ARTICLE 18 SUBSTITUTE A
RELATING TO AFFORDABLE ENERGY CREDITS
SECTION 1. Chapter 42-141 of the General Laws
entitled "Affordable Energy"
is hereby repealed in its entirety.
CHAPTER 42-141
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. - Effective January 1, 2009, one-quarter of one percent
(0.25%) of the gross receipts tax of gas companies subject to the provisions of
chapter 44-13 "Public Service Corporation Tax". Effective January 1,
2010, one-half of one percent (0.50%) of the gross receipts of gas companies
subject to the provisions of chapter 44-13 "Public Service Corporation
Tax". Effective January 1, 2011 three-quarters of one percent (0.75%) of
the gross receipts of gas companies subject to the provisions of chapter 44-13
"Public Service Corporation Tax". Effective January 1, 2012 and each
January 1 thereafter one percent (1%) of the gross receipts of gas companies
subject to the provisions of chapter 44-13, "Public Service Corporation
Tax".
(ii) Electricity. - Effective January 1, 2009, one-quarter of one
percent (0.25%) of the gross receipts tax of electric companies subject to the
provisions of chapter 44-13 "Public Service Corporation Tax".
Effective January 1, 2010, one-half of one percent (0.50%) of the gross
receipts of electric companies subject to the provisions of chapter 44-13
"Public Service Corporation Tax". Effective January 1, 2011,
three-quarters of one percent (0.75%) of the gross receipts of electric
companies subject to the provisions of chapter 44-13 "Public Service
Corporation Tax". Effective January 1, 2012 and each January 1 thereafter,
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. -
Effective January 1, 2009, one-half percent (.50%) 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". Effective January
1, 2010, one percent (1.0%) 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". Effective January 1, 2011, one and one-half
percent (1.5%) of gross receipts from the sales and use of heating fuel subject
to the provisions of chapter 44-18. Effective January 1, 2012 and each January
1 thereafter 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) Provide supplemental funds as may be necessary to augment the
LIHEAP program in order to accomplish the purposes of this chapter; 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 2. 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 January 1, 2009, 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 3. Section 44-18-30.D of the General Laws
in Chapter 44-18 entitled "Sales and Use Taxes - Liability and
Computation" is hereby repealed.
44-18-30.D. Credit for fees to the affordable energy fund. --
Effective January 1, 2009, 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 4. This article
shall take effect as of July 1, 2008.