the

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department of transportation, statewide planning and the economic development corporation on

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the elements of the plan that pertain to transportation, particularly the reduction of vehicle miles

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traveled.

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     (10) In developing its plans, the department shall take into account the relative

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contribution of each source or source category to statewide greenhouse gas emissions, and shall

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recommend a de minimus threshold of greenhouse gas emissions below which emission reduction

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requirements will not apply.

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     (11) In developing its plans, the department shall identify opportunities for emission

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reductions measures from all verifiable voluntary actions.

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     (12) In adopting plans and regulations pursuant to this section, to the extent feasible and

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in furtherance of achieving the statewide greenhouse gas emissions limits, the department and all

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other state agencies or entities taking action under this chapter, shall do all of the following:

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     (i) Design the regulations, including distribution of emissions allowances where

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appropriate, in a manner that is equitable, seeks to minimize long-term costs and maximize the

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total benefits to Rhode Island, and encourages early action to reduce greenhouse gas emissions;

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     (ii) Ensure that activities undertaken to comply with the regulations do not

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disproportionately impact low-income communities;

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     (iii) Ensure that sufficient means are provided to assist low-income residents to achieve

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energy efficiency savings, particularly residents of high energy use buildings;

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     (iv) Ensure that entities that have voluntarily reduced their greenhouse gas emissions

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prior to the implementation of this section receive appropriate credit for early voluntary

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reductions;

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     (v) Ensure that activities undertaken pursuant to the regulations complement, and do not

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interfere with, efforts to achieve and maintain federal and state ambient air quality standards and

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to reduce toxic air contaminant emissions;

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     (vi) Consider overall societal benefits, including reductions in other air pollutants,

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diversification of energy sources, and other benefits to the economy, environment, and public

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health;

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     (vii) Ensure that the rules, regulations, programs, mechanisms and incentives, to the

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extent applicable and feasible, direct private and public investment toward the most

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disadvantaged communities in Rhode Island and provide an opportunity for small businesses and

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community institutions to participate in and benefit from statewide efforts to reduce greenhouse

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gas emissions;

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     (viii) Minimize the administrative burden of implementing and complying with these

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regulations;

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     (ix) Minimize leakage;

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     (x) Consider the significance of the contribution of each source or category of sources to

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statewide emissions of greenhouse gases; and

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     (xi) Ensure that any such mechanism will be designed to work alongside but in no way

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undermine any regional greenhouse gas emissions markets in which the state, suppliers of

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electricity, generators of electricity, green power providers, or industries within the state may be

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participating.

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     (13) The department of administration, through or with the office of energy resources,

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shall, as needed, provide the general assembly with proposals for draft legislation of changes to

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existing law needed to implement the strategies developed under section 23-88-5, to bring this

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statute into conformance with federal law and/or regulations, or to respond to changing global

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climate conditions.

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     (14) Nothing in this chapter shall restrict the department from providing early reduction

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credit where appropriate, nor shall this chapter be seen as preventing any more stringent limits on

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emissions, as science shows to be prudent.

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     (b) Other greenhouse gas reduction provisions. -

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     (1) No later than January 1, 2015, the Rhode Island department of administration shall

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develop guidelines for all state agencies that shall be used by those agencies to consider and

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implement strategies to reduce their greenhouse gas emissions.

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     (2) All works, projects or activities funded in whole or in part with state funds, including

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all state transportation projects, that are reasonably likely to result in significant direct or indirect

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emissions of greenhouse gases shall take all reasonable actions to minimize energy consumed in

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the construction and operation of the project during its expected life, and to minimize emissions

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from vehicle travel that will result from the construction and operation of the project, with a goal

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of net reductions in greenhouse gas emissions from all such projects. The department shall define,

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no later than June 30, 2014, after public notice and comment, what shall be considered significant

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for purposes of this section. The proponent of the works, projects or activities subject to this

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subsection shall file with the department, prior to construction of the project, a certification that

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the project has complied with this subsection and describing the actions taken to comply. Nothing

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in this section shall prevent the department or any other state department or entity from requiring

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additional actions to reduce direct or indirect greenhouse gas emissions.

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     (3) In connection with the consideration and issuance of permits, licenses and other

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administrative approvals and decisions by the department, the Rhode Island department of

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transportation, and the Rhode Island coastal resources management council, reasonably

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foreseeable contributions to global warming, such as greenhouse gas emissions, and reasonably

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foreseeable effects of global warming, such as predicted sea level rise, shall be taken into

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consideration in deciding whether to issue the requested permit, license or approval, what

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alternatives may be preferable, and what conditions may be imposed on any such permit, license

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or approval. In considering contributions to and effects of the action for which approval is

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requested, the approving agency shall consider both the individual application and the cumulative

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effects of other past, present and reasonably foreseeable future actions.

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     (4) No later than January 1, 2016, the state planning council shall adopt in the state guide

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plan an element on reducing greenhouse gases and shall revise such other elements in the state

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guide plan as necessary to achieve the purposes of this act, and shall provide guidance to cities

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and towns on developing comprehensive plans that conform to that element and that implement

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the state's goals for reducing greenhouse gasses.

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     23-88-7. Economic development. – (a) No later than January 1, 2014, the governor shall

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appoint an economic and technology advancement advisory committee, which shall include

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representatives from business, labor unions, academic institutions, renewable energy developers,

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energy efficiency and innovative energy products providers, and others as the governor deems

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appropriate, to be chaired by the economic development corporation, to advise the governor, the

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department and the working group on activities that will facilitate investment in and

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implementation of technological research and development opportunities, including, but not

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limited to, identifying new technologies, research, demonstration projects, and funding

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opportunities, developing state, national and international partnerships and technology transfer

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opportunities, and identifying and assessing research and advanced technology investment and

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incentive opportunities that will assist in the reduction of greenhouse gas emissions, and

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development of greenhouse gas reduction employment in the state.

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     (b) The economic and technology advancement advisory committee shall recommend

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programs and incentives to foster energy efficiency and renewable energy workforce

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development and training programs, to increase the number of trained skilled workers in the

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economic sectors of emerging clean energy, renewable energy, energy efficiency, and demand

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resources. The programs and incentives shall be designed to promote growth of the clean energy

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economy by helping build a pipeline of well-trained, skilled workers and addressing emerging

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skills gaps in both clean energy development and adoption.

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     23-88-8. Market-based compliance mechanisms. – (a) The department and other state

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agencies may include in the regulations adopted pursuant to this chapter the use of market-based

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compliance mechanisms to comply with the regulations.

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     (b) Prior to the inclusion of any market-based compliance mechanism in the regulations,

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to the extent feasible and in furtherance of achieving the statewide greenhouse gas emissions

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limit, the department or other state agencies shall do all of the following:

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     (1) Consider the potential for direct, indirect, and cumulative emission impacts from

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these mechanisms, including localized impacts in communities that are already adversely

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impacted by air pollution;

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     (2) Design any market-based compliance mechanism to prevent any increase in the

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emissions of toxic air contaminants or criteria air pollutants, with particular attention paid to

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emissions of nitrous oxide, sulfur dioxide, particulate matter and mercury; and

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     (3) Maximize additional environmental, economic, and health benefits for Rhode Island,

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as appropriate.

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     (c) The department may adopt regulations governing how market-based compliance

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mechanisms may be used by regulated entities subject to greenhouse gas emission limits and

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mandatory emission reporting requirements to achieve compliance with their greenhouse gas

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emissions limits.

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     (d) Nothing in this chapter shall confer any authority on the department or office or any

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other state agency to make less stringent any programs administered by other state agencies for

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the reduction of greenhouse gas emissions.

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     23-88-9.Enforcement.-- (a) The department and other state agencies adopting

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regulations pursuant to this chapter shall monitor compliance with and enforce any rule,

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regulation, order, emission limitation, emission reduction measure, or market-based compliance

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mechanism adopted by the department or other state agency pursuant to this chapter.

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     (b) In the instance of any violation of any rule, regulation, order, emission limitation,

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emissions reduction measure, or other measure adopted by the department or other state agency

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pursuant to this chapter, the violating entity shall be subject to those penalties set forth in that

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agency's regulations.

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     (c) The plans adopted by the department under section 23-88-6 may include proposed

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legislation or regulations to tighten enforcement sanctions for violations of rules adopted under

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this chapter in furtherance of the goals of this chapter.

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     23-88-10. Reporting. – (a) No later than December 1, 2015, and biennially thereafter, the

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department, in coordination with the office of energy resources, shall prepare and transmit, in

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writing, a report to the governor, to the general treasurer, and to the general assembly, on the

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status of the greenhouse gas emissions monitoring and reporting program established pursuant to

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this chapter, the current level of greenhouse gas emissions in the state, and the progress made

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toward compliance with the 2019 limit, the 2024, limit and the 2050 limit established pursuant to

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this chapter. The report shall also include updated and comparative inventories of statewide

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greenhouse gas emissions.

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     (b) No later than December 1, 2015, and annually thereafter, the department shall prepare

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and transmit, in writing, a report to the governor and to the general assembly on the state's

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progress in meeting the deadlines established by this chapter. Such report shall include a

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summary of the approved plans established under section 23-88-6 of this chapter and the

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requirements for each state agency to adopt regulations or other programs pursuant to those plans,

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and shall attach a report from each such agency describing its compliance with the requirements

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of the plans.

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     23-88-11. Additional provisions. – (a) Any regulation adopted by the department or any

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other state agency pursuant to this chapter shall ensure that the greenhouse gas emission

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reductions achieved are real, permanent, quantifiable, verifiable, and enforceable.

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     (b) Nothing in this chapter shall relieve any person, entity, or public agency of

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compliance with other applicable federal, state, or local laws or regulations, including state air

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and water quality requirements, and other requirements for protecting public health or the

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environment.

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     (c) The provisions of this chapter are severable. If any provision of this chapter or its

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application is held invalid, that invalidity shall not affect other provisions or applications that can

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be given effect without the invalid provision or application.

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     (d) Nothing in this chapter shall limit the existing authority of a state entity to adopt and

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implement greenhouse gas emissions reduction measures.

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     SECTION 2. This act shall take effect upon passage.

     

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LC01728/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO HEALTH AND SAFETY -- ENERGY INDEPENDENCE

***

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     This act would create the Rhode Island energy independence and climate solutions act

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which would attempt to reduce greenhouse gases and thus retard global warming.

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     This act would take effect upon passage.

     

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LC01728/SUB A

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H5801A