2013 -- H 6018 SUBSTITUTE A

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LC02322/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- THE ENERGY REFORM ACT

OF 2013

     Introduced By: Representatives Handy, and Ruggiero

     Date Introduced: April 24, 2013

     Referred To: House Environment and Natural Resources

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 42-11-10 of the General Laws in Chapter 42-11 entitled

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"Department of Administration" is hereby amended to read as follows:

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     42-11-10. Statewide planning program. -- (a) Findings. - The general assembly finds

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that the people of this state have a fundamental interest in the orderly development of the state;

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the state has a positive interest and demonstrated need for establishment of a comprehensive

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strategic state planning process and the preparation, maintenance, and implementation of plans

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for the physical, economic, and social development of the state; the continued growth and

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development of the state presents problems that cannot be met by the cities and towns

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individually and that require effective planning by the state; and state and local plans and

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programs must be properly coordinated with the planning requirements and programs of the

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federal government.

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      (b) Establishment of statewide planning program.

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      (1) A statewide planning program is hereby established to prepare, adopt, and amend

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strategic plans for the physical, economic, and social development of the state and to recommend

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these to the governor, the general assembly, and all others concerned.

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      (2) All strategic planning, as defined in subsection (c) of this section, undertaken by all

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departments and agencies of the executive branch unless specifically exempted, shall be

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conducted by or under the supervision of the statewide planning program. The statewide planning

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program shall consist of a state planning council, and the division of planning, which shall be a

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division within the department of administration.

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      (c) Strategic planning. - Strategic planning includes the following activities:

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      (1) Establishing or identifying general goals.

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      (2) Refining or detailing these goals and identifying relationships between them.

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      (3) Formulating, testing, and selecting policies and standards that will achieve desired

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objectives.

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      (4) Preparing long-range or system plans or comprehensive programs that carry out the

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policies and set time schedules, performance measures, and targets.

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      (5) Preparing functional short-range plans or programs that are consistent with

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established or desired goals, objectives, and policies, and with long-range or system plans or

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comprehensive programs where applicable, and that establish measurable intermediate steps

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toward their accomplishment of the goals, objectives, policies, and/or long-range system plans.

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      (6) Monitoring the planning of specific projects and designing of specific programs of

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short duration by the operating departments, other agencies of the executive branch, and political

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subdivisions of the state to insure that these are consistent with and carry out the intent of

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applicable strategic plans.

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      (7) Reviewing the execution of strategic plans and the results obtained and making

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revisions necessary to achieve established goals.

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      (d) State guide plan. - Components of strategic plans prepared and adopted in accordance

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with this section may be designated as elements of the state guide plan. The state guide plan shall

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be comprised of functional elements or plans dealing with land use; physical development and

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environmental concerns; economic development; housing production; energy supply, including

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diversification of Rhode Island's energy portfolio through regional and international procurement

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opportunities of renewable large-scale hydropower and the development of renewable energy

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resources in Rhode Island, and energy access, use, and conservation; human services; and other

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factors necessary to accomplish the objective of this section. The state guide plan shall be a

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means for centralizing, integrating, and monitoring long-range goals, policies, plans, and

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implementation activities related thereto. State agencies concerned with specific subject areas,

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local governments, and the public shall participate in the state guide planning process, which shall

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be closely coordinated with the budgeting process.

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      (e) Membership of state planning council. - The state planning council shall consist of:

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      (1) The director of the department of administration as chairperson;

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      (2) The director, policy office, in the office of the governor, as vice-chairperson;

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      (3) The governor, or his or her designee;

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      (4) The budget officer;

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      (5) The chairperson of the housing resources commission;

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      (6) The highest-ranking administrative officer of the division of planning, as secretary;

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      (7) The president of the League of Cities and Towns or his or her designee and one

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official of local government, who shall be appointed by the governor from a list of not less than

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three (3) submitted by the Rhode Island League Cities and Towns;

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      (8) The executive director of the League of Cities and Towns;

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      (9) One representative of a nonprofit community development or housing organization

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appointed by the governor;

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      (10) Four (4) public members, appointed by the governor;

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      (11) Two (2) representatives of a private, nonprofit environmental advocacy

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organization, both to be appointed by the governor;

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      (12) The director of planning and development for the city of Providence;

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      (13) The director of the department of transportation;

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      (14) The director of the department of environmental management;

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      (15) The director of the department of health; and

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      (16) The executive director of the economic development corporation.

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      (f) Powers and duties of state planning council. - The state planning council shall have

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the following powers and duties:

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      (1) To adopt strategic plans as defined in this section and the long-range state guide plan,

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and to modify and amend any of these, following the procedures for notification and public

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hearing set forth in section 42-35-3, and to recommend and encourage implementation of these

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goals to the general assembly, state and federal agencies, and other public and private bodies;

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approval of strategic plans by the governor; and to ensure that strategic plans and the long-range

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state guide plan are consistent with the findings, intent, and goals set forth in section 45-22.2-3,

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the "Rhode Island Comprehensive Planning and Land Use Regulation Act";

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      (2) To coordinate the planning and development activities of all state agencies, in

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accordance with strategic plans prepared and adopted as provided for by this section;

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      (3) To review and comment on the proposed annual work program of the statewide

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planning program;

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      (4) To adopt rules and standards and issue orders concerning any matters within its

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jurisdiction as established by this section and amendments to it;

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      (5) To establish advisory committees and appoint members thereto representing diverse

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interests and viewpoints as required in the state planning process and in the preparation or

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implementation of strategic plans. The state planning council shall appoint a permanent

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committee comprised of:

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      (i) Public members from different geographic areas of the state representing diverse

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interests, and

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      (ii) Officials of state, local and federal government, which shall review all proposed

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elements of the state guide plan, or amendment or repeal of any element of the plan, and shall

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advise the state planning council thereon before the council acts on any such proposal. This

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committee shall also advise the state planning council on any other matter referred to it by the

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council; and

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      (6) To establish and appoint members to an executive committee consisting of major

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participants of a Rhode Island geographic information system with oversight responsibility for its

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activities.

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      (7) To adopt, amend and maintain as an element of the state guide plan or as an

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amendment to an existing element of the state guide plan, standards and guidelines for the

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location of eligible renewable energy resources and renewable energy facilities in Rhode Island

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with due consideration for the location of such resources and facilities in commercial and

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industrial areas, agricultural areas, areas occupied by public and private institutions, and property

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of the state and its agencies and corporations, provided such areas are of sufficient size, and in

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other areas of the state as appropriate.

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      (g) Division of planning.

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      (1) The division of planning shall be the principal staff agency of the state planning

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council for preparing and/or coordinating strategic plans for the comprehensive management of

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the state's human, economic, and physical resources. The division of planning shall recommend

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to the state planning council specific guidelines, standards, and programs to be adopted to

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implement strategic planning and the state guide plan and shall undertake any other duties

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established by this section and amendments thereto.

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      (2) The division of planning shall maintain records (which shall consist of files of

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complete copies) of all plans, recommendations, rules, and modifications or amendments thereto

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adopted or issued by the state planning council under this section. The records shall be open to

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the public.

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      (3) The division of planning shall manage and administer the Rhode Island geographic

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information system of land-related resources, and shall coordinate these efforts with other state

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departments and agencies, including the University of Rhode Island, which shall provide

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technical support and assistance in the development and maintenance of the system and its

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associated data base.

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      (4) The division of planning shall coordinate and oversee the provision of technical

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assistance to political subdivisions of the state in preparing and implementing plans to accomplish

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the purposes, goals, objectives, policies, and/or standards of applicable elements of the state guide

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plan and shall make available to cities and towns data and guidelines that may be used in

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preparing comprehensive plans and elements thereof and in evaluating comprehensive plans and

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elements thereby.

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      (h) [Deleted by P.L. 2011, ch. 215, section 4, and by P.L. 2011, ch. 313, section 4_.

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      (i) The division of planning shall be the principal staff agency of the water resources

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board established pursuant to chapter 46-15 ("Water Resources Board") and the water resources

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board corporate established pursuant to chapter 46-15.1 ("Water Supply Facilities").

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     SECTION 2. Section 42-140-3 of the General Laws in Chapter 42-140 entitled "Rhode

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Island Energy Resources Act" is hereby amended to read as follows:

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     42-140-3. Purposes. -- The purposes of the office shall be to:

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      (1) Develop and put into effect plans and programs to promote, encourage, and assist the

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provision of energy resources for Rhode Island in a manner that enhances economic well-being,

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social equity, and environmental quality;

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      (2) Monitor, forecast, and report on energy use, energy prices, and energy demand and

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supply forecasts, and make findings and recommendations with regard to energy supply diversity,

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reliability, and procurement, including least-cost procurement;

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      (3) Develop and to put into effect plans and programs to promote, encourage and assist

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the efficient and productive use of energy resources in Rhode Island, and to coordinate energy

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programs for natural gas, electricity, and heating oil to maximize the aggregate benefits of

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conservation and efficiency of investments;

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      (4) Monitor and report technological developments that may result in new and/or

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improved sources of energy supply, increased energy efficiency, and reduced environmental

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impacts from energy supply, transmission and distribution;

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      (5) Administer the programs, duties, and responsibilities heretofore exercised by the state

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energy office, except as these may be assigned by executive order or the general laws to other

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departments and agencies of state government;

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      (6) Develop, recommend and, as appropriate, implement integrated and/or

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comprehensive strategies, including at regional and federal levels, to secure Rhode Island's

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interest in energy resources, their supply and efficient use, and as necessary to interact with

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persons, private sector, non-profit, regional, federal entities and departments and agencies of

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other states to effectuate this purpose;

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      (7) Cooperate with agencies, departments, corporations, and entities of the state and of

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political subdivisions of the state in achieving its purposes;

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      (8) Cooperate with and assist the state planning council and the division of state planning

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in developing, maintaining, and implementing state guide plan elements pertaining to energy and

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renewable energy;

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      (9) Coordinate the energy efficiency, renewable energy, least cost procurement, and

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systems reliability plans and programs with the energy efficiency resource management council

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and the renewable energy coordinating board;

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      (10) Participate in, monitor implementation of, and provide technical assistance for the

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low-income home energy assistance program enhancement plan established pursuant to section

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39-1-27.12;

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      (11) Participate in and monitor the distributed generation standard contracts program

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pursuant to chapter 39-26-2;

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      (12) Coordinate opportunities with and enter into contracts and/or agreements with the

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economic development corporation associated with the energy efficiency, least-cost procurement,

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system reliability, and renewable energy fund programs;

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      (13) Provide support and information to the division of planning and the state planning

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council in development of a ten (10) year Rhode Island Energy Guide Plan, which shall be

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reviewed and amended if necessary every five (5) years;

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      (14) Provide funding support if necessary to the renewable energy coordinating board

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and/or the advisory council to carry out the objectives pursuant to chapter 42-140-3;

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      (15) Advise and provide technical assistance to state and federally funded energy

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program to support:

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      (i) The federal low-income home energy assistance program which provides heating

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assistance to eligible low-income persons and any state funded or privately funded heating

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assistance program of a similar nature assigned to it for administration;

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      (ii) The weatherization assistance program which offers home weatherization grants and

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heating system upgrades to eligible persons of low-income;

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      (iii) The emergency fuel program which provides oil deliveries to families experiencing

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a heating emergency;

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      (iv) The energy conservation program, which offers service and programs to all sectors;

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and

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      (v) [Deleted by P.L. 2008, ch. 228, section 2, and P.L. 2008, ch. 422, section 2.]

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      (16) Advise the economic development corporation in the development of standards and

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rules for the solicitation and award of renewable energy program investment funds in accordance

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with section 42-64-13.2;

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      (17) Develop, recommend, and evaluate energy programs for state facilities and

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operations in order to achieve and demonstrate the benefits of energy-efficiency, diversification

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of energy supplies, energy conservation, and demand management; and

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      (18) Advise the governor and the general assembly with regard to energy resources and

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all matters relevant to achieving the purposes of the office.; and

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      (19) The commissioner, in consultation with a designee of the division of public utilities

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and carriers, a designee of the electric distribution company, and others the commissioner may

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deem necessary, shall prepare and issue by October 15, 2013 a renewable large-scale hydropower

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opportunities report which shall identify opportunities to procure electricity from a new or

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existing renewable large-scale hydropower facility greater than thirty megawatt (30 MW),

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including regional and Rhode Island based procurement opportunities and mechanisms,

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environmental and greenhouse gas emissions impact, pricing, necessary transmission upgrades

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and construction completion, resulting transmission and distribution costs, and a timeline for

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renewable large-scale hydropower to be available for Rhode Island purchase. The electric

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distribution company shall provide the commissioner with the necessary and requested

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information to complete the hydroelectric power opportunities report. With respect to the costs

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associated with the provision of the necessary and requested information by the office, the

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electric distribution company shall recover said costs in rates by the electric distribution company

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in the year incurred or the year following incurrence through an appropriate filing with the

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division of public utilities. The commissioner and the distribution company may also utilize

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regional analyses as necessary.

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     SECTION 3. This act shall take effect upon passage.

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LC02322/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- THE ENERGY REFORM ACT

OF 2013

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     This act would include large-scale hydropower as a renewable energy source to be

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examined in the state energy plan and direct the Office of Energy Resources, in consultation with

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others, to conduct a detailed market analysis and to assess the costs, with an October 15, 2013

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report date.

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     This act would take effect upon passage.

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LC02322/SUB A

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