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art.014/6/014/5/014/4/014/3/024/2/024/1

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     ARTICLE 14 AS AMENDED

RELATING TO INFRASTRUCTURE BANK

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

amended by adding thereto the following chapter:

CHAPTER 19.16

BROWNFIELDS REVOLVING LOAN FUND

     23-19.16-1. Legislative findings. -- The general assembly finds and declares that:

     (1) Promotion of, and investment in, energy efficient infrastructure will result in the

reduction of energy costs for commercial, residential and municipal users which is necessary to

maintain and grow Rhode Island's economy; and

     (2) There exists the Rhode Island clean water finance agency which can be expanded to

assist businesses, residents and municipalities with the coordination and financing of necessary

infrastructure improvements and renamed as the Rhode Island infrastructure bank; and

     (3) In addition to reducing energy cost, energy efficient infrastructure improvements will

result in less pollution, the remediation of Brownfields, coastal nourishment and restoration, safer

drinking water and an overall sound environment; and

     (4) Cities, towns and other owners of properties designated as Brownfields sites can

reduce the costs of borrowing for remediation and/or development of those sites through

cooperation with the Rhode Island infrastructure bank; and

     (5) Remediation and/or development of Brownfields sites will generate economic activity

and utilize properties which were otherwise dormant or underutilized; and

     (6) Greater coordination among state and municipal agencies will enable a more efficient

allocation of infrastructure resources by the state of Rhode Island.

     23-19.16-2. Definitions. -- As used in this chapter, the following terms, unless the

context requires a different interpretation, shall have the following meanings:

     (1) "Agency" means the Rhode Island infrastructure bank as set forth in chapter 12.2 of

title 46;

     (2) "Approved project" means any project approved by the agency for financial

assistance;

     (3) "Brownfields project" means a project proposed by a city, town, person or corporation

that would provide for the remediation and/or development of a site within the state of Rhode

Island defined as a Brownfields site pursuant to § 101 of the Comprehensive Environmental

Response, Compensation, and Liability Act of 1980, as amended;

     (4) "Corporation" means any corporate person, including, but not limited to, bodies

politic and corporate, corporations, societies, associations, partnerships, limited liability

companies, sole proprietorships and subordinate instrumentalities of any one or more political

subdivisions of the state;

     (5) "Department" means, for purposes of this chapter, the department of environmental

management;

     (6) "Eligible borrower" or "borrower" means a person, corporation, city, town, or other

political subdivision or instrumentality of the state;

     (7) "Eligible project" means a brownfields project, or portion of a brownfields project,

that meets the project evaluation criteria;

     (8) "Financial assistance" means any form of financial assistance provided by the agency

to an eligible borrower in accordance with this chapter for all or any part of the cost of an

approved project, including, without limitation, temporary and permanent loans, with or without

interest, grants, guarantees, insurance, subsidies for the payment of debt service on loans, lines of

credit, and similar forms of financial assistance;

     (9) "Person" means any natural person;

     (10) "Project evaluation criteria" means the criteria used by the department to evaluate

and rank eligible projects and shall include the extent to which the project generates economic

benefits, the extent to which the project would be able to proceed, the cost effectiveness of the

project; and

     (11) "Revolving fund" means the brownfields revolving fund established under this

chapter.

     23-19.16-3. Establishment of the brownfields revolving fund. -- (a) There is hereby

established a brownfields revolving fund. The agency shall establish and set up on its books the

brownfields revolving fund, to be held in trust and to be administered by the agency solely as

provided in this section and in any trust agreement securing bonds of the agency. The agency

shall deposit the following monies into the fund:

     (1) Amounts appropriated, transferred, or designated to the agency by the state or federal

government or any political subdivision thereof for the purposes of this chapter;

     (2) Loan repayments and other payments received by the agency pursuant to loan

agreements with eligible borrowers executed in accordance with this chapter;

     (3) Investment earnings on amounts credited to the fund;

     (4) Proceeds of bonds of the agency to the extent required by any trust agreement for

such bonds;

     (5) Administrative fees levied by the agency;

     (6) Other amounts required by provisions of this chapter or agreement, or any other law

or any trust agreement pertaining to bonds to be credited to the revolving fund; and

     (7) Any other funds permitted by law which the agency in its discretion shall determine

to credit thereto.

     (b) The agency shall establish and maintain fiscal controls and accounting procedures

conforming to generally accepted government accounting standards sufficient to ensure proper

accounting for receipts in and disbursements from the brownfields revolving fund.

     23-19.16-4. Administration. -- (a) The agency shall have all the powers necessary and

convenient to carry out and effectuate the purposes and provisions of this chapter including,

without limiting the generality of the preceding statement, the authority:

     (1) To receive and disburse such funds from the state and federal government as may be

available for the purpose of the revolving fund subject to the provisions of this chapter;

     (2) To make and enter into binding commitments to provide financial assistance to

eligible borrowers from amounts on deposit in the revolving fund;

     (3) To levy administrative fees on eligible borrowers as necessary to effectuate the

provisions of this chapter, provided the fees have been previously authorized by an agreement

between the agency and the eligible borrower;

     (4) To engage the services of third-party vendors to provide professional services;

     (5) To establish one or more accounts within the revolving fund; and

     (6) Such other authority as granted to the agency under chapter 12.2 of title 46.

     (b) Subject to the provisions of this chapter, to the provisions of any agreement with the

state authorized by § 23-19.16-5; and to any agreements with the holders of any bonds of the

agency or any trustee therefor, amounts held by the agency for the account of the revolving fund

shall be applied by the agency, either by direct expenditure, disbursement, or transfer to one or

more other funds and accounts held by the agency or maintained under any trust agreement

pertaining to bonds, either alone or with other funds of the agency, to the following purposes:

     (1) To provide financial assistance to eligible borrowers to finance costs of approved

projects, and to refinance the costs of the projects, subject to such terms and conditions, if any, as

are determined by the departments and/or the agency in accordance with § 23-19.16-6;

     (2) To fund reserves for bonds of the agency and to purchase insurance and pay the

premiums therefor, and pay fees and expenses of letters or lines of credit and costs of

reimbursement to the issuers thereof for any payments made thereon or on any insurance, and to

otherwise provide security for, and a source of payment for obligations of the agency, by pledge,

lien, assignment, or otherwise as provided in chapter 12.2 of title 46;

     (3) To pay expenses of the agency and the department in administering the revolving

fund. As part of the annual appropriations bill, the department shall set forth the gross amount of

expenses received from the agency and a complete, specific breakdown of the sums retained

and/or expended for administrative expenses;

     (4) To provide a reserve for, or to otherwise secure, amounts payable by borrowers on

loans and obligations outstanding in the event of default thereof; amounts in any account in the

revolving fund may be applied to defaults on loans outstanding to the borrower for which the

account was established and, on a parity basis with all other accounts, to defaults on any loans or

obligations outstanding; and

     (5) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or

otherwise as provided in chapter 12.2 of title 46, any bonds of the agency.

     (c) In addition to other remedies of the agency under any loan agreement or otherwise

provided by law, the agency may also recover from a borrower, in an action in superior court, any

amount due the agency together with any other actual damages the agency shall have sustained

from the failure or refusal of the borrower to make the payments or abide by the terms of the loan

agreement.

     (d) Within ninety (90) days after the end of each fiscal year, the agency shall submit an

annual report to the governor, the speaker of the house of representatives, the president of the

senate, and the secretary of state of its activities during that fiscal year. The report shall provide: a

summary of the agency's meetings including when the agency met, subjects addressed, decisions

rendered and meeting minutes; a summary of the agency's actions including a listing of rules,

regulations, or procedures adopted or amended, applications received for financial assistance for

contracts or agreements entered into, applications and intended use plans submitted to federal

agencies for capitalization grants, properties acquired or leased, and bonds issued; a synopsis of

any complaints, suspensions, or other legal matters related to the authority of the agency; a

consolidated financial statement of all funds received and disbursed by the agency including the

source of and recipient of the funds which shall be audited by an independent certified public

accountant firm; copies of audits or reports required under federal law; a listing of the staff and/or

consultants employed by the agency; a listing of findings and recommendation derived from

agency activities; and a summary of performance during the previous fiscal year including

accomplishments, shortcomings and remedies. The report shall be posted as prescribed in § 42-

20-8.2. The director of the department of administration shall be responsible for the enforcement

of this provision. The initial report shall be due no later than January 1, 2017.

     23-19.16-5. Payment of state funds. -- (a) Subject to the provisions of subsection (b),

upon the written request of the agency, the general treasurer shall pay to the agency, from time to

time, from the proceeds of any bonds or notes issued by the state for the purposes of this chapter

or funds otherwise lawfully payable to the agency for the purposes of this chapter, such amounts

as shall have been appropriated or lawfully designated for the revolving fund. All amounts so

paid shall be credited to the revolving fund in addition to any other amounts credited or expected

to be credited to the revolving fund.

     (b) The agency and the state shall enter into, execute, and deliver one or more agreements

setting forth or otherwise determining the terms, conditions, and procedures for, and the amount,

time, and manner of payment of, all amounts available from the state to the agency under this

section.

     23-19.16-6. Procedure for project approval. -- The department of environmental

management, in consultation with the Rhode Island commerce corporation, shall promulgate rules

and regulations establishing the project evaluation criteria and a project priority list and the

process through which an eligible borrower may submit an application for inclusion of a

brownfields project on the project priority list. Upon issuance of the project priority list by the

department of environmental management, the project priority list shall be used by the Rhode

Island infrastructure bank to determine the order in which financial assistance shall be awarded.

The Rhode Island infrastructure bank shall promulgate rules and regulations to effectuate the

provisions of this section which may include, without limitation, forms for financial assistance

applications, loan agreements, and other instruments. All rules and regulations promulgated

pursuant to this chapter shall be promulgated in accordance with the provisions of chapter 35 of

title 42.

     23-19.16-7. Expenses incurred by the department. -- In order to provide for the

expenses of the department under this chapter, the agency shall transfer to the department an

amount from the revolving fund equal to the amount authorized by the general assembly.

     23-19.16-8. Severability. -- If any provision of this chapter or the application of this

chapter to any person, corporations, or circumstances is held invalid, the invalidity shall not affect

other provisions or applications of the chapter, which can be given effect without the invalid

provision or application, and to this end the provisions of this chapter are declared to be

severable.

     SECTION 2. Sections 24-18-2 and 24-18-3 of the General Laws in Chapter 24-18

entitled "Municipal Road and Bridge Revolving Fund" are hereby amended to read as follows:

     24-18-2. Legislative findings. -- The general assembly finds and declares that:

     (1) Transportation plays a critical role in enabling economic activity in the state of Rhode

Island;

     (2) Cities and towns can lower the costs of borrowing for road and bridge projects

through cooperation with the Clean Water Finance Agency Rhode Island infrastructure bank;

      (3) The clean water and drinking water fund programs administered by the Clean Water

Finance Agency Rhode Island infrastructure bank benefit from the highest bond rating of any

public entity in the state of Rhode Island; and

      (4) Greater coordination among cities and towns will enable more efficient allocation of

infrastructure resources by the state of Rhode Island.

     24-18-3. Definitions. -- As used in this chapter, the following terms, unless the context

requires a different interpretation, shall have the following meanings:

     (1) "Agency" means the Clean Water Finance Agency Rhode Island infrastructure bank

as set forth in chapter 46-12.2;

     (2) "Annual construction plan" means the finalized list of approved projects to commence

construction each calendar year;

     (3) "Approved project" means any project approved by the agency for financial

assistance;

     (4) "Department" means the department of transportation, or, if the department shall be

abolished, the board, body, or commission succeeding to the principal functions thereof or upon

whom the powers given by chapter 5 of title 37 to the department shall be given by law.

      (5) "Eligible project" means an infrastructure plan, or portion of an infrastructure plan,

that meets the project evaluation criteria;

      (6) "Financial assistance" means any form of financial assistance other than grants

provided by the agency to a city or town in accordance with this chapter for all or any part of the

cost of an approved project, including, without limitation, temporary and permanent loans, with

or without interest, guarantees, insurance, subsidies for the payment of debt service on loans,

lines of credit, and similar forms of financial assistance;

      (7) "Infrastructure plan" means a project proposed by a city or town that would make

capital improvements to roads, bridges and appurtenances thereto consistent with project

evaluation criteria;

      (8) "Market rate" means the rate the city or town would receive in the open market at the

time of the original loan agreement as determined by the agency in accordance with its rules and

regulations;

      (9) "Project evaluation criteria" means the criteria used by the department to evaluate

infrastructure plans and rank eligible projects and shall include the extent to which the project

generates economic benefits, the extent to which the project would be able to proceed at an earlier

date, the likelihood that the project would provide mobility benefits, the cost effectiveness of the

project, the likelihood that the project would increase safety, and the project's readiness to

proceed within the forthcoming calendar year;

      (10) "Project priority list" means the list of eligible projects ranked in the order in which

financial assistance shall be awarded by the agency pursuant to section 7 of this chapter;

     (11) "Revolving fund" means the municipal road and bridge revolving fund established

under section 4 of this chapter; and

     (12) "Subsidy assistance" means credit enhancements and other measures to reduce the

borrowing costs for a city or town. 

     SECTION 3. Section 35-3-7.2 of the General Laws in Chapter 35-3 entitled "State

Budget" is hereby amended to read as follows:

     35-3-7.2. Budget officer as capital development officer. -- The budget officer shall be a

capital development program officer who shall be responsible for:

     (1) The review of all capital development requests submitted by the various state

departments, as set forth in chapter 6 of title 42, which shall include all independent boards and

commissions and the capital development plans of the Narragansett Bay Commission, Rhode

Island Clean Water Finance Agency Rhode Island infrastructure bank, the Lottery Commission,

and all other public corporations, as defined in chapter 18 of this title which plans would be

subject to the provisions of § 35-18-3; provided, that, except as provided for in this section,

nothing in this section shall be construed to limit the powers of the board of governors for higher

education as outlined in chapter 59 of title 16. Capital development requests and plans shall be

submitted in such form, with such explanation, in such number of copies, and by such date as the

budget officer may require. Copies shall also be provided directly to the house fiscal advisor and

the senate fiscal advisor.

     (2) Preparation of a capital budget which shall specify which capital items are proposed

for presentation to the electorate at the next general election.

     (3) The activities which will promote capital development planning and develop criteria

which can be used to determine appropriate levels of bonded indebtedness.

     (4) Acting as chairperson of the capital development planning and oversight commission

which is to be appointed by the governor. The commission, in addition to recommending to the

governor the biennial capital budget, shall implement a long range capital development planning

process and shall be responsible for the development of an inventory of state assets to determine

the need and prioritization of capital improvements.

     (5) Working with the board of governors for higher education in the development by the

board of that portion of the board's capital development program involving annual general

revenues.

     SECTION 4. Section 35-18-3 of the General Laws in Chapter 35-18 entitled "Public

Corporation Debt Management" is hereby amended to read as follows:

     35-18-3. Approval by the general assembly. -- (a) No elected or appointed state official

may enter into any financing lease or into any guarantee with any person without the prior

approval of the general assembly unless:

     (1) The governor certifies that federal funds will be available to make all of the payments

which the state is or could be obligated to make under the financing lease or guarantee; or

     (2) The general assembly has adjourned for the year with the expectation that it will not

meet again until the following year and the governor certifies that action is necessary, because of

events occurring after the general assembly has adjourned, to protect the physical integrity of an

essential public facility, to ensure the continued delivery of essential public services, or to

maintain the credit worthiness of the state in the financial markets.

     (b) No bonds may be issued or other obligation incurred by any public corporation to

finance, in whole or in part, the construction, acquisition, or improvement of any essential public

facility without the prior approval of the general assembly, unless:

     (1) The governor certifies that federal funds will be available to make all of the payments

required to be made by the public corporation in connection with the bond or obligation. The

certification shall be transmitted to the speaker of the house and the president of the senate with

copies to the chairpersons of the respective finance committees and fiscal advisors; or

     (2) The general assembly has adjourned for the year with the expectation that it will not

meet again until the following year and the governor certifies that action is necessary, because of

events occurring after the general assembly has adjourned, to protect the physical integrity of an

essential public facility, to ensure the continued delivery of essential public services, or to

maintain the credit worthiness of the state in the financial markets. The certification shall be

transmitted to the speaker of the house and the president of the senate, with copies to the

chairpersons of the respective finance committees and fiscal advisors.

     (c) In addition to, and not by way of limitation on, the exemptions provided in

subsections (a) and (b), prior approval by the general assembly shall not be required under this

chapter for bonds or other obligations issued by, or financing leases or guarantee agreements

entered into by:

     (1) The Rhode Island industrial facilities corporation; provided financing leases, bonds or

other obligations are being issued for an economic development project;

     (2) The Rhode Island Clean Water Finance Agency Rhode Island infrastructure bank;

     (3) The Rhode Island housing and mortgage finance corporation;

     (4) The Rhode Island student loan authority;

     (5) Any public corporation to refund any bond or other obligation issued by the public

corporation to finance the acquisition, construction, or improvement of an essential public facility

provided that the governor certifies to the speaker of the house and the president of the senate,

with copies to the chairpersons of the respective finance committees and fiscal advisors that the

refunding shall provide a net benefit to the issuer; provided, however, obligations of the Rhode

Island resource recovery corporation outstanding on July 31, 1999, may be refunded by the

issuance of obligations on or before August 1, 1999;

     (6) The Narragansett Bay water quality management district commission;

     (7) The Rhode Island health and educational building corporation, except bonds or other

obligations issued in connection with the acquisition, construction, or improvement of any facility

used by any state agency, department, board, or commission, including the board of governors for

higher education, to provide services to the public pursuant to the requirements of state or federal

law, and all fixtures for any of those facilities; and

     (8) The state to refund any financing leases entered into with the authorization of the

general assembly, provided that the governor certifies to the speaker of the house and the

president of the senate, with copies to the chairpersons of the respective finance committees and

fiscal advisors, that the refunding shall provide a net benefit to the state.

     (d) Nothing contained in this section applies to any loan authorized to be borrowed under

Article VI, § 16 or 17 of the Rhode Island Constitution.

     (e) Nothing in this section is intended to expand in any way the borrowing authority of

any public corporation under its charter.

     (f)(1) Any certification made by the governor under subsection (a), (b), or (c) of this

section may be relied upon by any person, including without limitation, bond counsel.

     (2) The certifications shall be transmitted to the speaker of the house and the president of

the senate with copies to the chairpersons of the respective finance committees and fiscal

advisors.

     (g) Except as provided for in this chapter, the requirements of this chapter supersede any

other special or general provision of law, including any provision which purports to exempt sales

or leases between the state and a public corporation from the operation of any law. 

     SECTION 5. Section 39-1-27.7 of the General Laws in Chapter 39-1 entitled "Public

Utilities Commission" is hereby amended to read as follows:

     39-1-27.7. System reliability and least-cost procurement. -- Least-cost procurement

shall comprise system reliability and energy efficiency and conservation procurement as provided

for in this section and supply procurement as provided for in § 39-1-27.8, as complementary but

distinct activities that have as common purpose meeting electrical and natural gas energy needs in

Rhode Island, in a manner that is optimally cost-effective, reliable, prudent and environmentally

responsible.

     (a) The commission shall establish not later than June 1, 2008, standards for system

reliability and energy efficiency and conservation procurement, which shall include standards and

guidelines for:

      (1) System reliability procurement, including but not limited to:

     (i) Procurement of energy supply from diverse sources, including, but not limited to,

renewable energy resources as defined in chapter 26 of this title;

     (ii) Distributed generation, including, but not limited to, renewable energy resources and

thermally leading combined heat and power systems, which is reliable and is cost-effective, with

measurable, net system benefits;

     (iii) Demand response, including, but not limited to, distributed generation, back-up

generation and on-demand usage reduction, which shall be designed to facilitate electric customer

participation in regional demand response programs, including those administered by the

independent service operator of New England ("ISO-NE") and/or are designed to provide local

system reliability benefits through load control or using on-site generating capability;

     (iv) To effectuate the purposes of this division, the commission may establish standards

and/or rates (A) for qualifying distributed generation, demand response, and renewable energy

resources; (B) for net-metering; (C) for back-up power and/or standby rates that reasonably

facilitate the development of distributed generation; and (D) for such other matters as the

commission may find necessary or appropriate.

     (2) Least-cost procurement, which shall include procurement of energy efficiency and

energy conservation measures that are prudent and reliable and when such measures are lower

cost than acquisition of additional supply, including supply for periods of high demand.

     (b) The standards and guidelines provided for by subsection (a) shall be subject to

periodic review and as appropriate amendment by the commission, which review will be

conducted not less frequently than every three (3) years after the adoption of the standards and

guidelines.

     (c) To implement the provisions of this section:

     (1) The commissioner of the office of energy resources and the energy efficiency and

resources management council, either or jointly or separately, shall provide the commission

findings and recommendations with regard to system reliability and energy efficiency and

conservation procurement on or before March 1, 2008, and triennially on or before March 1,

thereafter through March 1, 20172024. The report shall be made public and be posted

electronically on the website to the office of energy resources.

     (2) The commission shall issue standards not later than June 1, 2008, with regard to plans

for system reliability and energy efficiency and conservation procurement, which standards may

be amended or revised by the commission as necessary and/or appropriate.

     (3) The energy efficiency and resources management council shall prepare by July 15,

2008, a reliability and efficiency procurement opportunity report which shall identify

opportunities to procure efficiency, distributed generation, demand response and renewables,

which report shall be submitted to the electrical distribution company, the commission, the office

of energy resources and the joint committee on energy.

     (4) Each electrical and natural gas distribution company shall submit to the commission

on or before September 1, 2008, and triennially on or before September 1, thereafter through

September 1, 2017 2024, a plan for system reliability and energy efficiency and conservation

procurement. In developing the plan, the distribution company may seek the advice of the

commissioner and the council. The plan shall include measurable goals and target percentages for

each energy resource, pursuant to standards established by the commission, including efficiency,

distributed generation, demand response, combined heat and power, and renewables. The plan

shall be made public and be posted electronically on the website to the office of energy resources,

and shall also be submitted to the general assembly.

     (5) The commission shall issue an order approving all energy efficiency measures that are

cost effective and lower cost than acquisition of additional supply, with regard to the plan from

the electrical and natural gas distribution company, and reviewed and approved by the energy

efficiency and resources management council, and any related annual plans, and shall approve a

fully reconciling funding mechanism to fund investments in all efficiency measures that are cost

effective and lower cost than acquisition of additional supply, not greater than sixty (60) days

after it is filed with the commission.

     (6)(i) Each electrical and natural gas distribution company shall provide a status report,

which shall be public, on the implementation of least cost procurement on or before December

15, 2008, and on or before February 1, 2009, to the commission, the division, the commissioner

of the office of energy resources and the energy efficiency and resources management council

which may provide the distribution company recommendations with regard to effective

implementation of least cost procurement. The report shall include the targets for each energy

resource included in the order approving the plan and the achieved percentage for energy

resource, including the achieved percentages for efficiency, distributed generation, demand

response, combined heat and power, and renewables as well as the current funding allocations for

each eligible energy resource and the businesses and vendors in Rhode Island participating in the

programs. The report shall be posted electronically on the website of the office of energy

resources.

     (ii) Beginning on November 1, 2012 or before, each electric distribution company shall

support the installation and investment in clean and efficient combined heat and power

installations at commercial, institutional, municipal, and industrial facilities. This support shall be

documented annually in the electric distribution company's energy efficiency program plans. In

order to effectuate this provision, the energy efficiency and resource management council shall

seek input from the public, the gas and electric distribution company, the economic development

corporation, and commercial and industrial users, and make recommendations regarding services

to support the development of combined heat and power installations in the electric distribution

company's annual and triennial energy efficiency program plans.

      (iii) The energy efficiency annual plan shall include, but not be limited to, a plan for

identifying and recruiting qualified combined heat and power projects, incentive levels, contract

terms and guidelines, and achievable megawatt targets for investments in combined heat and

power systems. In the development of the plan, the energy efficiency and resource management

council and the electric distribution company shall factor into the combined heat and power plan

and program, the following criteria: (A) Economic development benefits in Rhode Island,

including direct and indirect job creation and retention from investments in combined heat and

power systems; (B) Energy and cost savings for customers; (C) Energy supply costs; (D)

Greenhouse gas emissions standards and air quality benefits; and (E) System reliability benefits.

      (iv) The energy efficiency and resource management council shall conduct at least one

public review meeting annually, to discuss and review the combined heat and power program,

with at least seven (7) business day's notice, prior to the electric and gas distribution utility

submitting the plan to the commission. The commission shall evaluate the submitted combined

heat and power program as part of the annual energy efficiency plan. The commission shall issue

an order approving the energy efficiency plan and programs within sixty (60) days of the filing.

      (d) If the commission shall determine that the implementation of system reliability and

energy efficiency and conservation procurement has caused or is likely to cause under or over-

recovery of overhead and fixed costs of the company implementing said procurement, the

commission may establish a mandatory rate adjustment clause for the company so affected in

order to provide for full recovery of reasonable and prudent overhead and fixed costs.

     (e) The commission shall conduct a contested case proceeding to establish a performance

based incentive plan which allows for additional compensation for each electric distribution

company and each company providing gas to end-users and/or retail customers based on the level

of its success in mitigating the cost and variability of electric and gas services through

procurement portfolios.

     SECTION 6. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled "Duties of

Utilities and Carriers" is hereby amended as follows:

     39-2-1.2. Utility base rate -- Advertising, demand side management and renewables -

- (a) In addition to costs prohibited in section 39-1-27.4(b), no public utility distributing or

providing heat, electricity, or water to or for the public shall include as part of its base rate any

expenses for advertising, either direct or indirect, which promotes the use of its product or

service, or is designed to promote the public image of the industry. No public utility may furnish

support of any kind, direct, or indirect, to any subsidiary, group, association, or individual for

advertising and include the expense as part of its base rate. Nothing contained in this section shall

be deemed as prohibiting the inclusion in the base rate of expenses incurred for advertising,

informational or educational in nature, which is designed to promote public safety conservation of

the public utility's product or service. The public utilities commission shall promulgate such rules

and regulations as are necessary to require public disclosure of all advertising expenses of any

kind, direct or indirect, and to otherwise effectuate the provisions of this section.

     (b) Effective as of January 1, 2008, and for a period of ten (10) fifteen (15) years

thereafter, each electric distribution company shall include a charges charge per kilowatt-hour

delivered to fund demand side management programs. The 0.3 mills per kilowatt-hour delivered

to fund renewable energy programs shall remain in effect until December 31, 2017. The electric

distribution company shall establish and, after July 1, 2007, maintain two (2) separate accounts,

one for demand side management programs (the "demand side account"), which shall be funded

by the electric demand side charge and administered and implemented by the distribution

company, subject to the regulatory reviewing authority of the commission, and one for renewable

energy programs, which shall be administered by the economic development corporation Rhode

Island commerce corporation pursuant to § 42-64-13.2 and, shall be held and disbursed by the

distribution company as directed by the economic development corporation Rhode Island

commerce corporation for the purposes of developing, promoting and supporting renewable

energy programs.

     During the ten (10) year period time periods established in § 39-2-1.2(b), the commission

may, in its discretion, after notice and public hearing, increase the sums for demand side

management and renewable resources.; thereafter, In addition, the commission shall, after notice

and public hearing, determine the appropriate charges for these programs. The office of energy

resources and/or the administrator of the renewable energy programs may seek to secure for the

state an equitable and reasonable portion of renewable energy credits or certificates created by

private projects funded through those programs. As used in this section, "renewable energy

resources" shall mean: (1) power generation technologies as defined in § 39-26-5, "eligible

renewable energy resources", including off grid and on-grid generating technologies located in

Rhode Island as a priority; (2) research and development activities in Rhode Island pertaining to

eligible renewable energy resources and to other renewable energy technologies for electrical

generation; or (3) projects and activities directly related to implementing eligible renewable

energy resources projects in Rhode Island. Technologies for converting solar energy for space

heating or generating domestic hot water may also be funded through the renewable energy

programs. Fuel cells may be considered an energy efficiency technology to be included in

demand sided management programs. Special rates for low-income customers in effect as of

August 7, 1996 shall be continued, and the costs of all of these discounts shall be included in the

distribution rates charged to all other customers. Nothing in this section shall be construed as

prohibiting an electric distribution company from offering any special rates or programs for low-

income customers which are not in effect as of August 7, 1996, subject to the approval by the

commission.

     (1) The renewable energy investment programs shall be administered pursuant to rules

established by the economic development corporation. Rhode Island commerce corporation. Said

rules shall provide transparent criteria to rank qualified renewable energy projects, giving

consideration to:

     (i) the feasibility of project completion;

     (ii) the anticipated amount of renewable energy the project will produce;

     (iii) the potential of the project to mitigate energy costs over the life of the project; and

     (iv) the estimated cost per kilo-watt hour (kwh) of the energy produced from the project.

     (c) [Deleted by P.L. 2012, ch. 241, § 14].

     (d) The executive director of the economic development corporation is authorized and

may enter into a contract with a contractor for the cost effective administration of the renewable

energy programs funded by this section. A competitive bid and contract award for administration

of the renewable energy programs may occur every three (3) years and shall include as a

condition that after July 1, 2008 the account for the renewable energy programs shall be

maintained and administered by the economic development corporation as provided for in

subdivision (b) above.

     (e) Effective January 1, 2007, and for a period of eleven (11) sixteen (16) years

thereafter, each gas distribution company shall include, with the approval of the commission, a

charge per deca therm delivered to fund demand side management programs (the "gas demand

side charge"), including, but not limited to, programs for cost effective energy efficiency, energy

conservation, combined heat and power systems, and weatherization services for low income

households.

     (f) The Each gas company shall establish a separate account for demand side

management programs (the "gas demand side account"), which shall be funded by the gas

demand side charge and administered and implemented by the distribution company, subject to

the regulatory reviewing authority of the commission. The commission may establish

administrative mechanisms and procedures that are similar to those for electric demand side

management programs administered under the jurisdiction of the commissions and that are

designed to achieve cost-effectiveness and high life-time savings of efficiency measures

supported by the program.

     (g) The commission may, if reasonable and feasible, except from this demand side

management charge:

     (i) gas used for distribution generation; and

     (ii) gas used for the manufacturing processes, where the customer has established a self

directed program to invest in and achieve best effective energy efficiency in accordance with a

plan approved by the commission and subject to periodic review and approval by the

commission, which plan shall require annual reporting of the amount invested and the return on

investments in terms of gas savings.

     (h) The commission may provide for the coordinated and/or integrated administration of

electric and gas demand side management programs in order to enhance the effectiveness of the

programs. Such coordinated and/or integrated administration may after March 1, 2009, upon the

recommendation of the office of energy resources, be through one or more third-party entities

designated by the commission pursuant to a competitive selection process.

     (i) Effective January 1, 2007, the commission shall allocate from demand-side

management gas and electric funds authorized pursuant to this section 39-2-1.2, an amount not to

exceed two percent (2%) of such funds on an annual basis for the retention of expert consultants,

and reasonable administration costs of the energy efficiency and resources management council

associated with planning, management, and evaluation of energy efficiency programs, renewable

energy programs, system reliability, least-cost procurement, and with regulatory proceedings,

contested cases, and other actions pertaining to the purposes, powers and duties of the council,

which allocation may by mutual agreement, be used in coordination with the office of energy

resources to support such activities.

     (j) Effective January 1, 2013 2016, the commission shall annually allocate from the

administrative funding amount allocated in (i) from the demand-side management program as

described in subsection (i) as follows: sixty percent (60%) fifty percent (50%) for the purposes

identified in subsection (i) and forty percent (40%) fifty percent (50%) annually to the office of

energy resources for activities associated with planning management, and evaluation of energy

efficiency programs, renewable energy programs, system reliability, least-cost procurement, and

with regulatory proceedings, contested cases, and other actions pertaining to the purposes, powers

and duties of the office of energy resources.

     (k) On April 15, of each year the office and the council shall submit to the governor, the

president of the senate, and the speaker of the house of representatives, separate financial and

performance reports regarding the demand-side management programs, including the specific

level of funds that were contributed by the residential, municipal, and commercial and industrial

sectors to the overall programs;, the businesses, vendors, and institutions that received funding

from demand-side management gas and electric funds used for the purposes in section 39-2-1.2;

and the businesses, vendors, and institutions that received the administrative funds for the

purposes in sections 39-2-1.2(i) and 39-2-1.2(j). These reports shall be posted electronically on

the websites of the office of energy resources and the energy efficiency resources management

council.

     (l) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank,

each electric distribution company, except for the Pascoag Utility District and Block Island Power

Company, shall remit two percent (2%) of the amount of the 2014 electric demand side charge

collections to the Rhode Island infrastructure bank in accordance with the terms of § 46-12.2-

14.1.

     (m) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank,

each gas distribution company shall remit two percent (2%) of the amount of the 2014 gas

demand side charge collections to the Rhode Island infrastructure bank in accordance with the

terms of § 46-12.2-14.1.

     SECTION 7. Section 39-26-7 of the General Laws in Chapter 39-26 entitled "Renewable

Energy Standard" is hereby amended to read as follows:

     39-26-7. Renewable energy development fund -- (a) There is hereby authorized and

created within the economic development corporation Rhode Island commerce corporation a

renewable energy development fund for the purpose of increasing the supply of NE-GIS

certificates available for compliance in future years by obligated entities with renewable energy

standard requirements, as established in this chapter. The fund shall be located at and

administered by the Rhode Island economic development corporation the Rhode Island

commerce corporation in accordance with § 42-64-13.2. The economic development corporation

Rhode Island commerce corporation shall:

     Administer the fund and adopt Adopt plans and guidelines for the management and use of

the fund in accordance with § 42-64-13.2 coordination with the office of energy resources and the

Rhode Island infrastructure bank accordance with section 42-64-13.2, and

     (b) The economic development corporation Rhode Island commerce corporation shall

enter into agreements with obligated entities to accept alternative compliance payments,

consistent with rules of the commission and the purposes set forth in this section; and alternative

compliance payments received pursuant to this section shall be trust funds to be held and applied

solely for the purposes set forth in this section.

     (c) The uses of the fund shall include but not be limited to:

     (1) Stimulating investment in renewable energy development by entering into

agreements, including multi-year agreements, for renewable energy certificates;

     (2) Establishing and maintaining a residential renewable energy program using eligible

technologies in accordance with § 39-26-5;

     (3) Providing technical and financial assistance to municipalities for interconnection and

feasibility studies, and/or the installation of renewable energy projects;

     (4) Implementing and supporting commercial and residential property assessed clean

energy projects;

     (45) Issuing assurances and/or guarantees to support the acquisition of renewable energy

certificates and/or the development of new renewable energy sources for Rhode Island;

     (56) Establishing escrows, reserves, and/or acquiring insurance for the obligations of the

fund;

     (67) Paying administrative costs of the fund incurred by the Rhode Island commerce

corporation, economic development corporation, the board of trustees, or the Rhode Island

infrastructure bank and the office of energy resources, not to exceed ten percent (10%) of the

income of the fund, including, but not limited to, alternative compliance payments. All funds

transferred from the economic development corporation Rhode Island commerce corporation to

support the office of energy resources' administrative costs shall be deposited as restricted

receipts.

     (d) All applications received for the use of the fund shall be reviewed by the Rhode

Island commerce corporation in consultation with the office of energy resources and the Rhode

Island infrastructure bank.

     (de) NE-GIS certificates acquired through the fund may be conveyed to obligated entities

or may be credited against the renewable energy standard for the year of the certificate provided

that the commission assesses the cost of the certificates to the obligated entity, or entities,

benefiting from the credit against the renewable energy standard, which assessment shall be

reduced by previously made alternative compliance payments and shall be paid to the fund.

     SECTION 8. The title of Chapter 39-26.5 of the General Laws entitled "Property

Assessed Clean Energy - Residential Program" is hereby amended to read as follows:

CHAPTER 39-26.5

Property Assessed Clean Energy - Residential Program

CHAPTER 39-26.5

PROPERTY ASSESSED CLEAN ENERGY PROGRAM

     SECTION 9. Sections 39-26.5-1, 39-26.5-2, 39-26.5-3, 39-26.5-4, 39-26.5-5, 39-26.5-6,

39-26.5-7, 39-26.5-8, 39-26.5-9, 39-26.5-10 and 39-26.5-11, of the General Laws in Chapter 39-

26.5 entitled "Property Assessed Clean Energy -- Residential Program" are hereby amended to

read as follows:

     39-26.5-1. Legislative findings. -- It is hereby found and declared:

     (1) Investing in energy efficiency and renewable energy improvements is financially

beneficial over time, as well as good for the environment;

     (2) Upfront costs are a barrier to investments in major energy improvements for both

commercial and residential property owners;

     (3) There are few financing options available that combine easy qualification, an

attractive interest rate, and a relatively long repayment term;

     (4) Property-assessed clean energy, hereinafter referred to as PACE, is a voluntary

financing mechanism which allows homeowners both residential and commercial property

owners to access affordable, long-term financing for energy upgrades to renewable energy and

energy efficiency upgrades including, but not limited to, system reliability upgrades, alternative

fuel infrastructure upgrades, and other eligible environmental health and environmental safety

upgrades on their property;

     (5) PACE financing offers incremental special assessment payments that are low and

fixed for up to twenty (20) years, with no upfront costs; the PACE special assessment fees

transfer to the new owner when a property is sold, or the assessment obligation can be paid in full

at transfer; and electricity and fuel bills are lower than they would be without the improvements;

and

     (6) PACE financing will allow create a means for Rhode Island cities and towns to

contribute in order to provide a mechanism to help meet increase community sustainability,

greenhouse gas emissions reductions, and meet other energy goals and will also provide a

valuable service to the citizens of their communities.

     39-26.5-2. Definitions. -- As used in this chapter, the following definitions apply:

     (1) "Commercial property" means a property operated for commercial purposes, or a

residential property which contains five (5) or more housing units.

     (2) "Distributed generation system" means an electrical generation facility located in the

electric distribution company's load zone with a nameplate capacity no greater than five

megawatts (5 MW), using eligible renewable energy resources as defined by § 39-26-5, including

biogas created as a result of anaerobic digestion, but, specifically excluding all other listed

eligible biomass fuels, and connected to an electrical power system owned, controlled, or

operated by the electric distribution company.

     (3)(1)"Dwelling" means a residential structure or mobile home which contains one to

four (4) family housing units, or individual units of condominiums or cooperatives,

     (4)(2)"Eligible net metering system" means a facility generating electricity as defined in

§ 39-26.4-2.

     (5)(3) "Eligible renewable energy resources" means resources as defined in § 39265.

     (6)(4) "Energy efficient projects" means those projects that are eligible under § 39-1-27.7

or projects that have been defined as eligible in the PACE rules and regulations.

     (7) "Institution" means a private entity or quasi-state agency.

     (8)(5) "Loan loss reserve fund" or "LRF" means funds set aside to cover losses in the

event of loan defaults.

     (9)(6) "Municipality" and or towns and cities" means any Rhode Island town or city with

powers set forth in title 45 of the general laws.

     (7)(10) "Net metering" means using electricity as defined in section 39-26.4-2.

     (8)"Office of energy resources" or "office" means the Rhode Island office of energy

resources within the department of administration.

     (9)(11) "PACE assessment" or "assessment" means the special assessment placed on a

PACE property in accordance with § 39-26.5-4 owner's property tax bill in accordance with this

chapter, to be collected by the PACE municipality in which that PACE property is located and

remitted to the lender that has financed that PACE project. The PACE assessment shall be owed

by the current owner of the related PACE property as of the time each PACE assessment comes

due. In the event of a transfer of ownership, all PACE assessments coming due after the date of

the transfer, by foreclosure or otherwise, shall be owed by the transferee.

     (12) "PACE lien" means the non-accelerating lien placed on a PACE property in

accordance with the rules and regulations promulgated by the Rhode Island infrastructure bank

pursuant to this chapter, in order to secure the repayment of a PACE assessment made in

connection with that PACE property and to secure the repayment of each PACE assessment to be

made by that PACE property owner as each assessment comes due.

     (10)(13) "PACE municipality" means a municipality voluntarily designated by its city or

town council as a property-assessed clean energy municipality.

     (11) "PACE property" means any property which is the subject of a written agreement

enetered into pursuant to section 39-26.5-4

     (12)(14) "PACE project" or "Project project" means a distinct installation of an eligible

energy efficiency system, renewable energy net metering system, distributed generation system,

alternative fuel infrastructure upgrade, and/or other eligible environmental health and

environmental safety upgrades.

     (15) "PACE property" or "property" means any residential property or commercial

property which is the subject of an approved application for a PACE project filed pursuant to this

chapter.

     (16) "Past due balances" means the sum of the due and unpaid assessments on a PACE

Property as of the time the ownership of that PACE property is transferred. "Past due balances"

does not mean the unaccelerated balance of the PACE loan at the time that property is transferred.

     (13)(17) "Property-assessed clean energy" or "PACE" is a voluntary financing

mechanism which allows both residential and commercial property owners to access affordable,

long-term financing for energy efficiency and renewable energy improvements to upgrades, and

other eligible environmental health and environmental safety upgrades on their property.

     (18) "Rhode Island infrastructure bank" means the Rhode Island infrastructure bank

("RIIB"). For the purposes of this chapter, Rhode Island infrastructure bank shall include other

related state agencies and/or third party administrators, as may be engaged by the Rhode Island

infrastructure bank for the purposes of providing the services envisioned by the rules and

regulations promulgated in accordance with § 39-26.5-11.

     39-26.5-3. Property-Assessed Clean Energy Municipality. -- A town or city council by

resolution may designate the municipality as a property assessed clean energy municipality, also

referred to as a "PACE municipality."

     39-26.5-4. Written agreements, consent of dwelling owners, energy savings analysis

Financing agreements -- PACE assessments -- PACE liens. -- (a) The Rhode Island

infrastructure bank may enter into a financing agreement with a qualifying PACE property owner.

After such agreement is entered into, and upon notice from the Rhode Island infrastructure bank,

the PACE municipality shall: (i) place a caveat on the land records indicating that a PACE

assessment and lien is anticipated upon completion of the PACE project for such property; or (ii)

at the direction of the Rhode Island infrastructure bank, levy the PACE assessment and file a lien

on the land records on the estimated costs of the PACE Project prior to the completion or upon

the completion of said PACE project.

     (b) PACE assessments levied pursuant to this chapter and the interest, fees and any

penalties thereon shall constitute a lien against the qualifying PACE property on which they are

made until they are paid. Such lien shall be collected in the same manner as the property taxes of

the PACE municipality on real property, including, in the event of default or delinquency, with

respect to any penalties, fees and remedies. Each such lien may be recorded and released in the

manner provided for property tax liens.

     (c) Any PACE municipality may assign to the Rhode Island infrastructure bank any and

all liens filed by the PACE municipality, as provided in the written agreement between the

participating municipality and the Rhode Island infrastructure bank. The Rhode Island

infrastructure bank may sell or assign, for consideration, any and all liens received from the

participating municipality. The consideration received by the Rhode Island infrastructure bank

shall be negotiated between the Rhode Island Infrastructure bank and the assignee. The assignee

or assignees of such liens shall have and possess the same powers and rights at law or in equity as

the Rhode Island infrastructure bank and the participating municipality and its tax collector would

have had if the lien had not been assigned with regard to the precedence and priority of such lien,

the accrual of interest and the fees and expenses of collection. The assignee shall have the same

rights to enforce such liens as any private party holding a lien on real property, including, but not

limited to, foreclosure and a suit on the debt. Costs and reasonable attorneys' fees incurred by the

assignee as a result of any foreclosure action or other legal proceeding brought pursuant to this

section and directly related to the proceeding shall be taxed in any such proceeding against each

person having title to any property subject to the proceedings. Such costs and fees may be

collected by the assignee at any time after demand for payment has been made by the assignee.

After January 1, 2014, a PACE municipality may enter into a written agreement with any

dwelling owner within the municipality who has:

      (1) An energy savings analysis approved by the office or an analysis performed under

plans approved by the commission pursuant to § 39-1-27.7;

      (2) An energy efficiency and/or renewable energy project description approved by the

office; and

      (3) A commitment from a financial institution to provide funds to complete the project.

      The agreement will require the dwelling owner to consent to be subject to the terms of

the lien as set forth in § 39-26.5-6.

     39-26.5-5. Rights of dwelling owners PACE Property Owners Rights of PACE

Property Owners Rights of PACE property owners. -- A dwelling PACE property owner who

has entered into a written agreement with a municipality under section 39-26.5-4 may enter into a

contract for the installation or construction of a project relating to renewable energy as defined in

section 39-26-5, or relating to energy efficiency as defined in section 39-1-27.7 or as defined by

the office Rhode Island infrastructure bank pursuant to regulations authorized under this chapter

under subsection 39-26.5-8(a).

     39-26.5-6. Priority of PACE assessment lien Priority of PACE lien. -- (a) A lien for a

PACE assessment lien on a residential property shall be: subordinate to all liens on the residential

property in existence at the time the lien for the assessment in filed residential PACE lien is filed;

subordinate to a first mortgage on the residential property recorded after such filing PACE lien is

filed; and superior to any other lien on the residential property recorded after such filing PACE

lien is filed. This subsection shall not affect the status or priority of any other municipal or

statutory lien.

     (b) At the time of a transfer of property ownership of a residential property, including by

foreclosure, the past due balances of any special assessment under this chapter shall be due for

payment. In the event of a foreclosure action, the past due balances shall include all payments on

a PACE assessment that are due and unpaid as of the date of the foreclosure. Unless otherwise

agreed by the PACE lender, all payments on the PACE assessment that become due after the date

of transfer by foreclosure or otherwise shall continue to be secured by a PACE lien on the PACE

property and shall be the responsibility of the transferee.

     (c) A PACE lien on a commercial property shall be: senior to all liens on the commercial

property in existence at the time the PACE lien is filed, subject to the consent of the senior

mortgage holder on the property; senior to all liens filed or recorded after the time the PACE lien

is created; but junior to a municipal tax lien.

     (d) At the time of a transfer of property ownership of a commercial property, including

by foreclosure, the past due balances of any PACE assessment under this chapter shall be due for

payment. Unless otherwise agreed by the PACE lender, all payments on the of PACE assessment

assessments that become due after the date of transfer by foreclosure or otherwise shall remain be

secured by a PACE lien on the PACE property and shall be the responsibility of the transferee.

     39-26.5-7 Loan loss reserve fund Administration of PACE -- Loan loss reserve fund.

-- (a) The Rhode Island infrastructure bank is hereby authorized to create, set up on its books, and

administer one or more PACE funds for the purpose of providing financial assistance to

residential and commercial property owners for PACE projects. Additionally, the office shall

Rhode Island infrastructure bank may enter into an agreement contract with an one or more

approved institutions, approved financial institution to create one or more Loan Loss Reserve

Funds loan loss reserve funds (LRF) or other financing mechanisms to provide financial

incentives or additional security for PACE projects.

     (b) In the event that there is a foreclosure of a PACE property and the proceeds resulting

from such a foreclosure are insufficient to pay the past due balances on the associated PACE

assessment, after all superior liens have been satisfied, then payment from the LRF shall be made

from the LRF in the amount of the past due balances on the PACE assessment. The LRF shall be

administered by the Rhode Island infrastructure bank or by the financial institution selected by

the office Rhode Island infrastructure bank,; in the latter case with the office Rhode Island

infrastructure bank shall providing provide oversight of the LRF.

     39-26.5-8. Assistance to municipalities. -- The office Rhode Island infrastructure bank

shall:

     (1)(a) Commencing on/or before July 1, 2014 and thereafter publish Publish on its

website a list of the types of PACE eligible energy efficiency, and renewable energy, and other

projects as defined in rules and regulations promulgated under 39-26.5-11;

     (2)(b) Provide information concerning implementation of this chapter to each

municipality that requests such information;

     (3)(c) Offer administrative and technical assistance to and offer to manage the PACE

program on behalf of any PACE municipality that voluntarily participates in the PACE program;

and

     (4)(d) Develop and offer informational resources to help residents make best use of the

PACE program.

     39-26.5-9. Monitoring, reporting, compliance, underwriting criteria. -- The Rhode

Island infrastructure bank shall determine compliance with the underwriting criteria, standards,

and procedures established within set forth in the rules and regulations promulgated in

accordance with this chapter and shall include an accounting of the PACE program in the annual

report due on April 15th of each year to the general assembly under subsection 39-2-1.2(k) under

§ 46-12.2-24.1. The report shall describe the implementation and operation of the PACE program

receipts, disbursements and earnings.

     39-26.5-11. Rules and regulations. -- (a) The Rhode Island infrastructure bank shall

consult with the office of energy resources to promulgate rules and regulations, in accordance

with this section, and in accordance with chapter 42-35. The office is authorized to promulgate

necessary rules and regulations, in order to assure that PACE programs shall be successfully

instituted in Rhode Island; such Such rules and regulations should ensure that the PACE program

does not adversely affect the implementation of any other energy program in whose coordination

the office Rhode Island infrastructure bank or the office of energy resources is involved. Such

rules and regulations shall include, but not be limited to, the following:

     (1) The necessary application requirements and procedures for any residential property

owner or commercial property owner seeking PACE financing;

     (2) The necessary qualifications and requirements for a proposed PACE projects;

     (3) The underwriting criteria to be applied in determining the eligibility of properties and

property owners for PACE projects; and

     (4) Requirements that all existing lien holders on a property be given notice prior to a

PACE assessment and lien being filed in connection with that property and that all commercial

property owners seeking a commercial PACE loan receive consent of the primary mortgage

holder on that property prior to being eligible.

     (b) The Rhode Island infrastructure bank shall be responsible for promulgating

agreements, forms and other documents necessary for the efficient administration of the PACE

program.

     SECTION 10. Section 39-26.5-4 of Chapter 39-26.5 in the General Laws entitled

"Property Assessed Clean Energy – Residential Program" is hereby repealed.

     39-26.5-4. Written agreements, consent of dwelling owners, energy savings analysis.

-- After January 1, 2014, a PACE municipality may enter into a written agreement with any

dwelling owner within the municipality who has:

     (1) An energy savings analysis approved by the office or an analysis performed under

plans approved by the commission pursuant to section 39-1-27.7;

     (2) An energy efficiency and/or renewable energy project description approved by the

office; and

     (3) A commitment from a financial institution to provide funds to complete the project.

     The agreement will require the dwelling owner to consent to be subject to the terms of the

lien as set forth in Section 39-26.5-6.

     SECTION 11. Section 42-64-13.2 of chapter 42-64 of the General Laws entitled "Rhode

Island Commerce Corporation" is hereby amended to read as follows:

     42-64-13.2 Renewable energy investment coordination -- (a) Intent. - To develop an

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

cost-effective renewable energy development from diverse sources.

     (b) Definitions. - For purposes of this section, the following words and terms shall have

the meanings set forth in RIGL 42-64-3 unless this section provides a different meaning. Within

this section, the following words and terms shall have the following meanings:

     (1) "Corporation" means the Rhode Island economic development commerce corporation.

     (2) "Municipality" means any city or town, or other political subdivision of the state.

     (3) "Office" means the office of energy resources established by chapter 42-140.

     (c) Renewable energy development fund. - The corporation shall, in the furtherance of its

responsibilities to promote and encourage economic development, establish and administer a

renewable energy development fund as provided for in section 39-26-7, may exercise the powers

set forth in this chapter, as necessary or convenient to accomplish this purpose, and shall provide

such administrative support as may be needed for the coordinated administration of the renewable

energy standard as provided for in chapter 39-26 and the renewable energy program established

by section 39-2-1.2. The corporation may upon the request of any person undertaking a renewable

energy facility project, grant project status to the project, and a renewable energy facility project,

which is given project status by the corporation, shall be deemed an energy project of the

corporation.

     (d) Duties. - The corporation shall, with regards to renewable energy project investment:

     (1) Establish by rule, in consultation with the office, standards for financing renewable

energy projects from diverse sources.

     (2) Enter into agreements, consistent with this chapter and renewable energy investment

plans adopted by the office, to provide support to renewable energy projects that meet applicable

standards established by the corporation. Said agreements may include contracts with

municipalities and public corporations.

     (e) Conduct of activities.

     (1) To the extent reasonable and practical, the conduct of activities under the provisions

of this chapter shall be open and inclusive; the director shall seek, in addressing the purposes of

this chapter, to involve the research and analytic capacities of institutions of higher education

within the state, industry, advocacy groups, and regional entities, and shall seek input from

stakeholders including, but not limited to, residential and commercial energy users.

     (2) By January 1, 2009, the director shall adopt:

     (A) Goals for renewable energy facility investment which is beneficial, prudent, and from

diverse sources;

     (B) A plan for a period of five (5) years, annually upgraded as appropriate, to meet the

aforementioned goals; and

     (C) Standards and procedures for evaluating proposals for renewable energy projects in

order to determine the consistency of proposed projects with the plan.

     (f) Reporting. - On March 1, of each year after the effective date of this chapter, the

corporation shall submit to the governor, the president of the senate, the speaker of the house of

representatives, and the secretary of state, a financial and performance report. These reports shall

be posted electronically on the general assembly and the secretary of state's websites as

prescribed in § 42-20-8.2. The reports shall set forth:

     (1) The corporation's receipts and expenditures in each of the renewable energy program

funds administered in accordance with this section.

     (2) A listing of all private consultants engaged by the corporation on a contract basis and

a statement of the total amount paid to each private consultant from the two (2) renewable energy

funds administered in accordance with this chapter; a listing of any staff supported by these

funds, and a summary of any clerical, administrative or technical support received; and

     (3) A summary of performance during the prior year including accomplishments and

shortcomings; project investments, the cost-effectiveness of renewable energy investments by the

corporation; and recommendations for improvement.

     SECTION 12. Section 42-155-3 of the General Laws in Chapter 42-155 entitled "Quasi-

Public Corporations Accountability and Transparency Act" is hereby amended to read as follows:

     42-155-3. Definitions. [Effective January 1, 2015.]. -- (a) As used in this chapter,

"quasi-public corporation" means any body corporate and politic created, or to be created,

pursuant to the general laws, including, but not limited to, the following:

      (1) Capital center commission;

      (2) Rhode Island convention center authority;

      (3) Rhode Island industrial facilities corporation;

      (4) Rhode Island industrial-recreational building authority;

      (5) Rhode Island small business loan fund corporation;

      (6) Quonset development corporation;

      (7) Rhode Island airport corporation;

      (8) I-195 redevelopment district commission;

      (9) Rhode Island health and educational building corporation;

      (10) Rhode Island housing and mortgage finance corporation;

      (11) Rhode Island higher education assistance authority;

      (12) Rhode Island student loan authority;

      (13) Narragansett bay commission;

      (14) Rhode Island Clean Water Finance Agency Rhode Island infrastructure bank;

      (15) Rhode Island water resources board;

      (16) Rhode Island resource recovery corporation;

      (17) Rhode Island public rail corporation;

      (18) Rhode Island public transit authority;

      (19) Rhode Island turnpike and bridge authority;

      (20) Rhode Island tobacco settlement financing corporation; and

      (21) Any subsidiary of the Rhode Island commerce corporation.

      (b) Cities, towns, and any corporation created that is an instrumentality and agency of a

city or town, and any corporation created by a state law that has been authorized to transact

business and exercise its powers by a city or town pursuant to ordinance or resolution, and fire

and water districts are not subject to the provisions of this chapter.

      (c) The Rhode Island commerce corporation, being subject to similar transparency and

accountability requirements set forth in chapter 64 of title 42; the Rhode Island public rail

corporation established in chapter 64.2 of title 42; Block Island power authority; and the Pascoag

utility district shall not be subject to the provisions of this chapter. 

     SECTION 13. Section 45-12-33 of the General Laws in Chapter 45-12 entitled

"Indebtedness of Towns and Cities" is hereby amended to read as follows:

     45-12-33. Borrowing for road and bridge projects financed through the "municipal

road and bridge revolving fund". -- (a) In addition to other authority previously granted, during

calendar year 2014 a city or town may authorize the issuance of bonds, notes, or other evidences

of indebtedness to evidence loans from the municipal road and bridge revolving fund

administered by the Rhode Island Clean Water Finance Agency Rhode Island infrastructure bank

in accordance with chapter 18 of title 24 of the general laws.

      (b) These bonds, notes, or other evidences of indebtedness are subject to the maximum

aggregate indebtedness permitted to be issued by any city or town under § 45-12-2.

      (c) The denominations, maturities, interest rates, methods of sale, and other terms,

conditions, and details of any bonds or notes issued under the provisions of this section may be

fixed by resolution of the city or town council authorizing them, or if no provision is made in the

resolution, by the treasurer or other officer authorized to issue the bonds, notes or evidences of

indebtedness; provided, that the payment of principal shall be by sufficient annual payments that

will extinguish the debt at maturity, the first of these annual payments to be made not later than

three (3) years, and the last payment not later than twenty (20) years after the date of the bonds.

     The bonds, notes, or other evidences of indebtedness may be issued under this section by

any political subdivision without obtaining the approval of its electors, notwithstanding the

provisions of §§ 45-12-19 and 45-12-20 and notwithstanding any provision of its charter to the

contrary. 

     SECTION 14. Sections 46-6.1-3 and 46-6.1-9 of the General Laws in Chapter 46-6.1

entitled "Maintenance of Marine Waterways and Boating Facilities" are hereby amended to read

as follows:

     46-6.1-3. Purpose. -- The purposes of this chapter are:

      (1) To establish an integrated, coherent plan for dredging and dredge material

management, which includes beneficial use, dewatering, in-water disposal, and upland disposal as

appropriate, that sets forth the state's program for these activities and provides guidance to

persons planning to engage in these activities and to designate the council as the lead agency for

implementing the purposes of this chapter.

      (2) To provide for coordinated, timely decision-making by state agencies on applications

for dredging, dewatering, and for the beneficial use and in-water and upland disposal of dredged

materials, with the goals of providing action, following a determination that the application is

complete, on applications for these activities within one hundred eighty (180) days for

applications pertaining to maintenance dredging projects and within five hundred forty (540) days

for expansion projects.

      (3) To establish, for the purposes of this chapter and consistent with the requirements of

the Marine Infrastructure Maintenance Act of 1996, the following in order of priority in planning

for and management of dredged material, depending on the nature and characteristics of the

dredged material and on reasonable cost.

     (i) Beneficial use, including specifically beach nourishment and habitat restoration and

creation, in the coastal zone;

     (ii) Beneficial use in upland areas;

      (iii) Disposal.

      (4) To encourage the development of the infrastructure needed to dewater dredged

materials, and to facilitate beneficial use of dredged materials in upland areas.

      (5) To encourage and facilitate the beneficial use of dredged materials by private parties.

      (6) To authorize the establishment of a means of supporting projects for dewatering

dredged material and for beneficial use and disposal of dredged material at sites above mean high

water by the Rhode Island Clean Water Finance Agency Rhode Island infrastructure bank.

     46-6.1-9. Cooperation of other agencies. -- (a) In order to accomplish the purposes of

this chapter to provide for beneficial use, dewatering, and disposal of dredged material:

      (1) State agencies, departments, corporations, authorities, boards, commissions,

including, but not limited to, the department of administration, the department of transportation,

the Rhode Island Clean Water Finance Agency Rhode Island infrastructure bank, the economic

development Rhode Island commerce corporation, the Narragansett Bay commission, and the

Rhode Island resource recovery corporation, and political subdivisions, shall cooperate with the

council in developing and implementing the comprehensive plan for dredged material

management;

      (2) The council shall seek federal acceptance of the comprehensive plan for dredged

material management as an element of the state's coastal zone management program and shall

pursue such federal approvals and general permits as may facilitate expeditious action on

dredging applications that are consistent with the plan;

      (3) The economic development corporation shall:

      (i) Make available by October 31, 2004, a site to use as a dewatering site for dredged

material, which site shall be available for dewatering dredged material until at least September

30, 2012, and may continue to be available thereafter for periods of not less than six (6) months,

upon the request of the council and the approval of the corporation; and

      (ii) With advice from the council and the department, develop and implement a program

to market dredged material for beneficial use by private persons, including but limited to

brownfield reclamation projects; and

      (4) The council, with the cooperation of the department and the Clean Water Finance

Agency Rhode Island infrastructure bank, shall develop a proposal for a fund, which may be used

as provided for in § 46-12.2-4.1, to support projects for dewatering dredged material for

beneficial use and disposal of dredged material at sites above mean high water and for confined

aquatic disposal of dredged materials, which proposal shall be submitted to the general assembly

not later than February 15, 2002.

      (b) The fund shall not be established or go into effect unless it has been approved by the

general assembly. 

     SECTION 15. Section 46-12.10-1 of the General Laws in Chapter 46-12.10 entitled

"Commission to Study Feasibility and Funding of Homeowners Assistance Fund for Septic

Systems" is hereby amended to read as follows:

     46-12.10-1. Legislative findings. -- The General Assembly hereby recognizes and

declares that:

     (a) There exists and will continue to exist within the state of Rhode Island the need to

construct, maintain and repair facilities and projects for the abatement of pollution caused by

domestic wastewater discharges, including, but not limited to, septic systems and cesspools.

     (b) It is found that there are presently ninety thousand (90,000) cesspools within the State

of Rhode Island.

      (c) Failed and poorly functioning ISDS systems contribute directly to pollution in such

environmentally sensitive areas as Greenwich Bay, coastal salt ponds and other water resources.

      (d) It is further found that there is a need to establish a fund that shall provide to

communities financial assistance to create and adopt a community septic system management

plan and provide the corpus of a fund within the existing State SRF as administered by the Clean

Water Finance Agency Rhode Island infrastructure bank that shall enable communities to offer to

homeowners within those communities the opportunity to access low-cost loans for repair or

replacement of failed or poorly functioning septic systems. 

     SECTION 16. The title of Chapter 46-12.2 of the General Laws entitled "Rhode Island

Clean Water Finance Agency" is hereby amended to read as follows:

CHAPTER 46-12.2

Rhode Island Clean Water Finance Agency

CHAPTER 46-12.2

RHODE ISLAND INFRASTRUCTURE BANK

     SECTION 17. Sections 46-12.2-1, 46-12.2-2, 46-12.2-3, 46-12.2-4, 46-12.2-6, 46-12.2-8,

46-12.2-9, 46-12.2-10, 46-12.2-11, 46-12.2-13, 46-12.2-14, 46-12.2-17 and 46-12.2-25 of the

General Laws in Chapter 46-12.2 entitled "Rhode Island Clean Water Finance Agency" are

hereby amended to read as follows:

     46-12.2-1. Legislative findings. -- (a) It is hereby found that there exists and will in the

future exist within the state of Rhode Island the need to construct facilities and to facilitate

projects for the abatement of pollution caused by wastewater and for the enhancement of the

waters of the state, and for the completion of renewable energy and energy efficiency projects in

order to save property owners money and to encourage job and business growth in Rhode Island.

And that the traditional source for funding construction of such facilities and projects under the

grant program of title II of the Clean Water Act, 33 U.S.C. §§1281 1299, will terminate at the end

of fiscal year 1990.

     (b) It is hereby further found that to meet water quality goals under federal and state law,

and to secure maximum benefit of funding programs available under federal and state law

pertaining to wastewater pollution abatement projects, it is necessary to establish a revolving loan

fund program in accordance with federal and state law to provide a perpetual source of low cost

financing for water pollution abatement projects.

     (c) It is hereby further found that to secure maximum benefit to the state from funding

programs available under federal and state law and, to the extent permissible to attract private

capital, for water pollution abatement projects, for safe drinking water projects, for municipal

road and bridge projects, and other infrastructure related projects, it is necessary to establish a

finance agency to administer the revolving loan funds and other financing mechanisms, and for

the finance agency to work with the department of environmental management, Rhode Island

department of transportation, the Rhode Island office of energy resources and other federal and

state agencies for proper administration of the revolving loan funds and other financing

mechanisms.

     (d) It is hereby further found that cities and towns can lower the costs of borrowing for

road and bridge projects through cooperation with the Rhode Island infrastructure bank and that

greater coordination among cities and towns will enable more efficient allocation of infrastructure

resources by the state of Rhode Island.

     (e) It is hereby further found that the geographic size of and population of Rhode Island,

while often derided as an impediment to economic growth, are potential assets, not handicaps, to

better infrastructure development.

     (f) It is hereby further found that initiatives for infrastructure finance can best be

accomplished through a new, streamlined entity that seeks to foster and develop a public-private

sector partnership that takes advantage of all of Rhode Island's strengths.

     (g) It is hereby further found that expanding the Rhode Island clean water finance agency

and renaming it the Rhode Island infrastructure bank provides the best avenue for reducing

ongoing pollution to the waters of the state and emissions that degrade air quality and contribute

to climate change while fostering the creation of jobs and the realization of energy cost savings

through the facilitation of infrastructure improvements.

     46-12.2-2. Definitions. -- As used in this chapter, unless the context clearly indicates

otherwise, the following words and phrases shall have the following meanings:

      (1) "Agency" means the Rhode Island clean water finance agency, and, effective

September 1, 2015 and thereafter, shall mean the Rhode Island infrastructure bank.

      (2) "Approved project" means any project or portion thereof that has been issued a

certificate of approval by the department for financial assistance from the agency, and also

includes any project approved for financial assistance from the agency in accordance with state

law, and, furthermore, shall include water pollution abatement projects funded outside of the

water pollution control revolving fund, the Rhode Island water pollution control revolving fund,

or the local interest subsidy trust fund, without the requirement of the issuance of a certificate of

approval;

      (3) "Board" means board of directors of the agency;

      (4) "Bond act" means any general or special law authorizing a local governmental unit to

incur indebtedness for all or any part of the cost of projects coming within the scope of a water

pollution abatement project, or for other projects related to this chapter, including but not limited

to § 45-12-2;

      (5) "Bonds" means bonds, notes, or other evidence of indebtedness of the agency;

      (6) "Certificate of approval" means the certificate of approval contemplated by § 46-

12.2-8;

      (7) "Chief executive officer" means the mayor in any city, the president of the town

council in any town, and the executive director of any authority or commission, unless some other

officer or body is designated to perform the functions of a chief executive officer under any bond

act or under the provisions of a local charter or other law;

     (8) "Clean Water Act" or "act" means the Federal Water Pollution Control Act, act of

June 30, 1948, ch. 758, as added Oct. 18, 1972, Pub. L. No. 92-500, 86 Stat. 896, as added Dec.

27, 1977, Pub. L. No. 95-217, 91 Stat. 1566 (codified at 33 U.S.C. § 1251 et seq., as amended and

as hereafter amended from time to time);

     (9) "Corporation" means any corporate person, including, but not limited to, bodies

politic and corporate, public departments, public offices, public agencies, public authorities,

political subdivisions of the state, corporations, societies, associations, limited liability

companies, partnerships and sole proprietorships;

     (9)(10)"Cost" as applied to any approved project, means any or all costs, whenever

incurred, approved by the agency in accordance with section eight of this chapter, of planning,

designing, acquiring, constructing, and carrying out and placing the project in operation,

including, without limiting the generality of the foregoing, amounts for the following: planning,

design, acquisition, construction, expansion, improvement and rehabilitation of facilities;

acquisition of real or personal property; demolitions and relocations; labor, materials, machinery

and equipment; services of architects, engineers, and environmental and financial experts and

other consultants; feasibility studies, plans, specifications, and surveys; interest prior to and

during the carrying out of any project and for a reasonable period thereafter; reserves for debt

service or other capital or current expenses; costs of issuance of local governmental obligations or

non-governmental obligations issued to finance the obligations including, without limitation, fees,

charges, and expenses and costs of the agency relating to the loan evidenced thereby, fees of

trustees and other depositories, legal and auditing fees, premiums and fees for insurance, letters or

lines of credit or other credit facilities securing local governmental obligations or non-

governmental obligations and other costs, fees, and charges in connection with the foregoing; and

working capital, administrative expenses, legal expenses, and other expenses necessary or

incidental to the aforesaid, to the financing of a project and to the issuance therefor of local

government obligations under the provisions of this chapter;

     (10)(11) "Department" means the department of environmental management;

     (12) "Projected energy efficiency savings" means, at the time a loan agreement is entered

into between the agency and a local governmental unit, the savings projected to be derived from

the implementation of energy efficient and renewable energy upgrades to public buildings, as

determined in accordance with the rules and regulations promulgated by the Rhode Island

infrastructure bank pursuant to this chapter;

     (11)(13) "Financial assistance" means any form of financial assistance other than grants

provided by the agency to a local governmental unit, person or corporation in accordance with

this chapter for all or any part of the cost of an approved project, including, without limitation,

grants, temporary and permanent loans, with or without interest, guarantees, insurance, subsidies

for the payment of debt service on loans, lines of credit, and similar forms of financial assistance;

provided, however, notwithstanding the foregoing, for purposes of capitalization grant awards

made available to the agency, pursuant to the American Recovery and Reinvestment Act of 2009

(P.L. 111-5), or as otherwise required in connection with other capitalization grant awards made

available to the agency, financial assistance shall also include principal forgiveness and negative

interest loans;

      (12)(14) "Fully marketable form" means a local governmental obligation in form

satisfactory to the agency duly executed and accompanied by an opinion of counsel of recognized

standing in the field of municipal law whose opinions have been and are accepted by purchasers

of like obligations to the effect that the obligation is a valid and binding obligation of the local

governmental unit issuing the obligation, enforceable in accordance with its terms;

     (13)(15) "General revenues" , when used with reference to a local governmental unit,

means revenues, receipts, assessments, and other moneys of the local governmental unit received

from or on account of the exercise of its powers and all rights to receive the same, including

without limitation:

     (i) Taxes,

      (ii) Wastewater system revenues,

      (iii) Assessments upon or payments received from any other local governmental unit

which is a member or service recipient of the local governmental unit, whether by law, contract,

or otherwise,

     (iv) Proceeds of local governmental obligations and loans and grants received by the

local governmental unit in accordance with this chapter,

      (v) Investment earnings,

      (vi) Reserves for debt service or other capital or current expenses,

      (vii) Receipts from any tax, excise, or fee heretofore or hereafter imposed by any general

or special law all or a part of the receipts of which are payable or distributable to or for the

account of the local governmental unit,

      (viii) Local aid distributions, and

      (ix) Receipts, distributions, reimbursements, and other assistance received by or for the

account of the local governmental unit from the United States or any agency, department, or

instrumentality thereof;

     (14)(16) "Loan" means a loan by the agency to a local governmental unit, or person, or

corporation for costs of an approved project, including, without limitation, temporary and

permanent loans, and lines of credit;

     (15)(17) "Loan agreement" means any agreement entered into by the agency with a local

governmental unit, person, or corporation pertaining to a loan, other financial assistance, or local

governmental obligations, or non-governmental obligations, including, without limitation, a loan

agreement, trust agreement, security agreement, reimbursement agreement, guarantee agreement,

financing lease agreement, appropriate agreement, or similar instrument;

     (16)(18) "Local aid distributions" means receipts, distributions, reimbursements, and

other assistance payable by the state to or for the account of a local governmental unit, except

such receipts, distributions, reimbursements, and other assistance restricted by law to specific

statutorily defined purposes;

     (17)(19) "Local governmental obligations" means bonds, notes, financing lease

obligations, appropriation obligations, and other evidences of indebtedness in fully marketable

form issued by a local governmental unit to evidence a loan or other financial assistance, from the

agency in accordance with this chapter or otherwise as provided herein;

     (18)(20) "Local governmental unit" means any town, city, district, commission, agency,

authority, board, or other political subdivision or instrumentality of the state or of any political

subdivision thereof responsible for the ownership or operation of a water pollution abatement

project, including the Narragansett Bay water quality management district commission; and, for

purposes of dam safety or dam maintenance projects, any person seeking financial assistance as a

joint applicant with any of the above entities;

     (19)(21) "Local interest subsidy trust fund" means the local interest subsidy trust fund

established under § 46-12.2-6;

     (22) "Non-governmental obligations" means bonds, notes, or other evidences of

indebtedness in fully marketable form issued by a person or corporation to evidence a loan, or

other financial assistance, from the agency in accordance with this chapter or otherwise as

provided herein.

     (20)(23) "Person" means any natural or corporate person, including bodies politic and

corporate, public departments, offices, agencies, authorities, and political subdivisions of the

state, corporations, societies, associations, and partnerships, and subordinate instrumentalities of

any one or more political subdivisions of the state;

     (21)(24) "Priority determination system" means the system by which water pollution

abatement projects are rated on the basis of environmental benefit and other criteria for funding

assistance pursuant to rules and regulations promulgated by the department as they may be

amended from time to time;

     (25) "Qualified energy conservation bond" or "QECB" means those bonds designated by

26 USC 54D.

     (22)(26) "Revenues" , when used with reference to the agency, means any receipts, fees,

payments, moneys, revenues, or other payments received or to be received by the agency in the

exercise of its corporate powers under this chapter, including, without limitation, loan

repayments, payments on local governmental obligations, non-governmental obligations, grants,

aid, appropriations, and other assistance from the state, the United States, or any agency,

department, or instrumentality of either or of a political subdivision thereof, bond proceeds,

investment earnings, insurance proceeds, amounts in reserves, and other funds and accounts

established by or pursuant to this chapter or in connection with the issuance of bonds, including,

without limitation, the water pollution control revolving fund, the Rhode Island water pollution

control revolving fund, and the local interest subsidy fund, and any other fees, charges or other

income received or receivable by the agency;

      (23)(27) "Rhode Island water pollution control revolving fund" means the Rhode Island

water pollution control revolving fund established pursuant to § 46-12.2-6;

     (24)(28) "Trust agreement" means a trust agreement, loan agreement, security agreement,

reimbursement agreement, currency or interest rate exchange agreement, or other security

instrument, and a resolution, loan order, or other vote authorizing, securing, or otherwise

providing for the issue of bonds, loans, or local governmental obligations or non-governmental

obligations;

     (25)(29) "Wastewater system revenues" means all rates, rents, fee assessments, charges,

and other receipts derived or to be derived by a local governmental unit from wastewater

collection and treatment facilities and water pollution abatement projects under its ownership or

control, or from the services provided thereby, including, without limitation, proceeds of grants,

gifts, appropriations, and loans, including the proceeds of loans or grants awarded by the agency

or the department in accordance with this chapter, investment earnings, reserves for capital and

current expenses, proceeds of insurance or condemnation, and the sale or other disposition of

property; wastewater system revenues may also include rates, rents, fees, charges, and other

receipts derived by the local governmental unit from any water supply of distribution facilities or

other revenue producing facilities under its ownership or control; wastewater system revenues

shall not include any ad valorem taxes levied directly by the local governmental unit on any real

and personal property;

     (26)(30) "Water pollution abatement project" or "project" means any project eligible

pursuant to Title VI of the Clean Water Act including, but not limited to, wastewater treatment or

conveyance project that contributes to removal, curtailment, or mitigation of pollution of the

surface water of the state, and conforms with any applicable comprehensive land use plan which

has been adopted or any dam safety, removal or maintenance project; it also means a project to

enhance the waters of the state, which the agency has been authorized by statute to participate in;

it also means any other project to which the agency has been authorized to provide financial

assistance;

     (27)(31) "Water pollution control revolving fund" means the water pollution control

revolving fund contemplated by title VI of the Water Quality Act and established under § 46-

12.2-6;

     (28)(32) "Water Quality Act" means the Water Quality Act of 1987, Pub. L. No. 100-4,

101 Stat. 7, 33 U.S.C. § 1251 et seq., as amended from time to time.

     46-12.2-3. Establishment Of agency --, Composition of agency -- Appointment of

directors of the Rhode Island infrastructure bank Establishment, Composition

Appointment of directors of the Rhode Island infrastructure bank. -- (a) There is hereby

created a body politic and corporate and public instrumentality of the state having distinct legal

existence from the state and not constituting a department of the state government, to be known

as the Rhode Island clean water finance agency, and, effective September 1, 2015 and thereafter,

to be known as the Rhode Island infrastructure bank. Effective September 1, 2015, whenever, in

any general law, public law, rule, regulation, bylaw and/or otherwise, any reference is made to the

Rhode Island clean water finance agency, by name or otherwise, the reference shall be deemed to

refer to and mean the "Rhode Island infrastructure bank." The agency shall take all necessary

actions to effectuate this name change, including, but not limited to, changing the name of the

agency on file with any government office. The exercise by the agency of the powers conferred

by this chapter shall be deemed to be the performance of an essential public function.

     (b) Nothing in this act shall be construed to change or modify the corporate existence of

the former Rhode Island clean water finance agency, or to change or modify any contracts or

agreements of any kind by, for, or to which the Rhode Island clean water finance agency is a

party thereto.

     (b)(c) The powers of the agency shall be exercised by or under the supervision of a board

of directors consisting of five (5) members, four (4) of whom shall be members of the public

appointed by the governor, with the advice and consent of the senate. The governor in making

these appointments shall give due consideration to persons skilled and experienced in law,

finance, and public administration and give further due consideration to a recommendation by the

general treasurer for one of those appointments. The newly appointed member will serve for a

limited term to expire in March of 2006. All appointments made by the governor shall serve for a

term of two (2) years. No one shall be eligible for appointment unless he or she is a resident of

this state. The members of the board of directors as of the effective date of this act [July 15, 2005]

who were appointed to the board of directors by members of the general assembly shall cease to

be members of the board of directors on the effective date of this act. As of the effective date of

this act, the general treasurer or his or her designee, who shall be a subordinate within the general

treasurer's department, shall serve on the board of directors as an ex-officio member. Those

members of the board of directors as of the effective date of this act who were appointed to the

board of directors by the governor shall continue to serve the balance of their current terms.

     (e)(d) Each member of the board of directors shall serve until his or her successor is

appointed and qualified. The appointed member of the board of directors shall be eligible for

reappointment. Any member of the board of directors appointed to fill a vacancy of a public

member on the board shall be appointed by the governor, with the advice and consent of the

senate, for the unexpired term of the vacant position in the same manner as the member's

predecessor as set forth in subsection 46-12.2-3(b). The public members of the board of directors

shall be removable by the governor, pursuant to § 36-1-7 and for cause only, and removal solely

for partisan or personal reasons unrelated to capacity or fitness for the office shall be unlawful.

The governor shall designate one member of the board of directors to be the chairperson of the

agency to serve in such capacity during his or her term as a member. The board of directors may

elect from among its members such other officers as they deem necessary. Three (3) members of

the board of directors shall constitute a quorum. A majority vote of those present shall be required

for action. No vacancy in the membership of the board of directors shall impair the right of a

quorum to exercise the powers of the board of directors. The members of the board of directors

shall serve without compensation, but each member shall be reimbursed for all reasonable

expenses incurred in the performance of his or her duties.

     (d)(e) Notwithstanding any other provision of general or special law to the contrary, any

member of the board of directors, who is also an officer or employee of the state or of a local

governmental unit or other public body, shall not thereby be precluded from voting for or acting

on behalf of the agency, the state, or local governmental unit or other public body on any matter

involving the agency, the state, or that local governmental unit or other public body, and any

director, officer, employee, or agent of the agency shall not be precluded from acting for the

agency on any particular matter solely because of any interest therein which is shared generally

with a substantial segment of the public.

     (f) In addition to the board of directors, there is hereby created a green infrastructure

strategic advisory council (the "advisory council"). The advisory council shall exist to advise the

board of directors on advances related to green infrastructure, energy efficiency, and renewable

energy and to make recommendations on potential opportunities for new programs and/or updates

to existing programs. The advisory council shall consist of: the executive director of the Rhode

Island Infrastructure Bank, or designee, the chairperson of the Rhode Island Infrastructure Bank

board of directors, or designee, the secretary of commerce, or designee, the director of the

department of environmental management, or designee, the commissioner of the office of energy

resources, or designee, the director of the department of health, or designee, the director of the

department of transportation, or designee and the executive director of Rhode Island housing, or

designee. The chairperson of the Rhode Island Infrastructure Bank, or designee, shall serve as

chairperson of the advisory council.

     46-12.2-4 General powers and duties of agency. -- (a) The agency shall have all powers

necessary or convenient to carry out and effectuate the purposes and provisions of this chapter

and chapter chapter, chapter 24-18 and chapter 39-26.5, including, without limiting the generality

of the foregoing, the powers and duties:

     (1) To adopt and amend bylaws, rules, regulations, and procedures for the governance of

its affairs, the administration of its financial assistance programs, and the conduct of its business;

      (2) To adopt an official seal;

      (3) To maintain an office at such place or places as it may determine;

      (4) To adopt a fiscal year;

      (5) To adopt and enforce procedures and regulations in connection with the performance

of its functions and duties;

      (6) To sue and be sued;

      (7) To employ personnel as provided in § 46-12.2-5, and to engage accounting,

management, legal, financial, consulting and other professional services;

      (8) Except as provided in this chapter, to receive and apply its revenues to the purposes

of this chapter without appropriation or allotment by the state or any political subdivision thereof;

      (9) To borrow money, issue bonds, and apply the proceeds thereof, as provided in this

chapter, chapter 19.16 of title23, and chapter 24-18 chapter 18 of title 24 and chapter 26.5 of title

39, and to pledge or assign or create security interests in revenues, funds, and other property of

the agency and otherwise as provided in this, chapter 19.16 of title23, and chapter 24-18 chapter

18 of title 24 and chapter 26.5 of title 39, to pay or secure the bonds; and to invest any funds held

in reserves or in the water pollution control revolving fund, the Rhode Island water pollution

control revolving fund, the municipal road and bridge fund established under chapter 24-18, any

other funds established in accordance with this chapter, or the local interest subsidy trust fund, or

any revenues or funds not required for immediate disbursement, in such investments as may be

legal investments for funds of the state;

      (10) To obtain insurance and to enter into agreements of indemnification necessary or

convenient to the exercise of its powers under this, chapter 19.16 of title23, and chapter 24-18

chapter 18 of title 24 and chapter 26.5 of title 39;

      (11) To apply for, receive, administer, and comply with the conditions and requirements

respecting any grant, gift, or appropriation of property, services, or moneys;

      (12) To enter into contracts, arrangements, and agreements with other persons, and

execute and deliver all instruments necessary or convenient to the exercise of its powers under

this, chapter 19.16 of title23, and chapter 24-18 chapter 18 of title 24 and chapter 26.5 of title 39;

such contracts and agreements may include without limitation, loan agreements with a local

governmental unit, person or corporation, capitalization grant agreements, intended use plans,

operating plans, and other agreements and instruments contemplated by title VI of the Clean

Water Act, 33 U.S.C. § 1381 et seq., or this chapter, agreement and instruments contemplated by

chapter 24-18, grant agreements, contracts for financial assistance or other forms of assistance

from the state or the United States, and trust agreements and other financing agreements and

instruments pertaining to bonds;

      (13) To authorize a representative to appear on its own behalf before other public bodies,

including, without limiting the generality of the foregoing, the congress of the United States, in

all matters relating to its powers and purposes;

     (14) To provide financial assistance to a local governmental unit, person, or, to a

corporation to finance costs of approved projects, and to thereby acquire and hold local

governmental obligations and non-governmental obligations at such prices and in such manner as

the agency shall deem advisable, and sell local governmental obligations and non-governmental

obligations acquired or held by it at prices without relation to cost and in such manner as the

agency shall deem advisable, and to secure its own bonds with such obligations all as provided in

this chapter, chapter 19.16 of title23, and chapter 24-18 chapter 18 of title 24 and chapter 26.5 of

title 39. Furthermore, in connection with a recommendation by the Rhode Island commerce

corporation, this power shall include the power to designate a commercial project as a high

priority, and to provide that project with financial assistance as soon as practicable;

      (15) To establish and collect such fees and charges as the agency shall determine to be