Chapter 480
2017 -- H 5842 SUBSTITUTE A AS AMENDED
Enacted 10/13/2017

A N   A C T
RELATING TO HIGHWAYS - MUNICIPAL ROAD AND BRIDGE REVOLVING FUND

Introduced By: Representatives Tanzi, Donovan, Fogarty, Carson, and Barros
Date Introduced: March 02, 2017

It is enacted by the General Assembly as follows:
     SECTION 1. Sections 24-18-3 and 24-18-7 of the General Laws in Chapter 24-18
entitled "Municipal Road and Bridge Revolving Fund" are hereby amended to read as follows:
     24-18-3. Definitions.
     As used in this chapter, the following terms, unless the context requires a different
interpretation, shall have the following meanings:
     (1) "Agency" means the Rhode Island infrastructure bank as set forth in chapter 46-12.2
12.2 of title 46;
     (2) "Annual construction plan" means the finalized list of approved projects to commence
construction each calendar year;
     (3) "Approved project" means any project approved by the agency for financial
assistance;
     (4) "Department" means the department of transportation, or, if the department shall be
abolished, the board, body, or commission succeeding to the principal functions thereof or upon
whom the powers given by chapter 5 of title 37 to the department shall be given by law. ;
     (5) "Eligible project" means an infrastructure plan, or portion of an infrastructure plan,
that meets the project evaluation criteria;
     (6) "Financial assistance" means any form of financial assistance other than grants
provided by the agency to a city or town in accordance with this chapter for all or any part of the
cost of an approved project, including, without limitation, temporary and permanent loans, with
or without interest, guarantees, insurance, subsidies for the payment of debt service on loans,
lines of credit, and similar forms of financial assistance;
     (7) "Infrastructure plan" means a project proposed by a city or town that would make
capital improvements to roads, bridges, and appurtenances thereto consistent with project
evaluation criteria;
     (8) "Market rate" means the rate the city or town would receive in the open market at the
time of the original loan agreement as determined by the agency in accordance with its rules and
regulations;
     (9) "Project evaluation criteria" means the criteria used by the department to evaluate
infrastructure plans and rank eligible projects and shall include, but not be limited to:
     (i) The the extent to which the project generates economic benefits, ;
     (ii) The the extent to which the project would be able to proceed at an earlier date, ;
     (iii) The the likelihood that the project would provide mobility benefits, ;
     (iv) The the cost effectiveness of the project, ;
     (v) The the likelihood that the project would increase safety, ; and
     (vi) The the project's readiness to proceed within the forthcoming calendar year;.
     (10) "Project priority list" means the list of eligible projects ranked in the order in which
financial assistance shall be awarded by the agency pursuant to § 24-18-7;
     (11) "Revolving fund" means the municipal road and bridge revolving fund established
under § 24-18-4; and
     (12) "Subsidy assistance" means credit enhancements and other measures to reduce the
borrowing costs for a city or town.
     24-18-7. Procedure for project approval.
     (a) By September 1, 2013, the department shall promulgate rules and regulations
establishing the project evaluation criteria and the process through which a city or town may
submit an infrastructure plan. By December 31, 2013, the agency shall promulgate rules and
regulations to effectuate the provisions of this chapter which may include, without limitation,
forms for financial assistance applications, loan agreements, and other instruments. All rules and
regulations promulgated pursuant to this chapter shall be promulgated in accordance with the
provisions of chapter 42-35 35 of title 42.
     (b) Beginning with the calendar year 2013 and for each calendar year thereafter, cities
Cities and towns shall have from September 15th through October 15th to submit an
infrastructure plan plans to the department in accordance with the department's rules and
regulations promulgated pursuant to section subsection (a) of this section. In the event that
October 15th is a Saturday, Sunday, or a general holiday as enumerated in § 25-1-1, the deadline
shall be extended through the next day that is not a Saturday, Sunday, or a general holiday as
enumerated in § 25-1-1.
     (c) By the end of each calendar year, the The department shall evaluate all submitted
infrastructure plans and, in accordance with the project evaluation criteria, identify all eligible
projects, and after a public hearing, the department shall finalize and provide the agency and
statewide planning with a project priority list for the forthcoming calendar year. The agency shall
not award financial assistance to any project not listed on the project priority list.
     (d) By the end of each calendar year, the agency shall determine the maximum amount of
financial assistance available for the forthcoming calendar year, provided that it shall not exceed
an amount of twenty million dollars ($20,000,000); and provided further that the The agency shall
not obligate more than fifty percent (50%) of available funding in any calendar year to any one
city or town unless there are no other eligible projects on the project priority list.
     (e) Upon issuance of the project priority list, the agency shall award financial assistance
to cities and towns for approved projects provided, however, that the agency does not exceed its
maximum annual amount of financial assistance. The agency may decline to award financial
assistance to an approved project which that the agency determines will have a substantial
adverse effect on the interests of holders of bonds or other indebtedness of the agency or the
interests of other participants in the financial assistance program, or for good and sufficient cause
affecting the finances of the agency. All financial assistance shall be made pursuant to a loan
agreement between the agency and the city or town, acting by and through the officer or officers,
board, committee, or other body authorized by law, or otherwise its chief executive officer,
according to terms and conditions as determined by the agency, and each loan shall be evidenced
and secured by the issue to the agency of city or town obligations in fully marketable form in
principal amount, bearing interest at the rate or rates specified in the applicable loan agreement,
and shall otherwise bear such terms and conditions as authorized by this chapter and/or the loan
agreement.
     SECTION 2. 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 § 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 that 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 that 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, 2008, and for a period of fifteen (15) years thereafter, each
electric-distribution company shall include a charge per kilowatt-hour delivered to fund demand-
side management programs. The 0.3 mills per kilowatt-hour delivered to fund renewable energy
programs shall remain in effect until December 31, 2022. The electric-distribution company shall
establish and, after July 1, 2007, maintain, two (2) separate accounts, one for demand-side
management programs (the "demand-side account"), which shall be funded by the electric
demand-side charge and 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 Rhode Island commerce corporation pursuant to § 42-64-13.2
and shall be held and disbursed by the distribution company as directed by the Rhode Island
commerce corporation for the purposes of developing, promoting, and supporting renewable
energy programs.
     During the time periods established in this subsection (b), the commission may, in its
discretion, after notice and public hearing, increase the sums for demand-side management and
renewable resources. In addition, 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, 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. As used in this section, "renewable-energy resources" shall mean: (1)
Power generation technologies, as defined in § 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. 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.
     (1) The renewable energy investment programs shall be administered pursuant to rules
established by the Rhode Island commerce corporation. Said rules shall provide transparent
criteria to rank qualified renewable-energy projects, giving consideration to:
     (i) tThe feasibility of project completion;
     (ii) tThe anticipated amount of renewable energy the project will produce;
     (iii) tThe potential of the project to mitigate energy costs over the life of the project; and
     (iv) tThe estimated cost per kilo-watt kilowatt hour (kwh) of the energy produced from
the project.
     (c) [Deleted by P.L. 2012, ch. 241, art. 4, § 14].
     (d) The executive director of the commerce 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. A competitive bid and contract award for administration of the
renewable-energy programs may occur every three (3) years and shall include, as a condition, that
after July 1, 2008, the account for the renewable-energy programs shall be maintained and
administered by the commerce corporation as provided for in subsection (b) of this section.
     (e) Effective January 1, 2007, and for a period of sixteen (16) years thereafter, each gas-
distribution company shall include, with the approval of the commission, a charge per deca therm
delivered to fund demand-side management programs (the "gas demand-side charge"), 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.
     (f) Each gas company shall establish a separate account for demand-side management
programs (the "gas demand-side account"), which that shall be funded by the gas demand-side
charge and 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 commission and that are designed to achieve
cost-effectiveness and high, life-time savings of efficiency measures supported by the program.
     (g) The commission may, if reasonable and feasible, except from this demand-side
management charge:
     (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.
     (h) 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.
     (i) Effective January 1, 2007, the commission shall allocate from demand-side
management gas and electric funds authorized pursuant to this section, an amount not to exceed
two percent (2%) of such funds on an annual basis for the retention of expert consultants, and
reasonable administration costs of the energy efficiency and resources management council
associated with planning, management, and evaluation of energy-efficiency programs, renewable-
energy programs, system reliability 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.
     (j) Effective January 1, 2016, the commission shall annually allocate from the
administrative funding amount allocated in (i) from the demand-side management program as
described in subsection (i) as follows: fifty percent (50%) for the purposes identified in
subsection (i) and fifty percent (50%) annually to the office of energy resources for activities
associated with planning, management, and evaluation of energy-efficiency programs, renewable-
energy programs, system reliability, least-cost procurement, and with regulatory proceedings,
contested cases, and other actions pertaining to the purposes, powers, and duties of the office of
energy resources.
     (k) On April 15, of each year, the office and the council shall submit to the governor, the
president of the senate, and the speaker of the house of representatives, separate financial and
performance reports regarding the demand-side management programs, including the specific
level of funds that were contributed by the residential, municipal, and commercial and industrial
sectors to the overall programs; the businesses, vendors, and institutions that received funding
from demand-side management gas and electric funds used for the purposes in this section; and
the businesses, vendors, and institutions that received the administrative funds for the purposes in
subsections (i) and (j). These reports shall be posted electronically on the websites of the office of
energy resources and the energy efficiency and resources management council.
     (l) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank,
each electric-distribution company, except for the Pascoag Utility District and Block Island
Power Company, shall remit two percent (2%) of the amount of the 2014 electric demand-side
charge collections to the Rhode Island infrastructure bank in accordance with the terms of § 46-
12.2-14.1.
     (m) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank,
each gas-distribution company shall remit two percent (2%) of the amount of the 2014 gas
demand-side charge collections to the Rhode Island infrastructure bank in accordance with the
terms of § 46-12.2-14.1.
     SECTION 3. Sections 39-26.5-2, 39-26.5-4.1, 39-26.5-6 and 39-26.5-11 of the General
Laws in Chapter 39-26.5 entitled "Property Assessed Clean Energy Program" are hereby
amended to read as follows:
     39-26.5-2. Definitions.
     As used in this chapter, the following definitions apply:
     (1) "Commercial property" means a property operated for commercial purposes, or a
residential property which that contains five (5) or more housing units.
     (2) "Distributed generation system" means an electrical generation facility located in the
electric-distribution company's load zone with a nameplate capacity no greater than five
megawatts (5 MW), using eligible renewable energy resources as defined by § 39-26-5, including
biogas created as a result of anaerobic digestion, but, specifically excluding all other listed
eligible biomass fuels, and connected to an electrical power system owned, controlled, or
operated by the electric-distribution company.
     (3) "Dwelling" means a residential structure or mobile home which that contains one to
four (4) family housing units, or individual units of condominiums or cooperatives.
     (4) "Eligible net-metering system" means a facility generating electricity as defined in §
39-26.4-2.
     (5) "Eligible renewable energy resources" means resources as defined in § 39-26-5.
     (6) "Energy efficiency projects" means those projects that are eligible under § 39-1-27.7
or projects that have been defined as eligible in the PACE rules and regulations.
     (7) "Institution" means a private entity or quasi-state agency.
     (8) "Loan loss reserve fund" or "(LRF)" means funds set aside to cover losses in the event
of loan defaults.
     (9) "Municipality" or "towns and cities" means any Rhode Island town or city with
powers set forth in title 45 of the general laws.
     (10) "Net metering" means using electricity as defined in § 39-26.4-2.
     (11) "PACE assessment" or "assessment" means the special assessment placed on a
PACE property owner's property tax or other municipal assessment bill in accordance with this
chapter, to be collected by or on behalf of the PACE municipality in which that PACE property is
located and remitted to the Rhode Island infrastructure bank or to the lender that has financed that
PACE project. The PACE assessment shall be owed by the current owner of the related PACE
property as of the time each PACE assessment comes due. In the event of a transfer of ownership,
all PACE assessments coming due after the date of the transfer, by foreclosure or otherwise, shall
be owed by the transferee.
     (12) "PACE lien" means the non-accelerating lien placed on a PACE property in
accordance with the rules and regulations promulgated by the Rhode Island infrastructure bank
pursuant to this chapter, in order to secure the repayment of a PACE assessment made in
connection with that PACE property and to secure the repayment of each PACE assessment to be
made by that PACE property owner as each assessment comes due.
     (13) "PACE municipality" means a municipality voluntarily designated by its city or
town council as a property-assessed clean energy municipality.
     (14) "PACE project" or "project" means a distinct installation of an eligible energy
efficiency system, renewable energy net-metering system, distributed generation system,
alternative fuel infrastructure upgrade, and/or other eligible environmental health and
environmental safety upgrades.
     (15) "PACE property" or "property" means any residential property or commercial
property which that is the subject of an approved application for a PACE project filed pursuant
to this chapter.
     (16) "Past-due balances" means the sum of the due and unpaid assessments on a PACE
property as of the time the ownership of that PACE property is transferred. "Past-due balances"
does not mean the unaccelerated balance of the PACE loan at the time that property is transferred.
     (17) "Property-assessed clean energy" or "PACE" is a voluntary financing mechanism
which that allows both residential and commercial property owners to access affordable, long-
term financing for energy upgrades, and other eligible environmental health and environmental
safety upgrades on their property.
     (18) "Rhode Island infrastructure bank" means the Rhode Island infrastructure bank
("RIIB"). For the purposes of this chapter, Rhode Island infrastructure bank shall include other
related state agencies and/or third-party administrators, as may be engaged by the Rhode Island
infrastructure bank for the purposes of providing the services envisioned by the rules and
regulations promulgated in accordance with § 39-26.5-11.
     39-26.5-4.1. Financing agreements -- PACE assessments -- PACE liens.
     (a) The Rhode Island infrastructure bank or a third-party capital provider may enter into a
financing agreement with a qualifying PACE property owner. After such agreement is entered
into, and upon notice from the Rhode Island infrastructure bank, the PACE municipality shall: (i)
place a caveat on the land records indicating that a PACE assessment and lien is anticipated upon
completion of the PACE project for such property; or (ii) at the direction of the Rhode Island
infrastructure bank, levy the PACE assessment and file a lien on the land records on the estimated
costs of the PACE project prior to the completion or upon the completion of said PACE project.
     (b) PACE assessments levied pursuant to this chapter and the interest, fees, and any
penalties thereon shall constitute a lien against the qualifying PACE property on which they are
made until they are paid. Such lien shall be collected in the same manner as the property taxes of
the PACE municipality on real property, including, in the event of default or delinquency, with
respect to any penalties, fees and remedies. Each such lien may be recorded and released in the
manner provided for property tax liens. and if the property is commercial property as defined
herein it shall be subject to the consent of existing mortgage holders. The PACE lien shall take
precedence over all other liens or encumbrances except a lien for taxes of the municipality on real
property, or if the subject property is residential property as defined herein, the PACE lien shall
be subject to any prior recorded mortgage which lien for taxes or pre-recorded residential
mortgage shall have priority over such PACE assessment lien. To the extent PACE assessments
are paid in installments and any such installment is not paid when due, the PACE assessment lien
may be foreclosed to the extent of any unpaid installment payments and any penalties, interest,
and fees related thereto. In the event such PACE assessment lien is foreclosed, such PACE
assessment lien shall survive the judgment of foreclosure to the extent of any unpaid installment
payments of the PACE assessment secured by such PACE assessment lien that were not the
subject of such judgment.
     (c) Any PACE municipality may assign to the Rhode Island infrastructure bank any and
all liens filed by the PACE municipality, as provided in the written agreement between the
participating municipality and the Rhode Island infrastructure bank. The Rhode Island
infrastructure bank may sell or assign, for consideration, any and all liens received from the
participating municipality. The consideration received by the Rhode Island infrastructure bank
shall be negotiated between the Rhode Island infrastructure bank and the assignee. The assignee
or assignees of such liens shall have and possess the same powers and rights at law or in equity as
the Rhode Island infrastructure bank and the participating municipality and its tax collector would
have had if the lien had not been assigned with regard to the precedence and priority of such lien,
the accrual of interest and the fees and expenses of collection. The assignee shall have the same
rights to enforce such liens as any private party holding a lien on real property, including, but not
limited to, foreclosure and a suit on the debt. Costs and reasonable attorneys' fees incurred by the
assignee as a result of any foreclosure action or other legal proceeding brought pursuant to this
section and directly related to the proceeding shall be taxed in any such proceeding against each
person having title to any property subject to the proceedings. Such costs and fees may be
collected by the assignee at any time after demand for payment has been made by the assignee.
     39-26.5-6. Priority of PACE lien.
     (a) A PACE lien on a residential property shall be: subordinate to all liens on the
residential property in existence at the time the residential PACE lien is filed; subordinate to a
first mortgage on the residential property recorded after such PACE lien is filed; and superior to
any other lien on the residential property recorded after such PACE lien is filed. This subsection
shall not affect the status or priority of any other municipal or statutory lien.
     (b) At the time of a transfer of property ownership of a residential property, including by
foreclosure, the past-due balances of any special assessment under this chapter shall be due for
payment. In the event of a foreclosure action, the past-due balances shall include all payments on
a PACE assessment that are due and unpaid as of the date of the foreclosure. Unless otherwise
agreed by the PACE lender, all payments on the PACE assessment that become due after the date
of transfer by foreclosure or otherwise shall continue to be secured by a PACE lien on the PACE
property and shall be the responsibility of the transferee.
     (c) A PACE lien on a commercial property shall be: senior to all liens on the commercial
property in existence at the time the PACE lien is filed, subject to the consent of the senior
existing mortgage holder holders on the property; senior to all liens filed or recorded after the
time the PACE lien is created; but junior to a municipal tax lien.
     (d) At the time of a transfer of property ownership of a commercial property, including
by tax sale, in accordance with §44-9-32, or foreclosure, the past-due balances of any PACE
assessment under this chapter shall be due for payment. Unless otherwise agreed by the PACE
lender, all payments of PACE assessments that become due after the date of transfer by tax sale,
in accordance with §44-9-32, or foreclosure, or otherwise shall be secured by a PACE lien on the
PACE property and shall be the responsibility of the transferee.
     39-26.5-11. Rules and regulations.
     (a) The Rhode Island infrastructure bank shall consult with the office of energy resources
to promulgate rules and regulations, in accordance with this section, and in accordance with
chapter 35 of title 42. Such rules and regulations should ensure that the PACE program does not
adversely affect the implementation of any other energy program in whose coordination the
Rhode Island infrastructure bank or the office of energy resources is involved. Such rules and
regulations shall include, but not be limited to, the following:
     (1) The necessary application requirements and procedures for any residential property
owner or commercial property owner seeking PACE financing;
     (2) The necessary qualifications and requirements for a proposed PACE project;
     (3) The underwriting criteria to be applied in determining the eligibility of properties and
property owners for PACE projects; and
     (4) Requirements that all existing lien holders on a property be given notice prior to a
PACE assessment and lien being filed in connection with that property and that all commercial
property owners seeking a commercial PACE loan receive consent of the primary existing
mortgage holder holders on that property prior to being eligible.
     (b) The Rhode Island infrastructure bank shall be responsible for promulgating
agreements, forms, and other documents necessary for the efficient administration of the PACE
program.
     SECTION 4. Sections 46-12.2-2 of the General Laws in Chapter 46-12.2 entitled "Rhode
Island Infrastructure Bank" is hereby amended to read as follows:
     46-12.2-2. Definitions.
     As used in this chapter, unless the context clearly indicates otherwise, the following
words and phrases shall have the following meanings:
     (1) "Agency" means the Rhode Island clean water finance agency, and, effective
September 1, 2015, and thereafter, shall mean the Rhode Island infrastructure bank;
     (2) "Approved project" means any project or portion thereof that has been issued a
certificate of approval by the department for financial assistance from the agency, and also
includes any project approved for financial assistance from the agency in accordance with state
law, and, furthermore, shall include water pollution abatement projects funded outside of the
water pollution control revolving fund, the Rhode Island water pollution control revolving fund,
or the local interest subsidy trust fund, without the requirement of the issuance of a certificate of
approval;
     (3) "Board" means board of directors of the agency;
     (4) "Bond act" means any general or special law authorizing a local governmental unit to
incur indebtedness for all or any part of the cost of projects coming within the scope of a water
pollution abatement project, or for other projects related to this chapter, including but not limited
to, § 45-12-2;
     (5) "Bonds" means bonds, notes, or other evidence of indebtedness of the agency;
     (6) "Certificate of approval" means the certificate of approval contemplated by § 46-12.2-
8;
     (7) "Chief executive officer" means the mayor in any city, the president of the town
council in any town, and the executive director of any authority or commission, unless some other
officer or body is designated to perform the functions of a chief executive officer under any bond
act or under the provisions of a local charter or other law;
     (8) "Clean Water Act" or "act" means the Federal Water Pollution Control Act, act of
June 30, 1948, ch. 758, as added Oct. 18, 1972, Pub. L. No. 92-500, 86 Stat. 896, as added Dec.
27, 1977, Pub. L. No. 95-217, 91 Stat. 1566 (codified at 33 U.S.C. § 1251 et seq., as amended and
as hereafter amended from time to time);
     (9) "Corporation" means any corporate person, including, but not limited to,: bodies
politic and corporate, public departments, public offices, public agencies, public authorities,
political subdivisions of the state, corporations, societies, associations, limited liability
companies, partnerships and sole proprietorships;
     (10) "Cost" as applied to any approved project, means any or all costs, whenever
incurred, approved by the agency in accordance with section eight of this chapter § 46-12.2-8, of
planning, designing, acquiring, constructing, and carrying out and placing the project in
operation, including, without limiting the generality of the foregoing, amounts for the following:
planning, design, acquisition, construction, expansion, improvement, and rehabilitation of
facilities; acquisition of real or personal property; demolitions and relocations; labor, materials,
machinery and equipment; services of architects, engineers, and environmental and financial
experts and other consultants; feasibility studies, plans, specifications, and surveys; interest prior
to and during the carrying out of any project and for a reasonable period thereafter; reserves for
debt service or other capital or current expenses; costs of issuance of local governmental
obligations or non-governmental obligations issued to finance the obligations including, without
limitation, fees, charges, and expenses and costs of the agency relating to the loan evidenced
thereby, fees of trustees and other depositories, legal and auditing fees, premiums and fees for
insurance, letters or lines of credit or other credit facilities securing local governmental
obligations or non-governmental obligations and other costs, fees, and charges in connection with
the foregoing; and working capital, administrative expenses, legal expenses, and other expenses
necessary or incidental to the aforesaid, to the financing of a project and to the issuance therefor
of local government obligations under the provisions of this chapter;
     (11) "Department" means the department of environmental management;
     (12)(24) "Projected energy efficiency savings" means, at the time a loan agreement is
entered into between the agency and a local governmental unit, the savings projected to be
derived from the implementation of energy efficient and renewable-energy upgrades to public
buildings, as determined in accordance with the rules and regulations promulgated by the Rhode
Island infrastructure bank pursuant to this chapter;
     (13)(12) "Financial assistance" means any form of financial assistance provided by the
agency to a local governmental unit, person, or corporation in accordance with this chapter for all
or any part of the cost of an approved project, including, without limitation,: grants, temporary
and permanent loans, with or without interest, guarantees, insurance, subsidies for the payment of
debt service on loans, lines of credit, and similar forms of financial assistance; provided,
however, notwithstanding the foregoing, for purposes of capitalization grant awards made
available to the agency, pursuant to the American Recovery and Reinvestment Act of 2009 (P.L.
111-5), or as otherwise required in connection with other capitalization grant awards made
available to the agency, financial assistance shall also include principal forgiveness and negative
interest loans;
     (14)(13) "Fully marketable form" means a local governmental obligation in form
satisfactory to the agency duly executed and accompanied by an opinion of counsel of recognized
standing in the field of municipal law whose opinions have been and are accepted by purchasers
of like obligations to the effect that the obligation is a valid and binding obligation of the local
governmental unit issuing the obligation, enforceable in accordance with its terms;
     (15)(14) "General revenues", when used with reference to a local governmental unit,
means revenues, receipts, assessments, and other moneys of the local governmental unit received
from or on account of the exercise of its powers and all rights to receive the same, including
without limitation:
     (i) Taxes,;
     (ii) Wastewater system revenues,;
     (iii) Assessments upon or payments received from any other local governmental unit
which that is a member or service recipient of the local governmental unit, whether by law,
contract, or otherwise,;
     (iv) Proceeds of local governmental obligations and loans and grants received by the
local governmental unit in accordance with this chapter,;
     (v) Investment earnings,;
     (vi) Reserves for debt service or other capital or current expenses,;
     (vii) Receipts from any tax, excise, or fee heretofore or hereafter imposed by any general
or special law all or a part of the receipts of which are payable or distributable to or for the
account of the local governmental unit,;
     (viii) Local aid distributions,; and
     (ix) Receipts, distributions, reimbursements, and other assistance received by or for the
account of the local governmental unit from the United States or any agency, department, or
instrumentality thereof;
     (16)(15) "Loan" means a loan by the agency to a local governmental unit, or person, or
corporation for costs of an approved project, including, without limitation, temporary and
permanent loans, and lines of credit;
     (17)(16) "Loan agreement" means any agreement entered into by the agency with a local
governmental unit, person, or corporation pertaining to a loan, other financial assistance, local
governmental obligations, or non-governmental obligations, including, without limitation,: a loan
agreement, trust agreement, security agreement, reimbursement agreement, guarantee agreement,
financing lease agreement, appropriate appropriation agreement, or similar instrument;
     (18)(17) "Local aid distributions" means receipts, distributions, reimbursements, and
other assistance payable by the state to or for the account of a local governmental unit, except
such receipts, distributions, reimbursements, and other assistance restricted by law to specific
statutorily defined purposes;
     (19)(18) "Local governmental obligations" means bonds, notes, financing lease
obligations, appropriation obligations, and other evidences of indebtedness in fully marketable
form issued by a local governmental unit to evidence a loan or other financial assistance, from the
agency in accordance with this chapter or otherwise as provided herein;
     (20)(19) "Local governmental unit" means any town, city, district, commission, agency,
authority, board, bodies politic and corporate, public corporation, or other political subdivision or
instrumentality of the state or of any political subdivision thereof, including the Narragansett Bay
commission; and, for purposes of dam safety or dam maintenance projects, any person seeking
financial assistance as a joint applicant with any of the above entities;
     (21)(20) "Local interest subsidy trust fund" means the local interest subsidy trust fund
established under § 46-12.2-6;
     (22)(21) "Non-governmental obligations" means bonds, notes, or other evidences of
indebtedness in fully marketable form issued by a person or corporation to evidence a loan, or
other financial assistance, from the agency in accordance with this chapter or otherwise as
provided herein.;
     (23)(22) "Person" means any natural person;
     (24)(23) "Priority determination system" means the system by which water pollution
abatement projects are rated on the basis of environmental benefit and other criteria for funding
assistance pursuant to rules and regulations promulgated by the department as they may be
amended from time to time;
     (25) "Qualified energy conservation bond" or "QECB" means those bonds designated by
26 U.S.C. § 54D.;
     (26) "Revenues", when used with reference to the agency, means any receipts, fees,
payments, moneys, revenues, or other payments received or to be received by the agency in the
exercise of its corporate powers under this chapter, including, without limitation,: loan
repayments, payments on local governmental obligations, non-governmental obligations, grants,
aid, appropriations, and other assistance from the state, the United States, or any agency,
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, including,
without limitation, the water pollution control revolving fund, the Rhode Island water pollution
control revolving fund, and the local interest subsidy fund, and any other fees, charges or other
income received or receivable by the agency;
     (27) "Rhode Island water pollution control revolving fund" means the Rhode Island water
pollution control revolving fund established pursuant to § 46-12.2-6;
     (28) "Trust agreement" means a trust agreement, loan agreement, security agreement,
reimbursement agreement, currency or interest rate exchange agreement, or other security
instrument, and a resolution, loan order, or other vote authorizing, securing, or otherwise
providing for the issue of bonds, loans, or local governmental obligations or non-governmental
obligations;
     (29) "Wastewater system revenues" means all rates, rents, fee assessments, charges, and
other receipts derived or to be derived by a local governmental unit from wastewater collection
and treatment facilities and water pollution abatement projects under its ownership or control, or
from the services provided thereby, including, without limitation,: proceeds of grants, gifts,
appropriations, and loans, including the proceeds of loans or grants awarded by the agency or the
department in accordance with this chapter, investment earnings, reserves for capital and current
expenses, proceeds of insurance or condemnation, and the sale or other disposition of property;
wastewater system revenues may also include rates, rents, fees, charges, and other receipts
derived by the local governmental unit from any water supply of distribution facilities or other
revenue producing facilities under its ownership or control; wastewater system revenues shall not
include any ad valorem taxes levied directly by the local governmental unit on any real and
personal property;
     (30) "Water pollution abatement project" or "project" means any project eligible pursuant
to Title VI of the Clean Water Act including, but not limited to, a wastewater treatment or
conveyance project that contributes to removal, curtailment, or mitigation of pollution of the
surface water of the state, and conforms with any applicable comprehensive land use plan which
has been adopted or any dam safety, removal or maintenance project; it also means a project to
enhance the waters of the state, which the agency has been authorized by statute to participate in;
it also means any other project to which the agency has been authorized to provide financial
assistance;
     (31) "Water pollution control revolving fund" means the water pollution control
revolving fund contemplated by title VI of the Water Quality Act and established under § 46-
12.2-6;
     (32) "Water Quality Act" means the Water Quality Act of 1987, Pub. L. No. 100-4, 101
Stat. 7, 33 U.S.C. § 1251 et seq., as amended from time to time.
     SECTION 5. Section 46-12.2-14.1 of the General Laws in Chapter 46-12.2 entitled
"Rhode Island Infrastructure Bank" is hereby repealed.
     46-12.2-14.1. Electric and gas demand side charge proceeds as further security for
debt funding energy efficiency improvements in public buildings.
     (a) Upon receipt of the electric and gas demand side charge proceeds identified in §§ 39-
2-1.2(l) and 39-2-1.2(m), the Rhode Island infrastructure bank shall deposit the electric and gas
demand side charge proceeds in a loan loss reserve fund to provide security for any loans made
by the Rhode Island infrastructure bank or any bonds of the Rhode Island infrastructure bank
issued to fund energy efficiency improvements in public buildings pursuant to § 46-12.2-4.2. The
funds in the loan loss reserve fund described therein shall only be used after all other available
loan loss reserve funds have been applied.
     (b) After all loans and bonds in connection with the efficient buildings fund have been
repaid in full, the balance of the loan loss reserve fund, including any accrued interest, shall be
remitted to the electric and gas utilities described in § 39-2-1.2, to be used for energy efficiency
programmatic purposes.
     SECTION 6. This act shall take effect upon passage.
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LC001743/SUB A/2
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