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:

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

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

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CHAPTER 39-26.7

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GREEN ENERGY REVOLVING FUND

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     39-26.7-1. Definitions. – As used in this chapter, the following terms, unless the context

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requires a different interpretation, shall have the following meanings:

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

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title 46;

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

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assistance;

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

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

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

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subdivisions of the state;

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

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

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political subdivision or instrumentality of the state;

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

 

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

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

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

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

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

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

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credit, and similar forms of financial assistance;

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

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

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

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

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

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     (9) "Person" means any natural person;

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

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

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

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the project; and

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

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chapter.

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

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

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

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and in any trust agreement securing bonds of the agency. The agency shall deposit the following

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monies into the fund:

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

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

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

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agreements with eligible borrowers executed in accordance with this chapter;

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

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

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such bonds;

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     (5) Administrative fees levied by the agency;

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

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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

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to credit thereto.

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

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conforming to generally accepted government accounting standards sufficient to ensure proper

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accounting for receipts in and disbursements from the green energy revolving fund.

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

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

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

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loans from the revolving fund to eligible borrowers as follows:

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

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

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of this chapter;

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

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

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

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

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with qualifying scores under the project evaluation criteria; and

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

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

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with qualifying scores under the project evaluation criteria.

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

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this chapter. Such rules and regulations shall include:

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

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for a green energy project;

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

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

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

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

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

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

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the green energy project.

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

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

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the status of the fund. Such report shall include:

 

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

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

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

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projects meeting their project evaluation criteria;

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

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and

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

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     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

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loans for green energy projects.

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     This act would take effect upon passage.

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