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art.007/1

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     ARTICLE 7

RELATING TO REGIONAL GREENHOUSE GAS INITIATIVE ACT

     SECTION 1. Section 23-82-6 of the General Laws in Chapter 23-82 entitled

"Implementation of the Regional Greenhouse Gas Initiative Act" is hereby amended to read as

follows:

     23-82-6. Use of auction or sale proceeds. -- (a) The proceeds from the auction or sale of

the allowances shall be used for the benefit of energy consumers through investment in the most

cost-effective available projects that can reduce long-term consumer energy demands and costs.

Such proceeds may be used only for the following purposes, in a proportion to be determined

annually by the office in consultation with the council and the board:

     (1) Promotion of cost-effective energy efficiency and conservation in order to achieve the

purposes of § 39-1-27.7;

     (2) Promotion of cost-effective renewable non-carbon emitting energy technologies in

Rhode Island as defined in § 39-26-5 and to achieve the purposes of chapter 39-26 entitled

"Renewable Energy Standard";

     (3) Cost-effective direct rate relief for consumers;

     (4) Direct rate relief for low-income consumers;

     (5) Reasonable compensation to an entity selected to administer the auction or sale; and

     (6) Reasonable costs of the department of environmental management and office of

energy resources in administering this program, as well as other climate change, energy

efficiency, and renewable program efforts of the department of environmental management and

office of energy resources, which shall not in any year exceed three hundred thousand dollars

($300,000) or five percent (5%) ten percent (10%) of the proceeds from sale or auction of the

allowances, whichever is less greater. Administrative funds not expended in any fiscal year shall

remain in the administrative account to be used as needed in subsequent years. The office of

energy resources shall have the ability to apply administrative funds not used in a fiscal year to

achieve the purpose of this section. The funds deposited into the administrative funds account

shall be exempt from the indirect cost recovery provisions of section 35-4-27.

     (b) Any interest earned on the funds so generated must be credited to the fund. Funds not

spent in any fiscal year shall remain in the fund to be used for future energy efficiency and carbon

reduction programs.

     (c) Annually, the office, in consultation with council and board, shall prepare a draft

proposal on how the proceeds from the allowances shall be allocated. The draft proposal shall be

designed to augment and coordinate with existing energy efficiency and renewable energy

programs, and shall not propose use of auction proceeds for projects already funded under other

programs. The proposal for allocation of proceeds in subsections 23-82-6(1), (2) and (3) shall be

one that best achieves the purposes of the law, namely, lowering carbon emissions and

minimizing costs to consumers over the long term. The office shall hold a public hearing and

accept public comment on the draft proposal in accordance with chapter 42-35 (the

"Administrative Procedure Act"). Once the proposal is final, the office shall authorize the

disbursement of funds in accordance with the final plan.

     (d) The office shall prepare, in consultation with council and board, a report by April

15th of each year describing the implementation and operation of RGGI, the revenues collected

and the expenditures, including funds that were allocated to the energy efficiency and renewable

energy programs, and the individuals, businesses and vendors that received funding, made under

this section, the statewide energy efficiency and carbon reduction programs, and any

recommendations for changes to law relating to the state's energy conservation or carbon

reduction efforts. The report shall be made public and be posted electronically on the website of

the office of energy resources and shall also be submitted to the general assembly. 

     SECTION 2. This article shall take effect as of July 1, 2014.