2022 -- S 2274 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS-RENEWABLE ENERGY

     

     Introduced By: Senators Ruggerio, McCaffrey, Goodwin, Euer, Kallman, DiMario,
Gallo, Miller, Sosnowski, and Felag

     Date Introduced: February 15, 2022

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 39-26-4 and 39-26-6 of the General Laws in Chapter 39-26 entitled

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"Renewable Energy Standard" are hereby amended to read as follows:

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     39-26-4. Renewable energy standard.

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     (a) Starting in compliance year 2007, all obligated entities shall obtain at least three percent

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(3%) of the electricity they sell at retail to Rhode Island end-use customers, adjusted for electric

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line losses, from eligible renewable energy resources, escalating, according to the following

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schedule:

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     (1) At least three percent (3%) of retail electricity sales in compliance year 2007;

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     (2) An additional one-half of one percent (0.5%) of retail electricity sales in each of the

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following compliance years 2008, 2009, 2010;

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     (3) An additional one percent (1%) of retail electricity sales in each of the following

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compliance years 2011, 2012, 2013, 2014, provided that the commission has determined the

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adequacy, or potential adequacy, of renewable energy supplies to meet these percentage

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requirements;

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     (4) An additional one and one-half percent (1.5%) of retail electricity sales in each of the

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following compliance years 2015, 2016, 2017, 2018, and 2019, 2020, 2021 and 2022 and each year

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thereafter until 2035, provided that the commission has determined the adequacy, pursuant to § 39-

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26-6, of renewable energy supplies to meet these percentage requirements.;

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     (5) [Deleted by P.L. 2016, ch. 144, § 1 and P.L. 2016, ch. 155, § 1.]

 

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     (6) An additional four percent (4%) of retail electricity sales in 2023;

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     (7) An additional five percent (5%) of retail electricity sales in 2024;

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     (8) An additional six percent (6%) of retail electricity sales in 2025;

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     (9) An additional seven percent (7%) of retail electricity sales in 2026, and 2027;

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     (10) An additional seven and one-half percent (7.5%) of retail electricity sales in 2028;

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     (11) An additional eight percent (8%) of retail electricity sales in 2029;

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     (12) An additional eight and one-half percent (8.5%) of retail electricity sales in 2030;

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     (13) An additional nine percent (9%) of retail electricity sales in 2031; and

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     (14) An additional nine and one-half percent (9.5%) of retail electricity sales in 2032 and

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2033 to achieve the goal that one hundred percent (100%) of Rhode Island's electricity demand is

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from renewable energy by 2033 and each year thereafter.

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     (b) For each obligated entity and in each compliance year, the amount of retail electricity

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sales used to meet obligations under this statute that are derived from existing renewable energy

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resources shall not exceed two percent (2%) of total retail electricity sales.

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     (c) The minimum renewable energy percentages set forth in subsection (a) shall be met for

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each electrical energy product offered to end-use customers, in a manner that ensures that the

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amount of renewable energy of end-use customers voluntarily purchasing renewable energy is not

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counted toward meeting such percentages. Notwithstanding the foregoing, municipalities engaged

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in aggregation pursuant to § 39-3-1.2 may include in their aggregation plan terms that would allow

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voluntary renewable energy products to be counted toward meeting such percentages. In 2024, the

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commission, with input from the office of energy resources, division of public utilities and carriers,

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obligated entities, other market participants, and the public, shall assess the impact of allowing

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voluntary renewable energy purchases to be counted toward meeting the annual percentages. The

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commission shall submit a report of its findings and recommendations to the governor, speaker of

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the house, and senate president no later than September 1, 2024.

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     (d) To the extent consistent with the requirements of this chapter, compliance with the

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renewable energy standard may be demonstrated through procurement of NE-GIS certificates

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relating to generating units certified by the commission as using eligible renewable energy sources,

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as evidenced by reports issued by the NE-GIS administrator. Procurement of NE-GIS certificates

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from off-grid and customer-sited generation facilities, if located in Rhode Island and verified by

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the commission as eligible renewable energy resources, may also be used to demonstrate

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compliance. With the exception of contracts for generation supply entered into prior to 2002, initial

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title to NE-GIS certificates from off-grid and customer-sited generation facilities and from all other

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eligible renewable energy resources, shall accrue to the owner of such a generation facility, unless

 

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such title has been explicitly deemed transferred pursuant to contract or regulatory order.

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     (e) In lieu of providing NE-GIS certificates pursuant to subsection (d) of this section, an

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obligated entity may also discharge all or any portion of its compliance obligations by making an

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alternative compliance payment to the renewable energy development fund established pursuant to

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§ 39-26-7.

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     (f) Retail electricity sales pursuant to a non-regulated power producer's supply contract and

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utility last resort service that is in effect on or before the effective date, are exempt from the new

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renewable energy standard requirements of this section until the end date of the term of the non-

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regulated power producer's supply contract.

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     39-26-6. Duties of the commission.

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     (a) The commission shall:

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     (1) Develop and adopt regulations on or before December 31, 2005, for implementing a

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renewable energy standard, which regulations shall include, but be limited to, provisions for:

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     (i) Verifying the eligibility of renewable energy generators and the production of energy

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from such generators, including requirements to notify the commission in the event of a change in

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a generator's eligibility status.

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     (ii) Standards for contracts and procurement plans for renewable energy resources to

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achieve the purposes of this chapter.

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     (iii) Flexibility mechanisms for the purposes of easing compliance burdens; facilitating

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bringing new renewable resources on-line; and avoiding and/or mitigating conflicts with state-level

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source disclosure requirements and green marketing claims throughout the region; which flexibility

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mechanisms shall allow obligated entities to: (A) Demonstrate compliance over a compliance year;

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and (B) Bank excess compliance for two (2) subsequent compliance years, capped at thirty percent

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(30%) of the current year's obligation; and (C) Allow renewable energy generated during 2006 to

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be banked by an obligated entity as early compliance, usable towards meeting an obligated entity's

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2007 requirement. Generation used for early compliance must result in the retirement of NE-GIS

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certificates in a reserved certificate account designated for such purposes.

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     (iv) Annual compliance filings to be made by all obligated entities within one month after

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NE-GIS reports are available for the fourth (4th) quarter of each calendar year. All electric-utility-

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distribution companies shall cooperate with the commission in providing data necessary to assess

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the magnitude of obligation and verify the compliance of all obligated entities.

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     (2) Authorize rate recovery by electric-utility-distribution companies of all prudent

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incremental costs arising from the implementation of this chapter, including, without limitation:

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the purchase of NE-GIS certificates; the payment of alternative compliance payments; required

 

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payments to support the NE-GIS; assessments made pursuant to § 39-26-7(c); and the incremental

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costs of complying with energy source disclosure requirements.

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     (3) Certify eligible renewable energy resources by issuing statements of qualification

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within ninety (90) days of application. The commission shall provide prospective reviews for

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applicants seeking to determine whether a facility would be eligible.

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     (4) Determine, on or before January 1, 2019, and every fifth year thereafter, the adequacy

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of renewable energy supplies to meet the increase in the percentage requirement of energy from

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renewable energy resources to go into effect the following year. In the event that the commission

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determines an inadequacy of supplies for scheduled percentage increases, the commission shall

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delay all or a part of the implementation of the scheduled percentage increase, until such time that

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the commission determines that the supplies are adequate to achieve the purposes of this chapter.

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     (5) Establish sanctions for those obligated entities that, after investigation, have been found

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to fail to reasonably comply with the commission's regulations. No sanction or penalty shall relieve

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or diminish an obligated entity from liability for fulfilling any shortfall in its compliance obligation;

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provided, however, that no sanction shall be imposed if compliance is achieved through alternative

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compliance payments. The commission may suspend or revoke the certification of generation units,

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certified in accordance with subsection (a)(3) above, that are found to provide false information or

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that fail to notify the commission in the event of a change in eligibility status or otherwise comply

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with its rules. Financial penalties resulting from sanctions from obligated entities shall not be

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recoverable in rates.

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     (6) Report, by February 15, 2006, and by February 15 each year thereafter, to the governor,

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the speaker of the house, and the president of the senate on the status of the implementation of the

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renewable energy standards in Rhode Island and other states, and which report shall include in

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2009, and each year thereafter, the level of use of renewable energy certificates by eligible

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renewable energy resources and the portion of renewable energy standards met through alternative

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compliance payments, and the amount of rate increases authorized pursuant to subsection (a)(2).

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     (b) Consistent with the public policy objective of developing renewable generation as an

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option in Rhode Island, and subject to the review and approval of the commission, the electric

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distribution company is authorized to propose and implement pilot programs to own and operate

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no more than fifteen megawatts (15 MW) of renewable-generation demonstration projects in Rhode

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Island and may include the costs and benefits in rates to distribution customers. At least two (2)

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demonstration projects shall include renewable generation installed at, or in the vicinity of

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nonprofit, affordable-housing projects where energy savings benefits are provided to reduce

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electric bills of the customers at the nonprofit, affordable-housing projects. Any renewable-

 

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generation proposals shall be subject to the review and approval of the commission. The

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commission shall annually make an adjustment to the minimum amounts required under the

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renewable energy standard under this chapter in an amount equal to the kilowatt hours generated

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by such units owned by the electric distribution company. The electric and gas distribution

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company shall also be authorized to propose and implement smart-metering and smart-grid

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demonstration projects in Rhode Island, subject to the review and approval of the commission, in

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order to determine the effectiveness of such new technologies for reducing and managing energy

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consumption, and may include the costs of such demonstration projects in distribution rates to

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electric customers to the extent the project pertains to electricity usage and in distribution rates to

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gas customers to the extent the project pertains to gas usage.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS-RENEWABLE ENERGY

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     This act would increase from three percent (3%) to an additional four percent (4%) of retail

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electricity sales in 2023 from renewable energy sources; an additional five percent (5%) of retail

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electricity sales in 2024, an additional six percent (6%) of retail electricity sales in 2025, an

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additional seven percent (7%) of retail electricity sales in 2026, and 2027; and an additional seven

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and one-half percent (7.5%) of retail electricity sales in 2028; an additional eight percent (8%) in

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2029; an additional eight and one-half (8.5%) in 2030; an additional nine percent (9%) in 2031;

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and an additional nine and one-half percent (9.5%) in 2032 and 2033 to achieve the goal that one

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hundred percent (100%) of Rhode Island’s electricity demand is from renewable energy by 2033.

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     This act would take effect upon passage.

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