Chapter
236
2006 -- H 8025 SUBSTITUTE A AS AMENDED
Enacted 06/29/06
A N A C T
RELATING
TO PUBLIC UTILITIES AND CARRIERS -- RHODE ISLAND ENERGY EFFICIENCY MANAGEMENT
Introduced
By: Representatives Fox, Kennedy, Kilmartin, Lima, and Ajello
Date
Introduced: April 25, 2006
It is enacted by the General Assembly as
follows:
SECTION 1. This
act shall be known as and may be cited as "The Comprehensive
Energy Conservation, Efficiency and
Affordability Act of 2006". The general purposes of this act
are: (1) to provide Rhode Island residents,
institutions and businesses the benefit of stability
through diversification of energy resources,
energy conservation, efficiency, demand
management and prudent procurement, (2) to
facilitate the development of renewable energy
resources; (3) to make the cost of energy more
affordable by mitigating demand and rates charged
to low-income households; and (4) to strengthen
energy planning, program administration,
management, and oversight in a manner that is
publicly accountable and responsive.
SECTION 2. Title
22 of the General Laws entitled "GENERAL ASSEMBLY" is hereby
amended by adding thereto the following chapter:
CHAPTER 7.10
PERMANENT JOINT
COMMITTEE ON ENERGY
22-7.10-1.
Permanent committee - Composition. -- There is created a permanent
joint
committee of the general assembly on energy to
consist of eight (8) members of the general
assembly, four (4) of whom shall be from the
senate to be appointed by the president of the senate
not more than three (3) of whom shall be from
the same political party, and four (4) of whom
shall be from the house of representatives to be
appointed by the speaker of the house of
representatives not more than three (3) of whom
shall be from the same political party. The
selection of the chairperson, vice-chairperson,
and secretary of the committee shall alternate
biennially between the president of the senate
and the speaker of the house.
22-7.10-2.
Duties. -- It shall be the duty of the joint committee on energy to
promote and
encourage the development of effective and
efficient plans, programs, strategies, and standards
for energy conservation, energy efficiency, and
energy resource procurement, use and
development, including renewable energy, and in
the furtherance to this purpose, it shall be the
duty of the joint committee to provide oversight
of the implementation of standard offer service
through 2020 and all agencies and
instrumentalities of the state with responsibility for energy
programs, including, but not limited to, the
office of energy resources, the Rhode Island energy
efficiency and resources management council, the
public utilities commission, and the division of
public utilities.
22-7.10-3.
Reports and recommendations. -- The joint committee on energy shall
from
time to time and at least annually report to the
general assembly on its findings and the results of
its studies, and make any recommendations to the
general assembly and propose any legislation
or initiate any studies that it shall deem
advisable.
22-7.10-4.
References to committee. -- Each branch of the legislature may refer
to the
joint committee, either initially or after
action by other committees, all bills and resolutions
dealing with or affecting energy.
22-7.10-5.
Technical assistance. -- The joint committee shall, if it finds it
cannot obtain
proper assistance from available sources,
contract for any technical services that it shall require to
effectuate its purposes.
22-7.10-6.
Place of meeting - Quorum. -- The joint committee on legislative
services
shall provide adequate space in the state house of
the use of the joint committee on energy;
provided, that the joint committee on energy may
conduct hearings and hold meetings elsewhere
when doing so will better serve its purposes. A
majority in number of the joint committee on
energy shall be necessary to constitute a quorum
for the transaction of business.
SECTION 3. Section
35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"
is hereby amended to read as follows:
35-4-27.
Indirect cost recoveries on restricted receipt accounts. -- Indirect
cost
recoveries of ten percent (10%) of cash receipts
shall be transferred from all restricted receipt
accounts, to be recorded as general revenues in
the general fund. However, there shall be no
transfer from cash receipts with restrictions
received exclusively: (1) from contributions from
non-profit charitable organizations; (2) from
the assessment of indirect cost recovery rates on
federal grant funds; or (3) through transfers
from state agencies to the department of
administration for the payment of debt service.
These indirect cost recoveries shall be applied to
all accounts, unless prohibited by federal law
or regulation, court order, or court settlement. The
following restricted receipt accounts shall not
be subject to the provisions of this section:
Department of
Human Services
Veterans' home --
Restricted account
Veterans' home --
Resident benefits
Organ transplant
fund
Department of
Environmental Management
National heritage
revolving fund
Environmental
response fund II
Underground
storage tanks
Rhode Island
Council on the Arts
Art for public
facilities fund
Rhode Island
Historical Preservation and Heritage Commission
Historic preservation
revolving loan fund
Historic
Preservation loan fund -- Interest revenue
State Police
Forfeited
property -- Retained
Forfeitures --
Federal
Forfeited
property -- Gambling
Attorney General
Forfeiture of property
Federal
forfeitures
Attorney General
multi-state account
Department of
Administration
Restore and
replacement -- Insurance coverage
Convention Center
Authority rental payments
Investment
Receipts -- TANS
Car Rental
Tax/Surcharge-Warwick Share
Legislature
Audit of federal
assisted programs
Department of
Elderly Affairs
Pharmaceutical
Rebates Account
Affordable
Energy fund
SECTION 4. Section
37-7-9 of the General Laws in Chapter 37-7 entitled "Management
and Disposal of Property" is hereby amended
to read as follows:
37-7-9.
Concessions, leases, and licenses -- Reports. -- (a) The acquiring
authority, with
the approval of the state properties committee, is
authorized and empowered when it shall serve
the public purpose to grant concessions in or to
lease or license any land or building or structure,
a part or portion of any governmental facility,
public work, or public improvement for industrial
or commercial purposes for a term or terms not
exceeding in the aggregate in any one case twenty
(20) years; provided, however, that real
property, buildings, and facilities owned by the state at
the Port of Galilee may be leased for a term of
up to forty (40) years for commercial fishing
industry-related purposes, and provided further,
however, that certain real properties, buildings,
and facilities owned by the state in the city of
Providence known as the Union Station properties,
which properties have been conveyed from time to
time to the state by the consolidated rail
corporation and others, may be leased for a term
of up to forty (40) years for office, commercial,
service, transportation, or other related
purposes; and provided further, however, that real
property, buildings, and facilities owned by the
state may be leased for a term of up to forty (40)
years for the development of cogeneration
projects which involve the simultaneous generation of
electricity and thermal energy (steam and hot
water) and for eligible renewable energy resources
as defined in subdivisions 39-26-5(a)(i) through
(v);
and further provided, however, that in the
event of a mobile home lease agreement, or site
lease agreement, wherein such mobile home is
contiguous to a resident owned mobile home park,
the State Properties Committee may enter into
a lease or grant concessions to or license any
land or building for a period not to exceed thirty
(30) years and provided further, however, that
real property, buildings, and facilities owned by
the state may be leased for a term of up to
ninety-nine (99) years for the development of railroad
layover facilities, contingent on the lease
requiring the lessee to provide commuter rail service
within the state of Rhode Island, as set forth
by the state. All agreements, contracts, and other
instruments granting concessions or leasing or
licensing facilities shall contain such conditions,
rules, restrictions, and regulations as the
state purchasing agent shall deem suitable or necessary,
and shall be approved as to substance by the
director of administration and as to form by the
attorney general.
(b) Whenever
property which is subject to the provisions of this chapter is leased by the
state, the lessee shall report on a semi-annual
basis the amount of income revenue generated by
the leased property. The report shall be made to
the state properties commission and copies shall
be provided to both the house and senate fiscal
staffs and the governor. These requirements shall
be contained in the lease between the lessor and
the lessee with approval of the state properties
committee.
SECTION 5.
Sections 39-1-1 and 39-1-27.3 of the General Laws in Chapter 39-1 entitled
"Public Utilities Commission" are
hereby amended to read as follows:
39-1-1.
Declaration of policy -- Purposes. -- (a) The general assembly finds
and
therefore declares that:
(1) The
businesses of distributing electrical energy, producing and transporting
manufactured and natural gas, operating water
works and furnishing supplies of water for
domestic, industrial, and commercial use,
offering to the public transportation of persons and
property, furnishing and servicing telephonic
and wireless audio and visual communication
systems, and operation of community antenna
television systems are affected with a public
interest;
(2) Supervision
and reasonable regulation by the state of the manner in which such
businesses construct their systems and carry on
their operations within the state are necessary to
protect and promote the convenience, health,
comfort, safety, accommodation, and welfare of the
people, and are a proper exercise of the police
power of the state;
(3) Preservation
of the state's resources, commerce, and industry requires the assurance
of adequate public transportation and
communication facilities, water supplies, and an abundance
of energy, all supplied to the people with
reliability, at economical cost, and with due regard for
the preservation and enhancement of the
environment, the conservation of natural resources,
including scenic, historic, and recreational
assets, and the strengthening of long-range, land-use
planning.
(b) It is hereby
declared to be the policy of the state to provide fair regulation of public
utilities and carriers in the interest of the
public, to promote availability of adequate, efficient and
economical energy, communication, and
transportation services and water supplies to the
inhabitants of the state, to provide just and reasonable
rates and charges for such services and
supplies, without unjust discrimination, undue
preferences or advantages, or unfair or destructive
competitive practices, and to co-operate with
other states and agencies of the federal government
in promoting and coordinating efforts to achieve
realization of this policy.
(c) To this end,
there is hereby vested in the public utilities commission and the division
of public utilities and carriers the exclusive
power and authority to supervise, regulate, and make
orders governing the conduct of companies
offering to the public in intrastate commerce energy,
communication, and transportation services and
water supplies for the purpose of increasing and
maintaining the efficiency of the companies, according
desirable safeguards and convenience to
their employees and to the public, and
protecting them and the public against improper and
unreasonable rates, tolls and charges by
providing full, fair, and adequate administrative
procedures and remedies, and by securing a
judicial review to any party aggrieved by such an
administrative proceeding or ruling.
(d) The
legislature also finds and declares, as of 1996, the following:
(1) That lower
retail electricity rates would promote the state's economy and the health
and general welfare of the citizens of Rhode
Island;
(2) That current
research and experience indicates that greater competition in the
electricity industry would result in a decrease
in electricity rates over time;
(3) That greater
competition in the electricity industry would stimulate economic growth;
(4) That it is in
the public interest to promote competition in the electricity industry and
to establish performance based ratemaking for
regulated utilities;
(5) That in
connection with the transition to a more competitive electric utility industry,
public utilities should have a reasonable
opportunity to recover transitional costs associated with
commitments prudently incurred in the past
pursuant to their legal obligations to provide reliable
electric service at reasonable costs;
(6) That it shall
be the policy of the state to encourage, through all feasible means and
measures, states where fossil-fueled electric
generating units producing air emissions affecting
Rhode Island air quality are located to reduce
such emissions over time to levels that enable cost
effective attainment of environmental standards
within Rhode Island;
(7) That in a restructured
electrical industry the same protections currently afforded to
low income customers shall continue.
(e) The
legislature further finds and declares as of 2006:
(1) That prices
of energy, including especially fossil-fuels and electricity, are rising faster
than the cost of living and are subject to sharp
fluctuations, which conditions create hardships for
many households, institutions, organizations,
and businesses in the state;
(2) That while
utility restructuring has brought some benefits, notably in transmission and
distribution costs and more efficient use of
generating capacities, it has not resulted in
competitive markets for residential and small
commercial industrial customers, lower overall
prices, or greater diversification of energy
resources used for electrical generation;
(3) That the
state's economy and the health and general welfare of the people of Rhode
Island benefit when energy supplies are reliable
and least-cost; and
(4) That it is
a necessary move beyond basic utility restructuring in order to secure for
Rhode Island, to the maximum extent reasonably
feasible, the benefits of reasonable and stable
rates, least-cost procurement, and system
reliability that includes energy resource diversification,
distributed generation, and load management.
39-1-27.3.
Electric distribution companies required to provide retail access,
standard offer and last resort service. -- (a) To promote economic
development and the
creation and preservation of employment
opportunities within the state, each electric distribution
company shall offer retail access from
nonregulated power producers to all customers.
(b) Through year
2009, and effective July 1, 2007, through year 2020, each electric
distribution company shall arrange for a
standard power supply offer ("standard offer") to
customers that have not elected to enter into
power supply arrangements with other nonregulated
power suppliers. The rates that are charged by
the electric distribution company to customers for
standard offer service shall be approved by the
commission and shall be designed to recover the
electric distribution company's costs and no
more than the electric distribution company's costs;
provided, that the commission may establish
and/or implement a rate that averages the costs over
periods of time. The electric distribution
company shall not be entitled to recover any profit
margin on the sale of standard offer power,
except with approval of the commission as may be
necessary to implement fairly and effectively,
system reliability and least-cost procurement. The
electric distribution company will be entitled
to recover its costs incurred from providing the
standard offer arising out of: (1) wholesale
standard offer supply agreements with power
suppliers in effect prior to January 1, 2002;
(2) power supply arrangements that are approved by
the commission after January 1, 2002; (3) power
supply arrangements made pursuant to sections
39-1-27.3.1 and 39-1-27.8; and (4) any
other power supply related arrangements prudently made
after January 1, 2002 to provide standard offer
supply or to mitigate standard offer supply costs,
including costs for system reliability, procurement
and least-cost procurement, as provided for in
section 39-1-27.7 ; provided, however,
to the extent there are any cost recovery matters relating to
the provision of standard offer service that
have been deferred and are pending before the
commission as of the effective date of this
section, such cost recovery matters shall be governed
by the statutory provisions in effect on the
date of the action of the commission to defer its
decision on the cost recovery matter. Subject to commission
approval, the electric distribution
company may enter into financial contracts
designed to hedge fuel-related or other variable costs
associated with power supply arrangements and
the costs of any such financial contracts shall be
recoverable in standard offer rates. The
electric distribution company's standard offer revenues
and its standard offer costs shall be accounted
for and reconciled with interest at least annually.
Except as otherwise may be directed by the
commission in order to accomplish purposes
established by law, any Any over
recoveries shall be refunded to customers in a manner directed
by the commission, and any under
recoveries shall be recovered by the electric distribution
company through a uniform adjustment factor
approved by the commission. The commission
shall have the discretion to apply such
adjustment factor in any given instance to all customers or
to such specific class of customers that the
commission deems equitable under the circumstances
provided that the distribution company recovers
any under recovery in its entirety. Once a
customer has elected to enter into a power
supply arrangement with a nonregulated power
producer, the electric distribution company
shall not be required to arrange for the standard offer
to such customer except as provided in section
39-1-27.3.1. No customer who initially elects the
standard offer and then chooses an alternative
supplier shall be required to pay any withdrawal
fee or penalty to the provider of the standard offer
unless such a penalty or withdrawal fee was
agreed to as part of a contract; however, no
residential customer shall be required to pay a penalty
or withdrawal fee for choosing an alternative
supplier. Nothing in this subsection shall be
construed to restrict the right of any
nonregulated power producer to offer to sell power to
customers at a price comparable to that of the
standard offer specified pursuant to this subsection.
The electric distribution company may not
terminate an existing standard offer wholesale supply
agreement without the written consent of the
division.
(c) In
recognition that electricity is an essential service, each electric
distribution
company shall arrange for a last resort power
supply for customers who have left the standard
offer for any reason and are not otherwise
receiving electric service from nonregulated power
producers. The electric distribution company
shall procure last resort service supply from
wholesale power suppliers. Prior to acquiring
last resort supply, the electric distribution company
will file with the commission a supply
acquisition plan or plans that include the acquisition
procedure, the pricing options being sought, and
a proposed term of service for which last resort
service will be acquired. The term of service
may be short or long term and acquisitions may
occur from time to time and for more than one
supplier for segments of last resort service load
over different terms, if appropriate. All the
components of the acquisition plans, however, shall be
subject to commission review and approval. Once
an acquisition plan is approved by the
commission, the electric distribution company
shall be authorized to acquire last resort service
supply consistent with the approved acquisition
plan and recover its costs incurred from
providing last resort service pursuant to the
approved acquisition plan. The commission may
periodically review the acquisition plan to
determine whether it should be prospectively modified
due to changed market conditions. The commission
shall have the authority and discretion to
approve special tariff conditions and rates
proposed by the electric distribution company that the
commission finds are in the public interest,
including without limitation: (1) short and long term
optional service at different rates; (2) term
commitments or notice provisions before individual
customers leave last resort service; (3) last
resort service rates for residential or any other special
class of customers that are different than the
rates for other last resort customers; and/or (4) last
resort service rates that are designed to
encourage any class of customers to return to the market.
The electric distribution company's last resort service
revenues and its last resort service costs
shall be accounted for and reconciled with
interest at least annually. Any over recoveries shall be
refunded and any under recoveries shall be
recovered by the electric distribution company
through a uniform adjustment factor approved by
the commission. The commission shall have the
discretion to apply such adjustment factor in
any given instance to all customers or to such
specific class of customers that the commission
deems equitable under the circumstances
provided that the distribution company recovers
any under recovery in its entirety. Nothing in this
section shall be construed to prohibit an
electric distribution company from terminating service
provided hereunder in accordance with commission
rules and regulations in the event of
nonpayment of this service. The commission may
promulgate regulations to implement this
section including the terms and conditions upon
which last resort service is offered and provided
to customers.
(d) If a customer
being served by a nonregulated power producer pays any taxes assessed
for electric service to the electric
distribution company and the electric distribution company
forwards such tax payment for the power portion
of the bill to a nonregulated power producer for
payment by the nonregulated power producer to
the state, neither the customer nor the electric
distribution company shall be liable for such
taxes forwarded if the nonregulated power producer
fails to remit such taxes to the state for any
reason.
SECTION 6 Chapter
39-1 of the General Laws entitled "Public Utilities Commission" is
hereby amended by adding thereto the following
sections:
39-1-27.7.
System reliability and least-cost procurement. – Least-cost
procurement
shall comprise system reliability and energy
efficiency and conservation procurement as provided
for in this section and supply procurement as
provided for in section 39-1-27.8, as complementary
but distinct activities that have as common
purpose meeting electrical energy needs in Rhode
Island, in a manner that is optimally
cost-effective, reliable, prudent and environmentally
responsible.
(a) The
commission shall establish not later than June 1, 2008, standards for system
reliability and energy efficiency and
conservation procurement, which shall include standards and
guidelines for:
(1) System
reliability procurement, including but not limited to:
(i) Procurement
of energy supply from diverse sources, including, but not limited to,
renewable energy resources as defined in chapter
39-26;
(ii)
Distributed generation, including, but not limited to, renewable energy
resources and
thermally leading combined heat and power
systems, which is reliable and is cost-effective, with
measurable, net system benefits;
(iii) Demand
response, including, but not limited to, distributed generation, back-up
generation and on-demand usage reduction, which
shall be designed to facilitate electric customer
participation in regional demand response
programs, including those administered by the
independent service operator of New England
("ISO-NE") and/or are designed to provide local
system reliability benefits through load control
or using on-site generating capability;
(iv) To
effectuate the purposes of this division, the commission may establish
standards
and/or rates (A) for qualifying distributed
generation, demand response, and renewable energy
resources, (B) for net-metering, (C) for back-up
power and/or standby rates that reasonably
facilitate the development of distributed
generation, and (D) for such other matters as the
commission may find necessary or appropriate.
(2) Least-cost
procurement, which shall include procurement of energy efficiency and
energy conservation measures that are prudent
and reliable and when such measures are lower
cost than acquisition of additional supply,
including supply for periods of high demand.
(b) The standards
and guidelines provided for by subsection (a) shall be subject to
periodic review and as appropriate amendment by
the commission, which review will conduct not
less frequently than every three (3) years after
the adoption of the standards and guidelines.
(c) To
implement the provisions of this section:
(1) The
commissioner of the office of energy resources and the energy efficiency and
resources management council, either or jointly
or separately, shall provide the commission
findings and recommendations with regard to
system reliability and energy efficiency and
conservation procurement on or before March 1,
2008, and triennially on or before March 1,
thereafter through March 1, 2017.
(2) The commission
shall issue standards not later than June 1, 2008, with regard to plans
for system reliability and energy efficiency and
conservation procurement, which standards may
be amended or revised by the commission as
necessary and/or appropriate.
(3) The energy
efficiency and resources management council shall prepare by July 15,
2009, a reliability and efficiency procurement
opportunity report which shall identify
opportunities to procure efficiency, distributed
generation, demand response and renewables,
which report shall be submitted to the
electrical distribution company, the commission, the office
of energy resources and the joint committee on
energy.
(4) Each
electrical distribution company shall submit to the commission on or before
September 1, 2008, and triennially on or before
September 1, thereafter through September 1,
2017, a plan for system reliability and energy
efficiency and conservation procurement. In
developing the plan, the distribution company
may seek the advice of the commissioner and the
council. The plan shall include measurable goals
and target percentages for each energy resource,
pursuant to standards established by the
commission, including efficiency, distributed generation,
demand response, combined heat and power, and
renewables.
(5) The
commission shall issue an order with regard to the plan from the electrical
distribution company not greater than sixty (60)
days after it is filed with the commission.
(6) Each
electrical distribution company shall provide a status report, which shall be
public, on the implementation of least cost
procurement on or before December 15, 2008, and on
or before February 1, 2009, to the commission,
the division, the commissioner of the office of
energy resources and the energy efficiency and
resources management council which may
provide the distribution company recommendations
with regard to effective implementation of
least cost procurement. The report shall include
the targets for each energy resource included in
the order approving the plan and the achieved
percentage for energy resource, including the
achieved percentages for efficiency, distributed
generation, demand response, combined heat and
power, and renewables.
(d) If the
commission shall determine that the implementation of system reliability and
energy efficiency and conservation procurement
has caused or is likely to cause under or over-
recovery of overhead and fixed costs of the
company implementing said procurement, the
commission may establish a mandatory rate
adjustment clause for the company so affected in
order to provide for full recovery of reasonable
and prudent overhead and fixed costs.
(e) The
commission shall conduct a contested case proceeding to establish a performance
based incentive plan which allows for additional
compensation for each electric distribution
company and each company providing gas to
end-users and/or retail customers based on the
level of its success in mitigating the cost and variability
of electric and gas services through
procurement portfolios.
39-1-27.8.
Supply procurement portfolio. -- Each electric distribution company
shall
submit a proposed supply procurement plan or
plans to the commission not later than March 1,
2009, and each March 1, thereafter through March
1, 2018. The supply procurement plan or plans
shall be consistent with the purposes of
least-cost procurement and shall, as appropriate, take into
account plans and orders with regard to system
reliability and energy efficiency and conservation
procurement. The supply procurement plan or
plans will include the acquisition procedure, the
pricing options being sought, and a proposed
term of service for which standard offer service will
be acquired. The term of service may be of
various, staggered term lengths and acquisitions may
occur from time to time and for more than one
supplier for segments of standard offer load over
different terms, if appropriate. There also may
be separate procurement plans for residential and
non-residential classes or separate plans among
non-residential classes. All the components of the
procurement plans, shall be subject to
commission review and approval. Once a procurement plan
is approved by the commission, the electric
distribution company shall be authorized to acquire
standard offer service supply consistent with
the approved procurement plan and recover its costs
incurred from providing standard offer service
pursuant to the approved procurement plan. The
commission may periodically review the
procurement plan to determine whether it should be
prospectively modified due to changed market
conditions. The commission shall have the
authority and discretion to establish
eligibility criteria by rate class, and approve special tariff
conditions and rates proposed by the electric
distribution company that the commission finds are
in the public interest, including without
limitation: (1) short and long term optional service at
different rates; (2) term commitments or notice
provisions before individual customers leave
standard offer service; (3) standard offer
service rates for residential or any other special class of
customers that are different than the rates for
other standard offer customers; (4) time of use
commodity pricing for specified classes of
customers, except residential customers; provided,
however, that the commission may establish pilot
programs for time of use commodity pricing for
residential customers; and/or (5) standard offer
service rates that are designed to encourage any
class of customers to purchase supply directly
from the market.
39-1-27.9.
Office of energy resources participation. -- In any commission
inquiry into,
or examination of matters that relate to or
could potentially impact any programs, functions or
duties of the office of energy resources and/or
the energy efficiency and resources management
council, including, but not limited to, those
programs, functions and duties pursuant to this
chapter and chapters 42-140, 42-140.1, 42-140.2,
and 42-141, the office of energy resources and
the energy resources council shall be deemed,
upon the formal request of the office or the council
as appropriate, to be an interested party for
all purposes, and as such, shall receive all notices and
may file complaints, institute proceedings,
participate as a party in administrative hearings.
39-1-27.10.
Electric and gas distribution companies required to file affordable
energy plans. – (a) On or before
January 2, 2007, each gas and electric distribution company
shall submit to the commission a plan for
affordable energy for low income households, including
very low income households as defined in section
42-141-3. The plan shall provide for the
implementation of the affordable energy fund and
shall include provisions for discounted
distribution rates and customer charges,
payments on arrearages and unpaid balances by low
income households, and energy efficiency and
weatherization, to the extent that funding is
allocated by the commissioner pursuant to
subsection 42-141-5(d).
(b) On or
before April 30, 2007, the commission shall review the plan and issue an order
with regard to the plan not later than May 31,
2007. The order shall be effective not later than
November 1, 2007. The commission shall cause a
review, and as appropriate an amendment, the
plan at least every three (3) years between July
1, 2007, and July 1, 2016.
(c) On or before
November 1, 2007, each gas and electric distribution company shall
implement an affordable energy plan in
accordance with the order of the commission.
SECTION 7.
Sections 39-2-1, 39-2-1.2, 39-2-1.4 and 39-2-5 of the General Laws in
Chapter 39-2 entitled "Duties of Utilities
and Carriers" are hereby amended to read as follows:
39-2-1.
Reasonable and adequate services -- Reasonable and just charges. -- (a)
Every public utility is required to furnish
safe, reasonable, and adequate services and facilities.
The rate, toll, or charge, or any joint rate
made, exacted, demanded, or collected by any public
utility for the conveyance or transportation of
any persons or property, including sewage, between
points within the state, or for any heat, light,
water, or power produced, transmitted, distributed,
delivered, or furnished, or for any telephone or
telegraph message conveyed or for any service
rendered or to be rendered in connection
therewith, shall be reasonable and just, and every unjust
or unreasonable charge for the service is
prohibited and declared unlawful, and no public utility
providing heat, light, water, or power produced,
transmitted, distributed, delivered, or furnished
shall terminate the service or deprive any home
or building, or whatsoever, of service if the
reason therefor is nonpayment of the service
without first notifying the user of the service, or the
owner or owners of the building as recorded with
the utility of the impending service termination
by written notice at least ten (10) days prior
to the effective date of the proposed termination of
service.
(b) Any existing
rules and regulations dealing with the termination of utility service and
establishing reasonable methods of debt
collection promulgated by the commission pursuant to
this chapter and the provisions of section
39-1.1-3, including but not limited to, any rules and
regulations dealing with deposit and deferred
payment arrangements, winter moratorium and
medical emergency protections, and customer
dispute resolution procedures, shall be applicable
to any public utility which distributes
electricity.
(c) The
commission shall promulgate such further rules and regulations as are necessary
to protect consumers following the introduction
of competition in the electric industry and which
are consistent with this chapter and the
provisions of section 39-1.1-3. In promulgating such rules
and regulations, the commission shall confer
with the Retail Electric Licensing Commission and
shall give reasonable consideration to any and
all recommendations of the Retail Electric
Licensing Commission.
(d) (Effective
until April 15, 2006.) The commission shall promulgate and administer
such rules and regulations as may be necessary
to implement the purpose of this subsection and to
provide for restoration of electric and/or gas
service to Protected Status Customers who are
terminated from utility service prior to August
15, 2005.
(1) Notwithstanding
the provisions of part V section 4(E)(1)(B) and (C) of the Public
Utilities Commission Rules and Regulations
Governing the Termination of Residential Electric,
Gas, and Water Utility Service, a protected
status customer who is terminated from utility service
prior to August 15, 2005, shall be eligible to
have electric and/or gas utility service restored
providing the following conditions are met: (i)
the customer pays twenty percent (20%) of the
customer's unpaid balance; (ii) the customer agrees
to pay one twenty-fourth (1/24) of the
customer's remaining balance per month for
twenty-four (24) months, (iii) the customer agrees to
remain current with payments for current usage;
and (iv) the customer has shown, to the
satisfaction of the division, that the customer
is reasonably capable of meeting the payment
schedule provided for by provisions (i)-(iii) of
this subsection 39-2-1(d)(1), and that the customer
shall agree to waiver the right to a hearing for
termination of service; provided that this waiver
provision shall apply exclusively to the
provisions of this subsection and shall have no
preferential value for other proceedings before
the commission or the division. Once service is
restored under the provisions of this
subsection, such service may be terminated if payment is not
made within thirty (30) days after the billing
date; provided, however, that termination of service
shall not take place during the moratorium on
shut-offs.
(2) A customer
terminated from service under the provisions of subsection 39-2-1(d)(1)
shall be eligible for restoration of service in
accordance with the applicable provisions of part V
section 4(E)(1)(C), or its successor
provision, of the Public Utilities Commission Rules and
Regulations Governing the Termination of
Residential Electric, Gas, and Water Service.
(3) The
provisions of subsection 39-2-1(d)(1) shall be available if the initial payment
for
restoration of service is made between April 15,
2005, and August 15, 2005, inclusive.
(e) On or
before May 1, 2007, the commission shall administer such rules and regulations
as may be necessary to implement the purpose of
this section and to provide for restoration of
electric and/or gas service to very low income
households as defined by section 42-141-2.
(1) Effective
July 1, 2007, notwithstanding the provisions of part V sections 4(E)(1)(B)
and (C) of the public utilities commission rules
and regulations governing the termination of
residential electric, gas, and water utility
service, a very low income customer who is terminated
from gas and/or electric service shall be
eligible one time to have electric and/or gas utility
service restored providing the following
conditions are met:
(i) the
customer pays twenty-five percent (25%) of the customer's unpaid balance;
(ii) the
customer agrees to pay one thirty-sixth (1/36th) of one half (1/2) of the
customer's
remaining balance per month for thirty-six (36)
months;
(iii) the
customer agrees to remain current with payments for current usage; and
(iv) the
customer has shown, to the satisfaction of the division, that the customer is
reasonably capable of meeting the payment
schedule provided for by the provisions of
subdivision 39-2-1(e)(1)(i) and (ii) in this
section. The restoration of service provided for by this
subsection shall be a one-time right; failure to
comply with the payment provisions set forth in
this subsection shall be grounds for the
customer to be dropped from the repayment program
established by this subsection, and the balance
due on the unpaid balance shall be due in full and
shall be payable in accordance with the rules of
the commission governing the termination of
residential electric, gas, and water utility
service. A customer who completes the schedule of
payments pursuant to this subsection, shall have
the balance of any arrearage forgiven, and the
customer's obligation to the gas and/or electric
company for such balance shall be deemed to be
fully satisfied. The amount of the arrearage so
forgiven shall be treated as bad debt for purposes
of cost recovery by the gas or the electric
company.
(2) A customer
terminated from service under the provisions of subdivision 39-2-1(e)(1)
shall be eligible for restoration of service in
accordance with the applicable provisions of part V
section 4(E)(1)(C), or its successor provision,
of the public utilities commission rules and
regulations governing the termination of residential
electric, gas, and water service.
39-2-1.2.
Utility base rate -- Advertising, demand side management and renewables.
-- (a) In addition to costs prohibited in section
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 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 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, 2003, and for a period of ten (10) years thereafter, each
electric distribution company shall include
charges of 2.0 mills per kilowatt-hour delivered to
fund demand side management programs and 0.3
mills per kilowatt-hour delivered to fund
renewable energy programs. Existing charges for
these purposes and their method of
administration shall continue through December
31, 2002. Thereafter, the electric distribution
company shall establish and after July 1,
2007, maintain two (2) separate accounts, one for
demand side management programs, which shall be
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 state energy office. office of
energy resources through June 30, 2007, and
effective July 1, 2007, shall be held and disbursed
by the distribution company as directed by the
commissioner of the office of energy resources,
with the approval, if appropriate, of the
trustees of the renewable energy development fund, for
the purposes of developing, promoting and
supporting renewable energy programs.
During the ten
(10) year period the commission may, in its discretion, after notice and
public hearing, increase the sums for demand
side management and renewable resources;
thereafter, the commission shall, after notice
and public hearing, determine the appropriate charge
for these programs. The energy office of
energy resources and/or and the administrator of the
renewable energy programs shall seek to secure
for the state an equitable and reasonable portion
of renewable energy credits or certificates
created by projects funded through those programs,
and shall develop and execute by July 1, 2007, a
plan to make the program self-sustaining as of
January 1, 2013. As used in this
section, "renewable energy resources" shall mean: (1) power
generation technologies as defined in section
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, so long as these technologies
are installed on housing projects that have been
certified by the executive director of the Rhode
Island housing and mortgage finance corporation
as serving low-income Rhode Island residents.
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.
(c) The director
of the state energy office commissioner of the office of energy
resources
is authorized and shall may enter
into a contract with a contractor for the cost effective
administration of the renewable energy programs
funded by this section. The director shall
initiate the competitive bid process by the
issuance and advertisement of specifications and
request for proposals, on or before September 1,
2002. The contract resulting from the
competitive bid process shall be awarded to
become effective for a three (3) year period
commencing no later than January 1, 2003. A
competitive bid and contract award for
administration of the renewable energy programs shall
may occur every three (3) years thereafter,
and shall include as a condition that after July
1, 2007 the account for the renewable energy
programs shall be maintained by the distribution
company as provided for in subdivision (b)
above and, with the approval of the commissioner
of the office of energy resources and the
trustees of the renewable energy fund, may be
administered by the economic development
corporation.
(d) Effective
January 1, 2007, and for a period of seven (7) years thereafter, each gas
distribution company shall include, with the
approval of the commission, a charge of up to fifteen
cents ($0.15) per deca therm delivered to demand
side management programs, 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.
(e) The gas
company shall establish a separate account for demand side management
programs, which shall be 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 commissions and that are
designed to achieve cost-effectiveness and high
life-time savings of efficiency measures
supported by the program.
(f) The
commission may, if reasonable and feasible, except from this demand side
management change:
(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.
(g) 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.
(h) Effective
January 1, 2007, the commission shall allocate from demand-side
management gas and electric funds authorized
pursuant to this section 39-2-1.2, an amount not to
exceed two percent (2%) of such funds on an
annual basis for the retention of expert consultants,
and reasonable administrations costs of the
energy efficiency and resources management council
associated with planning, management, and
evaluation of energy efficiency programs, renewable
energy programs and 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.
39-2-1.4.
Reasonable backup or supplemental rates. -- (a) Electricity produced by
cogeneration and small power production can be
of benefit to the public as part of the total energy
supply of the entire electric grid of the state
or consumed by a cogenerator or small power
producer. Subject to compliance with applicable
rules governing such service, public utilities
shall provide transmission or distribution
service to enable a retail customer to transmit electrical
power generated by the customer at one location
to the customer's facilities at another location, if
the commission finds that the provision of this
service, and the charges, terms, and other
conditions associated with the provision of this
service, are not likely to result in higher cost
electric service to the utility's general body
of retail and wholesale customers or adversely affect
the adequacy or reliability of electric service
to all customers.
(b) Each electric
distribution company shall provide backup and supplemental service to
any customer who is self-generating electricity
and meets reasonable interconnection
requirements designed to protect the
distribution and transmission system. The commission shall
ensure that backup and supplemental rates made,
exacted, demanded or collected by any public
utility from a customer who is self-generating
shall be just and reasonable and may not be unduly
discriminatory. Any backup and supplemental rate
tariffs in effect as of May 2002 may remain in
effect as designed through December 31, 2004.
Commencing January 1, 2005, the backup and
supplemental rates shall be cost based but may
be discounted as provided for in subsection (c) of
this section; provided, however, that the John
O. Pastore Center power plant shall be exempt from
said backup or supplemental rates.
(c) Notwithstanding
the rate design criteria set forth in subsection (b) of this section, the
commission may permit or require discounted
backup distribution service rates in order to
encourage economically efficient cogeneration or
small power production projects if it finds these
discounts to be in the public interest and/or
contribute to system reliability procurement or least-
cost procurement; provided, however, that
any revenue not recovered by the electric distribution
company as a result of these discounted
distribution rates shall be accounted for and recovered in
the rates assessed on all customers. The
commission shall, in determining the public interest in
distributed generating facilities, consider
reduced environmental impacts, increased energy
efficiency, reduced transmission losses and
congestion, effects on electric system reliability and
other factors the commission may deem relevant.
39-2-5.
Exceptions to anti-discrimination provisions. -- The provisions of
sections 39-
2-2 -- 39-2-4 shall be subject to the following
exceptions:
(1) A public
utility may issue or give free transportation or service to its employees and
their families, its officers, agents, surgeons,
physicians, and attorneys at law, and to the officers,
agents, and employees, and their families of any
other public utility.
(2) With the
approval of the division any public utility may give free transportation or
service, upon such conditions as the public
utility may impose, or grant special rates therefor to
the state, to any town, or city, or to any water
or fire district, and to the officers thereof, for public
purposes, and also to any special class or
classes of persons, not otherwise referred to in this
section, in cases where the same shall seem to
the division just and reasonable, or required in the
interests of the public, and not unjustly
discriminatory.
(3) With the
approval of the division any public utility operating a railroad or street
railway may furnish to the publishers of newspapers
and magazines, and to their employees,
passenger transportation in return for
advertising in the newspapers or magazines at full rates.
(4) With the
approval of the division any public utility may exchange its service for the
service of any other public utility furnishing a
different class of service.
(5) Nothing in
this section nor any other provision of the law shall be construed to
prohibit the giving by any public utility, free
or reduced rate service to an elderly person as
defined by the division.
(6) Any motor
carrier of persons, as defined in chapter 13 of this title, may elect to file a
tariff providing for a rate reduction of
twenty-five percent (25%) below its one-way fare tariff
applying to any person who is sixty-five (65)
years of age or older and any person assisting and
traveling with a blind passenger who is not
required to pay any fare pursuant to the provisions of
section 39-2-13 for bus rides between the hours
of ten o'clock (10:00) a.m. and three o'clock
(3:00) p.m. of each day. In such event the
reduced fare shall be paid in part by the passenger and
in part by the state. That part of the reduced
fare payable by the state shall be one half (1/2) of the
reduced fare adjusted upward to end in the nearest
zero (0) or five cents (.05), and that part
payable by the passenger shall be the balance of
the reduced fare. Payments by the state under
this section shall be paid monthly under
procedures agreed upon by the department of
transportation and the carrier.
(7) [Deleted by
P.L. 2004, ch. 378, section 4, and by P.L. 2004, ch. 504, section 4.]
(8) Any person,
firm, or corporation or any officer, agent, servant, or employee thereof
who shall violate the provisions of subsection
(7) by fraudulently obtaining a telecommunications
device shall, upon conviction, be fined not
exceeding five hundred dollars ($500) or be
imprisoned for a term not exceeding one year.
(9) (i) Nothing
in this section nor any other provision of the general laws shall be
construed to prohibit the commission from taking
actions to enable the state to participate in a
federal communications commission telephone
lifeline program. The commission may set a
subscriber funded monthly residence basic
exchange lifeline telephone service credit in an
amount not to exceed the federal subscriber line
access charge or the monthly basic service
charge, whichever is less, for those persons who
receive supplemental social security income
(SSI), aid to families with dependent children
(AFDC), general public assistance (GPA), aid from
the Rhode Island medical assistance program, or
food stamps issued pursuant to the Food Stamp
Act of 1964 as amended (public law 88-525 and
amendments made thereto, 7 U.S.C. section
2011 et seq.), assistance from the low-income
home energy assistance program (LIHEAP) as
administered by the department of
administration, division of planning, and effective April 1,
1993, assistance from the Rhode Island pharmaceutical
assistance program administered by the
department of elderly affairs. The public
utilities commission may promulgate regulations to
implement this section. The department of human
services and the department of administration,
division of planning shall certify subscriber
eligibility for the programs in accordance with public
utilities commission and federal communications
commission guidelines.
(ii) The
department of human services shall report monthly to the governor and to the
house of representatives fiscal advisor the
number of persons newly eligible for the lifeline
telephone service credit hereunder solely by
virtue of their eligibility to receive food stamp
assistance and the department of administration,
division of planning shall, also, report monthly
to the governor and to the house of
representatives fiscal advisor the number of persons newly
eligible for the lifeline telephone service
credit hereunder solely by virtue of their participation in
the low-income home energy assistance program
(LIHEAP).
(10) Nothing in
this section nor any other provision of the general laws shall be
construed to prohibit any public utility with
the approval of the commission, from forgiving
arrearages of any person in accordance with the terms
of a percentage of income payment plan
administered by the governor's office of energy
assistance for low-income households who are
eligible to receive funds under the federal low
income home energy assistance program
provisions of subsection 39-2-1(e).
(11) Nothing in
this section or any other provision of the law shall be construed to
prohibit any utility company from cutting,
disconnecting, or removing mains, poles, wires,
conduits, or fixtures free of charge to
nonprofit housing development corporations prior to
moving a building to be used as affordable
housing for at least a ten (10) year period.
(12) Nothing in
this section nor any other provision of the general laws shall be
construed to prohibit any telecommunications
provider with the approval of the commission,
from offering any person, firm or corporation a
reduced rate, provided such rate covers all costs.
(13) A gas or
electric distribution company may provide discounts to low income
customers in accordance with the affordable
energy plan provisions of subsection 42-141-5(d).
Nothing contained herein shall prohibit the
continuation of any low income discounts approved
by the commission prior to January 1, 2006, and in
effect as of that date.
SECTION 8. Section
39-26-7 and 39-26-8 of the General Laws in Chapter 39-26 entitled
"Renewable Energy Standard" are hereby
amended to read as follows:
39-26-7.
Renewable energy development fund. -- (a) There is hereby authorized
and
created within the economic development
corporation a renewable energy development fund for
the purpose of increasing the supply of NE-GIS
certificates available for compliance in future
years by obligated entities with renewable energy
standard requirements, as established in this
chapter. The fund shall be located at and
administered by the Rhode Island Economic
Development Corporation and shall have a board
of trustees of five (5) members as follows: the
executive director of the economic development
corporation, who shall be chairman, the director
of the department of administration or a
designee of the director, the administrator of the division
of public utilities, and two (2) public members
appointed by the governor with advice and consent
of the senate, who shall serve terms of three
(3) years, provided however that no public members
may serve more than two (2) consecutive (3)
three year terms. One of the public members shall
be a representative of an organization that advocates
for renewable energy development. Each
member shall hold office for the term appointed
and until the member's successor shall have been
duly appointed and qualified, or until the
member's earlier death, resignation or removal.
Members of the board of trustees of the fund
shall receive no compensation for the performance
of their duties, but may be reimbursed for
reasonable expenses incurred in carrying out those
duties. The board of trustees shall recommend to
the economic development corporation:
(1) Plans and
guidelines for the management and use of the fund, and
(2) Its
evaluation of proposals and/or actions to obligate, use and/or sell, dispose,
trade or
exchange assets held by the fund. The board of
trustees shall have the power to adopt, with the
approval of the economic development
corporation, such by-laws as may be necessary or
convenient for the conduct of its affairs.
(b) The economic
development corporation shall enter into agreements with obligated
entities to accept alternative compliance
payments, consistent with rules of the commission and
the purposes set forth in this section; and
alternative compliance payments received pursuant to
this section shall be trust funds to be held and
applied solely for the purposes set forth in this
section.
(c) The uses of
the fund shall include but not be limited to:
(1) Stimulating
investment in renewable energy development by entering into
agreements, including multi-year agreements, for
renewable energy certificates;
(2) Issuing
assurances and/or guarantees to support the acquisition of renewable energy
certificates and/or the development of new
renewable energy sources for Rhode Island;
(3) Establishing
escrows, reserves, and/or acquiring insurance for the obligations of the
fund;
(4) Paying
administrative costs of the fund incurred by the economic development
corporation or the board of trustees, not to
exceed ten percent (10%) of the income of the fund,
including but not limited to alternative
compliance payments.
(d) NE-GIS
certificates acquired through the fund may be conveyed to obligated entities
or may be credited against the renewable energy
standard for the year of the certificate provided
that the commission assesses the cost of the
certificates to the obligated entity, or entities,
benefiting from the credit against the renewable
energy standard, which assessment shall be
reduced by previously made alternative
compliance payments and shall be paid to the fund.
(e) The
trustees, in cooperation and concurrence with the commissioner of the office of
energy resources, consistent with rules as may
be adopted by the commission, develop an
integrated plan and strategy, by July 1, 2007,
for stimulating the development of and financing
eligible renewable energy resources.
39-26-8.
Interaction with other policies. -- (a) Rhode Island has established a
system-
benefits charge (SBC), a portion of which is
dedicated to supporting renewable energy,
administered by the state energy office in
accordance with the provisions of subsections 39-2-
1.2(b) and (c); other states have similar policies. The
state energy office of energy resources is
hereby directed to collaborate with the commissions
and division of public utilities, the trustees of
the renewable energy development fund, the
distribution company with other interests and
parties, as appropriate, in maximizing the
combined impact and efficiency of the SBC renewable
energy program established by subsections
39-2-1.2(b) and (c)
and the renewable energy
standard.
(b) It is the
intent of this chapter that generation attributes and NE-GIS certificates
applied towards Rhode Island renewable energy
standard compliance may not be used towards
compliance with state renewable energy
obligations relating to an obligated entity's load in other
states.
SECTION 9. Section
42-11-10 of the General Laws in Chapter 42-11 entitled
"Department of Administration" is
hereby amended to read as follows:
42-11-10.
Statewide planning program. -- (a) Findings. - The general assembly
finds
that the people of this state have a fundamental
interest in the orderly development of the state;
the state has a positive interest and
demonstrated need for establishment of a comprehensive
strategic state planning process and the
preparation, maintenance, and implementation of plans
for the physical, economic, and social
development of the state; the continued growth and
development of the state presents problems that
cannot be met by the cities and towns
individually and that require effective planning
by the state; and state and local plans and
programs must be properly coordinated with the
planning requirements and programs of the
federal government.
(b) Establishment
of statewide planning program. - (1) A statewide planning program is
hereby established to prepare, adopt, and amend
strategic plans for the physical, economic, and
social development of the state and to recommend
these to the governor, the general assembly,
and all others concerned.
(2) All strategic
planning, as defined in subsection (c) of this section, undertaken by the
executive branch for those departments and other
agencies enumerated in subsection (g) of this
section, shall be conducted by or under the
supervision of the statewide planning program. The
statewide planning program shall consist of a
state planning council, and the office of strategic
planning and the office of systems planning of
the division of planning, which shall be a division
within the department of administration.
(c) Strategic
planning. - Strategic planning includes the following activities:
(1) Establishing
or identifying general goals.
(2) Refining or
detailing these goals and identifying relationships between them.
(3) Formulating,
testing, and selecting policies and standards that will achieve desired
objectives.
(4) Preparing
long-range or system plans or comprehensive programs that carry out the
policies and set time schedules, performance
measures, and targets.
(5) Preparing
functional short-range plans or programs that are consistent with
established or desired goals, objectives, and
policies, and with long-range or system plans or
comprehensive programs where applicable, and
that establish measurable intermediate steps
toward their accomplishment of the goals,
objectives, policies, and/or long-range system plans.
(6) Monitoring
the planning of specific projects and designing of specific programs of
short duration by the operating departments,
other agencies of the executive branch, and political
subdivisions of the state to insure that these
are consistent with and carry out the intent of
applicable strategic plans.
(7) Reviewing the
execution of strategic plans and the results obtained and making
revisions necessary to achieve established
goals.
(d) State guide
plan. - Components of strategic plans prepared and adopted in accordance
with this section may be designated as elements
of the state guide plan. The state guide plan shall
be comprised of functional elements or plans
dealing with land use; physical development and
environmental concerns; economic development;
housing production; energy supply, including
the development of renewable energy resources in
Rhode Island, and energy access, use, and
conservation; human services; and other factors
necessary to accomplish the objective of this
section. The state guide plan shall be a means
for centralizing, integrating, and monitoring long-
range goals, policies, plans, and implementation
activities related thereto. State agencies
concerned with specific subject areas, local
governments, and the public shall participate in the
state guide planning process, which shall be
closely coordinated with the budgeting process.
(e) Membership of
state planning council. - The state planning council shall consist of:
(1) The director of
the department of administration as chairperson;
(2) The director,
policy office, in the office of the governor, as vice-chairperson;
(3) The governor,
or his or her designee;
(4) The budget
officer;
(5) The
chairperson of the housing resources commission;
(6) The chief of
statewide planning, as secretary;
(7) The president
of the league of cities and towns or his or her designee and one official
of local government, who shall be appointed by
the governor from a list of not less than three (3)
submitted by the Rhode Island league of cities
and towns; and
(8) The executive
director of the league of cities and towns;
(9) One
representative of a nonprofit community development or housing organization;
(10) Four (4)
public members, appointed by the governor;
(11) Two (2)
representatives of a private, nonprofit environmental advocacy
organization, both to be appointed by the
governor; and
(12) The director
of planning and development for the city of Providence.
(f) Powers and
duties of state planning council. - The state planning council shall have
the following powers and duties:
(1) To adopt
strategic plans as defined in this section and the long-range state guide plan,
and to modify and amend any of these, following
the procedures for notification and public
hearing set forth in section 42-35-3, and to
recommend and encourage implementation of these
goals to the general assembly, state and federal
agencies, and other public and private bodies;
approval of strategic plans by the governor;
(2) To coordinate
the planning and development activities of all state agencies, in
accordance with strategic plans prepared and
adopted as provided for by this section;
(3) To review and
comment on the proposed annual work program of the statewide
planning program;
(4) To adopt
rules and standards and issue orders concerning any matters within its
jurisdiction as established by this section and
amendments to it;
(5) To establish
advisory committees and appoint members thereto representing diverse
interests and viewpoints as required in the
state planning process and in the preparation or
implementation of strategic plans. The state
planning council shall appoint a permanent
committee comprised of:
(i) Public
members from different geographic areas of the state representing diverse
interests, and
(ii) Officials of
state, local and federal government, which shall review all proposed
elements of the state guide plan, or amendment
or repeal of any element of the plan, and shall
advise the state planning council thereon before
the council acts on any such proposal. This
committee shall also advise the state planning
council on any other matter referred to it by the
council; and
(6) To establish
and appoint members to an executive committee consisting of major
participants of a Rhode Island geographic
information system with oversight responsibility for its
activities.
(7) To adopt on
or before July 1, 2007, and to amend and maintain as an element of the
state guide plan or as an amendment to an
existing element of the state guide plan, standards and
guidelines for the location of eligible
renewable energy resources and renewable energy facilities
in Rhode Island with due consideration for the
location of such resources and facilities in
commercial and industrial areas, agricultural
areas, areas occupied by public and private
institutions, and property of the state and its
agencies and corporations, provided such areas are of
sufficient size, and in other areas of the state
as appropriate.
(g) Division of
planning. - (1) The division of planning shall be the principal staff
agency of the state planning council for
preparing and/or coordinating strategic plans for the
comprehensive management of the state's human,
economic, and physical resources. The division
of planning shall recommend to the state
planning council specific guidelines, standards, and
programs to be adopted to implement strategic
planning and the state guide plan and shall
undertake any other duties established by this
section and amendments thereto.
(2) The division
of planning shall maintain records (which shall consist of files of
complete copies) of all plans, recommendations,
rules, and modifications or amendments thereto
adopted or issued by the state planning council
under this section. The records shall be open to
the public.
(3) The division
of planning shall manage and administer the Rhode Island geographic
information system of land-related resources,
and shall coordinate these efforts with other state
departments and agencies, including the
University of Rhode Island, which shall provide
technical support and assistance in the
development and maintenance of the system and its
associated data base.
(4) The division
of planning shall coordinate and oversee the provision of technical
assistance to political subdivisions of the
state in preparing and implementing plans to accomplish
the purposes, goals, objectives, policies,
and/or standards of applicable elements of the state guide
plan and shall make available to cities and
towns data and guidelines that may be used in
preparing comprehensive plans and elements
thereof and in evaluating comprehensive plans and
elements thereby.
(h) Transfer
determinations. - (1) The director of administration, with the approval of the
governor, shall make the conclusive
determination of the number of positions, personnel, physical
space, property, records, and appropriation
balances, allocations and other funds of the
department of mental health, retardation, and
hospitals, department of health, department of
human services, department of corrections,
department of labor and training, department of
environmental management, department of business
regulation, department of transportation,
department of state library services, Rhode
Island Economic Development Corporation,
department of elderly affairs, department for
children and their families, historical preservation
commission, water resources board, and the
defense civil preparedness/emergency management
agency of the executive department to be
transferred to the department of administration in
connection with the functions transferred there
into by the provisions of this article.
(2) In order to
ensure continuity of the strategic planning process of the department
specified heretofore, the actual transfer of
functions or any part thereof to the department of
administration may be postponed after July 1,
1985 until such time as, by executive order of the
governor, the transfer herein provided can be
put into force and effect but no later than December
31, 1985.
SECTION 10. Sections
42-64-3, 42-64-4 and 42-64-13.2 of the General Laws in Chapter
42-64 entitled "Rhode Island Economic
Development Corporation" are hereby amended to read
as follows:
42-64-3.
Definitions. -- As used in this chapter, the following words and terms
shall have
the following meanings, unless the context
indicates another or different meaning or intent:
(1)
"Administrative penalty" means a monetary penalty not to exceed the
civil penalty
specified in section 42-64-9.2 of this chapter.
(2) "Airport
facility" means developments consisting of runways, hangars, control
towers, ramps, wharves, bulkheads, buildings,
structures, parking areas, improvements, facilities,
or other real or personal property necessary,
convenient, or desirable for the landing, taking off,
accommodation, and servicing of aircraft of all
types, operated by carriers engaged in the
transportation of passengers or cargo, or for
the loading, unloading, interchange, or transfer of the
passengers or their baggage, or the cargo, or
otherwise for the accommodation, use or
convenience of the passengers or the carriers or
their employees (including related facilities and
accommodations at sites removed from landing
fields and other landing areas), or for the landing,
taking off, accommodation, and servicing of
aircraft owned or operated by persons other than
carriers. It also means facilities providing
access to an airport facility, consisting of rail, rapid
transit, or other forms of mass transportation
which furnish a connection between the air terminal
and other points within the state, including
appropriate mass transportation terminal facilities at
and within the air terminal itself and suitable
offsite facilities for the accommodation of air
passengers, baggage, mail, express, freight, and
other users of the connecting facility.
(3) "BOCA
code" means the BOCA basic building code published by building officials
& code administrators international, inc.,
as the code may from time to time be promulgated by
the building officials & code administrators
international, inc.
(4)
"Bonds" and "notes" means the bonds, notes, securities, or
other obligations or
evidences of indebtedness issued by the
corporation pursuant to this chapter, all of which shall be
issued under the name of and known as
obligations of the "economic development corporation."
(5) "Civic
facility" means any real or personal property designed and intended for
the
purpose of providing facilities for educational,
cultural, community, or other civic purposes.
(6)
"Compliance schedule" means a schedule of remedial measures including
an
enforceable sequence of actions or operations
leading to compliance with an effluent limitation or
any other limitation, prohibition or standard.
(7)
"Corporation," "port authority", or "authority"
means the governmental agency and
public instrumentality, formerly known as the
"Rhode Island port authority and economic
development corporation" and renamed the
"Rhode Island economic development corporation,"
authorized, created, and established pursuant to
section 42-64-4, or any subsidiary corporation
thereof which is established pursuant to section
42-64-7.1.
(8)
"Director" means the executive director of the corporation.
(9) "Federal
land" means real property within the state, now acquired or hereafter
acquired by the corporation which was formerly
owned by the United States government, or any
agency or instrumentality thereof, including
without limiting the generality of the foregoing, any
and all real property now or formerly owned or
used by the United States government in the
towns of North Kingstown, Portsmouth,
Middletown, and Charlestown and the city of Newport
as military installations or for other purposes
related to the national defense. Without limiting the
generality of the foregoing, federal land shall
also mean and include certain land in the town of
North Kingstown, or any portion thereof, which
has or shall revert to the state pursuant to the
provisions of Public Laws 1939, chapter 696 and
is now or hereafter acquired by the corporation
from the state.
(10)
"Industrial facility" means any real or personal property, the
demolition, removal,
relocation, acquisition, expansion,
modification, alteration, or improvement of existing buildings,
structures, or facilities, the construction of
new buildings, structures, or facilities, the
replacement, acquisition, modification, or
renovation of existing machinery and equipment, or the
acquisition of new machinery and equipment, or
any combination of the United States, which
shall be suitable for manufacturing, research,
production, processing, agriculture, and marine
commerce, or warehousing; or convention centers,
trade centers, exhibition centers, or offices
(including offices for the government of the
United States or any agency, department, board,
bureau, corporation, or other instrumentality of
the United States, or for the state or any state
agency, or for any municipality); or facilities
for other industrial, commercial or business
purposes of every type and description; and
facilities appurtenant or incidental to the foregoing,
including headquarters or office facilities,
whether or not at the location of the remainder of the
facility, warehouses, distribution centers,
access roads, sidewalks, utilities, railway sidings,
trucking, and similar facilities, parking areas,
waterways, dockage, wharfage, and other
improvements necessary or convenient for the construction,
development, maintenance, and
operation of those facilities.
(11) "Local
governing body" means any town or city council, commission, or other
elective governing body now or hereafter vested
by state statute, charter, or other law, with
jurisdiction to initiate and adopt local
ordinances, whether or not these local ordinances require
the approval of the elected or appointed chief
executive officer or other official or body to
become effective.
(12) "Local
redevelopment corporation" means any agency or corporation created and
existing pursuant to the provisions of chapter
31 of title 45.
(13)
"Municipality" means any city or town within the state now existing
or hereafter
created, or any state agency.
(14) "Parent
corporation" means, when used in connection with a subsidiary corporation
established pursuant to section 42-64-7.1, the
governmental agency and public instrumentality
created and established pursuant to section
42-64-4.
(15)
"Personal property" means all tangible personal property, new or
used, including,
without limiting the generality of the
foregoing, all machinery, equipment, transportation
equipment, ships, aircraft, railroad rolling
stock, locomotives, pipelines, and all other things and
rights usually included within that term.
"Personal property" also means and includes any and all
interests in the property which are less than
full title, such as leasehold interests, security
interests, and every other interest or right,
legal or equitable.
(16)
"Pollutant" means any material or effluent which may alter the
chemical, physical,
biological or radiological characteristics or
integrity of water, including but not limited to,
dredged spoil, solid waste, incinerator residue,
sewage, garbage, sewage sludge, munitions,
chemical wastes, biological materials,
radioactive materials, heat, wrecked or discarded
equipment, cellar dirt, or industrial,
municipal, agricultural or other waste petroleum or petroleum
products, including but not limited to oil.
(17)
"Pollution" means the discharge of any gaseous, liquid, or solid
substance or
combination thereof (including noise) into the
air, water, or land which affects the physical,
chemical, or biological properties (including temperature)
of the air, water, or land in a manner or
to an extent which renders or is likely to
render the air, water, or land harmful or inimical to the
public health, safety, or welfare, or to animal,
bird, or aquatic life, or to the use of the air or water
for domestic, industrial, or agricultural
purposes or recreation including the man-made or man-
induced alteration of the chemical, physical,
biological or radiological integrity of water.
(18)
"Pollution control facility" means any land or interest in land, the
demolition,
removal, relocation, acquisition, expansion,
modification, alteration, or improvement of existing
buildings, structures, or facilities, the
construction of new buildings, structures, or facilities, the
replacement, modification, or renovation of
existing machinery and equipment, or the acquisition
of new machinery and equipment, or any
combination thereof, having to do with or the purpose
of which is the abatement, control, or
prevention of pollution, including industrial pollution, and
all real and personal property incidental to
that facility.
(19) "Port
facility" means harbors, ports, and all real and personal property used in
connection therewith, including, but not limited
to, waterways, channels, wharves, docks, yards,
bulkheads, slips, basins, pipelines, ships,
boats, railroads, trucks, and other motor vehicles,
aircraft, parking areas, shipyards, piers,
quays, elevators, compressors, loading and unloading
facilities, storage facilities, and warehouses of
every type, buildings and facilities used in the
manufacturing, processing, assembling, storing,
or handling of any produce or products, other
structures and facilities necessary for the
convenient use of the harbors and seaports, including
dredged approaches, railways, railroad
terminals, side tracks, airports, roads, highways, tunnels,
viaducts, bridges, and other approaches, useful
in connection therewith, and any other shipping or
transportation facility useful in the operation
of a port or harbor.
(20)
"Project" or "port project" means the acquisition,
ownership, operation,
construction, reconstruction, rehabilitation,
improvement, development, sale, lease, or other
disposition of, or the provision of financing for,
any real or personal property (by whomever
owned) or any interests in real or personal
property, including without limiting the generality of
the foregoing, any port facility, recreational
facility, industrial facility, airport facility, pollution
control facility, utility facility, solid waste
disposal facility, civic facility, residential facility,
water supply facility, energy facility or
renewable energy facility, or any other facility, or any
combination of two (2) or more of the foregoing,
or any other activity undertaken by the
corporation.
(21)
"Project cost" means the sum total of all costs incurred by the
corporation in
carrying out all works and undertakings which
the corporation deems reasonable and necessary
for the development of a project. These shall
include, but are not necessarily limited to, the costs
of all necessary studies, surveys, plans, and
specifications, architectural, engineering, or other
special services, acquisition of land and any
buildings on the land, site preparation and
development, construction, reconstruction,
rehabilitation, improvement, and the acquisition of
any machinery and equipment or other personal
property as may be deemed necessary in
connection with the project (other than raw
materials, work in process, or stock in trade); the
necessary expenses incurred in connection with
the initial occupancy of the project; an allocable
portion of the administrative and operating
expenses of the corporation; the cost of financing the
project, including interest on all bonds and
notes issued by the corporation to finance the project
from the date thereof to one year from the date
when the corporation shall deem the project
substantially occupied; and the cost of those
other items, including any indemnity or surety bonds
and premiums on insurance, legal fees, real
estate brokers and agent fees, fees and expenses of
trustees, depositories, and paying agent for
bonds and notes issued by the corporation, including
reimbursement to any project user for any
expenditures as may be allowed by the corporation (as
would be costs of the project under this section
had they been made directly by the corporation),
and relocation costs, all as the corporation
shall deem necessary.
(22)
"Project user" means the person, company, corporation, partnership,
or commercial
entity, municipality, state, or United States of
America who shall be the user of, or beneficiary of,
a port project.
(23) "Real
property" means lands, structures (new or used), franchises, and interests
in
land, including lands under water, and riparian
rights, space rights, and air rights, and all other
things and rights usually included within the
term. Real property shall also mean and include any
and all interests in that property less than fee
simple, such as easements, incorporeal
hereditaments, and every estate, interest or
right, legal or equitable, including terms for years and
liens thereon by way of judgments, mortgages or
otherwise, and also all claims for damages to
that real property.
(24)
"Recreational facility" means any building, development, or
improvement, provided
that building, facility, development, or
improvement is designed in whole or in part to attract
tourists to the state or to provide essential
overnight accommodations to transients visiting this
state, including, without limiting in any way
the generality of the foregoing, marinas, beaches,
bathing facilities, ski facilities, convention
facilities, hotels, motels, golf courses, camp grounds,
arenas, theatres, lodges, guest cottages, and
all types of real or personal property related thereto as
may be determined from time to time by the
corporation.
(25)
"Revenues" means (1) with respect to any project, the rents, fees,
tolls, charges,
installment payments, repayments, and other
income or profit derived from a project or a
combination of projects pursuant to any lease,
conditional sales contract, installment sales
contract, loan agreement, or other contract or
agreement, or any combination thereof and (2) any
receipts, fees, payments, moneys, revenues or
other payments received or to be received by the
corporation in the exercise of its corporate
powers under this chapter, including, without
limitation, loan repayments, grants, aid,
appropriations and other assistance for the state, the
United States or any corporation, 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, and any other taxes,
assessments, fees, charges, awards or other income or
amounts received or receivable by the
corporation.
(26) "Rule
or regulation" means any directive promulgated by the corporation not
inconsistent with the laws of the United States
or the state, for the improvement of navigation and
commerce or other project purposes and shall
include, but not be limited to, charges, tolls, rates,
rentals, and security provisions fixed or
established by the corporation.
(27)
"Sewage" shall be construed to mean the same as "pollutant"
as defined in section
42-64-3(o) above.
(28) "Sewage
treatment facility" means the sewage treatment plant, structure, combined
sewer overflows, equipment, interceptors, mains,
pumping stations and other property, real,
personal or mixed, for the treatment, storage,
collection, transporting or disposal of sewage, or
any property or system to be used in whole or in
part for any of the aforesaid purposes located or
operated within the boundaries of the Quonset
Point/Davisville Industrial Park, or utilized by the
corporation for the transport, collection,
treatment, storage or disposal of waste.
(29) "Solid
waste" means garbage, refuse, and other discarded materials, including,
but
not limited to, solid waste materials resulting
from industrial, recreational, utility, and commercial
enterprises, hotels, apartments, or any other
public building or private building, or agricultural, or
residential activities.
(30) "Solid
waste disposal facility" means any real or personal property, related to
or
incidental to any project, which is designed or
intended or designated for the purpose of treating,
compacting, composting, or disposing of solid
waste materials, including treatment, compacting,
composting, or disposal plants, site and
equipment furnishings thereof, and their appurtenances.
(31)
"Source" means any building, structure, facility or installation from
which there is
or may be the discharge of sewage.
(32)
"State" means the state of Rhode Island and Providence Plantations.
(33) "State
agency" means any office, department, board, commission, bureau, division,
authority, or public corporation, agency or
instrumentality of the state.
(34) "State
guide plan" means the plan adopted pursuant to section 42-11-10, which
establishes the statewide planning program.
(35)
"Utility facility" means any real or personal property designed,
intended or utilized
for generating, manufacturing, producing,
storing, transmitting, distributing, delivering, or
furnishing natural or manufactured gas, steam,
electrical, or nuclear energy, heat, light, or power
directly or indirectly to or for any project,
project user, or for the public, the collection and
disposal of storm and sanitary sewage; any railroads
necessary or desirable for the free flow of
commerce to and from projects; any roads,
highways, bridges, tunnels, viaducts, or other
crossings necessary or desirable for the free
flow of commerce to and from projects, and any
public transportation systems or facilities,
including, but not limited to, bus, truck, ferry, and
railroad terminals, depots, tracked vehicles,
and other rolling stock and ferries; and any
appurtenances, equipment, and machinery or other
personal property necessary or desirable for
the utilization thereof.
(36) "Water
supply facility" means any real or personal property, or any combination
thereof, related to or incidental to any
project, designed, intended, or utilized for the furnishing of
water for domestic, industrial, irrigation, or
other purposes and including artesian wells,
reservoirs, dams, related equipment, and
pipelines, and other facilities.
(37)
"Renewable energy facility" means any real or personal property, or
any
combination thereof, related to, or incidental
to, any project, designed, intended, or utilized for an
eligible renewable energy resource that meets
the criteria set forth in subsections 39-26-5(a) and
39-26-5(c).
42-64-4.
Creation. -- (a) There is authorized, created, and established a public
corporation of the state having a distinct legal
existence from the state and not constituting a
department of state government, which is a
governmental agency and public instrumentality of
the state, to be known as the "Rhode Island
economic development corporation", and which may
be referred to as the "economic development
corporation", with those powers that are set forth in
this chapter, for the purposes of acquiring and
developing real and personal property, and
providing financing to others as set forth in
this chapter, providing and promoting and
encouraging the preservation, expansion and
sound development of new and existing industry,
business, commerce, agriculture, tourism, and
recreational, and renewable energy facilities,
promoting thereby the economic development of
the state and the general welfare of its citizens.
(b) The exercise
by the corporation of the powers conferred by this chapter shall be
deemed and held to be the performance of an
essential governmental function of the state for
public purposes. It is the intent of the general
assembly by the passage of this chapter to vest in
the corporation all powers, authority, rights,
privileges, and titles which may be necessary to
enable it to accomplish the purposes herein set
forth, and this chapter and the powers granted
hereby shall be liberally construed in
conformity with those purposes.
(c) The
corporation and its corporate existence shall continue until terminated by law
or
until the corporation shall cease entirely and
continuously to conduct or be involved in any
business whatsoever in furtherance of its
purposes; provided, that no termination shall take effect,
so long as the corporation shall have bonds,
notes, or other obligations outstanding, unless
adequate provision shall have been made for the
payment thereof pursuant to the documents
securing the obligations or to the terminating
law. Upon termination of the existence of the
corporation, all of its rights and properties
shall pass to and be vested in the state. At no time shall
the assets or other property of the corporation
inure to the benefit of any person or other
corporation or entity.
42-64-13.2.
Renewable energy development fund. -- The corporation shall, in the
furtherance of its responsibilities to promote
and encourage economic development, establish and
administer a renewable energy development fund
as provided for in chapter 26 of title 39 section
39-26-7, and may exercise the powers set forth in this
chapter, as necessary or convenient to
accomplish this purpose, and shall provide
such administrative support as may be needed for the
coordinated administration of the renewable
energy standard as provided for in chapter 39-26 and
the renewable energy program established by
section 39-2-1.2. The corporation, upon the request
of any person undertaking a renewable energy
facility project, may grant project status to the
project, and a renewable energy facility project
which is given project status by the corporation
shall be deemed an energy project of the
corporation.
SECTION 11. Title
42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding
thereto the following chapter:
CHAPTER 140
RHODE ISLAND ENERGY
RESOURCES ACT
42-140-1.
Short title. -- This chapter shall be known as the "Rhode
Island Energy
Resources Act."
42-140-2.
Creation. -- There is hereby authorized, created and established an
office of
energy resources in the executive department of
state government, which may be assigned by
executive order for administrative purposes to a
department within state government. The office
of energy resources shall be the successor to
the state energy office.
42-140-3. Purposes.
– The purposes of the office shall be to:
(1) Develop and
put into effect plans and programs to promote, encourage, and assist the
provision of energy resources for Rhode Island
in a manner that enhances economic well-being,
social equity, and environmental quality;
(2) Monitor,
forecast, and report on energy use, energy prices, and energy demand and
supply forecasts, and make findings and
recommendations with regard to energy supply diversity,
reliability, and procurement, including
least-cost procurement;
(3) Develop and
to put into effect plans and programs to promote, encourage and assist
the efficient and productive use of energy
resources in Rhode Island, and to coordinate energy
programs for natural gas, electricity, and
heating oil to maximize the aggregate benefits of
conservation and efficiency of investments;
(4) Monitor and
report technological developments that may result in new and /or
improved sources of energy supply, increased energy
efficiency, and reduced environmental
impacts from energy supply, transmission and
distribution;
(5) Administer
the programs, duties, and responsibilities heretofore exercised by the state
energy office, except as these may be assigned
by executive order to other departments and
agencies of state government;
(6) Develop,
recommend and, as appropriate, implement integrated and/or comprehensive
strategies, including at regional and federal levels,
to secure Rhode Island's interest in energy
resources, their supply and efficient use, and
as necessary to interact with persons, private sector,
non-profit, regional, federal entities and
departments and agencies of other states to effectuate this
purpose;
(7) Cooperate
with agencies, departments, corporations, and entities of the state and of
political subdivisions of the state in achieving
its purposes;
(8) Cooperate
with and assist the state planning council and the division of state planning
in developing, maintaining, and implementing
state guide plan elements pertaining to energy and
renewable energy;
(9) Administer,
as appropriate, state and federally funded or authorized energy programs,
which may include, but not be limited to:
(1) the federal
low-income home energy assistance program which provides heating
assistance to eligible low-income persons and
any state funded or privately funded heating
assistance program of a similar nature assigned
to it for administration;
(2) the
weatherization assistance program which offers home weatherization grants and
heating system upgrades to eligible persons of
low-income;
(3) the
emergency fuel program which provides oil deliveries to families experiencing a
heating emergency;
(4) the energy
conservation program, which offers service and programs to all sectors;
and
(5) the
renewable energy program established under Rhode Island general laws chapter
39-2;
(10) Develop,
recommend, and evaluate energy programs for state facilities and
operations in order to achieve and demonstrate
the benefits of energy-efficiency, diversification
of energy supplies, energy conservation, and
demand management; and
(11) Advise the
governor and the general assembly with regard to energy resources and
all matters relevant to achieving the purposes
of the office.
42-140-4.
Commissioner. -- (a) There shall be a commissioner of energy
resources, who
shall be appointed by the governor with the advice
and consent of the senate. The commissioner
shall be the director of the office of energy
resources and shall have all such powers, consistent
with law, as are necessary and/or convenient to
effectuate the purposes of the office and
administer its functions. The commissioner shall
have authority to exercise all of the powers and
duties heretofore exercised by the head of the
state energy office. In the performance of the duties
set forth in this paragraph, the commissioner
shall consult with the energy efficiency and
resources management council established
pursuant to chapter 42-140.1.
(b) The
commissioner shall have authority to apply for, receive, and administer grants
and funds from the federal government and all other
public and private entities to accomplish the
purposes of the office.
(c) The
commissioner shall have authority to serve as executive secretary of the
governor's technical assistance committee,
established by section 42-60-4, and shall provide such
staff and technical support to the technical
assistance committee as the technical assistance
committee may require, and shall have authority
to carry out any duties assigned to the office by
the governor in the event of a declaration of a
state energy crisis as authorized under chapter 42-
60 relating to energy crisis management.
42-140-5.
Authority to enter into agreements. -- The commissioner shall have
authority
to enter into agreements with the trustees of
the renewable energy development fund to achieve
integrated and effective use of the renewable
energy proper resources, subsections 39-2-1.2(b)
and (c), and renewable energy standard
resources, section 39-26-7. By mutual agreement with the
trustees, the commissioner may serve as program
manager for the renewable energy programs.
42-140-6.
Information and education programs. -- The commissioner, in
consultation
with the council, shall develop, implement and
maintain, a statewide public information and
education program with regard to energy supply,
energy cost, energy efficiency and conservation,
and energy programs, including programs to help
consumers select energy efficient products, to
evaluate retail and commercial energy resource
choices, and to access available energy assistance
programs including tax credit and rebate
programs.
42-140-7.
Conduct of activities. -- To the extent reasonable and practical,
the conduct of
activities under the provisions of this chapter shall
be open and inclusive; the commissioner and
the council shall seek in addressing the
purposes of the office to involve the research and analytic
capacities of institutions of higher education
within the state, industry, advocacy groups, and
regional entities, and shall seek input from
stakeholders including, but not limited to, residential
and commercial energy users.
42-140-8.
Annual report. -- The commissioner shall report annually, on or
before March
1st of each year, to the governor, the president
of the senate, and the speaker of the house with
regard to the status of energy supplies,
markets, and conditions, the effectiveness of energy
programs, the activities of the office including
the council, and such other matters related to
energy as the commissioner or the council may
deem appropriate.
42-140-9.
Adoption of rules. -- The commissioner shall have the authority to
adopt,
amend, and implement such rules as may be
necessary to desirable to effectuate the purposes of
this chapter. In any rule making by the
commissioner, the commissioner shall consider as a matter
of record the advise of the energy resources
council.
SECTION 12. Title
42 of the general laws entitled "State Affairs and Government" is
hereby amended by adding thereto the following
chapter:
CHAPTER 140.1
THE RHODE ISLAND ENERGY
EFFICIENCY AND RESOURCE MANAGEMENT
COUNCIL
42-140.1-1. Short title. - - This chapter shall be known as
"The Rhode Island Energy
Efficiency
and Resources Management Council Act."
42-140.1-2.
Legislative findings. -- It is hereby found and declared:
(a) Rhode
Island has experienced an energy cost crisis during 2005 and 2006 and faces
the prospect of fluctuating and increasing energy
prices in the future.
(b) Energy
conservation and energy efficiency have enormous, untapped potential for
controlling energy costs and mitigating the
effects of energy crisis for Rhode Island residents and
the Rhode Island economy.
(c) Rhode
Island has lacked an integrated, comprehensive, public, stakeholder-driven
organizational structure to secure for Rhode
Island and its people the full benefits of energy
efficiency, energy conservation, and energy
resources management.
42-140.1-3.
Establishment of Council -- Purposes. -- (a) There is hereby
authorized,
created and established a council to be known as
"The Rhode Island Energy Efficiency and
Resources Management Council" with the
powers and duties set forth in this chapter.
(b) The
purposes of this council are to:
(1) Evaluate
and make recommendations, including, but not limited to, plans and
programs, with regard to the optimization of
energy efficiency, energy conservation, energy
resource development; and the development of a
plan for least-cost procurement for Rhode
Island; and
(2) Provide
consistent, comprehensive, informed and publicly accountable stake-holder
involvement in energy efficiency, energy
conservation, and energy resource management; and
(3) Monitor and
evaluate the effectiveness of programs to achieve energy efficiency,
energy conservation, and diversification of
energy resources; and
(4) Promote
public understanding of energy issues and of ways in which energy
efficiency, energy conservation, and energy
resource diversification and management can be
effectuated.
42-140.1-4.
Composition and Appointment. -- (a) The council shall consist of
eleven
(11) members appointed by the governor with the advice
and consent of the senate; seven (7)
members shall be voting numbers, and the
governor shall give due consideration to appointing
persons with knowledge of: (1) energy regulation
and law; (2) large commercial/industrial users,
(3) small commercial/industrial users; (4)
residential users; (5) low income users; (6)
environmental issues pertaining to energy; (7)
energy design and codes; and four (4) members
shall be ex-officio, non-voting members,
representing an electric distribution entity, a gas
distribution entity, fuel oil or heating fuel
industry, and the commissioner of the office of energy
resources. From the seven (7) voting members,
the governor shall appoint one person to be
chairperson of the council and one person to be
vice chairperson of the council; the commissioner
of the office of energy resources shall be the
executive secretary and executive director of the
council.
(b) With the
exception of the commissioner of the office of energy resources; of the
initial appointments; three (3) members shall be
appointed for a term of three (3) years, three (3)
members shall be appointed for a term of four
(4) years, and four (4) members shall be appointed
for a term of five (5) years; thereafter members
of the council shall be appointed for a term of five
(5) years and may be reappointed.
(c) A simple
majority of the total number of voting members shall constitute a quorum.
(d) A vacancy
other than by expiration shall be filled in the manner of the original
appointment but only for the unexpired portion
of the term. The appointing authority shall have
the power to remove its appointee for just
cause.
(e) The members
of the council shall not be compensated for their service but shall be
reimbursed for their actual expenses necessarily
incurred in the performance of their duties. The
provisions of this subdivision shall not apply
to the executive secretary/executive director.
42-140.1-5.
Powers and duties. -- The council shall have the power to:
(a) Develop and
recommend for implementation plans, programs and standards for
energy conservation, energy efficiency, and
diversification of energy resources.
(b) Monitor and
evaluate plans and programs for energy conservation, energy efficiency
and diversification of energy resources; in
order to effectuate such evaluations the council may
request audits, including performance audits, of
any program for energy conservation, energy
efficiency or diversification of energy resources,
that is established pursuant to Rhode Island law
or is administered by a state agency, a request
for an audit of any program operative pursuant to
an order or decision of the public utilities
commission shall be made to the commission; the
council may make findings and recommendations
with regard to changes, modification or
continuation of any programs which it has
authority to monitor or evaluate.
(c) Submit to
the joint committee on energy an annual report on/or before April 15 of
each year, commencing in 2008, regarding the
activities of the council, its assessment of energy
issues, the status of system reliability, energy
efficiency and conservation procurement and its
recommendations regarding any improvements which
might be necessary or desirable.
(d) Participate
in proceedings of the public utilities commission that pertain to the
purposes of the council, including but not
limited to proceedings regarding least-cost procurement
as provided for in section 39-1-27.7.
(e) Advise
electric distribution companies with regard to implementation of least cost
procurement.
(f) Advise the
commission of energy resources, and recommend policies, standards,
strategies, plans, programs, and procedures with
regard to functions of the office of energy
resources including but not limited to plans,
strategies, and programs to:
(1) implement
cost-effective energy conservation and energy efficiency programs;
(2) promote the
development of eligible renewable energy resources for Rhode Island;
(3) foster
distributed generation of electricity and demand response;
(4) assist
low-income households in meeting energy needs;
(5) coordinate
the use of funds, resources, and programs from diverse resources to
achieve the purposes of the office.
(g) Consider
such other matters as it may deem appropriate to the fulfillment of its
purposes, and may advise the governor, the
general assembly, other parties, and the public with
regard to matters pertaining to its purposes and
duties, which advice may include findings and
recommendations.
42-140.1-6.
Additional general powers. -- In order to effectuate its powers and
duties
the council has the following powers:
(a) To make any
studies of conditions, activities, or problems related to the state's energy
needs, usage, and supplies to carry out its
responsibilities.
(b) To adopt
amend bylaws, to establish committees, to elect and/or appoint officers and
agents, and to engage consultants and
professional services as necessary and appropriate to fulfill
its purposes.
(c) To accept
and administer grants from the federal government and from other sources,
public or private, for the carrying out of any
of its functions, which loans or grants shall not be
expended for other than the purposes for which
provided.
(d) To work
with the appropriate federal, regional, and state agencies, and private
entities.
(e) To apply
for, accept and expend allocations, grants and bequests of funds, for the
purpose of carrying out the lawful
responsibilities of the council.
SECTION 13. Title
42 of the General Laws entitled "State Affairs and Government" is
hereby amended by adding thereto the following
chapter:
CHAPTER 140.2
DISTRIBUTED GENERATION
42-140.2-1.
Findings. – It is hereby found and declared that:
(a) Distributed
generation can if well implemented, contribute to electric system
reliability and efficiency and have system
benefits including, but not limited to, reduced
congestion, improved management of system peak
demands through demand response, and added
capacity that mitigates the needs for additional
central generating capacity in the region;
(b) Distributed
generation from renewable resources diversifies the power sources for
electrical generation, and having multiple,
reliable sources of power for electrical generation
reduces risks and can temper price volatility;
(c) Distributed
generation from renewable resources and from combined heat and power
systems can reduce the environmental impacts,
including greenhouse gas emissions, of electrical
generation;
(d) The system
benefits of distributed generation are a function of the location of the
distributed generation capacity, the reliability
and the efficiency of distributed generation
facilities individually and/or collectively, and
the time of operation of the distributed generation
facilities;
(e) The value
of distributed generation can vary with changes in the wholesale and retail
markets for electricity;
(f) Properly
designed regulatory and financing programs for distributed generation can
have both system benefits and economic benefits
for entities.
(g) The
independent system operator of New England has stated that mitigating peak
demand should be a central strategy in reducing
wholesale electricity and has established a
demand response to accomplish this purpose.
(h) Established
tariffs and embedded principals for rate setting and cost allocation may
present substantial barriers to realizing the
full potential of distributed generation in Rhode Island.
42-140.2-2.
Office of energy resources. – (1) The office of energy resources
shall
support and facilitate a stakeholder led study
of issues pertaining to distributed generations and
barriers that impede the implementation of
distributed generation and the realization of the
societal benefits thereof. This study shall
augment, compliment, and be integrated with a study
initiated pursuant to an order of the public
utilities commission.
(2) Said study
shall consider the following definitions and the implications thereof for the
effective and fair implementation of distributed
generation:
(a)
"Backup power rates" means any component of utility tariffs that are
charged only to
those customers who install on-site generation,
self-generation, behind-the-meter generation, or
distributed generation. Backup power rates, also
called "standby rates", include, but are not
limited to, any rate, tariff, or surcharge
billed on the basis of the amount of energy generated by,
or demand change related to, or installed
capacity size of, any generation unit installed by an end-
use customer.
(b)
"Combined heat and power system" means a system that produces, from a
single
source, both electric power and thermal energy
used in any process or for heating that result in an
aggregate reduction in energy use. To be
considered a combined heat and power system for the
purpose of this section, the system must achieve
an average annual fuel conversion efficiency of
at least fifty-five percent (55%).
(c)
"Net-metering" means billing or charging an end-use customer only for
the electricity
supply or services which is the net amount of
electricity actually delivered to the client by a
supplier or service company, less any amount of
electricity generated by or on behalf of the end-
use customer and either used on the end-use
customer's property or put on to the electric
distribution grid within the same transmission
interconnect area in which the end-use customers is
located.
(3) Said study
shall make findings and recommendations using methods for determining
and quantifying system benefits attributable to
distributed generation including costs and benefits
relating to:
(a) the
electricity distribution system:
(b) the
electricity transmission system;
(c) the
electricity generating system and the cost and availability of capital needed
to
construct or maintain generation capacity;
(d) system
losses;
(e) congestion
and reliability;
(f) ancillary
services including voltage stability and reactive power;
(g) fuel
availability and pricing, and costs of electricity supply;
(h)
environmental impacts.
(4) The
commissioner of the office of energy resources shall report the findings and
recommendations of the stakeholder's group with
regard to any statutory changes necessary to
reduce barriers to implementation of distributed
generation to the general assembly by February
1, 2007.
(5) The
commission shall by June 1, 2007, issue the report of the stakeholder's group
to
the public utilities commission; and the commissioner
is hereby authorized to request that the
commission initiate proceedings with regard to
establishing any appropriate rates and/or
regulation necessary to implement the
recommendations contained in the report.
(6) The
findings and recommendations of the said stakeholder's group shall in no way be
binding upon either the general assembly or the
public utilities commission and may be accepted,
accepted in part, rejected or rejected in part
by the general assembly or the public utilities
commission and until such action by either the
general assembly or the public utilities
commission, there shall be no further action on
said recommendations.
42-140.2-3.
Implementation monitoring. -- The energy efficiency and resources
management council is hereby authorized and
directed to monitor the implementation of
distributed generation and to report its
findings and recommendations biennially on or before
February 1, commencing in 2009 and ending in
2015.
SECTION 14. Title
42 of the General Laws entitled "STATE AFFAIRS AND
GOVERNMENT" is hereby amended by adding
thereto the following chapter:
CHAPTER 141
AFFORDABLE ENERGY
42-141-1.
Purpose. – The legislature finds and declares: (a) That energy costs
have been
rising sharply while the incomes of low incomes
households have been declining with the result
that energy costs are substantial and growing
hardship;
(b) That the
housing stock occupied by many low income households is old and energy
inefficient;
(c) That Rhode
Island has lacked an overall state strategy and commitment to addressing
these conditions; and
(d) That it is
necessary for public health and welfare to address the energy needs of low
income households in a manner that supports
efficient use of energy resources.
42-141-2.
Definitions. – For the purposes of this chapter the following terms
have the
following meanings:
(a)
"Commission" means the public utilities commission established by
chapter 39-1.
(b)
"Commissioner" means the commissioner of the office of energy
resources
established pursuant to chapter 42-140.
(c)
"Council' means the energy efficiency and resources management council
established
pursuant to chapter 42-140.1.
(d)
"Department" means the department of administration.
(e)
"LIHEAP" means the Federal Low Income Home Energy Assistance Program.
(f) "Low
income household" means a household with a gross annual income equal to or
less than sixty percent (60%) of median family
income and that is eligible for LIHEAP, as
determined for each applicant by the office of
energy resources, or its designee. A very low
income household means a LIHEAP eligible
household with a gross annual income equal to or
less than one-hundred twenty-five percent (125%)
of the Federal poverty guideline for the
household.
(g)
"Person" means any individual, group of individuals, firm,
corporation, association,
partnership, or public or private entity.
42-141-3.
Plan. – The commissioner, in consultation with the council, shall
develop a
state strategic plan for energy affordability on
or before March 1, 2007, and each March 1
thereafter, until March 1, 2019, which plan
shall include strategies and actions to make energy
affordable by low-income and, especially, very
low income households, through a combination of
energy efficiency, weatherization, and energy
price mitigation measures, supported by resources
from federal, state, and other sources, including
LIHEAP and contributions made in support of
LIHEAP under the provisions of state law,
regulation, or order. The state strategic plan shall
include:
(a) proposed
activities to increase energy efficiency and weatherization in dwelling units
occupied by low income and very low income
households;
(b) propose
allocations of funds from the affordable energy fund to be used for the
purposes of reductions in electric and gas
distribution rates and customers fees charged to such
households, in accordance with subdivision
42-141-5(d)(2);
(c) estimates
of revenues to the fund and expenditures from the fund to support the
purposes of the fund during the next fiscal
year;
(d) plans and
standards for fair, effective and efficient administration of energy
affordability activities and assistance to low
income and very low income households that make
use to the extent reasonable and practicable
community organizations serving such households.
42-141-4.
Weatherization and energy conservation. – (a) On or before January
1,
2008, the office of energy resources in
cooperation with the housing resources commission shall
adopt a strategic plan to achieve energy
efficiency in low and moderate income neighborhoods
through weatherization and energy conservation
measures, which strategic or portions thereof
shall be incorporated into the state guide, as
provided for in section 42-11-10, or before July 1,
2008.
(b) Energy
efficient mortgages. On or before July 1, 2008, the Rhode Island Housing and
Mortgage Finance Corporation shall consider
establishing and implementing a program to
support energy efficiency residential mortgages
and/or loans for up to fifteen percent (15%) of the
appraised value of a dwelling for energy savings
improvements and/or for weatherization and
energy efficiency measures as provided for in
this chapter, for which the monthly mortgage or
loan payment does not exceed the likely
reduction in utility and heating costs for the dwelling.
42-141-5.
Affordable energy fund. – (a) Fund established. – (1) A
special account is
hereby established in the state treasury to be
called the "affordable energy fund."
(2) Money
remaining in the fund at the end of a fiscal year shall remain available for
expenditure in successive fiscal years.
(3) The fund
shall be used for only those purposes enumerated in subsection (d).
(b) Financing
of the fund. – The fund shall consist of the following sources:
(1) Sums the
legislature may appropriate;
(2) Moneys
received from federal, state, private donor or other sources for the purpose of
energy affordability by low income households;
(3) Fees
required pursuant to subsection (c); and
(4) Any
interest earned on the moneys in the fund.
(c) Affordable
energy fees. – (1) An affordable energy fee in an amount set forth in this
subsection shall be imposed on gross receipts of
electricity and gas companies and gross receipts
on the sale of heating fuels not used for
residential heating. The fee shall be remitted to the
division of taxation according to the applicable
schedule for the remission of the gross receipts
tax as provided for in chapter 44-13 or the
sales and use as provided for in chapter 44-18. The
fees shall be as follows:
(i) Gas. One
percent (1%) of the gross receipts of gas companies subject to the provisions
of chapter 44-13, "Public Service
Corporation Tax".
(ii)
Electricity. One percent (1%) of the gross receipts of electric companies
subject to the
provisions of chapter 44-13. "Public
Service Corporation Tax".
(iii) Heating
fuel other than natural gas and electricity. Two percent (2%) of gross
receipts from the sales and use of heating fuel
subject to the provisions of chapter 44-18. "Sales
and Use Taxes – Liability and Computation".
(2) Every
person from whom an affordable energy fee is due shall be liable for the fee
until it has been paid to the state.
(d) Purposes
of the fund. – (1) The commissioner may use money from the
fund to:
(i) Support
weatherization and energy conservation educational programs and
weatherization and energy conservation services
for low-income and very low income
households;
(ii) Compensate
electric and gas distribution companies for revenues lost due to the
reductions in distribution and customer charges,
in accordance with a plan approved by the
commission, to very low income households, and
if feasible to low income households, which
shall, as a first priority, be used to provide up
to a fifty percent (50%) reduction in the distribution
and customer charges for a reasonable and
prudent use by very low-income households of gas
and electricity that does not exceed average use
for comparable dwelling units.
(iii) Defray
the cost of heating fuel delivered to very low income households by an
amount not to exceed twenty-five percent (25%)
of the allowable cost of heating fuel and a total
usage by the household, supported assistance
from all sources overseen by the commissioner, that
is reasonable and prudent and does not exceed
average use for comparable dwelling units.
(iv) It is not
the purpose of the fund to reduce the amount of assistance a household
would otherwise receive from LIHEAP and other
sources in the absence of the fund or to
subsidize utility rates in effect as of July 1,
2006, and provided for by law.
(2) If the
commissioner determines it is in the public interest to allocate funds for the
purposes set forth in subparagraph (1)(ii)
above, the commissioner shall notify the commission of
the amount of funds to be allocated for a
specified period. The commission shall then direct the
electric and/or gas distribution companies to
file amendments to the appropriate tariffs to
implement rate reductions designed to provide
the rate reduction consistent with the amount
allocated for the period designated, which
amendments are subject to the review and approval of
the commission. Once approval is given, the
allocated funds shall be transferred to the gas and/or
electric distribution company. Any funds held
after transfer shall accumulate interest at the
customer deposit rate ("interest").
If, at the end of the rate reduction period, there are any unused
dollars from the fund, such dollars shall be
returned to the affordable energy fund with interest.
Likewise, if at the end of the rate reduction
period, there were not enough funds allocated to
cover the rate reduction as designed, the
shortfall will be reimbursed from the affordable energy
fund with interest; provided, however, if there
are no additional funds available from the fund,
such shortfall or uncovered balance of such
shortfall will be recovered with interest from all
customers in a manner and over the period
approved by the commission.
(e)
Administration and records of the fund. – The commissioner shall
administer the fund in accordance with this
chapter.
(2) The
commissioner in consultation with the department shall adopt procedures
governing the expenditure of, and accounting
for, money expended from the fund.
(3) The
commissioner is responsible for insuring that there are adequate moneys
available
in the fund to carry out the purposes of this
section.
(4)
The commissioner shall maintain accounting records showing the income and
expenses
of the fund.
(f) Expenditure of fund money. -- Disbursements may be made
from the fund
for
the following purposes:
(1) Necessary administrative expenses, personnel expenses and equipment
costs of the
office
related to this section which shall not exceed ten percent (10%) of the revenue
of the fund;
(2) All costs to effectuate the purposes of the fund as set forth in
subsection (d).
(g) Report to the legislature. – (1) The commissioner
shall submit a report to
the
legislature not later than the tenth (10th) day following the convening of each
regular session
of
the legislature. The report may include information considered significant by
the commissioner
but
must include:
(1) The amount of money expended under section 42-141-5 during the preceding
fiscal
year;
(2) The amount and source of money received during the preceding fiscal
year;
(3) A detailed summary of activities funded by the fund during the preceding
fiscal year;
(4) The projected cost to the fund for affordable energy programs in the
next fiscal year.
42-141-6. Heating fuel procurement other than natural gas
and electricity. -- The
commissioner
shall seek to secure the best price over time for heating fuels delivered under
agreements
supported in whole or in part by funds administered by the office of energy
resources
and
is hereby authorized to use margin over rack pricing to accomplish this purpose
which
margin
will be established by September 1, annually, after consultation with the
oil/heat institute
of
Rhode Island and the Rhode Island Community Action Association. The
commissioner shall
report
publicly with regard to heating fuel procurement experience in other jurisdictions
and to a
proposed
least cost procurement plan for heating fuel in Rhode Island, and shall provide
a public
comment
period of not less than twenty (20) days, prior to rendering decision on how to
effectuate
the requirements of this section. Effective October 1, 2006, the price herein
provided
shall
be updated weekly and shall be published on a website maintained by the office
of energy
resources.
42-141-7. Regulations. -- The commissioner may adopt all
rules and regulations
necessary
for the administration and enforcement of this chapter.
42-141-8. Cooperation required. -- The commissioner may
request from any
government
agency, and the agency is authorized and directed to provide, any cooperation
and
assistance,
services, and data, within the jurisdiction of the agency, as will enable the
office of
energy
resources to properly perform or exercise any of its functions, duties and
powers under
this
chapter.
42-141-9 Construction. -- This chapter, being
necessary for the welfare of the state and
its
inhabitants, shall be liberally construed so as to effectuate its purposes.
42-141-10. Inconsistent provisions. -- Insofar as the
provisions of this chapter are
inconsistent
with the provisions of any other law or ordinance, general, special or local,
the
provisions
of this chapter shall be controlling.
42-141-11.
Severability. – If any clause, sentence, paragraph, section, or part
of this
chapter shall be adjudged by any court of
competent jurisdiction to be invalid, that judgment shall
not affect, impair, or invalidate the remainder
of the chapter but shall be confined in its operation
to the clause, sentence, paragraph, section, or
part directly involved in the controversy in which
that judgment shall have been rendered.
42-141-12.
Transitional provision. – Effective September 1, 2006, in order to
provide
for transitional assistance to very low-income
customers during fiscal year 2007, notwithstanding
any law or order to the contrary, the following
provisions shall apply to eligibility for restoration
of gas and/or electric service to a very
low-income customer who has been terminated from
service in calendar year 2006; the very
low-income customer shall pay eighteen percent (18%) of
the customer's unpaid balance and shall agree to
remain current with payments for current usage
and to pay one thirty-sixth (1/36) of one-half
(1/2) of the remaining balance per month through
June 2007; a very low income customer who
complies with the provisions of this section shall be
transitioned to the provision of subsection
39-2-1(e)(ii) and (iii) effective July 1, 2007, and the
monthly payments on the remaining balance that
have been made pursuant to such agreement
shall be credited to the requirements of
subdivision 39-2-1(e)(iv) for the forgiveness of
arrearages. A very low-income customer who
elects to use the provisions of this section and who
fails to comply with the terms of the agreement
for the restoration of service under the provisions
of this section shall be ineligible to apply for
restoration of service under the provisions of
subdivision 39-2-1(e) and shall be subject to
termination of service effective April 15, 2007, and
any unpaid balance shall be due in full and
shall be payable in accordance with the rules of the
commission. The provisions of this section shall
be repealed effective July 2, 2007.
SECTION 14 Section
44-13-4 of the General Laws in Chapter 44-13 entitled "Public
Service Corporation Tax" is hereby amended
to read as follows:
44-13-4.
Rate of taxation. -- The tax imposed will be at the following rates:
(1) In the case
of every corporation whose principal business is a steamboat or ferryboat
business as a common carrier, every common
carrier steam or electric railroad corporation, every
street railway corporation, every common carrier
dining, sleeping, chair, or parlor car
corporation, every corporation whose principal
business is selling and distributing water to the
public, and every toll bridge corporation, one
and one-fourth percent (1.25%) of its gross
earnings;
(2) In the case
of every corporation whose principal business is manufacturing, selling,
distributing and/or transmitting currents of electricity
to be used for light, heat, or motive power,
four percent (4%) of its gross earnings, but
deductions shall be made of gross earnings from the
transmission or sale of electricity to other
public utility corporations, non-regulated power
producers, or municipal utilities for resale,
whether within or outside of this state; provided, that
the tax measured by the portion of the utility's
gross earnings as is derived from the manufacture
and sale of illuminating and heating gas and its
by-products and the merchandising of gas
appliances shall be computed at the rate of
three percent (3%); provided, however, that effective
July 1, 2007, the amount of the tax herein
established shall be reduced by the fee due and paid to
the affordable energy fund established by
section 42-141-5;
(3) In the case
of every express corporation carrying on its business on steamboats,
steam or electric railroads, or street railways
and of every public service corporation whose
principal business is that of a telegraph
corporation, four percent (4%) of its gross earnings;
(4) In the case
of every telecommunications corporation providing telecommunications
service, ten percent (10%) of its gross
earnings; provided, that the rate shall be nine percent (9%)
effective July 1, 1985, eight percent (8%)
effective July 1, 1986, seven percent (7%) effective
July 1, 1987, six percent (6%) effective July 1,
1988, and five percent (5%) effective July 1,
1997. For purposes of this chapter,
"telecommunications service" means the transmission of any
interactive two-way electromagnetic
communications including voice, image, data, and other
information, by means of wire, cable, including
fiber optical cable, microwave, and radio wave,
or any combinations of these media. This
definition does not include value added non-voice
services in which computer processing
applications are used to act on the form, content, code, and
protocol of the information to be transmitted;
(5) In the case
of every public service cable corporation, eight percent (8%) of its gross
earnings;
(6) In the case
of every corporation whose principal business is manufacturing, selling
and/or distributing to the public illuminating
or heating gas, three percent (3%) of its gross
earnings.
SECTION 15 .
Chapter 44-18 of the General Laws entitled "Sales and Use Taxes -
Liability and Computation" is hereby
amended by adding thereto the following section:
44-18-30D.
Credit for fees to the affordable energy fund. – Effective July 1,
2007,
there shall be a credit, of the amount of the
fee due and paid to the affordable energy fund
established by section 42-141-5, against the
gross receipts tax for the sales and use of heating fuel
not exempted from taxation pursuant to
subsection 44-18-30 (20).
SECTION 16.
Construction. -- This act, being necessary for the welfare of the state and
its inhabitants shall be construed liberally so
as to effectuate its purposes.
SECTION 17.
Severability. – If any clause, sentence, paragraph, section, or part of this
act shall be adjudged by any court of competent
jurisdiction to be invalid, that judgment shall not
affect, impair, or invalidate the remainder of
the act but shall be confined in its operation to the
clause, sentence, paragraph, section, or part
directly involved in the controversy in which that
judgment shall have been rendered.
SECTION 18. This
act shall take effect upon passage.
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LC02862/SUB
A/3
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