Chapter 018
2010 -- H 8073 SUBSTITUTE A
Enacted 05/27/10
A N A C T
RELATING TO
PUBLIC UTILITIES AND CARRIERS -- LONG-TERM CONTRACTING STANDARD FOR RENEWABLE
ENERGY
Introduced By: Representatives Ucci, Petrarca, JP O`Neill, Fellela, and Handy
Date Introduced: May 04, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. Legislative findings. --
The general assembly hereby finds and declares as
follows:
(1)
The cost effective safe collection, processing and destruction of landfill gas
produced
from the natural decomposition of municipal solid waste at
the central landfill in Johnston, Rhode
Island is essential to the
health and welfare of the residents of
(2)
The construction and operation of a new landfill gas fueled electric generating
facility
is an integral component of the cost-effective
collection, processing and destruction of landfill
gas;
(3)
A new landfill gas fueled electric generating facility could qualify as a new
renewable
energy resource pursuant to section 39-26-2;
(4)
The construction and operation of a new landfill gas fueled electric generating
facility
at the central landfill would result in direct economic
benefits to
(i) An investment of more than one hundred million dollars
($100,000,000) in a new
renewable energy generating facility located entirely within
the State of
(ii)
Very near-term benefits with the start of construction of the facility in
calendar year
2010;
(iii)
Creation and retention of jobs during the construction and operating phases of
the
facility;
(iv) Reduction in capital and operating costs that would
otherwise be born by the Rhode
Island Resource Recovery
Corporation;
(v) Increases in taxes or payments-in-lieu-of-taxes to the
town of
(vi) Enabling the timely decommissioning of existing
generation facilities at the central
landfill that would free up valuable landfilling
space worth more than two hundred million dollars
($200,000,000); and
(vii)
Providing substantial amounts of renewable energy to
the state's policies of increasing diversity of energy
resources, reducing reliance on fossil fuels
and reducing the state's carbon footprint.
(viii)
Provides for funding on an annual basis from the new landfill gas fueled
electric
generation facility to assist the Johnston School System with
economic needs including capital
improvements and other school related expenses including athletic
programs, textbooks, and
extracurricular activities. The annual funding shall be deposited in
a restricted receipt account that
shall be known as the “Johnston School Renewable Energy
Assistance Fund.”
(5)
The financing plan for the construction of a new landfill gas fueled electric
generating
facility is supported by more than fifty million dollars ($50,000,000)
of federal government
grants, which are only available if construction of the
facility is actually commenced before the
end of the calendar year 2010;
(6)
In order to complete the financing plan and secure the federal government
grants that
are necessary for the financing and construction of the
facility, the owner/builder of the facility
must obtain a long-term contract for the sale of the
output of the facility;
(7)
Under the current process, set forth in this chapter, relating to long-term
renewable
energy contracts, the owner/builder will not be able to
obtain an executed long-term contract and
otherwise complete the financing plan for the facility in
sufficient time to meet the end of the
calendar year 2010 requirement of the federal government
grants;
(8)
The development of an electric generating facility fueled by landfill gas from
the
central landfill will provide unique benefits to
reasonably available from other alternatives; and
(9) The amendments to the process for obtaining long-term renewable energy
contracts
as set froth forth herein are necessary in
order to ensure that the owner/builder of the facility can
promptly obtain a long-term renewable energy contract
otherwise consistent with the provisions
of this section to support the financing and
construction of the facility, for the aforesaid legitimate
local purposes including, without limitation, the benefit
of
SECTION 2. Chapter 39-26.1 of the General Laws entitled
"Long-Term Contracting
Standard for Renewable
Energy" is hereby amended by adding thereto the following section:
39-26.1-9.
Town of
chapter to the contrary:
(1) The Narragansett
Electric Company is hereby authorized, at its sole discretion, to
procure a commercially reasonable long-term contract for a newly
developed renewable energy
resource fueled by landfill gas from the central landfill in
the town of
earlier than is otherwise set forth in this chapter.
(2) Any such contract
executed on or before May 21, 2010 shall be legal, binding and
enforceable and shall not be subject to commission approval if:
(i)
Such resource has a gross nameplate capacity rating of less than thirty-seven
(37)
megawatts; and
(ii) Such contract
is:
(A) For a term not in
excess of twenty (20) years; and
(B) Contains such
other terms and conditions as may be approved by the director of the
department of administration, such approval to be indicated by
written confirmation of the
director delivered to an electric distribution company prior
to such contract becoming effective.
(3) The power
purchase agreement shall be reviewed by the administrator of the division
of public utilities and carriers, the executive director
of the
corporation, the administrator of the office of energy resources,
and the director of the department
of administration. Certified copies of the executed
agreement shall be provided to each agency by
the Narragansett Electric Company and published on the
website of the division of public utilities
and carriers for public inspection. Members of the public
shall have fifteen (15) days to submit
written comments to the four (4) agencies for the respective
agency consideration; however, no
evidentiary hearings shall be required.
(4) Within thirty
(30) days of receipt of the agreement each of the four (4) agencies in
subsection (c) shall issue a certification or decline
certification in writing. Such certifications or
declinations shall be final and conclusive as a matter of law and
not subject to appeal. The
respective certification determinations shall be made to the
division of public utilities and carriers
as follows:
(i)
The administrator of the division of public utilities and carriers shall
certify the
agreement if the administrator determines that the agreement is
consistent with the provisions of
this chapter and this section;
(ii) The executive
director of the
certify the agreement if the executive director determines
that the project encourages and
facilitates the creation of jobs in
(iii) The
administrator of the office of energy resources shall certify the agreement if
the
administrator determines that the agreement fulfills the declared
policy of this chapter and this
section.
(iv)
The director of the department of administration shall certify
the agreement if the
director determines that the contractual terms of the
agreement are reasonable and in the best
interest of the state in accordance with this chapter and
section.
(5) Upon receipt of
the certifications pursuant to subsection (d) the division shall review
such certifications and confirm that each is in
conformance with this section.
(6) Within five (5)
days of receipt of the certifications by the division, the division shall
file the agreement with the commission. Upon such filing,
the agreement shall be deemed
accepted and fully enforceable.
(7) If one or more of
the certifications is not received by the division within the thirty
(30) day period established
by this section, the division shall, within fifteen (15) days, consider
the reasons, if any, provided by the agency not providing
such certification and the division shall,
within such fifteen (15) day period, make a final
determination on the question originally
assigned to the non-certifying agency. If the division
determines that, notwithstanding the lack of
certification from the non-certifying agency, such certification
should be issued, the division shall
make such certification, which certification shall have
the same effect as if it had been made by
the agency which first considered such question. If, in
the case of a lack of certification from an
agency, the division determines that such certifications
shall not be issued, then the division shall
not file the agreement with the commission and the
agreement shall have no effect.
(8) The Narragansett
Electric Company's act of having entered into this agreement and its
terms and pricing shall be deemed prudent for purposes of
any future regulatory proceedings
before the commission and recovery of the costs incurred in
making payments under the terms of
the agreement shall not be subject to challenge in any
future commission proceedings. The
provisions of section 39-26.1-4 and the provisions of
subsections (b), (c), (d), and (f) of section
39-26.1-5 shall apply, and all costs incurred in, or
savings resulting from, the administration and
implementation of the agreement shall be recovered annually by the
electric distribution company
and its customers in electric distribution rates. Any
contract entered into pursuant to this section
shall count as part of the minimum long-term contract
capacity.
(9) The
electric distribution company shall be authorized upon appropriate notice and
filing with the commission, to allocate all products
purchased under any power purchase
agreements entered into pursuant to chapter 39-26.1 to its
standard offer service customers at the
market price and to allocate any difference, whether
positive or negative, between the costs of the
power purchase agreement and the market price of the
products purchased under the power
purchase agreement to all of its electric distribution
customers.
(10) The provisions
of this section shall be severable from the other provisions of this
chapter, and shall remain in effect regardless of any
judicial challenge to other sections of this
chapter.
SECTION 3. This act shall take effect upon passage.
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LC02526/SUB A
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