1                                                                ARTICLE 7


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2                         RELATING TO REGIONAL GREENHOUSE GAS INITIATIVE ACT

 

 

 

3                  SECTION  1.   Section  23-82-6   of  the  General  Laws  in  Chapter  23-82  entitled

 

4      "Implementation of the Regional Greenhouse Gas Initiative Act" is hereby amended to read as

 

5      follows:

 

6                  23-82-6. Use of auction or sale proceeds. -- (a) The proceeds from the auction or sale of

 

7      the allowances shall be used for the benefit of energy consumers through investment in the most

 

8      cost-effective available projects that can reduce long-term consumer energy demands and costs.

 

9      Such proceeds may be used only for the following purposes, in a proportion to be determined

 

10      annually by the office in consultation with the council and the board:

 

11                  (1) Promotion of cost-effective energy efficiency and conservation in order to achieve the

 

12      purposes of § 39-1-27.7;

 

13                  (2) Promotion of cost-effective renewable non-carbon emitting energy technologies in

 

14      Rhode Island as defined in § 39-26-5 and to achieve the purposes of chapter 39-26 entitled

 

15      "Renewable Energy Standard";

 

16                  (3) Cost-effective direct rate relief for consumers;

 

17                  (4) Direct rate relief for low-income consumers;

 

18                  (5) Reasonable compensation to an entity selected to administer the auction or sale; and

 

19                  (6) Reasonable costs of the department of environmental management and office of

 

20      energy  resources  in  administering  this  program,  as  well  as  other  climate  change,  energy

 

21      efficiency, and renewable program efforts of the department of environmental management and

 

22      office of energy resources, which shall not in any year exceed three hundred thousand dollars

 

23      ($300,000) ofive percent (5%)  ten percent (10%) of the proceeds from sale or auction of the

 

24      allowances, whichever is  less greater. Administrative funds not expended in any fiscal year shall

 

25      remain in the administrative account to be used as needed in subsequent years. The office of

 

26      energy resources shall have the ability to apply administrative funds not used in a fiscal year to

 

27      achieve the purpose of this section. The funds deposited into the administrative funds account

 

28      shall be exempt from the indirect cost recovery provisions of section 35-4-27.

 

29                  (b) Any interest earned on the funds so generated must be credited to the fund. Funds not

 

30      spent in any fiscal year shall remain in the fund to be used for future energy efficiency and carbon


1      reduction programs.

 

2                  (c) Annually, the office, in consultation with council and board, shall prepare a draft

 

3      proposal on how the proceeds from the allowances shall be allocated. The draft proposal shall be

 

4      designed  to  augment  and  coordinate  with  existing  energy  efficiency  and  renewable  energy

 

5      programs, and shall not propose use of auction proceeds for projects already funded under other

 

6      programs. The proposal for allocation of proceeds in subsections 23-82-6(1), (2) and (3) shall be

 

7      one  that  best  achieves  the  purposes  of  the  law,  namely,  lowering  carbon  emissions  and

 

8      minimizing costs to consumers over the long term. The office shall hold a public hearing and

 

9      accep publi comment   on   the   draf proposa in   accordanc with   chapter   42-35   (the

 

10      "Administrative  Procedure  Act").  Once  the  proposal  is  final,  the  office  shall  authorize  the

 

11      disbursement of funds in accordance with the final plan.

 

12                  (d) The office shall prepare, in consultation with council and board, a report by April

 

13      15th of each year describing the implementation and operation of RGGI, the revenues collected

 

14      and the expenditures, including funds that were allocated to the energy efficiency and renewable

 

15      energy programs, and the individuals, businesses and vendors that received funding, made under

 

16      this  section,  the  statewide  energy  efficiency  and  carbon  reduction  programs,  and  any

 

17      recommendations  for  changes  to  law  relating  to  the  state's  energy  conservation  or  carbon

 

18      reduction efforts. The report shall be made public and be posted electronically on the website of

 

19      the office of energy resources and shall also be submitted to the general assembly.

 

20                  SECTION 2. This article shall take effect as of July 1, 2014.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Art7

RELATING TO REGIONAL GREENHOUSE GAS INITIATIVE ACT (Page -2-)