2016 -- S 3037 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - ENERGY FACILITY SITING

ACT

     

     Introduced By: Senators P Fogarty, Nesselbush, and Kettle

     Date Introduced: May 24, 2016

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 42-98-5 and 42-98-11 of the General Laws in Chapter 42-98

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entitled "Energy Facility Siting Act" are hereby amended to read as follows:

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     42-98-5. Board established. -- (a) There is established the siting board which shall be a

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part of state government. The siting board shall consist of three (3) seven (7) members, as

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follows: the chairperson of the public utilities commission, who shall serve as chairperson of the

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siting board; the director of the department of environmental management; and the associate

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director of administration for planning; the general manager of the water resources board; and

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three (3) public members to be appointed by the governor for a term coterminous with that of the

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governor, one of whom shall be experienced in environmental issues, one of whom shall be

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experienced in labor issues and one of whom shall be experienced in energy issues. The board

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shall not include as a public member any person who receives or who has received during the past

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two (2) years a significant portion of their income directly or indirectly from the developer of an

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energy facility or an electric, gas or oil company. Any member of the board who recuses him or

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herself serving in their capacity as an employee of a state or quasi-state agency who recuses

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themself shall designate his or her their own successor from his or her their respective agency.

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Any public member of the board who resigns or is otherwise unable to fulfill their obligations

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shall have their successor appointed in a like manner by the governor for the remainder of their

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term.

 

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      (b) Each member of the board shall take an oath to administer the duties of office

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faithfully and impartially and that oath shall be filed in the office of the secretary of state.

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      (c) The members of the board shall serve without compensation, but shall be reimbursed

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for their actual expenses necessarily incurred in the performance of their duties. The board may

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engage any consultants or expert witnesses that it deems necessary to implement its statutory

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responsibilities; provided, however, that to the maximum extent possible, board staff be drawn

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from existing state agencies. The board shall select a coordinator to be responsible for the

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publication and distribution of all official minutes, reports, and documents and to further serve as

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director of the board staff, which shall be located at the division of public utilities and common

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carriers. The coordinator, under the direction of the chairperson, shall coordinate and expedite the

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work of the various agencies to ensure that decisions are made within the time frame established

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by this chapter.

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      (d) A quorum shall consist of a majority of the board. A majority vote of the board shall

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be required for all actions, including licensing decisions; provided, however, one member of the

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board may conduct any hearings the board is authorized to conduct pursuant to this chapter.

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      (e) The board shall maintain and grant free access to records and reports in its files to

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members of the public during normal working hours and shall permit copies of those records and

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reports to be made by interested members of the public at their expense; provided, however, that

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the board shall not permit disclosure, other than to another government agency for the sole

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purpose of rendering an advisory opinion, of any information obtained by or submitted to the

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board pursuant to the provisions of this chapter, upon a showing, satisfactory to the board, that

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the information is entitled to protection as trade secrets or as privileged, confidential, or

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proprietary information. No other governmental agency shall disclose any trade secrets or

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privileged, confidential, or proprietary information.

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     42-98-11. Final hearing -- Standards -- Decisions. -- (a) Within forty-five (45) days

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after the final date for submission of advisory opinions pursuant to § 42-98-10, the board shall

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convene the final hearing on the application. The purpose of this hearing shall not be to rehear the

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evidence which was presented previously in hearings before agencies designated under § 42-98-9,

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but rather to provide the applicant, intervenors, the public, and all other parties in the proceeding,

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the opportunity to address in a single forum, and from a consolidated, statewide prospective, the

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issues reviewed, and the recommendations made in the proceedings before the agencies

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designated under § 42-98-9. The board at this hearing may, at its discretion, allow the

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presentation of new evidence by any party as to the issues considered by the agencies designated

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under § 42-98-9. The board may limit the presentation of repetitive or cumulative evidence. The

 

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hearing shall proceed on not less than thirty (30) days' notice to the parties and the public, shall be

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concluded not more than sixty (60) days following its initiation, and shall be conducted

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expeditiously.

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      (b) The board shall issue a decision granting a license only upon finding that the

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applicant has shown that:

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      (1) Construction of the proposed facility is necessary to meet the needs of the state

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and/or region for energy of the type to be produced by the proposed facility.

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      (2) The proposed facility is cost-justified, and can be expected to produce energy at the

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lowest reasonable cost to the consumer consistent with the objective of ensuring that the

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construction and operation of the proposed facility will be accomplished in compliance with all of

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the requirements of the laws, rules, regulations, and ordinances, under which, absent this chapter,

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a permit, license, variance, or assent would be required, or that consideration of the public health,

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safety, welfare, security and need for the proposed facility justifies a waiver of some part of the

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requirements when compliance cannot be assured.

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      (3) The proposed facility will not cause unacceptable harm to the environment and will

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enhance the socio-economic fabric of the state.

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     (c) Prior to the making of a decision, the board shall take into consideration any town or

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city council resolution regarding the application.

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      (c)(d) Within sixty (60) days of the conclusion of the final hearing the board shall issue

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its final decision on the application. A decision in favor of the application shall constitute a

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granting of all permits, licenses, variances, or assents, which under any law, rule, regulation, or

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ordinance of the state or of a political subdivision thereof which would, absent this chapter, be

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required for the proposed facility. The decision may be issued requiring any modification or

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alteration of the proposed facility, and may be issued on any condition the board deems warranted

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by the record, and may be issued conditional upon the applicant's receipt of permits required by

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federal law. The board's decision shall explicitly address each of the advisory opinions received

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from agencies, and the board's reasons for accepting, rejecting, or modifying, in whole or in part,

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any of those advisory opinions. The board shall, within ten (10) days of granting a license, with or

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without conditions, deliver the decision to the speaker of the Rhode Island house of

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representatives, and the president of the Rhode Island senate.

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     SECTION 2. Section 44-3-30 of the General Laws in Chapter 44-3 entitled "Property

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Subject to Taxation" is hereby amended to read as follows:

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     44-3-30. Burrillville -- Property taxation of electricity generating facilities located in

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the town. – (a) Notwithstanding any other provisions of the general laws to the contrary, real and

 

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personal property of any facility for the generation of electricity located in the town of Burrillville

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is taxable by the town. the The town council of the town of Burrillville is authorized to determine,

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by ordinance or resolution, subject to the approval of the majority of the town electors by

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referendum, an the amount of taxes to be paid each year on account of real or personal property

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used in connection with any facility for the generation of electricity located in the town,

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notwithstanding the valuation of the property or the rate of tax. The determination is for a period

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not to exceed twenty-five (25) years. The town council of the town of Burrillville is authorized to

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extend the determination by ordinance or resolution. The extension shall be for a period not to

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exceed an additional twenty (20) years.

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     (b) The tax ordinance or tax resolution of the town council shall be subject to the

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approval or denial of the majority of the town electors by referendum.

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     (1) The referendum shall list in plain terms the amount and the period of time that those

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taxes proposed by the town council shall be paid.

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     (2) The referendum shall be scheduled for the next primary or general election,

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whichever shall occur first. If a primary or general election is not scheduled to occur within six

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(6) months of the passage of the tax ordinance or tax resolution, a special election shall be

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ordered to occur within ninety (90) days of the passage of the tax ordinance or tax resolution. The

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cost of holding the special election shall be borne by the applicant.

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     (3) Upon certification by the town board of canvassers, the results of the referendum shall

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be binding on the town. The rejection of any proposed ordinance or resolution, as provided for in

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this section, shall not prevent a further resolution or ordinance, subject to a further referendum.

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     (c) Any electric generating facility that fails to negotiate a tax treaty that is approved by

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referendum shall be taxed to the full extent of this chapter.

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     SECTION 3. Section 1 of this act shall take effect upon passage, and shall not apply to

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any transmission line project that was filed with the energy facility siting board prior to June 1,

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2016. The remaining sections of this act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - ENERGY FACILITY SITING

ACT

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     This act would increase the membership of the energy facility siting board from three (3)

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to seven (7) members, and would require approval by the electors in Burrillville of any tax

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agreement established by the town council with a power plant located in the town.

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     Section 1 of this act would take effect upon passage, and would not apply to any

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transmission line project that was filed with the energy facility siting board prior to June 1, 2016.

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The remaining sections of this act would take effect upon passage.

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