2024 -- S 2293 SUBSTITUTE A | |
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LC004795/SUB 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 | |
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Introduced By: Senators DiMario, Euer, Miller, LaMountain, Tikoian, Sosnowski, | |
Date Introduced: February 12, 2024 | |
Referred To: Senate Environment & Agriculture | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND |
2 | GOVERNMENT" is hereby amended by adding thereto the following chapter: |
3 | CHAPTER 140.5 |
4 | RENEWABLE READY PROGRAM |
5 | 42-140.5-1. Statement of purpose. |
6 | The purpose of this program is to promote the responsible siting and development of |
7 | renewable energy generating resources in locations where it would be an ancillary beneficial use |
8 | to the redevelopment of previously contaminated property. Greenhouse gas emissions pose threats |
9 | to the health and safety of Rhode Islanders through flooding, sea level rise, extreme heat, and |
10 | increased storm intensity. In order to reduce this threat, Rhode Island must promote the deployment |
11 | of renewable energy generating projects, while preserving the most valuable forests. |
12 | 42-140.5-2. Definitions. |
13 | As used in this chapter, the following words and terms shall have the following meanings, |
14 | unless the context indicates another or different meaning or intent: |
15 | (1) "Commissioner" means the commissioner of the office of energy resources. |
16 | (2) "Community remote net-metering system" shall be defined pursuant to § 39-26.4-2. |
17 | (3) "Corporation" means any corporate person, including, but not limited to: corporations, |
18 | societies, associations, limited liability companies, partnerships, and sole proprietorships. |
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1 | (4) "Department" means the department of environmental management. |
2 | (5) "Eligible entities" means any local governmental unit, person, corporation or |
3 | community remote net-metering system. |
4 | (6) "Financial assistance" means any form of financial assistance provided by the |
5 | infrastructure bank to a local governmental unit, person, corporation, or community remote net- |
6 | metering system in accordance with this chapter for all or any part of the cost of an approved |
7 | project, including, without limitation: grants, temporary and permanent loans, with or without |
8 | interest, guarantees, insurance, subsidies for the payment of debt service on loans, lines of credit, |
9 | and similar forms of financial assistance, principal forgiveness and negative interest loans. |
10 | (7) "Fund" means the renewable ready fund described in § 42-140.5-4. |
11 | (8) "Infrastructure bank" means the Rhode Island infrastructure bank. |
12 | (9) "Interconnection costs" means charges from the electric distribution company to a |
13 | renewable energy customer or developer as described in § 39-26.3-4.1. |
14 | (10) "Interconnection study" means either a feasibility study or impact study as described |
15 | in § 39-26.3-2. |
16 | (11) "Local governmental unit" means any town, city, district, commission, agency, |
17 | authority, board, bodies politic and corporate, public corporation, or other political subdivision or |
18 | instrumentality of the state or of any political subdivision thereof. |
19 | (12) "Office" means the office of energy resources. |
20 | (13) "Person" means an individual, firm, corporation, association, partnership, farm, town |
21 | or city of the State of Rhode Island, multi-municipal collaborative, or the State of Rhode Island or |
22 | any department of the state government, governmental agency, or public instrumentality of the |
23 | state. |
24 | 42-140.5-3. Identification of eligible sites. |
25 | (a) The office, in coordination with the department, shall prepare a list of locations that |
26 | meet the following criteria: |
27 | (1) Is a current or former contaminated site as determined by the department; |
28 | (2) Is property or a facility owned and/or managed by the state; |
29 | (3) Is a rooftop of a public, municipal or state-owned building; |
30 | (4) Is state property adjacent to a highway or major road; or |
31 | (5) Is owned by the electric distribution company and subject to the environmental response |
32 | fund. |
33 | (b) The list shall exclude properties where the owner has begun the process of permitting |
34 | or developing a renewable energy generation project or any other development. |
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1 | (c) The list shall: |
2 | (1) Include a reasonable estimate of the renewable energy production capacity of the |
3 | locations; |
4 | (2) Identify the current owner of the property and provide their contact information, if |
5 | available; |
6 | (3) Include a reasonable estimate of any utility interconnection costs that would be required |
7 | to connect the project to the existing electricity transmission and distribution system; provided that: |
8 | (i) Any available impact study shall be conclusive evidence of estimated costs; |
9 | (ii) Any variables that the office or department relied upon in the creation of the estimate |
10 | shall be included and described; |
11 | (iii) The electric distribution company shall provide estimated interconnection costs to the |
12 | office as sites are identified; |
13 | (iv) The cost of an interconnection study shall not be included in the estimation of |
14 | interconnection costs; and |
15 | (4) Prioritize locations based upon surrounding infrastructure that can support the |
16 | development of distributed generation resources. |
17 | 42-140.5-4. Establishment of the renewable ready fund. |
18 | (a) There is hereby established a renewable ready fund within the Rhode Island |
19 | infrastructure bank. |
20 | (b) The purpose of the fund is to provide financial assistance to eligible entities to reduce |
21 | the site preparation and interconnection costs for renewable energy development projects on current |
22 | or formerly contaminated sites to support and encourage the development of these locations. |
23 | (c) The infrastructure bank is hereby authorized and directed to seek all available federal |
24 | resources, in consultation with the office and any electric distribution company, to fulfill the |
25 | purpose of the fund. In pursuing federal funding sources, efforts shall include, but not be limited |
26 | to, funding programs and other financing mechanisms established through the federal Infrastructure |
27 | Investment and Jobs Act, the Inflation Reduction Act, and any applicable federal statute. |
28 | (d) The fund shall consist of: |
29 | (1) Money appropriated in the state budget to the fund or otherwise made available to the |
30 | infrastructure bank; |
31 | (2) Money made available to the fund through federal programs or private contributions; |
32 | (3) Repayments of principal and interest from loans made from the fund; |
33 | (4) Proceeds from the sale, disposition, lease, or rental of collateral related to financial |
34 | assistance provided under this chapter; |
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1 | (5) Application or other fees paid to the infrastructure bank to process applications for |
2 | financial assistance; and |
3 | (6) Any other money made available to the fund. |
4 | 42-140.5-5. Powers of the infrastructure bank and the office. |
5 | (a) The infrastructure bank, in consultation with the office, shall review and approve |
6 | applications for financial assistance from the fund, subject to the availability of funds, upon the |
7 | submission of a complete application from eligible entities to receive funds for a purpose consistent |
8 | with this chapter. |
9 | (b) The office, in consultation with the infrastructure bank, shall create a standard |
10 | application and annual application deadlines to be used in the management of fund requests. |
11 | (c) The office, upon a determination that an application is incomplete, may direct applicants |
12 | to revise their application or deny the application after a reasonable opportunity for the applicant |
13 | to provide additional information. |
14 | (d) The infrastructure bank, in the event that there are insufficient funds to cover the costs |
15 | of all projects that meet the criteria to be approved, shall follow the prioritized list prepared by the |
16 | office in accordance with this chapter. |
17 | (e) Approval of an application shall only occur if funds are currently available in the fund, |
18 | or if the infrastructure bank reasonably expects that funds will be available in the six (6) months |
19 | following the approval of an application. |
20 | (f) The infrastructure bank, in consultation with the office, shall set an application fee, due |
21 | upon submission, to cover the reasonable costs to the bank for the investigation and review of the |
22 | application. |
23 | 42-140.5-6. Use of funds. |
24 | (a) Funds shall be used to cover the costs of connecting a renewable energy generation |
25 | project to the electric distribution system on sites identified by the office and department and |
26 | published on the list of eligible sites, and shall include, but not be limited to, the following activities: |
27 | (1) Installation of transformers and substations; |
28 | (2) Transmission facilitation; |
29 | (3) Grid flexibility; and |
30 | (4) Electrification planning for sites and facilities. |
31 | (b) Funds shall not be used to conduct any interconnection study or other preliminary work |
32 | as may be required by the electric distribution company or the public utilities commission. |
33 | (c) Funds shall not be distributed to applicants, or an entity to whom the applicant must |
34 | pay to make the interconnection, until the following criteria are met: |
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1 | (1) The project site is listed on the list of eligible sites prepared by the office; |
2 | (2) The application is approved by the office; |
3 | (3) Certification is provided demonstrating that funds are available in the fund; and |
4 | (4) The applicant’s project is approved by the public utilities commission, if such approval |
5 | is required. |
6 | (d) Should an application be approved but funds are not disbursed within twelve (12) |
7 | months from the application’s approval by the office, then the approval may be considered void |
8 | and funds allocated to the project shall be made available for other applications. |
9 | (e) Should a recipient of funds receive reimbursement under § 39-26.3-4.1 or as the result |
10 | of a refund from the final accounting of costs, the amount so reimbursed shall be remitted to the |
11 | infrastructure bank for deposit into the renewable ready fund. |
12 | 42-140.5-7. Property owned by the electric or gas distribution company. |
13 | (a) Real properties owned by the electric or gas distribution company may be eligible to be |
14 | included on the eligible site list described in § 42-140.5-3(a) at their sole discretion. |
15 | (b) The electric or gas distribution company is encouraged to lease these properties, |
16 | following successful remediation, to developers through a competitive bidding process. |
17 | 42-140.5-8. Adoption of rules and regulations. |
18 | The infrastructure bank, in consultation with the office, shall have the authority to adopt, |
19 | amend, and implement such rules and regulations as may be necessary and desirable to effectuate |
20 | the purposes of this chapter. |
21 | SECTION 2. Section 46-12.2-4.3 of the General Laws in Chapter 46-12.2 entitled "Rhode |
22 | Island Infrastructure Bank" is hereby amended to read as follows: |
23 | 46-12.2-4.3. Establishment of the clean energy fund. |
24 | (a)(1) There is hereby authorized and created within the Rhode Island infrastructure bank |
25 | a clean energy fund for the purpose of providing technical, administrative, and financial assistance |
26 | to a local governmental unit, corporation, or person, and for projects which receive technical, |
27 | administrative and financial assistance from the renewable ready program established pursuant to |
28 | chapter 140.5 of title 42, shall include the state and its agencies, for projects that include, but are |
29 | not limited to, those related to greenhouse gas reduction or elimination, zero-emission technology, |
30 | clean transportation, clean heating, energy storage, energy efficiency, renewable energy, and |
31 | demand-side management. The Rhode Island infrastructure bank shall review and approve all |
32 | applications for projects to be financed through the clean energy fund. |
33 | (2) The Rhode Island infrastructure bank shall promulgate rules and regulations to |
34 | effectuate the provisions of this section, which may include, without limitation, forms for financial |
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1 | assistance applications, loan agreements, and other instruments and establishing the process |
2 | through which a local governmental unit, corporation, or person, and for projects which receive |
3 | technical, administrative and financial assistance from the renewable ready program established |
4 | pursuant to chapter 140.5 of title 42, shall include the state and its agencies, may submit an |
5 | application for financial assistance from the clean energy fund. All rules and regulations |
6 | promulgated pursuant to this chapter shall be promulgated in accordance with the provisions of |
7 | chapter 35 of title 42. |
8 | (3) The Rhode Island infrastructure bank shall include in its annual report pursuant to § 46- |
9 | 12.2-24.1 a description of the utilization of funds from the clean energy fund. |
10 | (b) The Rhode Island infrastructure bank shall have all the powers necessary and |
11 | convenient to carry out and effectuate the purposes and provisions of this section including, without |
12 | limiting the generality of the preceding statement, the authority: |
13 | (1) To receive and disburse funds as may be available for the purpose of the fund subject |
14 | to the provisions of this section; |
15 | (2) To make and enter into binding commitments to provide financial assistance to eligible |
16 | borrowers from amounts on deposit in the fund; |
17 | (3) To levy administrative fees on eligible borrowers as necessary to effectuate the |
18 | provisions of this section, provided the fees have been previously authorized by an agreement |
19 | between the Rhode Island infrastructure bank and the eligible borrower; |
20 | (4) To engage the services of third-party vendors to provide professional services; |
21 | (5) To establish one or more accounts within the fund; and |
22 | (6) Such other authority as granted to the Rhode Island infrastructure bank under this |
23 | chapter. |
24 | (c) Subject to the provisions of this section and to any agreements with the holders of any |
25 | bonds of the Rhode Island infrastructure bank or any trustee therefor, amounts held by the Rhode |
26 | Island infrastructure bank for the account of the fund shall be applied by the Rhode Island |
27 | infrastructure bank, either by direct expenditure, disbursement, or transfer to one or more other |
28 | funds and accounts held by the Rhode Island infrastructure bank or maintained under any trust |
29 | agreement pertaining to bonds, either alone or with other funds of the Rhode Island infrastructure |
30 | bank, to the following purposes: |
31 | (1) To provide financial assistance to local governmental units, corporations, or persons |
32 | and for projects which receive technical, administrative and financial assistance from the renewable |
33 | ready program established pursuant to chapter 140.5 of title 42, shall include the state and its |
34 | agencies, to finance costs of approved projects, as set forth in subsection (a) of this section, and to |
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1 | refinance the costs of the projects, subject to terms and conditions, if any, as are determined by the |
2 | Rhode Island infrastructure bank; |
3 | (2) To fund reserves for bonds of the Rhode Island infrastructure bank and to purchase |
4 | insurance and pay the premiums therefor, and pay fees and expenses of letters or lines of credit and |
5 | costs of reimbursement to the issuers thereof for any payments made thereon or on any insurance, |
6 | and to otherwise provide security for, and a source of payment for, obligations of the Rhode Island |
7 | infrastructure bank, by pledge, lien, assignment, or otherwise as provided in this chapter; |
8 | (3) To pay expenses of the Rhode Island infrastructure bank in administering the clean |
9 | energy fund; |
10 | (4) To provide a reserve for, or to otherwise secure, amounts payable by borrowers on loans |
11 | and obligations outstanding in the event of default thereof; amounts in any account in the fund may |
12 | be applied to defaults on loans outstanding to the borrower for which the account was established |
13 | and, on a parity basis with all other accounts, to defaults on any loans or obligations outstanding; |
14 | and |
15 | (5) To provide a reserve for, or to otherwise secure, by pledge, lien, assignment, or |
16 | otherwise as provided in this chapter, any bonds of the Rhode Island infrastructure bank. |
17 | (d) In addition to other remedies of the Rhode Island infrastructure bank under any loan |
18 | agreement or otherwise provided by law, the Rhode Island infrastructure bank may also recover |
19 | from a borrower, in an action in superior court, any amount due the Rhode Island infrastructure |
20 | bank together with any other actual damages the Rhode Island infrastructure bank shall have |
21 | sustained from the failure or refusal of the borrower to make the payments or abide by the terms of |
22 | the loan agreement. |
23 | (e) The Rhode Island infrastructure bank may create one or more loan loss reserve funds |
24 | to serve as further security for any loans made by the Rhode Island infrastructure bank or any bonds |
25 | of the Rhode Island infrastructure bank issued to fund projects in accordance with this section. |
26 | (f) To the extent possible, and in accordance with law, the Rhode Island infrastructure bank |
27 | shall encourage the use of project labor agreements for projects by local governmental units over |
28 | ten million dollars ($10,000,000) and local hiring on projects funded under this section. |
29 | SECTION 3. This act shall take effect upon passage. |
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LC004795/SUB A | |
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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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1 | This act would establish the renewable ready program and fund to promote the responsible |
2 | siting and development of renewable energy generating resources in locations where it would be |
3 | an ancillary beneficial use to the redevelopment of previously contaminated property and other |
4 | locations funded through the Rhode Island infrastructure bank. |
5 | This act would take effect upon passage. |
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LC004795/SUB A | |
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