2013 -- S 0642 SUBSTITUTE A

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LC01431/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO HEALTH AND SAFETY - IMPLEMENTATION OF THE REGIONAL

GREENHOUSE GAS INITIATIVE ACT

     Introduced By: Senator V. Susan Sosnowski

     Date Introduced: March 06, 2013

     Referred To: Senate Environment & Agriculture

It is enacted by the General Assembly as follows:

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

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

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follows:

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

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

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

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

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

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

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the purposes of section 39-1-27.7;

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

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

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"Renewable Energy Standard";

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

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

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

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

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

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efficiency, and renewable energy program efforts of the department of environmental

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management and office of energy resources, which shall not in any year exceed annually be equal

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to three hundred thousand dollars ($300,000) or five percent (5%) of the proceeds from sale or

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auction of the allowances, whichever is less greater. Administrative funds not expended in any

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fiscal year shall remain in the administrative account to be used as needed in subsequent years.

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The office of energy resources shall have the ability to apply administrative funds not used in a

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fiscal year to achieve the purpose of this section. The funds deposited into the administrative

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

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

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

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reduction programs.

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

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

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

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

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

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

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

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accept public comment on the draft proposal in accordance with chapter 42-35 (the

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

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disbursement of funds in accordance with the final plan.

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

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

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

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

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

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

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

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

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     SECTION 2. This act shall take effect upon passage.

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LC01431/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO HEALTH AND SAFETY - IMPLEMENTATION OF THE REGIONAL

GREENHOUSE GAS INITIATIVE ACT

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     This act would provide for the payment of costs incurred by the department of

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environmental management and office of energy resources of the greater of three hundred

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thousand dollars ($300,000) or five percent (5%) of the proceeds of any sale or auction of

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allowances.

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     This act would take effect upon passage.

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LC01431/SUB A

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