2013 -- S 0123 SUBSTITUTE A

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LC00423/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 STATE AFFAIRS AND GOVERNMENT -- ENERGY EFFICIENCY

     Introduced By: Senators Sosnowski, Bates, Miller, DiPalma, and Walaska

     Date Introduced: January 24, 2013

     Referred To: Senate Environment & Agriculture

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 42-140.1-2, 42-140.1-4 and 42-140.1-5 of the General Laws in

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Chapter 42-140.1 entitled "The Rhode Island Energy Efficiency and Resource Management

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Council" are hereby amended to read as follows:

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     42-140.1-2. Legislative findings. -- It is hereby found and declared:

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      (a) Rhode Island has experienced an energy cost crisis during 2005, and 2006 and 2008

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and faces the prospect of fluctuating and increasing energy prices in the future.

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      (b) Energy conservation and energy efficiency have enormous, untapped potential for

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controlling energy costs and mitigating the effects of energy crisis for Rhode Island residents and

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the Rhode Island economy.

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      (c) Rhode Island has lacked an integrated, comprehensive, public, stakeholder-driven

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organizational structure to secure for Rhode Island and its people the full benefits of energy

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efficiency, energy conservation, and energy resources management.

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     (d) Energy efficiency programs can create employment and economic opportunities in

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Rhode Island.

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     42-140.1-4. Composition and appointment. -- (a) The council shall consist of eleven

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(11) fourteen (14) members appointed by the governor with the advice and consent of the senate;

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seven (7) nine (9) members shall be voting numbers, and the governor shall give due

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consideration to appointing persons with knowledge of: (1) energy regulation and law; (2) large

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commercial/industrial users, (3) small commercial/industrial users; (4) residential users; (5) low

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income users; (6) environmental issues pertaining to energy; (7) energy design and codes; and (8)

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energy efficiency education and employment training; and (9) municipal energy users. four (4)

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Five (5) members shall be ex-officio, non-voting members, representing an electric distribution

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entity, a gas distribution entity, fuel oil or heating fuel industry, the director of labor and training

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or his/her designee from the department, and the commissioner of the office of energy resources.

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From the seven (7) nine (9) voting members, the governor shall appoint one person to be

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chairperson of the council and one person to be vice chairperson of the council; the commissioner

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of the office of energy resources shall be the executive secretary and executive director of the

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council.

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      (b) With the exception of the director of labor and training or his/her designee and the

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commissioner of the office of energy resources; of the initial appointments; three (3) four (4)

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members shall be appointed for a term of three (3) years, three (3) four (4), members shall be

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appointed for a term of four (4) years, and four (4) members shall be appointed for a term of five

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(5) years; thereafter members of the council shall be appointed for a term of five (5) years and

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may be reappointed.

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      (c) A simple majority of the total number of voting members shall constitute a quorum.

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      (d) A vacancy other than by expiration shall be filled in the manner of the original

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appointment but only for the unexpired portion of the term. The appointing authority shall have

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the power to remove its appointee for just cause.

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      (e) The members of the council shall not be compensated for their service but shall be

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reimbursed for their actual expenses necessarily incurred in the performance of their duties. The

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provisions of this subdivision shall not apply to the executive secretary/executive director.

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     42-140.1-5. Powers and duties. -- The council shall have the power to:

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      (a) Develop and recommend for implementation plans, programs and standards for

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energy conservation, energy efficiency, and diversification of energy resources.

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      (b) Monitor and evaluate plans and programs for energy conservation, energy efficiency

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and diversification of energy resources; in order to effectuate such evaluations the council may

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request audits, including performance audits, of any program for energy conservation, energy

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efficiency or diversification of energy resources, that is established pursuant to Rhode Island law

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or is administered by a state agency, a request for an audit of any program operative pursuant to

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an order or decision of the public utilities commission shall be made to the commission; the

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council may make findings and recommendations with regard to changes, modification or

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continuation of any programs which it has authority to monitor or evaluate.

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      (c) Submit to the joint committee on energy an annual report on/or before April 15 of

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each year, commencing in 2008, regarding the activities of the council, its assessment of energy

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issues, the status of system reliability, energy efficiency and conservation procurement; a list of

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all the energy efficiency businesses, consultants, and vendors participating in the programs,

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including work related to energy audits, insulations, and equipment installations for the

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residential, small business, and large commercial and industrial sectors; the funding allocation

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that went into each of the eligible energy efficiency programs; and its recommendations regarding

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any improvements which might be necessary or desirable.

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      (d) Participate in proceedings of the public utilities commission that pertain to the

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purposes of the council, including but not limited to, proceedings regarding least-cost

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procurement as provided for in section 39-1-27.7.

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      (e) Advise electric distribution companies with regard to implementation of least cost

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procurement.

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     (f) Hold public meetings at least two (2) times a year with the Rhode Island renewable

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energy coordinating board and/or the advisory council to coordinate programmatic and funding

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efforts around the regional greenhouse gas initiative; system reliability; the diversification of

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energy resources for energy security; and promotion of distributed generation renewable energy.

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      (f)(g) Advise the commission commissioner of energy resources, and recommend

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policies, standards, strategies, plans, programs, and procedures with regard to functions of the

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office of energy resources including but not limited to plans, strategies, and programs to:

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      (1) implement cost-effective energy conservation and energy efficiency programs;

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      (2) promote the development of eligible renewable energy resources for Rhode Island in

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coordination with the Rhode Island renewable energy coordinating board;

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      (3) foster distributed generation of electricity and demand response;

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      (4) assist low-income households in meeting energy needs; and

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      (5) coordinate the use of funds, resources, and programs from diverse resources to

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achieve the purposes of the office.

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     (g)(h) Consider such other matters as it may deem appropriate to the fulfillment of its

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purposes, and may advise the governor, the general assembly, other parties, and the public with

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regard to matters pertaining to its purposes and duties, which advice may include findings and

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recommendations.

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     SECTION 2. Sections 42-140.3-3, 42-140.3-5, 42-140.3-6, 42-140.3-7, 42-140.3-8, 42-

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140.3-9 and 42-140.3-10 of the General Laws in Chapter 42-140.3 entitled "The Rhode Island

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Renewable Energy Coordinating Board" are hereby amended to read as follows:

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     42-140.3-3. Definitions. -- When used in this chapter, the following terms shall have the

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following meanings:

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      (1) "Board" means the Rhode Island renewable energy coordinating board established

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under section 42-140.3-4;

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     (2) "Advisory council" means the Rhode Island renewable energy advisory council

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formed by the Rhode Island renewable energy coordinating board.

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     (2)(3) "Renewable energy" means energy produced from eligible renewable energy

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resources as defined in section 39-26-5;

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      (3)(4) "Renewable energy policies" means Rhode Island renewable energy statutes as

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defined in section 42-140.3-11;

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      (4)(5) "State agencies" means state entities responsible for the implementation of Rhode

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Island's renewable energy policies, deemed to include, but not be limited to: (i) The office of

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energy resources; (ii) The economic development corporation; (iii) The department of

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administration's division of planning; (iv) The department of environmental management; (v) The

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coastal resources management council; (vi) The energy facility siting board; (vii) The public

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utilities commission; (viii) The division of public utilities; and (ix) The energy efficiency and

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resources management council.

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      (5)(6) "Strategic plan" means the strategic renewable energy implementation plan

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established under section 42-140.3-8.

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     42-140.3-5. Composition of the board. -- (a) The board shall have five (5) members: -

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(1) The director of the department of administration, who shall serve as chairperson of the board;

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(2) The commissioner of the office of energy resources; (3) The executive director of the

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economic development corporation; (4) The director of the department of environmental

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management; and (5) The director of the coastal resources management council. Any member of

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the board may appoint a designee from his or her respective agency to represent him/her on the

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board.

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      (b) Three (3) members shall constitute a quorum. - A majority vote of the board shall be

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required for all recommendations, advice, and approvals of the board in accordance with this

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chapter.

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     (c) The board shall convene meetings at a minimum six (6) times per year.

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     42-140.3-6. Duties of the board. -- The board shall with assistance provided by the

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advisory council shall perform the following duties:

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      (1) Develop and maintain the strategic plan in accordance with section 42-140.3-8.

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      (2) Issue the strategic plan biannual report in accordance with subsection 42-140.3-8(e).

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      (3) Issue recommendations as necessary to state agencies and cities and towns.

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      (4) Issue recommendations for improvements to existing renewable energy procurement

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policies and programs that will create employment opportunities in Rhode Island.

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     (4)(5) Advise the governor and general assembly with regard to renewable energy

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development in Rhode Island.

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      (5)(6) Provide a forum for discussion of issues relating to renewable energy development

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in Rhode Island and receive testimony from the public and interest groups.

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     (7) Provide a forum for discussion on ways to support sustainable community

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development and the creation of green job opportunities, including opportunities for new entrants

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into the state's workforce, the long-term unemployed and displaced workers, and recent college

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graduates.

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      (6)(8) Make available to the public all information about activities of the board.

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     42-140.3-7. Powers of the board. -- To effectuate its duties, the board with assistance

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from the advisory council shall have the power to:

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      (1) Adopt and amend bylaws.

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      (2) Receive staff and administrative support from the department of administration and

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the Rhode Island office of energy resources.

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      (3) Hold public meetings at least quarterly and at the call of the chairperson or three (3)

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board members, in order to: (i) Develop and maintain the strategic renewable energy plan; (ii)

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Develop reports and issue recommendations; (iii) Receive testimony from the public and other

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interested parties.

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      (4) Hold public meetings at least twice each year with the Rhode Island energy

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efficiency and resources management council to coordinate programmatic and funding efforts

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around the regional greenhouse initiative; system reliability; the diversification of energy

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resources for energy security; and promotion of distributed generation renewable energy.

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      (5) Engage any consultants or expert witnesses that it deems necessary to implement its

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statutory responsibilities; provided, however, that to the maximum extent possible, the board shall

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utilize staff from state agencies.

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     (6) Establish and maintain a website with information on all activities of the board and

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the advisory council.

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     (7) Comment on legislation pending before the general assembly or designate the Rhode

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Island office of energy resources to speak on behalf of the board.

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     42-140.3-8. Strategic renewable energy implementation plan. -- (a) The board with the

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assistance from the advisory council shall develop and recommend a strategic renewable energy

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implementation plan to promote the development of renewable energy resources in Rhode Island.

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      (b) The strategic plan shall: (1) Coordinate the short and long-term implementation of

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renewable energy policies by state agencies; (2) Assess and include recommendations to realize

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the potential of renewable energy development to create new businesses, employment

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opportunities, and industries in Rhode Island; and (3) Address any other issues deemed

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appropriate by the board to advance renewable energy development in Rhode Island.

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      (c) The board and advisory council may incorporate into the strategic plan the reports

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and findings of state agencies including, but not limited to, the results of any special area

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management plans.

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      (d) On or before November 15, 2011, the board shall adopt the strategic plan. The board

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and the advisory council may amend the strategic plan as necessary.

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      (e) On March April 15 and September October 15 of each year, commencing in 2012,

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the board shall issue the strategic plan biannual report, which shall be made available to the

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public and transmitted to the governor; the senate president; the speaker of the house; and state

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agencies. The strategic plan biannual report shall:

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      (1) Assess compliance with the strategic plan by state agencies and cities and towns;

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      (2) Evaluate the effectiveness of state renewable energy policies;

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      (3) Analyze the structure and sources of public funding for renewable energy

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development;

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      (4) Evaluate the extent to which public funding for renewable energy development is

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allocated to energy efficient projects;

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      (5) As necessary, make recommendations to state agencies and cities and towns; and

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      (6) As necessary, make recommendations for legislative action relating to renewable

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energy development and financing.

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     42-140.3-9. Renewable energy facility siting guidelines. -- The board with assistance

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from the Rhode Island office of energy resources shall:

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      (1) As a component of the strategic plan, adopt and amend as necessary the renewable

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energy facility siting standards and guidelines promulgated by the division of planning under

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section 42-11-10.

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      (2) Monitor the adoption of renewable energy siting ordinances by cities and towns.

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      (3) Communicate with towns and cities to encourage and facilitate the adoption of

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recommended renewable energy siting ordinances.

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     42-140.3-10. Advisory council. -- (a) The Rhode Island renewable energy coordinating

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board advisory council is hereby established to advise the board on matters pertaining to the

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board's duties and powers.

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      (b) The advisory council shall have (15) sixteen (16) members. Each board member with

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the exception of the office of energy resources, shall select three (3) advisory council members,

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provided that the advisory council includes members with experience in the following areas: (1)

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Renewable energy development; (2) Energy regulation and law; (3) Environmental issues

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pertaining to renewable energy; (4) Business association or chamber of commerce; (5) Green

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trades; (6) Residential energy consumers; (7) Low-income energy consumers; (8) Small business

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relating to renewable energy; and (9) Commercial/industrial energy consumers; and (10)

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Municipal energy users. If an advisory council member resigns from his or her position, the board

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member responsible for the selection of that advisory council member shall select his or her

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replacement in accordance with the experience requirements stipulated in this section.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- ENERGY EFFICIENCY

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     This act would make changes in the membership and duties of the Rhode Island energy

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efficiency and resources management council, and the Rhode Island renewable energy

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coordinating board and advisory council.

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     This act would take effect upon passage.

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LC00423/SUB A

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