Chapter
228
2008 -- H 7806 SUBSTITUTE A
Enacted 07/04/08
A N A C T
RELATING TO PUBLIC
UTILITIES AND CARRIERS -- DUTIES OF UTILITIES AND CARRIERS
Introduced By: Representatives Rice, Kennedy, Fox, Segal, and Ajello
Date Introduced: February
26, 2008
It is
enacted by the General Assembly as follows:
SECTION
1. Section 42-64-13.2 of the General Laws in Chapter 42-64 entitled "Rhode
Island
Economic Development Corporation" is hereby amended to read as follows:
42-64-13.2.
Renewable energy development fund. -- Renewable
energy investment
coordination.
-- The Rhode Island economic
development 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 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 26 of title 39 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.
(a)
Intent. To develop an integrated organizational structure to secure for Rhode
Island
and
its people the full benefits of cost-effective renewable energy development
from diverse
sources.
(b)
Definitions. For purposes of this section, the following words and terms shall
have the
meanings
set forth in RIGL 42-64-3 unless this section provides a different meaning.
Within this
section,
the following words and terms shall have the following meanings:
(1) "Corporation" means the Rhode Island economic development
corporation.
(2) "Municipality" means any city or town, or other political
subdivision of the state.
(3)
"Office" means the office of energy resources established by chapter
42-140.
(c)
Purpose. The corporation is authorized to integrate the management of public
funds to
promote
the expansion and sound development of renewable energy resources by providing
coordinated
and cost-effective use of funds from:
(1)
The renewable energy program of the demand side management program as set forth
in
section 39-2-1.2; and
(2)
The renewable energy development fund of the renewable energy standard, as set
forth
in chapter 39-26.
(3)
The office of energy resources from the sale of allowances under the greenhouse
gas
initiative
act to the extent available for renewable energy, as set forth in chapter
23-82.
(d)
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 section 39-26-7, 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 may upon the request of any person
undertaking a renewable
energy
facility project, 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.
(e)
Duties. The corporation shall, with regards to renewable energy project
investment:
(1)
Establish by rule, in consultation with the office, standards for financing
renewable
energy
projects from diverse sources.
(2)
Enter into agreements, consistent with this chapter and renewable energy
investment
plans
adopted by the office, to provide support to renewable energy projects that
meet applicable
standards
established by the corporation. Said agreements may include contracts with
municipalities
and public corporations.
(f)
Conduct of activities. – (1) To the extent reasonable and practical, the
conduct of
activities
under the provisions of this chapter shall be open and inclusive; the director
shall seek,
in addressing
the purposes of this chapter, 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.
(2)
By January 1, 2009, the director shall adopt:
(A)
Goals for renewable energy facility investment which are beneficial, prudent,
and from
diverse
sources;
(B)
A plan for a period of five (5) years, annually upgraded as appropriate, to
meet the
aforementioned
goals; and
(C)
Standards and procedures for evaluating proposals for renewable energy projects
in
order
to determine the consistency of proposed projects with the plan.
(g)
Reporting. On March 1, of each year after the effective date of this chapter,
the
corporation
shall submit to the governor, the president of the senate, the speaker of the
house of
representatives,
and the secretary of state, a financial and performance report. These reports
shall
be
posted electronically on the general assembly and the secretary of state's
websites as
prescribed
in section 42-20-8.2. The reports shall set forth:
(1)
the corporation's receipts and expenditures in each of the renewable energy
program
funds
administered in accordance with this section.
(2)
a listing of all private consultants engaged by the corporation on a contract
basis and a
statement
of the total amount paid to each private consultant from the two (2) renewable
energy
funds
administered in accordance with this chapter; a listing of any staff supported
by these
funds,
and a summary of any clerical, administrative or technical support received; and
(3)
a summary of performance during the prior year including accomplishments and
shortcomings;
project investments, the cost-effectiveness of renewable energy investments by
the
corporation;
and recommendations for improvement.
SECTION
2. Sections 42-140-3 and 42-140-7 of the General Laws in Chapter 42-140
entitled
"Rhode Island Energy Resources Act" are hereby amended to read as
follows:
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 assigned by law or executive order,
state and federally
funded
or authorized energy programs, which may include, but not be limited to:
(i) 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;
(ii) The weatherization assistance program which offers home weatherization grants
and
heating
system upgrades to eligible persons of low-income;
(iii) The emergency fuel program which provides oil deliveries to families
experiencing
a
heating emergency;
(iv) The energy conservation program, which offers service and programs to all
sectors;
and
(v) The renewable energy program established under Rhode Island general laws
chapter
39-2;
(10) Advise the economic development corporation in the development of
standards and
rules
for the solicitation and award of renewable energy program investment funds in
accordance
with
section 42-64-13.2;
(11)(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
(12)(11) Advise the governor and the general assembly with regard
to energy resources
and all
matters relevant to achieving the purposes of the office.
42-140-7.
Conduct of activities. -- (a) 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.
(b) The commissioner shall, not later than February 1, 2008, adopt, in the
manner as set
forth
in section 42-140-9:
(1) Goals for renewable energy facility investment and/or procurement, which
is
beneficial
and prudent, from diverse sources;
(2) A plan for a period of five (5) years, annually upgraded as appropriate, to
meet the
aforementioned
goals; and
(3) Investment and/or procurement standards and procedures for evaluating
proposals for
renewable
energy projects in order to determine the consistency of proposed projects with
the
plan.
The
commissioner shall transmit any unencumbered funds from the renewable energy
program
under chapter 39-2 to the economic development corporation to be administered
in
accordance
with a the provisions of section 39-2-1.2.
SECTION
3. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled "Duties
of
Utilities
and Carriers" is hereby amended to read as follows:
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 office of
energy resources
through
June 30, 2007 and effective July 1, 2007, economic development corporation pursuant to
section
42-64-13.2 and, shall be held and
disbursed by the distribution company as directed by
the economic
development corporation 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 office of energy resources and/or the administrator of the
renewable
energy
programs shall may seek to secure for the state an equitable and
reasonable portion of
renewable
energy credits or certificates created by private 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)
On or before November 15, 2008, the economic development corporation shall
create
the
municipal renewable energy investment program utilizing the lesser of fifty
percent (50%) or
one
million dollars ($1,000,000) collected annually from the .3 mils per kilo-watt
hour charge for
renewable
energy programs, to fund qualified municipal renewable energy projects in
accordance
with
this chapter and the following provisions:
(1)
The municipal renewable energy investment programs shall be administered
pursuant
to
rules established by the economic development corporation. Said rules shall
provide
transparent
criteria to rank qualified municipal renewable energy projects, giving
consideration
to:
(i)
the feasibility of project completion;
(ii)
the anticipated amount of renewable energy the project will produce;
(iii)
the potential of the project to mitigate energy costs over the life of the
project; and
(iv)
the estimated cost per kilo-watt hour (kwh) of the energy produced from the
project.
Municipalities
that have not previously received financing from this program shall be given
priority
over those municipalities that have received funding under this program.
(2)
Beginning on January 1, 2009, the economic development corporation shall
solicit
proposals
from municipalities for eligible projects and shall award grants, in accordance
with the
rules
and ranking criteria, of no more than five hundred thousand dollars ($500,000)
to each
eligible
project.
(3)
Any funds not expended from the municipal renewable energy investment programs
in a given
year shall remain in the fund and be added to the balance to be distributed in
the next
award
cycle. For the purposes of this section, qualified municipal renewable energy
projects
means
any project that produces renewable energy resources and whose output of power
and
other
attributes is controlled in its entirety by at least one Rhode Island city or
town.
(d)
On or before November 15, 2008, the economic development corporation shall
create
the nonprofit
affordable housing renewable energy investment program utilizing the lesser of
ten
percent
(10%) or two hundred thousand dollars ($200,000) collected annually from the .3
mils per
kilo-watt
hour charge for renewable energy programs to fund qualified nonprofit
affordable
housing
renewable energy projects in accordance with this chapter and the following
provisions:
(1)
The nonprofit affordable housing renewable energy investment programs shall be
administered
pursuant to rules established by the economic development corporation in
consultation
with the Rhode Island housing mortgage finance corporation. Said rules shall
provide
transparent criteria to rank qualified nonprofit affordable housing renewable
energy
projects,
giving consideration to:
(i)
the feasibility of project completion;
(ii)
the anticipated amount of renewable energy the project will produce;
(iii)
the potential of the project to mitigate energy costs over the life of the
project; and
(iv)
the estimated cost per kilo-watt hour (kwh) of the energy produced from the
project.
Nonprofit
affordable housing agencies that have not previously received financing from
this
program
shall be given priority over those agencies that have received funding under
this
program.
(2)
Beginning on January 1, 2009, the economic development corporation, in
consultation
with
the Rhode Island housing and mortgage finance corporation, shall solicit
proposals from
eligible
nonprofit housing agencies for renewable energy projects and shall award
grants, in
accordance
with the rules and ranking criteria. The economic development corporation shall
consult
with the Rhode Island housing and mortgage finance corporation in the
grant-making
process
and shall notify the corporation of the awardees.
(3)
Any funds not expended from the affordable housing renewable energy investment
program
in a given year shall remain in the fund and be added to the balance to be
distributed in
the
next award cycle. For the purposes of this section, “qualified nonprofit
affordable housing
renewable
energy projects” means any project that produces renewable energy resources and
whose
output of power and other attributes is controlled in its entirety by at least
one nonprofit
affordable
housing development as defined in section 42-55-3 and is restricted to
producing
energy
for the nonprofit affordable housing development.
(c) (e) The commissioner of the office of energy resources
executive director of the
economic
development corporation is authorized
and 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 may occur every three (3) years thereafter,
and
shall
include as a condition that after July 1, 2007 2008 the account
for the renewable energy
programs
shall be maintained and administered by the distribution company economic
development
corporation 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) (f) 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) (g) 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) (h) 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) (i) 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) (j) 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.
SECTION
4. Section 39-26-7 of the General Laws in Chapter 39-26 entitled
"Renewable
Energy
Standard" is 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 in accordance with section 42-64-13.2. and shall have a
board of
trustees
of five (5) members as follows: the executive director of the economic
development
corporation,
who shall be chairperson; 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: shall:
(1) Plans Adopt plans and guidelines for the management and use
of the fund in
accordance
with section 42-64-13.2, 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.
SECTION
5. Chapter 42-55 of the General Laws entitled "Rhode Island Housing and
Mortgage
Finance Corporation" is hereby amended by adding thereto the following
section:
42-55-5.4.
Renewable energy in housing developments. -- On or before July 1,
2009,
the
corporation shall establish, in appropriate housing development programs it
administers,
criteria
for priority consideration of housing development proposals which include
renewable
energy
features which are demonstrated to be cost-effective and can be implemented in
a
reasonable
period of time.
SECTION
6. This act shall take effect upon passage.
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LC01582/SUB A
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