2022 -- H 7838

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LC003187

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS

     Introduced By: Representatives Edwards, Bennett, Diaz, Kislak, and Shanley

     Date Introduced: March 04, 2022

     Referred To: House Corporations

     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 26.8

PREVAILING WAGES FOR RENEWABLE ENERGY RESOURCES PROJECTS

     39-26.8-1. Legislative findings.

     The general assembly hereby declares that the mandate of prevailing wage or project labor

agreements for construction work performed in connection with the installation of renewable

energy systems and its "buy American" preference provided for in this chapter will ensure that

workers are central to Rhode Island's transition to the green economy and its pandemic recovery

plan.

     39-26.8-2. Definitions.

     For purposes of this section:

     (1) "Commission" means the Rhode Island public utilities commission established pursuant

to chapter 1 of title 39 ("public utilities commission").

     (2) "Covered renewable energy system" means a renewable energy system involving a

renewable energy resource, as defined in §§ 39-2-1.2 and 39-26-5(a), with a capacity of greater

than five megawatts (5 MW) alternating current and which involves the procurement of renewable

energy credits by a public entity, or a third party acting on behalf and for the benefit of a public

entity. A covered renewable energy system shall exclude construction work performed under a pre-

hire collective bargaining agreement between an owner or contractor and a bona fide building and

construction trade labor organization which has established itself, and/or its affiliates, as the

collective bargaining representative for all persons who will perform work on such a project, and

which provides that only contractors and subcontractors who sign a prenegotiated agreement with

the labor organization can perform work on such a project, or construction work performed under

a labor peace agreement, project labor agreement, or any other construction work performed under

an enforceable agreement between an owner or contractor and a bona fide building and construction

trade labor organization.

     (3) "Covered renewable energy system project" means a public works project, as defined

in §37-13-1, which substantially involves work on a covered renewable energy system. It also

includes a major facility project subject to the provisions of chapter 24 of title 37 ("the green

buildings act").

     (4) "Fiscal officer" means the chief financial officer or person in a similar position for any

authority issuing a bid and entering into a contract pursuant to the provisions of chapter 13 of title

37 ("labor and payment of debts by contractors") for a covered renewable energy system project.

     (5) "Labor peace agreement" means an agreement between an entity and labor organization

that, at a minimum, protects the state's proprietary interests by prohibiting labor organizations and

members from engaging in picketing, work stoppages, boycotts, and any other economic

interference with the relevant renewable energy system.

     (6) "Permanently incorporated" means an iron or steel product that is required to remain in

place at the end of the project contract, in a fixed location, affixed to the public work to which it

was incorporated. Iron and steel products that are capable of being moved from one location to

another are not permanently incorporated into a public work.

     (7) "Public entity" means and shall include, but shall not be limited to, any entity subject

to the provisions of § 37-13-7.

     (8) "Renewable energy credits agreement" means any public entity contract that provides

production-based payments to a renewable energy project as provided for in this chapter.

     39-26.8-3. Prevailing wage requirements.

     A covered renewable energy system shall be subject to prevailing wage requirements

established by the public utilities commission for such work pursuant to the provisions of §§ 37-

13-6, 37-13-7, and 37-13-8.

     39-26.8-4. Use of labor organizations on covered renewable energy system projects.

     The commission shall require that the owner of the covered renewable energy system, or a

third party acting on the owner's behalf, as an ongoing condition of any renewable energy credits

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agreement with a public entity, shall stipulate to the fiscal officer that it will enter into a labor peace

agreement with at least one bona fide labor organization either where such bona fide labor

organization is actively representing employees providing necessary operations and maintenance

services for the renewable energy system at the time of such agreement or upon notice by a bona

fide labor organization that is attempting to represent employees who will provide necessary

operations and maintenance services for the renewable energy system employed in the state. The

maintenance of such a labor peace agreement shall be an ongoing material condition of any

continuation of payments under a renewable energy credits agreement.

     39-26.8-5. Domestic structural steel.

     (a) Any public entity, in each contract for construction, reconstruction, alteration, repair,

improvement or maintenance of a covered renewable energy system which involves the

procurement of a renewable energy credits agreement or tax credit by a public entity, or a third

party acting on behalf and for the benefit of a public entity, shall ensure that such contract shall

contain a provision that the iron and structural steel used or supplied in the performance of the

contract or any subcontract thereto and that is permanently incorporated into the public work, shall

be produced or made in whole or substantial part in the United States, its territories or possessions.

In the case of a structural iron or structural steel product all manufacturing must take place in the

United States, from the initial melting stage through the application of coatings, except

metallurgical processes involving the refinement of steel additives.

     (b) The provisions of this section shall not apply if the head of the department or agency

constructing the public works, in that person's sole discretion, determines that the provisions of this

section would not be in the public interest, would result in unreasonable costs, or that obtaining

such steel or iron in the United States would increase the cost of the contract by an unreasonable

amount, or such iron or steel, including, without limitation, structural iron and structural steel

cannot be produced or made in the United States in sufficient and reasonably available quantities

and of satisfactory quality. The head of the department or agency constructing the public works

shall include this determination in an advertisement or solicitation of a request for proposal,

invitation for bid, or solicitation of proposal, or any other method provided for by law or regulation

for soliciting a response from offerors intending to result in a contract pursuant to this subsection.

     (c) The provisions of this section shall not apply for equipment purchased by a covered

renewable energy system prior to the effective date of this chapter.

     39-26.8-6. Enforcement.

     The director of the department of labor and training (the "director") shall have the authority

to enforce the provisions of §§ 39-26.8-3, 29-26.8-4, and 39-26.8-5. Any person, including, but not

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limited to, the public utilities commission, aggrieved by an alleged violation of §§ 39-26.8-3, 39-

26.8-4, and 39-26.8-5 may report the alleged violation to the director. In investigating these alleged

violations, the director shall have and may utilize the powers assigned to the director pursuant to

the provisions of chapter 13 of title 37 ("labor and payment of debts by contractors"), including,

but not limited to, conducting investigations, mediations, and hearings, making determinations,

issuing corrective orders, and imposing fines and penalties. The director may file an action in the

superior court for Providence County as needed to enforce the provisions of this section and

chapter.

     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

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     This act would provide that the public utilities commission would establish a prevailing

wage rate for all covered renewable energy system projects involving public works and renewable

energy resources. This act would also provide that iron and steel being used and permanently

incorporated into the projects be substantially made or produced in the United States or its

territories. This act would also require that at least one bona fide labor organization be contracted

with on the project. This act would give enforcement powers over certain provisions of this act to

the director of the department of labor and training.

     This act would take effect upon passage.

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