2024 -- S 2509

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LC005239

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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 PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY

STANDARD

     Introduced By: Senators Paolino, de la Cruz, Rogers, and DeLuca

     Date Introduced: March 01, 2024

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 39-26-6 of the General Laws in Chapter 39-26 entitled "Renewable

Energy Standard" is hereby amended to read as follows:

     39-26-6. Duties of the commission.

     (a) The commission shall:

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

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

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

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

a generator’s eligibility status or if the generator ceases to produce energy, provided, the

commission shall make public notification of any changes in eligibility or production of energy as

defined herein, and the commission shall promulgate rules and regulations to allow and facilitate

the prompt public disclosure of this information;

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

achieve the purposes of this chapter;

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

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

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

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

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

(30%) of the current year’s obligation; and

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

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

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

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

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

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

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

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

costs of complying with energy source disclosure requirements.

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

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

applicants seeking to determine whether a facility would be eligible.

     (4) [Deleted by P.L. 2022, ch. 218, § 1 and P.L. 2022, ch. 226, § 1.]

     Determine, on or before January 1, 2019, and every fifth year thereafter, the adequacy of

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

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

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

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

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

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

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

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

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

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

certified in accordance with subsection (a)(3) of this section, that are found to provide false

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

otherwise comply with its rules. Financial penalties resulting from sanctions from obligated entities

shall not be recoverable in rates.

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

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

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

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

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

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

this section.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY

STANDARD

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     This act would require the public utilities commission (PUC) to make public notification

of any changes in eligibility or production of energy, and would direct the commission to

promulgate rules and regulations to allow and facilitate the prompt public disclosure of this

information.

     This act would take effect upon passage.

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