2024 -- S 2293 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RENEWABLE READY

PROGRAM

     

     Introduced By: Senators DiMario, Euer, Miller, LaMountain, Tikoian, Sosnowski,
Valverde, Britto, Murray, and Gu

     Date Introduced: February 12, 2024

     Referred To: Senate Environment & Agriculture

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND

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GOVERNMENT" is hereby amended by adding thereto the following chapter:

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CHAPTER 140.5

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RENEWABLE READY PROGRAM

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     42-140.5-1. Statement of purpose.

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     The purpose of this program is to promote the responsible siting and development of

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renewable energy generating resources in locations where it would be an ancillary beneficial use

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to the redevelopment of previously contaminated property. Greenhouse gas emissions pose threats

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to the health and safety of Rhode Islanders through flooding, sea level rise, extreme heat, and

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increased storm intensity. In order to reduce this threat, Rhode Island must promote the deployment

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of renewable energy generating projects, while preserving the most valuable forests.

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     42-140.5-2. Definitions.

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     As used in this chapter, the following words and terms shall have the following meanings,

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unless the context indicates another or different meaning or intent:

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     (1) "Commissioner" means the commissioner of the office of energy resources.

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     (2) "Community remote net-metering system" shall be defined pursuant to § 39-26.4-2.

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     (3) "Corporation" means any corporate person, including, but not limited to: corporations,

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societies, associations, limited liability companies, partnerships, and sole proprietorships.

 

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     (4) "Department" means the department of environmental management.

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     (5) "Eligible entities" means any local governmental unit, person, corporation or

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community remote net-metering system.

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     (6) "Financial assistance" means any form of financial assistance provided by the

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infrastructure bank to a local governmental unit, person, corporation, or community remote net-

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metering system in accordance with this chapter for all or any part of the cost of an approved

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project, including, without limitation: grants, temporary and permanent loans, with or without

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interest, guarantees, insurance, subsidies for the payment of debt service on loans, lines of credit,

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and similar forms of financial assistance, principal forgiveness and negative interest loans.

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     (7) "Fund" means the renewable ready fund described in § 42-140.5-4.

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     (8) "Infrastructure bank" means the Rhode Island infrastructure bank.

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     (9) "Interconnection costs" means charges from the electric distribution company to a

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renewable energy customer or developer as described in § 39-26.3-4.1.

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     (10) "Interconnection study" means either a feasibility study or impact study as described

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in § 39-26.3-2.

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     (11) "Local governmental unit" means any town, city, district, commission, agency,

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authority, board, bodies politic and corporate, public corporation, or other political subdivision or

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instrumentality of the state or of any political subdivision thereof.

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     (12) "Office" means the office of energy resources.

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     (13) "Person" means an individual, firm, corporation, association, partnership, farm, town

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or city of the State of Rhode Island, multi-municipal collaborative, or the State of Rhode Island or

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any department of the state government, governmental agency, or public instrumentality of the

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state.

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     42-140.5-3. Identification of eligible sites.

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     (a) The office, in coordination with the department, shall prepare a list of locations that

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meet the following criteria:

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     (1) Is a current or former contaminated site as determined by the department;

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     (2) Is property or a facility owned and/or managed by the state;

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     (3) Is a rooftop of a public, municipal or state-owned building;

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     (4) Is state property adjacent to a highway or major road; or

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     (5) Is owned by the electric distribution company and subject to the environmental response

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fund.

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     (b) The list shall exclude properties where the owner has begun the process of permitting

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or developing a renewable energy generation project or any other development.

 

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     (c) The list shall:

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     (1) Include a reasonable estimate of the renewable energy production capacity of the

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locations;

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     (2) Identify the current owner of the property and provide their contact information, if

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available;

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     (3) Include a reasonable estimate of any utility interconnection costs that would be required

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to connect the project to the existing electricity transmission and distribution system; provided that:

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     (i) Any available impact study shall be conclusive evidence of estimated costs;

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     (ii) Any variables that the office or department relied upon in the creation of the estimate

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shall be included and described;

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     (iii) The electric distribution company shall provide estimated interconnection costs to the

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office as sites are identified;

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     (iv) The cost of an interconnection study shall not be included in the estimation of

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interconnection costs; and

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     (4) Prioritize locations based upon surrounding infrastructure that can support the

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development of distributed generation resources.

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     42-140.5-4. Establishment of the renewable ready fund.

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     (a) There is hereby established a renewable ready fund within the Rhode Island

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infrastructure bank.

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     (b) The purpose of the fund is to provide financial assistance to eligible entities to reduce

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the site preparation and interconnection costs for renewable energy development projects on current

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or formerly contaminated sites to support and encourage the development of these locations.

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     (c) The infrastructure bank is hereby authorized and directed to seek all available federal

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resources, in consultation with the office and any electric distribution company, to fulfill the

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purpose of the fund. In pursuing federal funding sources, efforts shall include, but not be limited

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to, funding programs and other financing mechanisms established through the federal Infrastructure

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Investment and Jobs Act, the Inflation Reduction Act, and any applicable federal statute.

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     (d) The fund shall consist of:

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     (1) Money appropriated in the state budget to the fund or otherwise made available to the

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infrastructure bank;

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     (2) Money made available to the fund through federal programs or private contributions;

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     (3) Repayments of principal and interest from loans made from the fund;

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     (4) Proceeds from the sale, disposition, lease, or rental of collateral related to financial

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assistance provided under this chapter;

 

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     (5) Application or other fees paid to the infrastructure bank to process applications for

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financial assistance; and

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     (6) Any other money made available to the fund.

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     42-140.5-5. Powers of the infrastructure bank and the office.

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     (a) The infrastructure bank, in consultation with the office, shall review and approve

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applications for financial assistance from the fund, subject to the availability of funds, upon the

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submission of a complete application from eligible entities to receive funds for a purpose consistent

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with this chapter.

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     (b) The office, in consultation with the infrastructure bank, shall create a standard

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application and annual application deadlines to be used in the management of fund requests.

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     (c) The office, upon a determination that an application is incomplete, may direct applicants

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to revise their application or deny the application after a reasonable opportunity for the applicant

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to provide additional information.

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     (d) The infrastructure bank, in the event that there are insufficient funds to cover the costs

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of all projects that meet the criteria to be approved, shall follow the prioritized list prepared by the

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office in accordance with this chapter.

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     (e) Approval of an application shall only occur if funds are currently available in the fund,

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or if the infrastructure bank reasonably expects that funds will be available in the six (6) months

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following the approval of an application.

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     (f) The infrastructure bank, in consultation with the office, shall set an application fee, due

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upon submission, to cover the reasonable costs to the bank for the investigation and review of the

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application.

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     42-140.5-6. Use of funds.

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     (a) Funds shall be used to cover the costs of connecting a renewable energy generation

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project to the electric distribution system on sites identified by the office and department and

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published on the list of eligible sites, and shall include, but not be limited to, the following activities:

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     (1) Installation of transformers and substations;

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     (2) Transmission facilitation;

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     (3) Grid flexibility; and

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     (4) Electrification planning for sites and facilities.

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     (b) Funds shall not be used to conduct any interconnection study or other preliminary work

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as may be required by the electric distribution company or the public utilities commission.

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     (c) Funds shall not be distributed to applicants, or an entity to whom the applicant must

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pay to make the interconnection, until the following criteria are met:

 

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     (1) The project site is listed on the list of eligible sites prepared by the office;

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     (2) The application is approved by the office;

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     (3) Certification is provided demonstrating that funds are available in the fund; and

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     (4) The applicant’s project is approved by the public utilities commission, if such approval

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is required.

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     (d) Should an application be approved but funds are not disbursed within twelve (12)

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months from the application’s approval by the office, then the approval may be considered void

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and funds allocated to the project shall be made available for other applications.

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     (e) Should a recipient of funds receive reimbursement under § 39-26.3-4.1 or as the result

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of a refund from the final accounting of costs, the amount so reimbursed shall be remitted to the

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infrastructure bank for deposit into the renewable ready fund.

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     42-140.5-7. Property owned by the electric or gas distribution company.

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     (a) Real properties owned by the electric or gas distribution company may be eligible to be

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included on the eligible site list described in § 42-140.5-3(a) at their sole discretion.

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     (b) The electric or gas distribution company is encouraged to lease these properties,

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following successful remediation, to developers through a competitive bidding process.

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     42-140.5-8. Adoption of rules and regulations.

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     The infrastructure bank, in consultation with the office, shall have the authority to adopt,

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amend, and implement such rules and regulations as may be necessary and desirable to effectuate

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the purposes of this chapter.

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     SECTION 2. Section 46-12.2-4.3 of the General Laws in Chapter 46-12.2 entitled "Rhode

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Island Infrastructure Bank" is hereby amended to read as follows:

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     46-12.2-4.3. Establishment of the clean energy fund.

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     (a)(1) There is hereby authorized and created within the Rhode Island infrastructure bank

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a clean energy fund for the purpose of providing technical, administrative, and financial assistance

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to a local governmental unit, corporation, or person, and for projects which receive technical,

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administrative and financial assistance from the renewable ready program established pursuant to

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chapter 140.5 of title 42, shall include the state and its agencies, for projects that include, but are

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not limited to, those related to greenhouse gas reduction or elimination, zero-emission technology,

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clean transportation, clean heating, energy storage, energy efficiency, renewable energy, and

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demand-side management. The Rhode Island infrastructure bank shall review and approve all

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applications for projects to be financed through the clean energy fund.

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     (2) The Rhode Island infrastructure bank shall promulgate rules and regulations to

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effectuate the provisions of this section, which may include, without limitation, forms for financial

 

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assistance applications, loan agreements, and other instruments and establishing the process

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through which a local governmental unit, corporation, or person, and for projects which receive

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technical, administrative and financial assistance from the renewable ready program established

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pursuant to chapter 140.5 of title 42, shall include the state and its agencies, may submit an

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application for financial assistance from the clean energy fund. All rules and regulations

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promulgated pursuant to this chapter shall be promulgated in accordance with the provisions of

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chapter 35 of title 42.

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     (3) The Rhode Island infrastructure bank shall include in its annual report pursuant to § 46-

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12.2-24.1 a description of the utilization of funds from the clean energy fund.

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     (b) The Rhode Island infrastructure bank shall have all the powers necessary and

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convenient to carry out and effectuate the purposes and provisions of this section including, without

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limiting the generality of the preceding statement, the authority:

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     (1) To receive and disburse funds as may be available for the purpose of the fund subject

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to the provisions of this section;

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     (2) To make and enter into binding commitments to provide financial assistance to eligible

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borrowers from amounts on deposit in the fund;

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     (3) To levy administrative fees on eligible borrowers as necessary to effectuate the

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provisions of this section, provided the fees have been previously authorized by an agreement

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between the Rhode Island infrastructure bank and the eligible borrower;

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     (4) To engage the services of third-party vendors to provide professional services;

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     (5) To establish one or more accounts within the fund; and

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     (6) Such other authority as granted to the Rhode Island infrastructure bank under this

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chapter.

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     (c) Subject to the provisions of this section and to any agreements with the holders of any

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bonds of the Rhode Island infrastructure bank or any trustee therefor, amounts held by the Rhode

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Island infrastructure bank for the account of the fund shall be applied by the Rhode Island

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infrastructure bank, either by direct expenditure, disbursement, or transfer to one or more other

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funds and accounts held by the Rhode Island infrastructure bank or maintained under any trust

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agreement pertaining to bonds, either alone or with other funds of the Rhode Island infrastructure

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bank, to the following purposes:

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     (1) To provide financial assistance to local governmental units, corporations, or persons

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and for projects which receive technical, administrative and financial assistance from the renewable

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ready program established pursuant to chapter 140.5 of title 42, shall include the state and its

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agencies, to finance costs of approved projects, as set forth in subsection (a) of this section, and to

 

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refinance the costs of the projects, subject to terms and conditions, if any, as are determined by the

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Rhode Island infrastructure bank;

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     (2) To fund reserves for bonds of the Rhode Island infrastructure bank and to purchase

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insurance and pay the premiums therefor, and pay fees and expenses of letters or lines of credit and

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costs of reimbursement to the issuers thereof for any payments made thereon or on any insurance,

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and to otherwise provide security for, and a source of payment for, obligations of the Rhode Island

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infrastructure bank, by pledge, lien, assignment, or otherwise as provided in this chapter;

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     (3) To pay expenses of the Rhode Island infrastructure bank in administering the clean

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energy fund;

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     (4) To provide a reserve for, or to otherwise secure, amounts payable by borrowers on loans

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and obligations outstanding in the event of default thereof; amounts in any account in the fund may

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be applied to defaults on loans outstanding to the borrower for which the account was established

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and, on a parity basis with all other accounts, to defaults on any loans or obligations outstanding;

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and

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     (5) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or

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otherwise as provided in this chapter, any bonds of the Rhode Island infrastructure bank.

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     (d) In addition to other remedies of the Rhode Island infrastructure bank under any loan

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agreement or otherwise provided by law, the Rhode Island infrastructure bank may also recover

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from a borrower, in an action in superior court, any amount due the Rhode Island infrastructure

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bank together with any other actual damages the Rhode Island infrastructure bank shall have

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sustained from the failure or refusal of the borrower to make the payments or abide by the terms of

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the loan agreement.

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     (e) The Rhode Island infrastructure bank may create one or more loan loss reserve funds

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to serve as further security for any loans made by the Rhode Island infrastructure bank or any bonds

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of the Rhode Island infrastructure bank issued to fund projects in accordance with this section.

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     (f) To the extent possible, and in accordance with law, the Rhode Island infrastructure bank

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shall encourage the use of project labor agreements for projects by local governmental units over

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ten million dollars ($10,000,000) and local hiring on projects funded under this section.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- RENEWABLE READY

PROGRAM

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     This act would establish the renewable ready program and fund to promote the responsible

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siting and development of renewable energy generating resources in locations where it would be

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an ancillary beneficial use to the redevelopment of previously contaminated property and other

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locations funded through the Rhode Island infrastructure bank.

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     This act would take effect upon passage.

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