2016 -- S 2747

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LC005388

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS-GREEN ENERGY REVOLVING

FUND

     Introduced By: Senators Lynch Prata, Walaska, Doyle, and Gallo

     Date Introduced: March 10, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND

CARRIERS" is hereby amended by adding thereto the following chapter:

CHAPTER 39-26.7

GREEN ENERGY REVOLVING FUND

     39-26.7-1. 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) "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;

     (4) "Department" means, the department of environmental management;

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

political subdivision or instrumentality of the state;

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

or projects that have been defined as eligible in the Property-Assessed Clean Energy or "PACE"

rules and regulations established pursuant to chapter 26.5 of title 39;

     (7) "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;

     (8) "Green energy project" means a project proposed by a city, town, person or

corporation that would provide for the replacement of inefficient heating and cooling systems,

appliances, and windows with energy star products, energy efficiency projects that are eligible

and meet the requirements set forth in §39-1-27.7, and projects that provide for the installation of

solar panels and other renewable energy systems within the state of Rhode Island.

     (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, and the cost effectiveness of

the project; and

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

chapter.

     39-26.7-2. Establishment of the green energy revolving fund. – (a) There is hereby

established a green energy revolving fund. The agency shall establish the green energy revolving

fund, to be held in trust and to be administered by the agency solely as provided in this chapter

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

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     (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 green energy revolving fund.

     (c) The state shall provide for a referendum for the approval of a bond issue providing up

to sixty million dollars ($60,000,000) in funds for the purposes of this chapter.

     39-26.7-3. Loans issued from revolving fund. -- (a) The agency is authorized to issue

loans from the revolving fund to eligible borrowers as follows:

     (1) The agency shall evaluate all proposed green energy project applications in

accordance with a project evaluation criteria stabled by the department pursuant to the purposes

of this chapter;

     (2) The agency shall issue loans from the revolving fund based upon an applicant’s

results after applying the project evaluation criteria to the proposed project;

     (3) Loans in the amounts from two thousand five hundred dollars ($2,500) to ten

thousand dollars ($10,000) may be made to individual homeowners for green energy projects

with qualifying scores under the project evaluation criteria; and

     (4) Loans in the amounts from two thousand five hundred dollars ($2,500) to forty

thousand dollars ($40,000) may be made to other eligible borrowers, for green energy projects

with qualifying scores under the project evaluation criteria.

     (b) The agency shall promulgate rules and regulations to implement the provisions of

this chapter. Such rules and regulations shall include:

     (1) A methodology for potential borrowers to apply to the agency for financial assistance

for a green energy project;

     (2) A methodology for the agency to evaluate applications for such financial assistance,

which shall include a project evaluation criteria, and thus to approve or deny borrowers;

     (3) A mechanism to review and insure that eligible borrowers are utilizing any financial

assistance received from the agency in the manner approved by the agency, including meeting the

specifications contained in an approved green energy project. In making such determinations, the

agency shall evaluate the extent the borrower is meeting the project evaluation criteria stabled for

the green energy project.

     39-26.7-4. Annual reporting. -- (a) Commencing on March 1, 2017, and annually on

March 1 thereafter, the agency shall file a report with the general assembly and the governor on

the status of the fund. Such report shall include:

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     (1) The amount of money currently in the revolving fund;

     (2) The number and amounts of loans currently issued by the agency;

     (3) A general description of the success of the program, in terms of the number of

projects meeting their project evaluation criteria;

     (4) An estimate of the amount of energy savings, if any, being realized by the program;

and

     (5) Such other information as the agency deems pertinent to include.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS-GREEN ENERGY REVOLVING

FUND

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     This act would establish the green energy revolving fund for the purpose of providing

loans for green energy projects.

     This act would take effect upon passage.

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