Chapter
237
2006 -- S 2903 SUBSTITUTE B AS AMENDED
Enacted 06/29/06
A N A C T
RELATING TO STATE
AFFAIRS AND GOVERNMENT
Introduced By: Senators
Walaska, Sosnowski, Paiva-Weed, J Montalbano, and Lenihan
Date Introduced: March 08,
2006
It is
enacted by the General Assembly as follows:
SECTION
1. This act shall be known as and may be cited as "The Comprehensive
Energy
Conservation, Efficiency and Affordability Act of 2006". The general
purposes of this act
are:
(1) to provide Rhode Island residents, institutions and businesses the benefit
of stability
through
diversification of energy resources, energy conservation, efficiency, demand
management
and prudent procurement, (2) to facilitate the development of renewable energy
resources;
(3) to make the cost of energy more affordable by mitigating demand and rates
charged
to
low-income households; and (4) to strengthen energy planning, program
administration,
management,
and oversight in a manner that is publicly accountable and responsive.
SECTION
2. Title 22 of the General Laws entitled "GENERAL ASSEMBLY" is hereby
amended
by adding thereto the following chapter:
CHAPTER 7.10
PERMANENT JOINT COMMITTEE ON ENERGY
22-7.10-1.
Permanent committee - Composition. -- There is created a permanent
joint
committee
of the general assembly on energy to consist of eight (8) members of the
general
assembly,
four (4) of whom shall be from the senate to be appointed by the president of
the senate
not
more than three (3) of whom shall be from the same political party, and four
(4) of whom
shall
be from the house of representatives to be appointed by the speaker of the
house of
representatives
not more than three (3) of whom shall be from the same political party. The
selection
of the chairperson, vice-chairperson, and secretary of the committee shall
alternate
biennially
between the president of the senate and the speaker of the house.
22-7.10-2.
Duties. -- It shall be the duty of the joint committee on energy to
promote and
encourage
the development of effective and efficient plans, programs, strategies, and
standards
for
energy conservation, energy efficiency, and energy resource procurement, use
and
development,
including renewable energy, and in the furtherance to this purpose, it shall be
the
duty
of the joint committee to provide oversight of the implementation of standard
offer service
through
2020 and all agencies and instrumentalities of the state with responsibility
for energy
programs,
including, but not limited to, the office of energy resources, the Rhode Island
energy
efficiency
and resources management council, the public utilities commission, and the
division of
public
utilities.
22-7.10-3.
Reports and recommendations. -- The joint committee on energy shall
from
time
to time and at least annually report to the general assembly on its findings
and the results of
its
studies, and make any recommendations to the general assembly and propose any
legislation
or
initiate any studies that it shall deem advisable.
22-7.10-4.
References to committee. -- Each branch of the legislature may refer
to the
joint
committee, either initially or after action by other committees, all bills and
resolutions
dealing
with or affecting energy.
22-7.10-5.
Technical assistance. -- The joint committee shall, if it finds it
cannot obtain
proper
assistance from available sources, contract for any technical services that it
shall require to
effectuate
its purposes.
22-7.10-6.
Place of meeting - Quorum. -- The joint committee on legislative
services
shall
provide adequate space in the state house of the use of the joint committee on
energy;
provided,
that the joint committee on energy may conduct hearings and hold meetings elsewhere
when
doing so will better serve its purposes. A majority in number of the joint
committee on
energy
shall be necessary to constitute a quorum for the transaction of business.
SECTION
3. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State
Funds"
is
hereby amended to read as follows:
35-4-27.
Indirect cost recoveries on restricted receipt accounts. -- Indirect
cost
recoveries
of ten percent (10%) of cash receipts shall be transferred from all restricted
receipt
accounts,
to be recorded as general revenues in the general fund. However, there shall be
no
transfer
from cash receipts with restrictions received exclusively: (1) from
contributions from
non-profit
charitable organizations; (2) from the assessment of indirect cost recovery
rates on
federal
grant funds; or (3) through transfers from state agencies to the department of
administration
for the payment of debt service. These indirect cost recoveries shall be
applied to
all
accounts, unless prohibited by federal law or regulation, court order, or court
settlement. The
following
restricted receipt accounts shall not be subject to the provisions of this
section:
Department of Human Services
Veterans' home -- Restricted account
Veterans' home -- Resident benefits
Organ transplant fund
Department of Environmental Management
National heritage revolving fund
Environmental response fund II
Underground storage tanks
Rhode Island Council on the Arts
Art for public facilities fund
Rhode Island Historical Preservation and Heritage Commission
Historic
preservation revolving loan fund
Historic Preservation loan fund -- Interest revenue
State Police
Forfeited property -- Retained
Forfeitures -- Federal
Forfeited property -- Gambling
Attorney General
Forfeiture of property
Federal forfeitures
Attorney General multi-state account
Department of Administration
Restore and replacement -- Insurance coverage
Convention Center Authority rental payments
Investment Receipts -- TANS
Car Rental Tax/Surcharge-Warwick Share
Legislature
Audit of federal assisted programs
Department of Elderly Affairs
Pharmaceutical Rebates Account
Affordable
Energy fund
SECTION
4. Section 37-7-9 of the General Laws in Chapter 37-7 entitled "Management
and
Disposal of Property" is hereby amended to read as follows:
37-7-9.
Concessions, leases, and licenses -- Reports. -- (a) The acquiring
authority, with
the
approval of the state properties committee, is authorized and empowered when it
shall serve
the
public purpose to grant concessions in or to lease or license any land or
building or structure,
a part
or portion of any governmental facility, public work, or public improvement for
industrial
or
commercial purposes for a term or terms not exceeding in the aggregate in any
one case twenty
(20)
years; provided, however, that real property, buildings, and facilities owned
by the state at
the Port
of Galilee may be leased for a term of up to forty (40) years for commercial
fishing
industry-related
purposes, and provided further, however, that certain real properties, buildings,
and
facilities owned by the state in the city of Providence known as the Union
Station properties,
which
properties have been conveyed from time to time to the state by the
consolidated rail
corporation
and others, may be leased for a term of up to forty (40) years for office,
commercial,
service,
transportation, or other related purposes; and provided further, however, that
real
property,
buildings, and facilities owned by the state may be leased for a term of up to
forty (40)
years
for the development of cogeneration projects which involve the simultaneous
generation of
electricity
and thermal energy (steam and hot water) and for eligible renewable energy
resources
as
defined in subdivisions 39-26-5(a)(i) through (v); and further provided, however, that in the
event of
a mobile home lease agreement, or site lease agreement, wherein such mobile
home is
contiguous
to a resident owned mobile home park, the State Properties Committee may enter
into
a lease
or grant concessions to or license any land or building for a period not to
exceed thirty
(30)
years and provided further, however, that real property, buildings, and
facilities owned by
the
state may be leased for a term of up to ninety-nine (99) years for the
development of railroad
layover
facilities, contingent on the lease requiring the lessee to provide commuter
rail service
within
the state of Rhode Island, as set forth by the state. All agreements,
contracts, and other
instruments
granting concessions or leasing or licensing facilities shall contain such
conditions,
rules,
restrictions, and regulations as the state purchasing agent shall deem suitable
or necessary,
and
shall be approved as to substance by the director of administration and as to
form by the
attorney
general.
(b) Whenever property which is subject to the provisions of this chapter is
leased by the
state,
the lessee shall report on a semi-annual basis the amount of income revenue
generated by
the
leased property. The report shall be made to the state properties commission
and copies shall
be
provided to both the house and senate fiscal staffs and the governor. These
requirements shall
be
contained in the lease between the lessor and the lessee with approval of the
state properties
committee.
SECTION
5. Sections 39-1-1 and 39-1-27.3 of the General Laws in Chapter 39-1 entitled
"Public
Utilities Commission" are hereby amended to read as follows:
39-1-1.
Declaration of policy -- Purposes. -- (a) The general assembly finds
and
therefore
declares that:
(1) The businesses of distributing electrical energy, producing and
transporting
manufactured
and natural gas, operating water works and furnishing supplies of water for
domestic,
industrial, and commercial use, offering to the public transportation of
persons and
property,
furnishing and servicing telephonic and wireless audio and visual communication
systems,
and operation of community antenna television systems are affected with a
public
interest;
(2) Supervision and reasonable regulation by the state of the manner in which
such
businesses
construct their systems and carry on their operations within the state are
necessary to
protect
and promote the convenience, health, comfort, safety, accommodation, and
welfare of the
people,
and are a proper exercise of the police power of the state;
(3) Preservation of the state's resources, commerce, and industry requires the
assurance
of
adequate public transportation and communication facilities, water supplies,
and an abundance
of energy,
all supplied to the people with reliability, at economical cost, and with due
regard for
the
preservation and enhancement of the environment, the conservation of natural
resources,
including
scenic, historic, and recreational assets, and the strengthening of long-range,
land-use
planning.
(b) It is hereby declared to be the policy of the state to provide fair
regulation of public
utilities
and carriers in the interest of the public, to promote availability of
adequate, efficient and
economical
energy, communication, and transportation services and water supplies to the
inhabitants
of the state, to provide just and reasonable rates and charges for such
services and
supplies,
without unjust discrimination, undue preferences or advantages, or unfair or
destructive
competitive
practices, and to co-operate with other states and agencies of the federal
government
in
promoting and coordinating efforts to achieve realization of this policy.
(c) To this end, there is hereby vested in the public utilities commission and
the division
of
public utilities and carriers the exclusive power and authority to supervise,
regulate, and make
orders
governing the conduct of companies offering to the public in intrastate
commerce energy,
communication,
and transportation services and water supplies for the purpose of increasing
and
maintaining
the efficiency of the companies, according desirable safeguards and convenience
to
their
employees and to the public, and protecting them and the public against
improper and
unreasonable
rates, tolls and charges by providing full, fair, and adequate administrative
procedures
and remedies, and by securing a judicial review to any party aggrieved by such
an
administrative
proceeding or ruling.
(d) The legislature also finds and declares, as of 1996, the following:
(1) That lower retail electricity rates would promote the state's economy and
the health
and
general welfare of the citizens of Rhode Island;
(2) That current research and experience indicates that greater competition in
the
electricity
industry would result in a decrease in electricity rates over time;
(3) That greater competition in the electricity industry would stimulate
economic growth;
(4) That it is in the public interest to promote competition in the electricity
industry and
to
establish performance based ratemaking for regulated utilities;
(5) That in connection with the transition to a more competitive electric
utility industry,
public
utilities should have a reasonable opportunity to recover transitional costs
associated with
commitments
prudently incurred in the past pursuant to their legal obligations to provide
reliable
electric
service at reasonable costs;
(6) That it shall be the policy of the state to encourage, through all feasible
means and
measures,
states where fossil-fueled electric generating units producing air emissions
affecting
Rhode
Island air quality are located to reduce such emissions over time to levels
that enable cost
effective
attainment of environmental standards within Rhode Island;
(7) That in a restructured electrical industry the same protections currently
afforded to
low
income customers shall continue.
(e)
The legislature further finds and declares as of 2006:
(1)
That prices of energy, including especially fossil-fuels and electricity, are
rising faster
than
the cost of living and are subject to sharp fluctuations, which conditions
create hardships for
many
households, institutions, organizations, and businesses in the state;
(2)
That while utility restructuring has brought some benefits, notably in
transmission and
distribution
costs and more efficient use of generating capacities, it has not resulted in
competitive
markets for residential and small commercial industrial customers, lower
overall
prices,
or greater diversification of energy resources used for electrical generation;
(3)
That the state's economy and the health and general welfare of the people of
Rhode
Island
benefit when energy supplies are reliable and least-cost; and
(4)
That it is a necessary move beyond basic utility restructuring in order to
secure for
Rhode
Island, to the maximum extent reasonably feasible, the benefits of reasonable
and stable
rates,
least-cost procurement, and system reliability that includes energy resource
diversification,
distributed
generation, and load management.
39-1-27.3.
Electric distribution companies required to provide retail access,
standard
offer and last resort service. --
(a) To promote economic development and the
creation
and preservation of employment opportunities within the state, each electric
distribution
company
shall offer retail access from nonregulated power producers to all customers.
(b) Through year 2009, and effective July 1, 2007, through year 2020,
each electric
distribution
company shall arrange for a standard power supply offer ("standard
offer") to
customers
that have not elected to enter into power supply arrangements with other nonregulated
power
suppliers. The rates that are charged by the electric distribution company to
customers for
standard
offer service shall be approved by the commission and shall be designed to
recover the
electric
distribution company's costs and no more than the electric distribution
company's costs;
provided,
that the commission may establish and/or implement a rate that averages the
costs over
periods
of time. The electric distribution company shall not be entitled to recover any
profit
margin
on the sale of standard offer power, except with approval of the commission
as may be
necessary
to implement fairly and effectively, system reliability and least-cost
procurement. The
electric
distribution company will be entitled to recover its costs incurred from
providing the
standard
offer arising out of: (1) wholesale standard offer supply agreements with power
suppliers
in effect prior to January 1, 2002; (2) power supply arrangements that are
approved by
the commission
after January 1, 2002; (3) power supply arrangements made pursuant to sections
39-1-27.3.1
and 39-1-27.8; and (4) any other power supply related arrangements
prudently made
after January
1, 2002 to provide standard offer supply or to mitigate standard offer supply
costs,
including
costs for system reliability, procurement and least-cost procurement, as
provided for in
section
39-1-27.7 ; provided, however, to
the extent there are any cost recovery matters relating to
the
provision of standard offer service that have been deferred and are pending
before the
commission
as of the effective date of this section, such cost recovery matters shall be
governed
by
the statutory provisions in effect on the date of the action of the commission
to defer its
decision
on the cost recovery matter. Subject
to commission approval, the electric distribution
company
may enter into financial contracts designed to hedge fuel-related or other
variable costs
associated
with power supply arrangements and the costs of any such financial contracts
shall be
recoverable
in standard offer rates. The electric distribution company's standard offer
revenues
and its
standard offer costs shall be accounted for and reconciled with interest at
least annually.
Except
as otherwise may be directed by the commission in order to accomplish purposes
established
by law, any Any over
recoveries shall be refunded to customers in a manner directed
by
the commission, and any under
recoveries shall be recovered by the electric distribution
company
through a uniform adjustment factor approved by the commission. The commission
shall
have the discretion to apply such adjustment factor in any given instance to
all customers or
to such
specific class of customers that the commission deems equitable under the
circumstances
provided
that the distribution company recovers any under recovery in its entirety. Once
a
customer
has elected to enter into a power supply arrangement with a nonregulated power
producer,
the electric distribution company shall not be required to arrange for the
standard offer
to such
customer except as provided in section 39-1-27.3.1. No customer who initially
elects the
standard
offer and then chooses an alternative supplier shall be required to pay any
withdrawal
fee or
penalty to the provider of the standard offer unless such a penalty or
withdrawal fee was
agreed
to as part of a contract; however, no residential customer shall be required to
pay a penalty
or
withdrawal fee for choosing an alternative supplier. Nothing in this subsection
shall be
construed
to restrict the right of any nonregulated power producer to offer to sell power
to
customers
at a price comparable to that of the standard offer specified pursuant to this
subsection.
The
electric distribution company may not terminate an existing standard offer
wholesale supply
agreement
without the written consent of the division.
(c) In recognition that electricity is an essential service, each electric
distribution
company
shall arrange for a last resort power supply for customers who have left the
standard
offer
for any reason and are not otherwise receiving electric service from
nonregulated power
producers.
The electric distribution company shall procure last resort service supply from
wholesale
power suppliers. Prior to acquiring last resort supply, the electric
distribution company
will
file with the commission a supply acquisition plan or plans that include the
acquisition
procedure,
the pricing options being sought, and a proposed term of service for which last
resort
service
will be acquired. The term of service may be short or long term and
acquisitions may
occur
from time to time and for more than one supplier for segments of last resort
service load
over
different terms, if appropriate. All the components of the acquisition plans,
however, shall be
subject
to commission review and approval. Once an acquisition plan is approved by the
commission,
the electric distribution company shall be authorized to acquire last resort
service
supply
consistent with the approved acquisition plan and recover its costs incurred
from
providing
last resort service pursuant to the approved acquisition plan. The commission
may
periodically
review the acquisition plan to determine whether it should be prospectively
modified
due to
changed market conditions. The commission shall have the authority and
discretion to
approve
special tariff conditions and rates proposed by the electric distribution
company that the
commission
finds are in the public interest, including without limitation: (1) short and
long term
optional
service at different rates; (2) term commitments or notice provisions before
individual
customers
leave last resort service; (3) last resort service rates for residential or any
other special
class of
customers that are different than the rates for other last resort customers;
and/or (4) last
resort
service rates that are designed to encourage any class of customers to return
to the market.
The
electric distribution company's last resort service revenues and its last
resort service costs
shall be
accounted for and reconciled with interest at least annually. Any over
recoveries shall be
refunded
and any under recoveries shall be recovered by the electric distribution
company
through
a uniform adjustment factor approved by the commission. The commission shall
have the
discretion
to apply such adjustment factor in any given instance to all customers or to
such
specific
class of customers that the commission deems equitable under the circumstances
provided
that the distribution company recovers any under recovery in its entirety.
Nothing in this
section
shall be construed to prohibit an electric distribution company from
terminating service
provided
hereunder in accordance with commission rules and regulations in the event of
nonpayment
of this service. The commission may promulgate regulations to implement this
section
including the terms and conditions upon which last resort service is offered
and provided
to
customers.
(d) If a customer being served by a nonregulated power producer pays any taxes
assessed
for
electric service to the electric distribution company and the electric
distribution company
forwards
such tax payment for the power portion of the bill to a nonregulated power
producer for
payment
by the nonregulated power producer to the state, neither the customer nor the
electric
distribution
company shall be liable for such taxes forwarded if the nonregulated power
producer
fails to
remit such taxes to the state for any reason.
SECTION
6 Chapter 39-1 of the General Laws entitled "Public Utilities
Commission" is
hereby
amended by adding thereto the following sections:
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 section 39-1-27.8, as
complementary
but
distinct activities that have as common purpose meeting electrical 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 39-26;
(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
conduct 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, 2017.
(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,
2009,
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 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,
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.
(5)
The commission shall issue an order with regard to the plan from the electrical
distribution
company not greater than sixty (60) days after it is filed with the commission.
(6)
Each electrical 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.
(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.
39-1-27.8.
Supply procurement portfolio. -- Each electric distribution company
shall
submit
a proposed supply procurement plan or plans to the commission not later than
March 1,
2009,
and each March 1, thereafter through March 1, 2018. The supply procurement plan
or plans
shall
be consistent with the purposes of least-cost procurement and shall, as
appropriate, take into
account
plans and orders with regard to system reliability and energy efficiency and
conservation
procurement.
The supply procurement plan or plans will include the acquisition procedure,
the
pricing
options being sought, and a proposed term of service for which standard offer
service will
be
acquired. The term of service may be of various, staggered term lengths and
acquisitions may
occur
from time to time and for more than one supplier for segments of standard offer
load over
different
terms, if appropriate. There also may be separate procurement plans for
residential and
non-residential
classes or separate plans among non-residential classes. All the components of
the
procurement
plans, shall be subject to commission review and approval. Once a procurement
plan
is
approved by the commission, the electric distribution company shall be
authorized to acquire
standard
offer service supply consistent with the approved procurement plan and recover
its costs
incurred
from providing standard offer service pursuant to the approved procurement
plan. The
commission
may periodically review the procurement plan to determine whether it should be
prospectively
modified due to changed market conditions. The commission shall have the
authority
and discretion to establish eligibility criteria by rate class, and approve
special tariff
conditions
and rates proposed by the electric distribution company that the commission
finds are
in
the public interest, including without limitation: (1) short and long term
optional service at
different
rates; (2) term commitments or notice provisions before individual customers
leave
standard
offer service; (3) standard offer service rates for residential or any other
special class of
customers
that are different than the rates for other standard offer customers; (4) time
of use
commodity
pricing for specified classes of customers, except residential customers;
provided,
however,
that the commission may establish pilot programs for time of use commodity
pricing for
residential
customers; and/or (5) standard offer service rates that are designed to
encourage any
class
of customers to purchase supply directly from the market.
39-1-27.9.
Office of energy resources participation. -- In any commission inquiry
into,
or
examination of matters that relate to or could potentially impact any programs,
functions or
duties
of the office of energy resources and/or the energy efficiency and resources
management
council,
including, but not limited to, those programs, functions and duties pursuant to
this
chapter
and chapters 42-140, 42-140.1, 42-140.2, and 42-141, the office of energy
resources and
the
energy resources council shall be deemed, upon the formal request of the office
or the council
as
appropriate, to be an interested party for all purposes, and as such, shall
receive all notices and
may
file complaints, institute proceedings, participate as a party in
administrative hearings.
39-1-27.10.
Electric and gas distribution companies required to file affordable
energy
plans. – (a) On or before
January 2, 2007, each gas and electric distribution company
shall
submit to the commission a plan for affordable energy for low income
households, including
very
low income households as defined in section 42-141-3. The plan shall provide
for the
implementation
of the affordable energy fund and shall include provisions for discounted
distribution
rates and customer charges, payments on arrearages and unpaid balances by low
income
households, and energy efficiency and weatherization, to the extent that
funding is
allocated
by the commissioner pursuant to subsection 42-141-5(d).
(b)
On or before April 30, 2007, the commission shall review the plan and issue an
order
with regard
to the plan not later than May 31, 2007. The order shall be effective not later
than
November
1, 2007. The commission shall cause a review, and as appropriate an amendment,
the
plan
at least every three (3) years between July 1, 2007, and July 1, 2016.
(c)
On or before November 1, 2007, each gas and electric distribution company shall
implement
an affordable energy plan in accordance with the order of the commission.
SECTION
7. Sections 39-2-1, 39-2-1.2, 39-2-1.4 and 39-2-5 of the General Laws in
Chapter
39-2 entitled "Duties of Utilities and Carriers" are hereby amended
to read as follows:
39-2-1.
Reasonable and adequate services -- Reasonable and just charges. -- (a)
Every
public utility is required to furnish safe, reasonable, and adequate services
and facilities.
The
rate, toll, or charge, or any joint rate made, exacted, demanded, or collected
by any public
utility
for the conveyance or transportation of any persons or property, including
sewage, between
points
within the state, or for any heat, light, water, or power produced,
transmitted, distributed,
delivered,
or furnished, or for any telephone or telegraph message conveyed or for any
service
rendered
or to be rendered in connection therewith, shall be reasonable and just, and
every unjust
or
unreasonable charge for the service is prohibited and declared unlawful, and no
public utility
providing
heat, light, water, or power produced, transmitted, distributed, delivered, or
furnished
shall
terminate the service or deprive any home or building, or whatsoever, of
service if the
reason
therefor is nonpayment of the service without first notifying the user of the
service, or the
owner or
owners of the building as recorded with the utility of the impending service
termination
by
written notice at least ten (10) days prior to the effective date of the
proposed termination of
service.
(b) Any existing rules and regulations dealing with the termination of utility
service and
establishing
reasonable methods of debt collection promulgated by the commission pursuant to
this
chapter and the provisions of section 39-1.1-3, including but not limited to,
any rules and
regulations
dealing with deposit and deferred payment arrangements, winter moratorium and
medical
emergency protections, and customer dispute resolution procedures, shall be
applicable
to any
public utility which distributes electricity.
(c) The commission shall promulgate such further rules and regulations as are
necessary
to
protect consumers following the introduction of competition in the electric
industry and which
are
consistent with this chapter and the provisions of section 39-1.1-3. In
promulgating such rules
and
regulations, the commission shall confer with the Retail Electric Licensing
Commission and
shall
give reasonable consideration to any and all recommendations of the Retail
Electric
Licensing
Commission.
(d) (Effective until April 15, 2006.) The commission shall promulgate and
administer
such
rules and regulations as may be necessary to implement the purpose of this
subsection and to
provide
for restoration of electric and/or gas service to Protected Status Customers
who are
terminated
from utility service prior to August 15, 2005.
(1) Notwithstanding the provisions of part V section 4(E)(1)(B) and (C) of the
Public
Utilities
Commission Rules and Regulations Governing the Termination of Residential
Electric,
Gas, and
Water Utility Service, a protected status customer who is terminated from
utility service
prior to
August 15, 2005, shall be eligible to have electric and/or gas utility service
restored
providing
the following conditions are met: (i) the customer pays twenty percent (20%) of
the
customer's
unpaid balance; (ii) the customer agrees to pay one twenty-fourth (1/24) of the
customer's
remaining balance per month for twenty-four (24) months, (iii) the customer
agrees to
remain
current with payments for current usage; and (iv) the customer has shown, to
the
satisfaction
of the division, that the customer is reasonably capable of meeting the payment
schedule
provided for by provisions (i)-(iii) of this subsection 39-2-1(d)(1), and that
the customer
shall
agree to waiver the right to a hearing for termination of service; provided
that this waiver
provision
shall apply exclusively to the provisions of this subsection and shall have no
preferential
value for other proceedings before the commission or the division. Once service
is
restored
under the provisions of this subsection, such service may be terminated if
payment is not
made
within thirty (30) days after the billing date; provided, however, that
termination of service
shall
not take place during the moratorium on shut-offs.
(2) A customer terminated from service under the provisions of subsection
39-2-1(d)(1)
shall be
eligible for restoration of service in accordance with the applicable
provisions of part V
section
4(E)(1)(C), or its successor provision, of the Public Utilities
Commission Rules and
Regulations
Governing the Termination of Residential Electric, Gas, and Water Service.
(3) The provisions of subsection 39-2-1(d)(1) shall be available if the
initial payment for
restoration
of service is made between April 15, 2005, and August 15, 2005, inclusive.
(e)
On or before May 1, 2007, the commission shall administer such rules and
regulations
as
may be necessary to implement the purpose of this section and to provide for
restoration of
electric
and/or gas service to very low income households as defined by section
42-141-2.
(1)
Effective July 1, 2007, notwithstanding the provisions of part V sections
4(E)(1)(B)
and
(C) of the public utilities commission rules and regulations governing the
termination of
residential
electric, gas, and water utility service, a very low income customer who is
terminated
from
gas and/or electric service shall be eligible one time to have electric and/or
gas utility
service
restored providing the following conditions are met:
(i)
the customer pays twenty-five percent (25%) of the customer's unpaid balance;
(ii)
the customer agrees to pay one thirty-sixth (1/36th) of one half (1/2) of the
customer's
remaining
balance per month for thirty-six (36) months;
(iii)
the customer agrees to remain current with payments for current usage; and
(iv)
the customer has shown, to the satisfaction of the division, that the customer
is
reasonably
capable of meeting the payment schedule provided for by the provisions of
subdivision
39-2-1(e)(1)(i) and (ii) in this section. The restoration of service provided
for by this
subsection
shall be a one-time right; failure to comply with the payment provisions set
forth in
this
subsection shall be grounds for the customer to be dropped from the repayment
program
established
by this subsection, and the balance due on the unpaid balance shall be due in
full and
shall
be payable in accordance with the rules of the commission governing the
termination of
residential
electric, gas, and water utility service. A customer who completes the schedule
of
payments
pursuant to this subsection, shall have the balance of any arrearage forgiven,
and the
customer's
obligation to the gas and/or electric company for such balance shall be deemed
to be
fully
satisfied. The amount of the arrearage so forgiven shall be treated as bad debt
for purposes
of
cost recovery by the gas or the electric company.
(2)
A customer terminated from service under the provisions of subdivision
39-2-1(e)(1)
shall
be eligible for restoration of service in accordance with the applicable
provisions of part V
section
4(E)(1)(C), or its successor provision, of the public utilities commission
rules and
regulations
governing the termination of residential electric, gas, and water service.
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, 2003, and for a period of ten (10) years
thereafter, each
electric
distribution company shall include charges of 2.0 mills per kilowatt-hour
delivered to
fund
demand side management programs and 0.3 mills per kilowatt-hour delivered to
fund
renewable
energy programs. Existing charges for these purposes and their method of
administration
shall continue through December 31, 2002. Thereafter, the electric distribution
company
shall establish and after July 1, 2007, maintain two (2) separate
accounts, one for
demand
side management programs, which shall be 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 state energy
office. office of
energy
resources through June 30, 2007, and effective July 1, 2007, shall be held and
disbursed
by
the distribution company as directed by the commissioner of the office of
energy resources,
with
the approval, if appropriate, of the trustees of the renewable energy
development fund, for
the
purposes of developing, promoting and supporting renewable energy programs.
During the ten (10) year period the commission may, in its discretion, after
notice and
public
hearing, increase the sums for demand side management and renewable resources;
thereafter,
the commission shall, after notice and public hearing, determine the
appropriate charge
for
these programs. The energy office of energy resources and/or and
the administrator of the
renewable
energy programs shall seek to secure for the state an equitable and reasonable
portion
of renewable
energy credits or certificates created by projects funded through those
programs,
and
shall develop and execute by July 1, 2007, a plan to make the program
self-sustaining as of
January
1, 2013. As used in this section,
"renewable energy resources" shall mean: (1) power
generation
technologies as defined in section 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, so long as these
technologies
are
installed on housing projects that have been certified by the executive
director of the Rhode
Island
housing and mortgage finance corporation as serving low-income Rhode Island
residents.
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.
(c) The director of the state energy office commissioner of the
office of energy resources
is
authorized and shall may enter into a contract with a contractor
for the cost effective
administration
of the renewable energy programs funded by this section. The director shall
initiate
the competitive bid process by the issuance and advertisement of specifications
and
request
for proposals, on or before September 1, 2002. The contract resulting from the
competitive
bid process shall be awarded to become effective for a three (3) year period
commencing
no later than January 1, 2003. A competitive bid and contract award for
administration
of the renewable energy programs shall may occur every three (3)
years thereafter,
and
shall include as a condition that after July 1, 2007 the account for the
renewable energy
programs
shall be maintained by the distribution company as provided for in subdivision
(b)
above
and, with the approval of the commissioner of the office of energy resources
and the
trustees
of the renewable energy fund, may be administered by the economic development
corporation.
(d)
Effective January 1, 2007, and for a period of seven (7) years thereafter, each
gas
distribution
company shall include, with the approval of the commission, a charge of up to
fifteen
cents
($0.15) per deca therm delivered to demand side management programs, 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.
(e)
The gas company shall establish a separate account for demand side management
programs,
which shall be 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.
(f)
The commission may, if reasonable and feasible, except from this demand side
management
change:
(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.
(g)
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.
(h)
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 administrations costs of the energy efficiency and resources management
council
associated
with planning, management, and evaluation of energy efficiency programs,
renewable
energy
programs and 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.
39-2-1.4.
Reasonable backup or supplemental rates. -- (a) Electricity produced by
cogeneration
and small power production can be of benefit to the public as part of the total
energy
supply
of the entire electric grid of the state or consumed by a cogenerator or small
power
producer.
Subject to compliance with applicable rules governing such service, public
utilities
shall
provide transmission or distribution service to enable a retail customer to
transmit electrical
power
generated by the customer at one location to the customer's facilities at
another location, if
the
commission finds that the provision of this service, and the charges, terms,
and other
conditions
associated with the provision of this service, are not likely to result in
higher cost
electric
service to the utility's general body of retail and wholesale customers or adversely
affect
the
adequacy or reliability of electric service to all customers.
(b) Each electric distribution company shall provide backup and supplemental
service to
any
customer who is self-generating electricity and meets reasonable interconnection
requirements
designed to protect the distribution and transmission system. The commission
shall
ensure
that backup and supplemental rates made, exacted, demanded or collected by any
public
utility
from a customer who is self-generating shall be just and reasonable and may not
be unduly
discriminatory.
Any backup and supplemental rate tariffs in effect as of May 2002 may remain in
effect
as designed through December 31, 2004. Commencing January 1, 2005, the backup
and
supplemental
rates shall be cost based but may be discounted as provided for in subsection
(c) of
this
section; provided, however, that the John O. Pastore Center power plant shall
be exempt from
said
backup or supplemental rates.
(c) Notwithstanding the rate design criteria set forth in subsection (b) of
this section, the
commission
may permit or require discounted backup distribution service rates in order to
encourage
economically efficient cogeneration or small power production projects if it
finds these
discounts
to be in the public interest and/or contribute to system reliability
procurement or least-
cost
procurement; provided, however, that
any revenue not recovered by the electric distribution
company
as a result of these discounted distribution rates shall be accounted for and
recovered in
the
rates assessed on all customers. The commission shall, in determining the
public interest in
distributed
generating facilities, consider reduced environmental impacts, increased energy
efficiency,
reduced transmission losses and congestion, effects on electric system
reliability and
other
factors the commission may deem relevant.
39-2-5.
Exceptions to anti-discrimination provisions. -- The provisions of
sections 39-
2-2 --
39-2-4 shall be subject to the following exceptions:
(1) A public utility may issue or give free transportation or service to its
employees and
their
families, its officers, agents, surgeons, physicians, and attorneys at law, and
to the officers,
agents,
and employees, and their families of any other public utility.
(2) With the approval of the division any public utility may give free
transportation or
service,
upon such conditions as the public utility may impose, or grant special rates
therefor to
the
state, to any town, or city, or to any water or fire district, and to the
officers thereof, for public
purposes,
and also to any special class or classes of persons, not otherwise referred to
in this
section,
in cases where the same shall seem to the division just and reasonable, or
required in the
interests
of the public, and not unjustly discriminatory.
(3) With the approval of the division any public utility operating a railroad
or street
railway
may furnish to the publishers of newspapers and magazines, and to their
employees,
passenger
transportation in return for advertising in the newspapers or magazines at full
rates.
(4) With the approval of the division any public utility may exchange its
service for the
service of
any other public utility furnishing a different class of service.
(5) Nothing in this section nor any other provision of the law shall be
construed to
prohibit
the giving by any public utility, free or reduced rate service to an elderly
person as
defined
by the division.
(6) Any motor carrier of persons, as defined in chapter 13 of this title, may
elect to file a
tariff
providing for a rate reduction of twenty-five percent (25%) below its one-way
fare tariff
applying
to any person who is sixty-five (65) years of age or older and any person
assisting and
traveling
with a blind passenger who is not required to pay any fare pursuant to the
provisions of
section
39-2-13 for bus rides between the hours of ten o'clock (10:00) a.m. and three
o'clock
(3:00)
p.m. of each day. In such event the reduced fare shall be paid in part by the
passenger and
in part
by the state. That part of the reduced fare payable by the state shall be one
half (1/2) of the
reduced
fare adjusted upward to end in the nearest zero (0) or five cents (.05), and
that part
payable
by the passenger shall be the balance of the reduced fare. Payments by the
state under
this
section shall be paid monthly under procedures agreed upon by the department of
transportation
and the carrier.
(7) [Deleted by P.L. 2004, ch. 378, section 4, and by P.L. 2004, ch. 504,
section 4.]
(8) Any person, firm, or corporation or any officer, agent, servant, or
employee thereof
who
shall violate the provisions of subsection (7) by fraudulently obtaining a
telecommunications
device
shall, upon conviction, be fined not exceeding five hundred dollars ($500) or
be
imprisoned
for a term not exceeding one year.
(9) (i) Nothing in this section nor any other provision of the general laws
shall be
construed
to prohibit the commission from taking actions to enable the state to
participate in a
federal
communications commission telephone lifeline program. The commission may set a
subscriber
funded monthly residence basic exchange lifeline telephone service credit in an
amount
not to exceed the federal subscriber line access charge or the monthly basic
service
charge,
whichever is less, for those persons who receive supplemental social security
income
(SSI),
aid to families with dependent children (AFDC), general public assistance
(GPA), aid from
the
Rhode Island medical assistance program, or food stamps issued pursuant to the
Food Stamp
Act of
1964 as amended (public law 88-525 and amendments made thereto, 7 U.S.C.
section
2011 et seq.),
assistance from the low-income home energy assistance program (LIHEAP) as
administered
by the department of administration, division of planning, and effective April
1,
1993,
assistance from the Rhode Island pharmaceutical assistance program administered
by the
department
of elderly affairs. The public utilities commission may promulgate regulations
to
implement
this section. The department of human services and the department of
administration,
division
of planning shall certify subscriber eligibility for the programs in accordance
with public
utilities
commission and federal communications commission guidelines.
(ii) The department of human services shall report monthly to the governor and
to the
house of
representatives fiscal advisor the number of persons newly eligible for the
lifeline
telephone
service credit hereunder solely by virtue of their eligibility to receive food
stamp
assistance
and the department of administration, division of planning shall, also, report
monthly
to the
governor and to the house of representatives fiscal advisor the number of
persons newly
eligible
for the lifeline telephone service credit hereunder solely by virtue of their
participation in
the
low-income home energy assistance program (LIHEAP).
(10) Nothing in this section nor any other provision of the general laws shall
be
construed
to prohibit any public utility with the approval of the commission, from
forgiving
arrearages
of any person in accordance with the terms of a percentage of income payment
plan
administered
by the governor's office of energy assistance for low-income households who are
eligible
to receive funds under the federal low income home energy assistance program
provisions
of subsection 39-2-1(e).
(11) Nothing in this section or any other provision of the law shall be
construed to
prohibit
any utility company from cutting, disconnecting, or removing mains, poles,
wires,
conduits,
or fixtures free of charge to nonprofit housing development corporations prior
to
moving a
building to be used as affordable housing for at least a ten (10) year period.
(12) Nothing in this section nor any other provision of the general laws shall
be
construed
to prohibit any telecommunications provider with the approval of the commission,
from
offering any person, firm or corporation a reduced rate, provided such rate
covers all costs.
(13)
A gas or electric distribution company may provide discounts to low income
customers
in accordance with the affordable energy plan provisions of subsection
42-141-5(d).
Nothing
contained herein shall prohibit the continuation of any low income discounts
approved
by
the commission prior to January 1, 2006, and in effect as of that date.
SECTION
8. Section 39-26-7 and 39-26-8 of the General Laws in Chapter 39-26 entitled
"Renewable
Energy Standard" are 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 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 and shall have a board of trustees of five (5) members as follows:
the
executive
director of the economic development corporation, who shall be chairman, the
director
of the
department of administration or a designee of the director, the administrator
of the division
of
public utilities, and two (2) public members appointed by the governor with
advice and consent
of the
senate, who shall serve terms of three (3) years, provided however that no
public members
may
serve more than two (2) consecutive (3) three year terms. One of the public
members shall
be a
representative of an organization that advocates for renewable energy development.
Each
member
shall hold office for the term appointed and until the member's successor shall
have been
duly
appointed and qualified, or until the member's earlier death, resignation or
removal.
Members
of the board of trustees of the fund shall receive no compensation for the
performance
of their
duties, but may be reimbursed for reasonable expenses incurred in carrying out
those
duties.
The board of trustees shall recommend to the economic development corporation:
(1) Plans and guidelines for the management and use of the fund, and
(2) Its evaluation of proposals and/or actions to obligate, use and/or sell,
dispose, trade or
exchange
assets held by the fund. The board of trustees shall have the power to adopt,
with the
approval
of the economic development corporation, such by-laws as may be necessary or
convenient
for the conduct of its affairs.
(b) The economic development 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) 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;
(3) Establishing escrows, reserves, and/or acquiring insurance for the
obligations of the
fund;
(4) Paying administrative costs of the fund incurred by the economic
development
corporation
or the board of trustees, not to exceed ten percent (10%) of the income of the
fund,
including
but not limited to alternative compliance payments.
(d) 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.
(e)
The trustees, in cooperation and concurrence with the commissioner of the
office of
energy
resources, consistent with rules as may be adopted by the commission, develop
an
integrated
plan and strategy, by July 1, 2007, for stimulating the development of and
financing
eligible
renewable energy resources.
39-26-8.
Interaction with other policies. -- (a) Rhode Island has established a
system-
benefits
charge (SBC), a portion of which is dedicated to supporting renewable
energy,
administered
by the state energy office in accordance with the provisions of
subsections 39-2-
1.2(b)
and (c); other states have similar
policies. The state energy office of energy resources is
hereby
directed to collaborate with the commissions and division of public
utilities, the trustees of
the
renewable energy development fund, the distribution company with other
interests and
parties,
as appropriate, in maximizing the
combined impact and efficiency of the SBC renewable
energy
program established by subsections 39-2-1.2(b) and (c) and the renewable energy
standard.
(b) It is the intent of this chapter that generation attributes and NE-GIS
certificates
applied
towards Rhode Island renewable energy standard compliance may not be used
towards
compliance
with state renewable energy obligations relating to an obligated entity's load
in other
states.
SECTION
9. Section 42-11-10 of the General Laws in Chapter 42-11 entitled
"Department
of Administration" is hereby amended to read as follows:
42-11-10.
Statewide planning program. -- (a) Findings. - The general assembly
finds
that the
people of this state have a fundamental interest in the orderly development of
the state;
the
state has a positive interest and demonstrated need for establishment of a
comprehensive
strategic
state planning process and the preparation, maintenance, and implementation of
plans
for the
physical, economic, and social development of the state; the continued growth
and
development
of the state presents problems that cannot be met by the cities and towns
individually
and that require effective planning by the state; and state and local plans and
programs
must be properly coordinated with the planning requirements and programs of the
federal
government.
(b) Establishment of statewide planning program. - (1) A statewide planning
program is
hereby
established to prepare, adopt, and amend strategic plans for the physical,
economic, and
social
development of the state and to recommend these to the governor, the general
assembly,
and all
others concerned.
(2) All strategic planning, as defined in subsection (c) of this section,
undertaken by the
executive
branch for those departments and other agencies enumerated in subsection (g) of
this
section,
shall be conducted by or under the supervision of the statewide planning
program. The
statewide
planning program shall consist of a state planning council, and the office of
strategic
planning
and the office of systems planning of the division of planning, which shall be
a division
within
the department of administration.
(c) Strategic planning. - Strategic planning includes the following activities:
(1) Establishing or identifying general goals.
(2) Refining or detailing these goals and identifying relationships between
them.
(3) Formulating, testing, and selecting policies and standards that will
achieve desired
objectives.
(4) Preparing long-range or system plans or comprehensive programs that carry
out the
policies
and set time schedules, performance measures, and targets.
(5) Preparing functional short-range plans or programs that are consistent with
established
or desired goals, objectives, and policies, and with long-range or system plans
or
comprehensive
programs where applicable, and that establish measurable intermediate steps
toward
their accomplishment of the goals, objectives, policies, and/or long-range
system plans.
(6) Monitoring the planning of specific projects and designing of specific
programs of
short
duration by the operating departments, other agencies of the executive branch,
and political
subdivisions
of the state to insure that these are consistent with and carry out the intent
of
applicable
strategic plans.
(7) Reviewing the execution of strategic plans and the results obtained and
making
revisions
necessary to achieve established goals.
(d) State guide plan. - Components of strategic plans prepared and adopted in
accordance
with
this section may be designated as elements of the state guide plan. The state
guide plan shall
be
comprised of functional elements or plans dealing with land use; physical
development and
environmental
concerns; economic development; housing production; energy supply, including
the
development of renewable energy resources in Rhode Island, and energy access, use, and
conservation;
human services; and other factors necessary to accomplish the objective of this
section.
The state guide plan shall be a means for centralizing, integrating, and monitoring
long-
range
goals, policies, plans, and implementation activities related thereto. State
agencies
concerned
with specific subject areas, local governments, and the public shall
participate in the
state
guide planning process, which shall be closely coordinated with the budgeting
process.
(e) Membership of state planning council. - The state planning council shall
consist of:
(1) The director of the department of administration as chairperson;
(2) The director, policy office, in the office of the governor, as
vice-chairperson;
(3) The governor, or his or her designee;
(4) The budget officer;
(5) The chairperson of the housing resources commission;
(6) The chief of statewide planning, as secretary;
(7) The president of the league of cities and towns or his or her designee and
one official
of local
government, who shall be appointed by the governor from a list of not less than
three (3)
submitted
by the Rhode Island league of cities and towns; and
(8) The executive director of the league of cities and towns;
(9) One representative of a nonprofit community development or housing
organization;
(10) Four (4) public members, appointed by the governor;
(11) Two (2) representatives of a private, nonprofit environmental advocacy
organization,
both to be appointed by the governor; and
(12) The director of planning and development for the city of Providence.
(f) Powers and duties of state planning council. - The state planning council
shall have
the
following powers and duties:
(1) To adopt strategic plans as defined in this section and the long-range
state guide plan,
and to
modify and amend any of these, following the procedures for notification and
public
hearing set
forth in section 42-35-3, and to recommend and encourage implementation of
these
goals to
the general assembly, state and federal agencies, and other public and private
bodies;
approval
of strategic plans by the governor;
(2) To coordinate the planning and development activities of all state
agencies, in
accordance
with strategic plans prepared and adopted as provided for by this section;
(3) To review and comment on the proposed annual work program of the statewide
planning
program;
(4) To adopt rules and standards and issue orders concerning any matters within
its
jurisdiction
as established by this section and amendments to it;
(5) To establish advisory committees and appoint members thereto representing
diverse
interests
and viewpoints as required in the state planning process and in the preparation
or
implementation
of strategic plans. The state planning council shall appoint a permanent
committee
comprised of:
(i) Public members from different geographic areas of the state representing
diverse
interests,
and
(ii) Officials of state, local and federal government, which shall review all
proposed
elements
of the state guide plan, or amendment or repeal of any element of the plan, and
shall
advise
the state planning council thereon before the council acts on any such
proposal. This
committee
shall also advise the state planning council on any other matter referred to it
by the
council;
and
(6) To establish and appoint members to an executive committee consisting of
major
participants
of a Rhode Island geographic information system with oversight responsibility
for its
activities.
(7)
To adopt on or before July 1, 2007, and to amend and maintain as an element of
the
state
guide plan or as an amendment to an existing element of the state guide plan,
standards and
guidelines
for the location of eligible renewable energy resources and renewable energy
facilities
in
Rhode Island with due consideration for the location of such resources and
facilities in
commercial
and industrial areas, agricultural areas, areas occupied by public and private
institutions,
and property of the state and its agencies and corporations, provided such
areas are of
sufficient
size, and in other areas of the state as appropriate.
(g) Division of planning. - (1) The division of planning shall be the principal
staff
agency
of the state planning council for preparing and/or coordinating strategic plans
for the
comprehensive
management of the state's human, economic, and physical resources. The division
of
planning shall recommend to the state planning council specific guidelines,
standards, and
programs
to be adopted to implement strategic planning and the state guide plan and
shall
undertake
any other duties established by this section and amendments thereto.
(2) The division of planning shall maintain records (which shall consist of
files of
complete
copies) of all plans, recommendations, rules, and modifications or amendments
thereto
adopted
or issued by the state planning council under this section. The records shall
be open to
the
public.
(3) The division of planning shall manage and administer the Rhode Island
geographic
information
system of land-related resources, and shall coordinate these efforts with other
state
departments
and agencies, including the University of Rhode Island, which shall provide
technical
support and assistance in the development and maintenance of the system and its
associated
data base.
(4) The division of planning shall coordinate and oversee the provision of
technical
assistance
to political subdivisions of the state in preparing and implementing plans to
accomplish
the
purposes, goals, objectives, policies, and/or standards of applicable elements
of the state guide
plan and
shall make available to cities and towns data and guidelines that may be used
in
preparing
comprehensive plans and elements thereof and in evaluating comprehensive plans
and
elements
thereby.
(h) Transfer determinations. - (1) The director of administration, with the
approval of the
governor,
shall make the conclusive determination of the number of positions, personnel,
physical
space,
property, records, and appropriation balances, allocations and other funds of
the
department
of mental health, retardation, and hospitals, department of health, department
of
human
services, department of corrections, department of labor and training,
department of
environmental
management, department of business regulation, department of transportation,
department
of state library services, Rhode Island Economic Development Corporation,
department
of elderly affairs, department for children and their families, historical
preservation
commission,
water resources board, and the defense civil preparedness/emergency management
agency
of the executive department to be transferred to the department of
administration in
connection
with the functions transferred there into by the provisions of this article.
(2) In order to ensure continuity of the strategic planning process of the
department
specified
heretofore, the actual transfer of functions or any part thereof to the
department of
administration
may be postponed after July 1, 1985 until such time as, by executive order of
the
governor,
the transfer herein provided can be put into force and effect but no later than
December
31,
1985.
SECTION
10. Sections 42-64-3, 42-64-4 and 42-64-13.2 of the General Laws in Chapter
42-64
entitled "Rhode Island Economic Development Corporation" are hereby
amended to read
as
follows:
42-64-3.
Definitions. -- As used in this chapter, the following words and terms
shall have
the
following meanings, unless the context indicates another or different meaning
or intent:
(1) "Administrative penalty" means a monetary penalty not to exceed
the civil penalty
specified
in section 42-64-9.2 of this chapter.
(2) "Airport facility" means developments consisting of runways,
hangars, control
towers,
ramps, wharves, bulkheads, buildings, structures, parking areas, improvements,
facilities,
or other
real or personal property necessary, convenient, or desirable for the landing,
taking off,
accommodation,
and servicing of aircraft of all types, operated by carriers engaged in the
transportation
of passengers or cargo, or for the loading, unloading, interchange, or transfer
of the
passengers
or their baggage, or the cargo, or otherwise for the accommodation, use or
convenience
of the passengers or the carriers or their employees (including related
facilities and
accommodations
at sites removed from landing fields and other landing areas), or for the
landing,
taking
off, accommodation, and servicing of aircraft owned or operated by persons
other than
carriers.
It also means facilities providing access to an airport facility, consisting of
rail, rapid
transit,
or other forms of mass transportation which furnish a connection between the
air terminal
and other
points within the state, including appropriate mass transportation terminal
facilities at
and
within the air terminal itself and suitable offsite facilities for the
accommodation of air
passengers,
baggage, mail, express, freight, and other users of the connecting facility.
(3) "BOCA code" means the BOCA basic building code published by
building officials
&
code administrators international, inc., as the code may from time to time be
promulgated by
the
building officials & code administrators international, inc.
(4) "Bonds" and "notes" means the bonds, notes, securities,
or other obligations or
evidences
of indebtedness issued by the corporation pursuant to this chapter, all of
which shall be
issued
under the name of and known as obligations of the "economic development
corporation."
(5) "Civic facility" means any real or personal property designed and
intended for the
purpose
of providing facilities for educational, cultural, community, or other civic
purposes.
(6) "Compliance schedule" means a schedule of remedial measures
including an
enforceable
sequence of actions or operations leading to compliance with an effluent
limitation or
any
other limitation, prohibition or standard.
(7) "Corporation," "port authority", or
"authority" means the governmental agency and
public
instrumentality, formerly known as the "Rhode Island port authority and
economic
development
corporation" and renamed the "Rhode Island economic development
corporation,"
authorized,
created, and established pursuant to section 42-64-4, or any subsidiary
corporation
thereof
which is established pursuant to section 42-64-7.1.
(8) "Director" means the executive director of the corporation.
(9) "Federal land" means real property within the state, now acquired
or hereafter
acquired
by the corporation which was formerly owned by the United States government, or
any
agency
or instrumentality thereof, including without limiting the generality of the
foregoing, any
and all
real property now or formerly owned or used by the United States government in
the
towns of
North Kingstown, Portsmouth, Middletown, and Charlestown and the city of
Newport
as
military installations or for other purposes related to the national defense.
Without limiting the
generality
of the foregoing, federal land shall also mean and include certain land in the
town of
North
Kingstown, or any portion thereof, which has or shall revert to the state
pursuant to the
provisions
of Public Laws 1939, chapter 696 and is now or hereafter acquired by the
corporation
from the
state.
(10) "Industrial facility" means any real or personal property, the
demolition, removal,
relocation,
acquisition, expansion, modification, alteration, or improvement of existing
buildings,
structures,
or facilities, the construction of new buildings, structures, or facilities,
the
replacement,
acquisition, modification, or renovation of existing machinery and equipment,
or the
acquisition
of new machinery and equipment, or any combination of the United States, which
shall be
suitable for manufacturing, research, production, processing, agriculture, and
marine
commerce,
or warehousing; or convention centers, trade centers, exhibition centers, or
offices
(including
offices for the government of the United States or any agency, department,
board,
bureau,
corporation, or other instrumentality of the United States, or for the state or
any state
agency,
or for any municipality); or facilities for other industrial, commercial or
business
purposes
of every type and description; and facilities appurtenant or incidental to the
foregoing,
including
headquarters or office facilities, whether or not at the location of the
remainder of the
facility,
warehouses, distribution centers, access roads, sidewalks, utilities, railway
sidings,
trucking,
and similar facilities, parking areas, waterways, dockage, wharfage, and other
improvements
necessary or convenient for the construction, development, maintenance, and
operation
of those facilities.
(11) "Local governing body" means any town or city council,
commission, or other
elective
governing body now or hereafter vested by state statute, charter, or other law,
with
jurisdiction
to initiate and adopt local ordinances, whether or not these local ordinances
require
the
approval of the elected or appointed chief executive officer or other official
or body to
become
effective.
(12) "Local redevelopment corporation" means any agency or corporation
created and
existing
pursuant to the provisions of chapter 31 of title 45.
(13) "Municipality" means any city or town within the state now
existing or hereafter
created,
or any state agency.
(14) "Parent corporation" means, when used in connection with a
subsidiary corporation
established
pursuant to section 42-64-7.1, the governmental agency and public
instrumentality
created
and established pursuant to section 42-64-4.
(15) "Personal property" means all tangible personal property, new or
used, including,
without
limiting the generality of the foregoing, all machinery, equipment,
transportation
equipment,
ships, aircraft, railroad rolling stock, locomotives, pipelines, and all other
things and
rights
usually included within that term. "Personal property" also means and
includes any and all
interests
in the property which are less than full title, such as leasehold interests,
security
interests,
and every other interest or right, legal or equitable.
(16) "Pollutant" means any material or effluent which may alter the
chemical, physical,
biological
or radiological characteristics or integrity of water, including but not
limited to,
dredged
spoil, solid waste, incinerator residue, sewage, garbage, sewage sludge, munitions,
chemical
wastes, biological materials, radioactive materials, heat, wrecked or discarded
equipment,
cellar dirt, or industrial, municipal, agricultural or other waste petroleum or
petroleum
products,
including but not limited to oil.
(17) "Pollution" means the discharge of any gaseous, liquid, or solid
substance or
combination
thereof (including noise) into the air, water, or land which affects the
physical,
chemical,
or biological properties (including temperature) of the air, water, or land in
a manner or
to an
extent which renders or is likely to render the air, water, or land harmful or
inimical to the
public
health, safety, or welfare, or to animal, bird, or aquatic life, or to the use
of the air or water
for
domestic, industrial, or agricultural purposes or recreation including the
man-made or man-
induced
alteration of the chemical, physical, biological or radiological integrity of
water.
(18) "Pollution control facility" means any land or interest in land,
the demolition,
removal,
relocation, acquisition, expansion, modification, alteration, or improvement of
existing
buildings,
structures, or facilities, the construction of new buildings, structures, or
facilities, the
replacement,
modification, or renovation of existing machinery and equipment, or the
acquisition
of new
machinery and equipment, or any combination thereof, having to do with or the
purpose
of which
is the abatement, control, or prevention of pollution, including industrial
pollution, and
all real
and personal property incidental to that facility.
(19) "Port facility" means harbors, ports, and all real and personal
property used in
connection
therewith, including, but not limited to, waterways, channels, wharves, docks,
yards,
bulkheads,
slips, basins, pipelines, ships, boats, railroads, trucks, and other motor
vehicles,
aircraft,
parking areas, shipyards, piers, quays, elevators, compressors, loading and
unloading
facilities,
storage facilities, and warehouses of every type, buildings and facilities used
in the
manufacturing,
processing, assembling, storing, or handling of any produce or products, other
structures
and facilities necessary for the convenient use of the harbors and seaports,
including
dredged approaches,
railways, railroad terminals, side tracks, airports, roads, highways, tunnels,
viaducts,
bridges, and other approaches, useful in connection therewith, and any other
shipping or
transportation
facility useful in the operation of a port or harbor.
(20) "Project" or "port project" means the acquisition,
ownership, operation,
construction,
reconstruction, rehabilitation, improvement, development, sale, lease, or other
disposition
of, or the provision of financing for, any real or personal property (by
whomever
owned)
or any interests in real or personal property, including without limiting the
generality of
the
foregoing, any port facility, recreational facility, industrial facility,
airport facility, pollution
control
facility, utility facility, solid waste disposal facility, civic facility,
residential facility,
water
supply facility, energy facility or renewable energy facility, or any
other facility, or any
combination
of two (2) or more of the foregoing, or any other activity undertaken by the
corporation.
(21) "Project cost" means the sum total of all costs incurred by the
corporation in
carrying
out all works and undertakings which the corporation deems reasonable and
necessary
for the
development of a project. These shall include, but are not necessarily limited
to, the costs
of all
necessary studies, surveys, plans, and specifications, architectural,
engineering, or other
special
services, acquisition of land and any buildings on the land, site preparation
and
development,
construction, reconstruction, rehabilitation, improvement, and the acquisition
of
any
machinery and equipment or other personal property as may be deemed necessary
in
connection
with the project (other than raw materials, work in process, or stock in
trade); the
necessary
expenses incurred in connection with the initial occupancy of the project; an
allocable
portion
of the administrative and operating expenses of the corporation; the cost of
financing the
project,
including interest on all bonds and notes issued by the corporation to finance
the project
from the
date thereof to one year from the date when the corporation shall deem the
project
substantially
occupied; and the cost of those other items, including any indemnity or surety
bonds
and
premiums on insurance, legal fees, real estate brokers and agent fees, fees and
expenses of
trustees,
depositories, and paying agent for bonds and notes issued by the corporation,
including
reimbursement
to any project user for any expenditures as may be allowed by the corporation
(as
would be
costs of the project under this section had they been made directly by the
corporation),
and
relocation costs, all as the corporation shall deem necessary.
(22) "Project user" means the person, company, corporation,
partnership, or commercial
entity,
municipality, state, or United States of America who shall be the user of, or
beneficiary of,
a port
project.
(23) "Real property" means lands, structures (new or used), franchises,
and interests in
land,
including lands under water, and riparian rights, space rights, and air rights,
and all other
things
and rights usually included within the term. Real property shall also mean and
include any
and all
interests in that property less than fee simple, such as easements, incorporeal
hereditaments,
and every estate, interest or right, legal or equitable, including terms for
years and
liens
thereon by way of judgments, mortgages or otherwise, and also all claims for
damages to
that
real property.
(24) "Recreational facility" means any building, development, or
improvement, provided
that
building, facility, development, or improvement is designed in whole or in part
to attract
tourists
to the state or to provide essential overnight accommodations to transients
visiting this
state,
including, without limiting in any way the generality of the foregoing,
marinas, beaches,
bathing
facilities, ski facilities, convention facilities, hotels, motels, golf
courses, camp grounds,
arenas,
theatres, lodges, guest cottages, and all types of real or personal property
related thereto as
may be
determined from time to time by the corporation.
(25) "Revenues" means (1) with respect to any project, the rents,
fees, tolls, charges,
installment
payments, repayments, and other income or profit derived from a project or a
combination
of projects pursuant to any lease, conditional sales contract, installment
sales
contract,
loan agreement, or other contract or agreement, or any combination thereof and
(2) any
receipts,
fees, payments, moneys, revenues or other payments received or to be received
by the
corporation
in the exercise of its corporate powers under this chapter, including, without
limitation,
loan repayments, grants, aid, appropriations and other assistance for the
state, the
United
States or any corporation, 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, and any other taxes, assessments, fees, charges, awards or other
income or
amounts
received or receivable by the corporation.
(26) "Rule or regulation" means any directive promulgated by the
corporation not
inconsistent
with the laws of the United States or the state, for the improvement of
navigation and
commerce
or other project purposes and shall include, but not be limited to, charges,
tolls, rates,
rentals,
and security provisions fixed or established by the corporation.
(27) "Sewage" shall be construed to mean the same as
"pollutant" as defined in section
42-64-3(o)
above.
(28) "Sewage treatment facility" means the sewage treatment plant,
structure, combined
sewer
overflows, equipment, interceptors, mains, pumping stations and other property,
real,
personal
or mixed, for the treatment, storage, collection, transporting or disposal of
sewage, or
any
property or system to be used in whole or in part for any of the aforesaid
purposes located or
operated
within the boundaries of the Quonset Point/Davisville Industrial Park, or
utilized by the
corporation
for the transport, collection, treatment, storage or disposal of waste.
(29) "Solid waste" means garbage, refuse, and other discarded
materials, including, but
not
limited to, solid waste materials resulting from industrial, recreational,
utility, and commercial
enterprises,
hotels, apartments, or any other public building or private building, or
agricultural, or
residential
activities.
(30) "Solid waste disposal facility" means any real or personal
property, related to or
incidental
to any project, which is designed or intended or designated for the purpose of
treating,
compacting,
composting, or disposing of solid waste materials, including treatment,
compacting,
composting,
or disposal plants, site and equipment furnishings thereof, and their
appurtenances.
(31) "Source" means any building, structure, facility or installation
from which there is
or may
be the discharge of sewage.
(32) "State" means the state of Rhode Island and Providence
Plantations.
(33) "State agency" means any office, department, board, commission,
bureau, division,
authority,
or public corporation, agency or instrumentality of the state.
(34) "State guide plan" means the plan adopted pursuant to section
42-11-10, which
establishes
the statewide planning program.
(35) "Utility facility" means any real or personal property designed,
intended or utilized
for
generating, manufacturing, producing, storing, transmitting, distributing,
delivering, or
furnishing
natural or manufactured gas, steam, electrical, or nuclear energy, heat, light,
or power
directly
or indirectly to or for any project, project user, or for the public, the
collection and
disposal
of storm and sanitary sewage; any railroads necessary or desirable for the free
flow of
commerce
to and from projects; any roads, highways, bridges, tunnels, viaducts, or other
crossings
necessary or desirable for the free flow of commerce to and from projects, and
any
public
transportation systems or facilities, including, but not limited to, bus,
truck, ferry, and
railroad
terminals, depots, tracked vehicles, and other rolling stock and ferries; and
any
appurtenances,
equipment, and machinery or other personal property necessary or desirable for
the
utilization thereof.
(36) "Water supply facility" means any real or personal property, or any
combination
thereof,
related to or incidental to any project, designed, intended, or utilized for
the furnishing of
water
for domestic, industrial, irrigation, or other purposes and including artesian
wells,
reservoirs,
dams, related equipment, and pipelines, and other facilities.
(37)
"Renewable energy facility" means any real or personal property, or
any
combination
thereof, related to, or incidental to, any project, designed, intended, or
utilized for an
eligible
renewable energy resource that meets the criteria set forth in subsections
39-26-5(a) and
39-26-5(c).
42-64-4.
Creation. -- (a) There is authorized, created, and established a public
corporation
of the state having a distinct legal existence from the state and not
constituting a
department
of state government, which is a governmental agency and public instrumentality
of
the
state, to be known as the "Rhode Island economic development
corporation", and which may
be
referred to as the "economic development corporation", with those
powers that are set forth in
this
chapter, for the purposes of acquiring and developing real and personal
property, and
providing
financing to others as set forth in this chapter, providing and promoting and
encouraging
the preservation, expansion and sound development of new and existing industry,
business,
commerce, agriculture, tourism, and recreational, and renewable
energy facilities,
promoting
thereby the economic development of the state and the general welfare of its
citizens.
(b) The exercise by the corporation of the powers conferred by this chapter
shall be
deemed
and held to be the performance of an essential governmental function of the
state for
public
purposes. It is the intent of the general assembly by the passage of this
chapter to vest in
the
corporation all powers, authority, rights, privileges, and titles which may be
necessary to
enable
it to accomplish the purposes herein set forth, and this chapter and the powers
granted
hereby
shall be liberally construed in conformity with those purposes.
(c) The corporation and its corporate existence shall continue until terminated
by law or
until
the corporation shall cease entirely and continuously to conduct or be involved
in any
business
whatsoever in furtherance of its purposes; provided, that no termination shall
take effect,
so long
as the corporation shall have bonds, notes, or other obligations outstanding,
unless
adequate
provision shall have been made for the payment thereof pursuant to the
documents
securing
the obligations or to the terminating law. Upon termination of the existence of
the
corporation,
all of its rights and properties shall pass to and be vested in the state. At
no time shall
the
assets or other property of the corporation inure to the benefit of any person
or other
corporation
or entity.
42-64-13.2.
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 chapter 26 of title
39 section
39-26-7, and 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, upon
the request
of
any person undertaking a renewable energy facility project, may 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.
SECTION
11. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT"
is hereby amended by adding thereto the following chapter:
CHAPTER 140
RHODE ISLAND ENERGY RESOURCES ACT
42-140-1.
Short title. -- This chapter shall be known as the "Rhode
Island Energy
Resources
Act."
42-140-2.
Creation. -- There is hereby authorized, created and established an
office of
energy
resources in the executive department of state government, which may be
assigned by
executive
order for administrative purposes to a department within state government. The
office
of
energy resources shall be the successor to the state energy office.
42-140-3.
Purposes. – The purposes of the office shall be to:
(1)
Develop and put into effect plans and programs to promote, encourage, and assist
the
provision
of energy resources for Rhode Island in a manner that enhances economic
well-being,
social
equity, and environmental quality;
(2)
Monitor, forecast, and report on energy use, energy prices, and energy demand
and
supply
forecasts, and make findings and recommendations with regard to energy supply
diversity,
reliability,
and procurement, including least-cost procurement;
(3)
Develop and to put into effect plans and programs to promote, encourage and
assist
the efficient
and productive use of energy resources in Rhode Island, and to coordinate
energy
programs
for natural gas, electricity, and heating oil to maximize the aggregate
benefits of
conservation
and efficiency of investments;
(4)
Monitor and report technological developments that may result in new and /or
improved
sources of energy supply, increased energy efficiency, and reduced
environmental
impacts
from energy supply, transmission and distribution;
(5)
Administer the programs, duties, and responsibilities heretofore exercised by
the state
energy
office, except as these may be assigned by executive order to other departments
and
agencies
of state government;
(6)
Develop, recommend and, as appropriate, implement integrated and/or
comprehensive
strategies,
including at regional and federal levels, to secure Rhode Island's interest in
energy
resources,
their supply and efficient use, and as necessary to interact with persons,
private sector,
non-profit,
regional, federal entities and departments and agencies of other states to
effectuate this
purpose;
(7)
Cooperate with agencies, departments, corporations, and entities of the state
and of
political
subdivisions of the state in achieving its purposes;
(8)
Cooperate with and assist the state planning council and the division of state
planning
in
developing, maintaining, and implementing state guide plan elements pertaining
to energy and
renewable
energy;
(9)
Administer, as appropriate, state and federally funded or authorized energy
programs,
which
may include, but not be limited to:
(1)
the federal low-income home energy assistance program which provides heating
assistance
to eligible low-income persons and any state funded or privately funded heating
assistance
program of a similar nature assigned to it for administration;
(2)
the weatherization assistance program which offers home weatherization grants
and
heating
system upgrades to eligible persons of low-income;
(3)
the emergency fuel program which provides oil deliveries to families
experiencing a
heating
emergency;
(4)
the energy conservation program, which offers service and programs to all
sectors;
and
(5)
the renewable energy program established under Rhode Island general laws
chapter
39-2;
(10)
Develop, recommend, and evaluate energy programs for state facilities and
operations
in order to achieve and demonstrate the benefits of energy-efficiency,
diversification
of
energy supplies, energy conservation, and demand management; and
(11)
Advise the governor and the general assembly with regard to energy resources
and
all
matters relevant to achieving the purposes of the office.
42-140-4.
Commissioner. -- (a) There shall be a commissioner of energy
resources, who
shall
be appointed by the governor with the advice and consent of the senate. The
commissioner
shall
be the director of the office of energy resources and shall have all such
powers, consistent
with
law, as are necessary and/or convenient to effectuate the purposes of the
office and
administer
its functions. The commissioner shall have authority to exercise all of the
powers and
duties
heretofore exercised by the head of the state energy office. In the performance
of the duties
set
forth in this paragraph, the commissioner shall consult with the energy
efficiency and
resources
management council established pursuant to chapter 42-140.1.
(b)
The commissioner shall have authority to apply for, receive, and administer
grants
and
funds from the federal government and all other public and private entities to
accomplish the
purposes
of the office.
(c)
The commissioner shall have authority to serve as executive secretary of the
governor's
technical assistance committee, established by section 42-60-4, and shall
provide such
staff
and technical support to the technical assistance committee as the technical
assistance
committee
may require, and shall have authority to carry out any duties assigned to the
office by
the
governor in the event of a declaration of a state energy crisis as authorized
under chapter 42-
60
relating to energy crisis management.
42-140-5.
Authority to enter into agreements. -- The commissioner shall have
authority
to
enter into agreements with the trustees of the renewable energy development
fund to achieve
integrated
and effective use of the renewable energy proper resources, subsections
39-2-1.2(b)
and
(c), and renewable energy standard resources, section 39-26-7. By mutual
agreement with the
trustees,
the commissioner may serve as program manager for the renewable energy
programs.
42-140-6.
Information and education programs. -- The commissioner, in
consultation
with
the council, shall develop, implement and maintain, a statewide public
information and
education
program with regard to energy supply, energy cost, energy efficiency and
conservation,
and energy
programs, including programs to help consumers select energy efficient
products, to
evaluate
retail and commercial energy resource choices, and to access available energy
assistance
programs
including tax credit and rebate programs.
42-140-7.
Conduct of activities. -- To the extent reasonable and practical,
the conduct of
activities
under the provisions of this chapter shall be open and inclusive; the
commissioner and
the
council shall seek in addressing the purposes of the office 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.
42-140-8.
Annual report. -- The commissioner shall report annually, on or
before March
1st
of each year, to the governor, the president of the senate, and the speaker of
the house with
regard
to the status of energy supplies, markets, and conditions, the effectiveness of
energy
programs,
the activities of the office including the council, and such other matters
related to
energy
as the commissioner or the council may deem appropriate.
42-140-9.
Adoption of rules. -- The commissioner shall have the authority to
adopt,
amend,
and implement such rules as may be necessary to desirable to effectuate the
purposes of
this
chapter. In any rule making by the commissioner, the commissioner shall
consider as a matter
of
record the advise of the energy resources council.
SECTION
12. Title 42 of the general laws entitled "State Affairs and
Government" is
hereby
amended by adding thereto the following chapter:
CHAPTER 140.1
THE RHODE ISLAND ENERGY EFFICIENCY AND RESOURCE
MANAGEMENT
COUNCIL
42-140.1-1. Short title. - - This chapter shall be known as
"The Rhode Island Energy
Efficiency
and Resources Management Council Act."
42-140.1-2.
Legislative findings. -- It is hereby found and declared:
(a)
Rhode Island has experienced an energy cost crisis during 2005 and 2006 and
faces
the
prospect of fluctuating and increasing energy prices in the future.
(b)
Energy conservation and energy efficiency have enormous, untapped potential for
controlling
energy costs and mitigating the effects of energy crisis for Rhode Island
residents and
the
Rhode Island economy.
(c)
Rhode Island has lacked an integrated, comprehensive, public,
stakeholder-driven
organizational
structure to secure for Rhode Island and its people the full benefits of energy
efficiency,
energy conservation, and energy resources management.
42-140.1-3.
Establishment of Council -- Purposes. -- (a) There is hereby
authorized,
created
and established a council to be known as "The Rhode Island Energy
Efficiency and
Resources
Management Council" with the powers and duties set forth in this chapter.
(b)
The purposes of this council are to:
(1)
Evaluate and make recommendations, including, but not limited to, plans and
programs,
with regard to the optimization of energy efficiency, energy conservation,
energy
resource
development; and the development of a plan for least-cost procurement for Rhode
Island;
and
(2)
Provide consistent, comprehensive, informed and publicly accountable
stake-holder
involvement
in energy efficiency, energy conservation, and energy resource management; and
(3)
Monitor and evaluate the effectiveness of programs to achieve energy
efficiency,
energy
conservation, and diversification of energy resources; and
(4)
Promote public understanding of energy issues and of ways in which energy
efficiency,
energy conservation, and energy resource diversification and management can be
effectuated.
42-140.1-4.
Composition and Appointment. -- (a) The council shall consist of
eleven
(11)
members appointed by the governor with the advice and consent of the senate;
seven (7)
members
shall be voting numbers, and the governor shall give due consideration to
appointing
persons
with knowledge of: (1) energy regulation and law; (2) large
commercial/industrial users,
(3)
small commercial/industrial users; (4) residential users; (5) low income users;
(6)
environmental
issues pertaining to energy; (7) energy design and codes; and four (4) members
shall
be ex-officio, non-voting members, representing an electric distribution
entity, a gas
distribution
entity, fuel oil or heating fuel industry, and the commissioner of the office
of energy
resources.
From the seven (7) voting members, the governor shall appoint one person to be
chairperson
of the council and one person to be vice chairperson of the council; the
commissioner
of
the office of energy resources shall be the executive secretary and executive
director of the
council.
(b)
With the exception of the commissioner of the office of energy resources; of
the
initial
appointments; three (3) members shall be appointed for a term of three (3)
years, three (3)
members
shall be appointed for a term of four (4) years, and four (4) members shall be
appointed
for a
term of five (5) years; thereafter members of the council shall be appointed
for a term of five
(5)
years and may be reappointed.
(c)
A simple majority of the total number of voting members shall constitute a
quorum.
(d)
A vacancy other than by expiration shall be filled in the manner of the
original
appointment
but only for the unexpired portion of the term. The appointing authority shall
have
the
power to remove its appointee for just cause.
(e)
The members of the council shall not be compensated for their service but shall
be
reimbursed
for their actual expenses necessarily incurred in the performance of their
duties. The
provisions
of this subdivision shall not apply to the executive secretary/executive
director.
42-140.1-5.
Powers and duties. -- The council shall have the power to:
(a)
Develop and recommend for implementation plans, programs and standards for
energy
conservation, energy efficiency, and diversification of energy resources.
(b)
Monitor and evaluate plans and programs for energy conservation, energy
efficiency
and
diversification of energy resources; in order to effectuate such evaluations
the council may
request
audits, including performance audits, of any program for energy conservation,
energy
efficiency
or diversification of energy resources, that is established pursuant to Rhode
Island law
or is
administered by a state agency, a request for an audit of any program operative
pursuant to
an
order or decision of the public utilities commission shall be made to the
commission; the
council
may make findings and recommendations with regard to changes, modification or
continuation
of any programs which it has authority to monitor or evaluate.
(c)
Submit to the joint committee on energy an annual report on/or before April 15
of
each
year, commencing in 2008, regarding the activities of the council, its
assessment of energy
issues,
the status of system reliability, energy efficiency and conservation
procurement and its
recommendations
regarding any improvements which might be necessary or desirable.
(d)
Participate in proceedings of the public utilities commission that pertain to
the
purposes
of the council, including but not limited to proceedings regarding least-cost
procurement
as
provided for in section 39-1-27.7.
(e)
Advise electric distribution companies with regard to implementation of least
cost
procurement.
(f)
Advise the commission of energy resources, and recommend policies, standards,
strategies,
plans, programs, and procedures with regard to functions of the office of
energy
resources
including but not limited to plans, strategies, and programs to:
(1)
implement cost-effective energy conservation and energy efficiency programs;
(2)
promote the development of eligible renewable energy resources for Rhode
Island;
(3)
foster distributed generation of electricity and demand response;
(4)
assist low-income households in meeting energy needs;
(5)
coordinate the use of funds, resources, and programs from diverse resources to
achieve
the purposes of the office.
(g)
Consider such other matters as it may deem appropriate to the fulfillment of
its
purposes,
and may advise the governor, the general assembly, other parties, and the
public with
regard
to matters pertaining to its purposes and duties, which advice may include
findings and
recommendations.
42-140.1-6.
Additional general powers. -- In order to effectuate its powers and
duties
the
council has the following powers:
(a)
To make any studies of conditions, activities, or problems related to the
state's energy
needs,
usage, and supplies to carry out its responsibilities.
(b)
To adopt amend bylaws, to establish committees, to elect and/or appoint
officers and
agents,
and to engage consultants and professional services as necessary and
appropriate to fulfill
its
purposes.
(c)
To accept and administer grants from the federal government and from other
sources,
public
or private, for the carrying out of any of its functions, which loans or grants
shall not be
expended
for other than the purposes for which provided.
(d)
To work with the appropriate federal, regional, and state agencies, and private
entities.
(e)
To apply for, accept and expend allocations, grants and bequests of funds, for
the
purpose
of carrying out the lawful responsibilities of the council.
SECTION
13. Title 42 of the General Laws entitled "State Affairs and
Government" is
hereby
amended by adding thereto the following chapter:
CHAPTER 140.2
DISTRIBUTED GENERATION
42-140.2-1.
Findings. – It is hereby found and declared that:
(a)
Distributed generation can if well implemented, contribute to electric system
reliability
and efficiency and have system benefits including, but not limited to, reduced
congestion,
improved management of system peak demands through demand response, and added
capacity
that mitigates the needs for additional central generating capacity in the
region;
(b)
Distributed generation from renewable resources diversifies the power sources
for
electrical
generation, and having multiple, reliable sources of power for electrical
generation
reduces
risks and can temper price volatility;
(c)
Distributed generation from renewable resources and from combined heat and
power
systems
can reduce the environmental impacts, including greenhouse gas emissions, of
electrical
generation;
(d)
The system benefits of distributed generation are a function of the location of
the
distributed
generation capacity, the reliability and the efficiency of distributed
generation
facilities
individually and/or collectively, and the time of operation of the distributed
generation
facilities;
(e)
The value of distributed generation can vary with changes in the wholesale and
retail
markets
for electricity;
(f)
Properly designed regulatory and financing programs for distributed generation
can
have
both system benefits and economic benefits for entities.
(g)
The independent system operator of New England has stated that mitigating peak
demand
should be a central strategy in reducing wholesale electricity and has
established a
demand
response to accomplish this purpose.
(h)
Established tariffs and embedded principals for rate setting and cost
allocation may
present
substantial barriers to realizing the full potential of distributed generation
in Rhode Island.
42-140.2-2.
Office of energy resources. – (1) The office of energy resources
shall
support
and facilitate a stakeholder led study of issues pertaining to distributed
generations and
barriers
that impede the implementation of distributed generation and the realization of
the
societal
benefits thereof. This study shall augment, compliment, and be integrated with
a study
initiated
pursuant to an order of the public utilities commission.
(2)
Said study shall consider the following definitions and the implications
thereof for the
effective
and fair implementation of distributed generation:
(a)
"Backup power rates" means any component of utility tariffs that are
charged only to
those
customers who install on-site generation, self-generation, behind-the-meter
generation, or
distributed
generation. Backup power rates, also called "standby rates", include,
but are not
limited
to, any rate, tariff, or surcharge billed on the basis of the amount of energy
generated by,
or
demand change related to, or installed capacity size of, any generation unit
installed by an end-
use
customer.
(b)
"Combined heat and power system" means a system that produces, from a
single
source,
both electric power and thermal energy used in any process or for heating that
result in an
aggregate
reduction in energy use. To be considered a combined heat and power system for
the
purpose
of this section, the system must achieve an average annual fuel conversion
efficiency of
at
least fifty-five percent (55%).
(c)
"Net-metering" means billing or charging an end-use customer only for
the electricity
supply
or services which is the net amount of electricity actually delivered to the
client by a
supplier
or service company, less any amount of electricity generated by or on behalf of
the end-
use
customer and either used on the end-use customer's property or put on to the
electric
distribution
grid within the same transmission interconnect area in which the end-use
customers is
located.
(3)
Said study shall make findings and recommendations using methods for
determining
and
quantifying system benefits attributable to distributed generation including
costs and benefits
relating
to:
(a)
the electricity distribution system:
(b)
the electricity transmission system;
(c)
the electricity generating system and the cost and availability of capital
needed to
construct
or maintain generation capacity;
(d)
system losses;
(e)
congestion and reliability;
(f)
ancillary services including voltage stability and reactive power;
(g)
fuel availability and pricing, and costs of electricity supply;
(h)
environmental impacts.
(4)
The commissioner of the office of energy resources shall report the findings
and
recommendations
of the stakeholder's group with regard to any statutory changes necessary to
reduce
barriers to implementation of distributed generation to the general assembly by
February
1,
2007.
(5)
The commission shall by June 1, 2007, issue the report of the stakeholder's
group to
the
public utilities commission; and the commissioner is hereby authorized to
request that the
commission
initiate proceedings with regard to establishing any appropriate rates and/or
regulation
necessary to implement the recommendations contained in the report.
(6)
The findings and recommendations of the said stakeholder's group shall in no
way be
binding
upon either the general assembly or the public utilities commission and may be
accepted,
accepted
in part, rejected or rejected in part by the general assembly or the public
utilities
commission
and until such action by either the general assembly or the public utilities
commission,
there shall be no further action on said recommendations.
42-140.2-3.
Implementation monitoring. -- The energy efficiency and resources
management
council is hereby authorized and directed to monitor the implementation of
distributed
generation and to report its findings and recommendations biennially on or
before
February
1, commencing in 2009 and ending in 2015.
SECTION
14. Title 42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT"
is hereby amended by adding thereto the following chapter:
CHAPTER 141
AFFORDABLE ENERGY
42-141-1.
Purpose. – The legislature finds and declares: (a) That energy costs
have been
rising
sharply while the incomes of low incomes households have been declining with
the result
that
energy costs are substantial and growing hardship;
(b)
That the housing stock occupied by many low income households is old and energy
inefficient;
(c)
That Rhode Island has lacked an overall state strategy and commitment to addressing
these
conditions; and
(d)
That it is necessary for public health and welfare to address the energy needs
of low
income
households in a manner that supports efficient use of energy resources.
42-141-2.
Definitions. – For the purposes of this chapter the following terms
have the
following
meanings:
(a)
"Commission" means the public utilities commission established by
chapter 39-1.
(b)
"Commissioner" means the commissioner of the office of energy
resources
established
pursuant to chapter 42-140.
(c)
"Council' means the energy efficiency and resources management council
established
pursuant
to chapter 42-140.1.
(d)
"Department" means the department of administration.
(e)
"LIHEAP" means the Federal Low Income Home Energy Assistance Program.
(f)
"Low income household" means a household with a gross annual income
equal to or
less
than sixty percent (60%) of median family income and that is eligible for
LIHEAP, as
determined
for each applicant by the office of energy resources, or its designee. A very
low
income
household means a LIHEAP eligible household with a gross annual income equal to
or
less
than one-hundred twenty-five percent (125%) of the Federal poverty guideline
for the
household.
(g)
"Person" means any individual, group of individuals, firm,
corporation, association,
partnership,
or public or private entity.
42-141-3. Plan. – The commissioner, in consultation with the
council, shall develop a
state
strategic plan for energy affordability on or before March 1, 2007, and each
March 1
thereafter,
until March 1, 2019, which plan shall include strategies and actions to make
energy
affordable
by low-income and, especially, very low income households, through a
combination of
energy
efficiency, weatherization, and energy price mitigation measures, supported by
resources
from
federal, state, and other sources, including LIHEAP and contributions made in
support of
LIHEAP
under the provisions of state law, regulation, or order. The state strategic
plan shall
include:
(a)
proposed activities to increase energy efficiency and weatherization in
dwelling units
occupied
by low income and very low income households;
(b)
propose allocations of funds from the affordable energy fund to be used for the
purposes
of reductions in electric and gas distribution rates and customers fees charged
to such
households,
in accordance with subdivision 42-141-5(d)(2);
(c)
estimates of revenues to the fund and expenditures from the fund to support the
purposes
of the fund during the next fiscal year;
(d)
plans and standards for fair, effective and efficient administration of energy
affordability
activities and assistance to low income and very low income households that
make
use
to the extent reasonable and practicable community organizations serving such
households.
42-141-4.
Weatherization and energy conservation. – (a) On or before January
1,
2008,
the office of energy resources in cooperation with the housing resources
commission shall
adopt
a strategic plan to achieve energy efficiency in low and moderate income
neighborhoods
through
weatherization and energy conservation measures, which strategic or portions thereof
shall
be incorporated into the state guide, as provided for in section 42-11-10, or
before July 1,
2008.
(b)
Energy efficient mortgages. On or before July 1, 2008, the Rhode Island Housing
and
Mortgage
Finance Corporation shall consider establishing and implementing a program to
support
energy efficiency residential mortgages and/or loans for up to fifteen percent
(15%) of the
appraised
value of a dwelling for energy savings improvements and/or for weatherization
and
energy
efficiency measures as provided for in this chapter, for which the monthly
mortgage or
loan
payment does not exceed the likely reduction in utility and heating costs for
the dwelling.
42-141-5.
Affordable energy fund. – (a) Fund established. – (1) A special
account is
hereby
established in the state treasury to be called the "affordable energy
fund."
(2)
Money remaining in the fund at the end of a fiscal year shall remain available
for
expenditure
in successive fiscal years.
(3)
The fund shall be used for only those purposes enumerated in subsection (d).
(b)
Financing of the fund. – The fund shall consist of the following sources:
(1)
Sums the legislature may appropriate;
(2)
Moneys received from federal, state, private donor or other sources for the
purpose of
energy
affordability by low income households;
(3)
Fees required pursuant to subsection (c); and
(4)
Any interest earned on the moneys in the fund.
(c)
Affordable energy fees. – (1) An affordable energy fee in an amount set forth
in this
subsection
shall be imposed on gross receipts of electricity and gas companies and gross
receipts
on
the sale of heating fuels not used for residential heating. The fee shall be
remitted to the
division
of taxation according to the applicable schedule for the remission of the gross
receipts
tax
as provided for in chapter 44-13 or the sales and use as provided for in
chapter 44-18. The
fees
shall be as follows:
(i)
Gas. One percent (1%) of the gross receipts of gas companies subject to the
provisions
of
chapter 44-13, "Public Service Corporation Tax".
(ii)
Electricity. One percent (1%) of the gross receipts of electric companies
subject to the
provisions
of chapter 44-13. "Public Service Corporation Tax".
(iii)
Heating fuel other than natural gas and electricity. Two percent (2%) of gross
receipts
from the sales and use of heating fuel subject to the provisions of chapter
44-18. "Sales
and
Use Taxes – Liability and Computation".
(2)
Every person from whom an affordable energy fee is due shall be liable for the
fee
until
it has been paid to the state.
(d)
Purposes of the fund. – (1) The commissioner may use money
from the
fund
to:
(i)
Support weatherization and energy conservation educational programs and
weatherization
and energy conservation services for low-income and very low income
households;
(ii)
Compensate electric and gas distribution companies for revenues lost due to the
reductions
in distribution and customer charges, in accordance with a plan approved by the
commission,
to very low income households, and if feasible to low income households, which
shall,
as a first priority, be used to provide up to a fifty percent (50%) reduction
in the distribution
and
customer charges for a reasonable and prudent use by very low-income households
of gas
and
electricity that does not exceed average use for comparable dwelling units.
(iii)
Defray the cost of heating fuel delivered to very low income households by an
amount
not to exceed twenty-five percent (25%) of the allowable cost of heating fuel
and a total
usage
by the household, supported assistance from all sources overseen by the
commissioner, that
is
reasonable and prudent and does not exceed average use for comparable dwelling
units.
(iv)
It is not the purpose of the fund to reduce the amount of assistance a
household
would
otherwise receive from LIHEAP and other sources in the absence of the fund or
to
subsidize
utility rates in effect as of July 1, 2006, and provided for by law.
(2)
If the commissioner determines it is in the public interest to allocate funds
for the
purposes
set forth in subparagraph (1)(ii) above, the commissioner shall notify the
commission of
the
amount of funds to be allocated for a specified period. The commission shall
then direct the
electric
and/or gas distribution companies to file amendments to the appropriate tariffs
to
implement
rate reductions designed to provide the rate reduction consistent with the
amount
allocated
for the period designated, which amendments are subject to the review and
approval of
the
commission. Once approval is given, the allocated funds shall be transferred to
the gas and/or
electric
distribution company. Any funds held after transfer shall accumulate interest
at the
customer
deposit rate ("interest"). If, at the end of the rate reduction
period, there are any unused
dollars
from the fund, such dollars shall be returned to the affordable energy fund
with interest.
Likewise,
if at the end of the rate reduction period, there were not enough funds
allocated to
cover
the rate reduction as designed, the shortfall will be reimbursed from the
affordable energy
fund
with interest; provided, however, if there are no additional funds available
from the fund,
such
shortfall or uncovered balance of such shortfall will be recovered with
interest from all
customers
in a manner and over the period approved by the commission.
(e)
Administration and records of the fund. – (1) The commissioner shall
administer
the fund in accordance with this chapter.
(2)
The commissioner in consultation with the department shall adopt procedures
governing
the expenditure of, and accounting for, money expended from the fund.
(3)
The commissioner is responsible for insuring that there are adequate moneys
available
in
the fund to carry out the purposes of this section.
(4)
The commissioner shall maintain accounting records showing the income and
expenses
of the fund.
(f) Expenditure of fund money. -- Disbursements may be made
from the fund
for
the following purposes:
(1) Necessary administrative expenses, personnel expenses and equipment
costs of the
office
related to this section which shall not exceed ten percent (10%) of the revenue
of the fund;
(2) All costs to effectuate the purposes of the fund as set forth in
subsection (d).
(g) Report to the legislature. – The commissioner shall submit a
report to
the
legislature not later than the tenth (10th) day following the convening of each
regular session
of
the legislature. The report may include information considered significant by
the commissioner
but
must include:
(1) The amount of money expended under section 42-141-5 during the preceding
fiscal
year;
(2) The amount and source of money received during the preceding fiscal
year;
(3) A detailed summary of activities funded by the fund during the preceding
fiscal year;
(4) The projected cost to the fund for affordable energy programs in the
next fiscal year.
42-141-6. Heating fuel procurement other than natural gas
and electricity. -- The
commissioner
shall seek to secure the best price over time for heating fuels delivered under
agreements
supported in whole or in part by funds administered by the office of energy
resources
and
is hereby authorized to use margin over rack pricing to accomplish this purpose
which
margin
will be established by September 1, annually, after consultation with the
oil/heat institute
of
Rhode Island and the Rhode Island Community Action Association. The
commissioner shall
report
publicly with regard to heating fuel procurement experience in other
jurisdictions and to a
proposed
least cost procurement plan for heating fuel in Rhode Island, and shall provide
a public
comment
period of not less than twenty (20) days, prior to rendering decision on how to
effectuate
the requirements of this section. Effective October 1, 2006, the price herein
provided
shall
be updated weekly and shall be published on a website maintained by the office
of energy
resources.
42-141-7. Regulations. -- The commissioner may adopt
all rules and regulations
necessary
for the administration and enforcement of this chapter.
42-141-8. Cooperation required. -- The commissioner may
request from any
government
agency, and the agency is authorized and directed to provide, any cooperation
and
assistance,
services, and data, within the jurisdiction of the agency, as will enable the
office of
energy
resources to properly perform or exercise any of its functions, duties and
powers under
this
chapter.
42-141-9 Construction. -- This chapter, being
necessary for the welfare of the state and
its
inhabitants, shall be liberally construed so as to effectuate its purposes.
42-141-10. Inconsistent provisions. -- Insofar as the
provisions of this chapter are
inconsistent
with the provisions of any other law or ordinance, general, special or local,
the
provisions
of this chapter shall be controlling.
42-141-11.
Severability. – If any clause, sentence, paragraph, section, or part
of this
chapter
shall be adjudged by any court of competent jurisdiction to be invalid, that
judgment shall
not
affect, impair, or invalidate the remainder of the chapter but shall be
confined in its operation
to the
clause, sentence, paragraph, section, or part directly involved in the
controversy in which
that
judgment shall have been rendered.
42-141-12.
Transitional provision. – Effective September 1, 2006, in order to
provide
for
transitional assistance to very low-income customers during fiscal year 2007,
notwithstanding
any
law or order to the contrary, the following provisions shall apply to
eligibility for restoration
of
gas and/or electric service to a very low-income customer who has been terminated
from
service
in calendar year 2006; the very low-income customer shall pay eighteen percent
(18%) of
the
customer's unpaid balance and shall agree to remain current with payments for
current usage
and
to pay one thirty-sixth (1/36) of one-half (1/2) of the remaining balance per
month through
June
2007; a very low income customer who complies with the provisions of this
section shall be
transitioned
to the provision of subsection 39-2-1(e)(ii) and (iii) effective July 1, 2007,
and the
monthly
payments on the remaining balance that have been made pursuant to such
agreement
shall
be credited to the requirements of subdivision 39-2-1(e)(iv) for the
forgiveness of
arrearages.
A very low-income customer who elects to use the provisions of this section and
who
fails
to comply with the terms of the agreement for the restoration of service under
the provisions
of
this section shall be ineligible to apply for restoration of service under the
provisions of
subdivision
39-2-1(e) and shall be subject to termination of service effective April 15,
2007, and
any
unpaid balance shall be due in full and shall be payable in accordance with the
rules of the
commission.
The provisions of this section shall be repealed effective July 2, 2007.
SECTION
14 Section 44-13-4 of the General Laws in Chapter 44-13 entitled "Public
Service
Corporation Tax" is hereby amended to read as follows:
44-13-4.
Rate of taxation. -- The tax imposed will be at the following rates:
(1) In the case of every corporation whose principal business is a steamboat or
ferryboat
business
as a common carrier, every common carrier steam or electric railroad
corporation, every
street
railway corporation, every common carrier dining, sleeping, chair, or parlor
car
corporation,
every corporation whose principal business is selling and distributing water to
the
public,
and every toll bridge corporation, one and one-fourth percent (1.25%) of its
gross
earnings;
(2) In the case of every corporation whose principal business is manufacturing,
selling,
distributing
and/or transmitting currents of electricity to be used for light, heat, or
motive power,
four
percent (4%) of its gross earnings, but deductions shall be made of gross
earnings from the
transmission
or sale of electricity to other public utility corporations, non-regulated
power
producers,
or municipal utilities for resale, whether within or outside of this state;
provided, that
the tax
measured by the portion of the utility's gross earnings as is derived from the
manufacture
and sale
of illuminating and heating gas and its by-products and the merchandising of
gas
appliances
shall be computed at the rate of three percent (3%); provided, however, that
effective
July
1, 2007, the amount of the tax herein established shall be reduced by the fee
due and paid to
the
affordable energy fund established by section 42-141-5;
(3) In the case of every express corporation carrying on its business on
steamboats,
steam or
electric railroads, or street railways and of every public service corporation
whose
principal
business is that of a telegraph corporation, four percent (4%) of its gross
earnings;
(4) In the case of every telecommunications corporation providing
telecommunications
service,
ten percent (10%) of its gross earnings; provided, that the rate shall be nine
percent (9%)
effective
July 1, 1985, eight percent (8%) effective July 1, 1986, seven percent (7%)
effective
July 1,
1987, six percent (6%) effective July 1, 1988, and five percent (5%) effective
July 1,
1997.
For purposes of this chapter, "telecommunications service" means the
transmission of any
interactive
two-way electromagnetic communications including voice, image, data, and other
information,
by means of wire, cable, including fiber optical cable, microwave, and radio
wave,
or any
combinations of these media. This definition does not include value added
non-voice
services
in which computer processing applications are used to act on the form, content,
code, and
protocol
of the information to be transmitted;
(5) In the case of every public service cable corporation, eight percent (8%)
of its gross
earnings;
(6) In the case of every corporation whose principal business is manufacturing,
selling
and/or distributing
to the public illuminating or heating gas, three percent (3%) of its gross
earnings.
SECTION
15 . Chapter 44-18 of the General Laws entitled "Sales and Use Taxes -
Liability
and Computation" is hereby amended by adding thereto the following
section:
44-18-30D.
Credit for fees to the affordable energy fund. – Effective July 1,
2007,
there
shall be a credit, of the amount of the fee due and paid to the affordable
energy fund
established
by section 42-141-5, against the gross receipts tax for the sales and use of
heating fuel
not
exempted from taxation pursuant to subsection 44-18-30 (20).
SECTION
16. Construction. -- This act, being necessary for the welfare of the state and
its inhabitants
shall be construed liberally so as to effectuate its purposes.
SECTION
17. Severability. – If any clause, sentence, paragraph, section, or part of
this
act
shall be adjudged by any court of competent jurisdiction to be invalid, that
judgment shall not
affect,
impair, or invalidate the remainder of the act but shall be confined in its
operation to the
clause,
sentence, paragraph, section, or part directly involved in the controversy in
which that
judgment
shall have been rendered.
SECTION
18. This act shall take effect upon passage.
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LC02697/SUB B/2
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