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art.002/2/002/1

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     ARTICLE 2

RELATING TO STATE FUNDS

     SECTION 1. Section 23-82-6 of the General Laws in Chapter 23-82 entitled

"Implementation of the Regional Greenhouse Gas Initiative Act" is hereby amended to read as

follows:

     23-82-6. Use of auction or sale proceeds.

     (a) The proceeds from the auction or sale of the allowances shall be used for the benefit of

energy consumers through investment in the most cost-effective available projects that can reduce

long-term consumer energy demands and costs. Such proceeds may be used only for the following

purposes, in a proportion to be determined annually by the office in consultation with the council

and the board:

     (1) Promotion of cost-effective energy efficiency and conservation in order to achieve the

purposes of § 39-1-27.7;

     (2) Promotion of cost-effective renewable non-carbon emitting energy technologies in

Rhode Island as defined in § 39-26-5 and to achieve the purposes of chapter 26 of title 39 entitled

“Renewable Energy Standard”;

     (3) Cost-effective direct rate relief for consumers;

     (4) Direct rate relief for low-income consumers;

     (5) Reasonable compensation to an entity selected to administer the auction or sale;

     (6) Reasonable costs of the department of environmental management and office of energy

resources in administering this program, as well as other climate change, energy efficiency, and

renewable program efforts of the department of environmental management and office of energy

resources, which shall not in any year exceed three hundred thousand dollars ($300,000) or ten

percent (10%) of the proceeds from sale or auction of the allowances, whichever is greater.

Administrative funds not expended in any fiscal year shall remain in the administrative account to

be used as needed in subsequent years. The office of energy resources shall have the ability to apply

administrative funds not used in a fiscal year to achieve the purpose of this section. The funds

deposited into the administrative funds account shall be exempt from the indirect cost recovery

provisions of § 35-4-27;

     (7) For fiscal year 2023 only, the office of energy resources shall transfer three million

dollars ($3,000,000) from unallocated auction proceeds to the executive climate change

coordinating council restricted receipt account to maintain funding for the existing electric vehicle

and electric bicycle incentive programs and to support other projects; and

     (8) Provided however, effective for fiscal year 2024 and thereafter, sale of allowances

yielding in excess of four million five hundred thousand dollars ($4,500,000) per auction shall be

transferred to the Rhode Island office of energy resources, on behalf of the executive climate change

coordinating council, for climate change related initiatives. The executive climate change

coordinating council shall have exclusive authority to direct the use of these funds pursuant to §

42-6.2-3.1. The office of energy resources may act on behalf of the executive climate change

coordinating council to disburse these funds. Provided further, that any transfer of allowances in a

single fiscal year, pursuant to this section shall not exceed one million five hundred thousand

dollars ($1,500,000).

     (b) Any interest earned on the funds so generated must be credited to the fund. Funds not

spent in any fiscal year shall remain in the fund to be used for future energy efficiency and carbon

reduction programs.

     (c) Annually, the office, in consultation with the council and board, shall prepare a draft

proposal on how the proceeds from the allowances shall be allocated. The draft proposal shall be

designed to augment and coordinate with existing energy efficiency and renewable energy

programs, and shall not propose use of auction proceeds for projects already funded under other

programs. The proposal for allocation of proceeds in subsections (a)(1), (2), and (3) shall be one

that best achieves the purposes of the law, namely, lowering carbon emissions and minimizing costs

to consumers over the long term. The office shall hold a public hearing and accept public comment

on the draft proposal in accordance with chapter 35 of title 42 (the “Administrative Procedures

Act”). Once the proposal is final, the office shall authorize the disbursement of funds in accordance

with the final plan.

     Effective for fiscal year 2027 and thereafter, as part of the allocation process, the office is

hereby authorized and directed to consult annually and coordinate with the Rhode Island public

transit authority in determining the total funding required to match federal funds to purchase zero-

emission buses with zero tailpipe emissions. Of the agreed-upon amount, fifty percent (50%) shall

be allocated from the auction proceeds, and the remaining fifty percent (50%) shall be from

authority sources.

     (d) The office shall prepare, in consultation with the council and board, a report by April

15 of each year describing the implementation and operation of RGGI, the revenues collected and

the expenditures, including funds that were allocated to the energy efficiency and renewable energy

programs, and the individuals, businesses, and vendors that received funding, made under this

section, the statewide energy efficiency and carbon reduction programs, and any recommendations

for changes to law relating to the state’s energy conservation or carbon reduction efforts. The report

shall be made public and be posted electronically on the website of the office of energy resources

and shall also be submitted to the general assembly.

     SECTION 2. 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 fifteen percent (15%) 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 nonprofit 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:

     Executive Office of Health and Human Services

     HIV Care Grant Drug Rebates

     Health System Transformation Project

     Rhode Island Statewide Opioid Abatement Account

     HCBS Support-ARPA

     HCBS Admin Support-ARPA

     Department of Human Services

     Organ Transplant Fund

     Veterans’ home — Restricted account

     Veterans’ home — Resident benefits

     Pharmaceutical Rebates Account

     Demand Side Management Grants

     Veteran’s Cemetery Memorial Fund

     Donations — New Veterans’ Home Construction

     Commodity Supplemental Food Program-Claims

     Department of Health

     Pandemic medications and equipment account

     Miscellaneous Donations/Grants from Non-Profits

     State Loan Repayment Match

     Healthcare Information Technology

     Department of Behavioral Healthcare, Developmental Disabilities and Hospitals

     Eleanor Slater non-Medicaid third-party payor account

     Hospital Medicare Part D Receipts

     RICLAS Group Home Operations

     Group Home Facility Improvement Fund

     Commission on the Deaf and Hard of Hearing

     Emergency and public communication access account

     Department of Environmental Management

     National heritage revolving fund

     Environmental response fund II

     Underground storage tanks registration fees

     De Coppet Estate Fund

     Rhode Island Historical Preservation and Heritage Commission

     Historic preservation revolving loan fund

     Historic Preservation loan fund — Interest revenue

     Department of Public Safety

     E-911 Uniform Emergency Telephone System

     Forfeited property — Retained

     Forfeitures — Federal

     Forfeited property — Gambling

     Donation — Polygraph and Law Enforcement Training

     Rhode Island State Firefighter’s League Training Account

     Fire Academy Training Fees Account

     Attorney General

     Forfeiture of property

     Federal forfeitures

     Attorney General multi-state account

     Forfeited property — Gambling

     Department of Administration

     Health Insurance Market Integrity Fund

     RI Health Benefits Exchange

     Information Technology restricted receipt account

     Restore and replacement — Insurance coverage

     Convention Center Authority rental payments

     Investment Receipts — TANS

     OPEB System Restricted Receipt Account

     Grants Management Administration

     Office of Energy Resources

     OER Reconciliation Funding

     RGGI Executive Climate Change Coordinating Council Projects

     Electric Vehicle Charging Stations Operating and Maintenance Account

     Clean Transportation Programs

     Department of Housing

     Housing Resources and Homelessness Restricted Receipt Account

     Housing Production Fund

     Low-Income Housing Tax Credit Fund

     Department of Revenue

     Car Rental Tax/Surcharge-Warwick Share

     DMV Modernization Project

     Jobs Tax Credit Redemption Fund

     Legislature

     Audit of federal assisted programs

     Department of Children, Youth and Families

     Children’s Trust Accounts — SSI

     Military Staff

     RI Military Family Relief Fund

     RI National Guard Counterdrug Program

     Treasury

     Admin. Expenses — State Retirement System

     Retirement — Treasury Investment Options

     Defined Contribution — Administration - RR

     Violent Crimes Compensation — Refunds

     Treasury Research Fellowship

     Business Regulation

     Banking Division Reimbursement Account

     Office of the Health Insurance Commissioner Reimbursement Account

     Securities Division Reimbursement Account

     Commercial Licensing and Racing and Athletics Division Reimbursement Account

     Insurance Division Reimbursement Account

     Historic Preservation Tax Credit Account

     Rhode Island Cannabis Control Commission

     Marijuana Trust Fund

     Social Equity Assistance Fund

     Judiciary

     Arbitration Fund Restricted Receipt Account

     Third-Party Grants

     RI Judiciary Technology Surcharge Account

     Department of Elementary and Secondary Education

     Statewide Student Transportation Services Account

     School for the Deaf Fee-for-Service Account

     School for the Deaf — School Breakfast and Lunch Program

     Davies Career and Technical School Local Education Aid Account

     Davies — National School Breakfast & Lunch Program

     School Construction Services

     Office of the Postsecondary Commissioner

     Tuition Savings Program Fund

     Higher Education and Industry Center

     IGT STEM Scholarships

     Department of Labor and Training

     Job Development Fund

     Contractor Training Restricted Receipt Account

     Workers’ Compensation Administrative Account

     Rhode Island Uninsured Protection Fund

     Rhode Island Council on the Arts

     Governors’ Portrait Donation Fund

     Statewide records management system account

     SECTION 3. Section 39-18.1-5 of the General Laws in Chapter 39-18.1 entitled

"Transportation Investment and Debt Reduction Act of 2011" is hereby amended to read as follows:

     39-18.1-5. Allocation of funds.

     (a) The monies in the highway maintenance fund to be directed to the department of

transportation pursuant to § 39-18.1-4(b)(1) — (b)(3) shall be allocated through the transportation

improvement program process to provide the state match for federal transportation funds, in place

of borrowing, as approved by the state planning council. The expenditure of moneys in the highway

maintenance fund shall only be authorized for projects that appear in the state’s transportation

improvement program.

     (b) Provided, however, that beginning with fiscal year 2015 and annually thereafter, the

department of transportation will allocate necessary funding to programs that are designed to

eliminate structural deficiencies of the state’s bridge, road, and maintenance systems and

infrastructure.

     (c) Provided, that beginning July 1, 2015, through June 30, 2025, five percent (5%) of

available proceeds in the Rhode Island highway maintenance account shall be allocated annually

to the Rhode Island public transit authority for operating expenditures.

     (d) Provided, that beginning July 1, 2025, through June 30, 2026, ten percent (10%) of

available proceeds in the Rhode Island highway maintenance account shall be allocated annually

to the Rhode Island public transit authority for operating expenditures.

     (e) Provided, further, that from July 1, 2017, and annually thereafter through June 30, 2026,

in addition to the amount above, the Rhode Island public transit authority shall receive an amount

of not less than five million dollars ($5,000,000) each fiscal year, except for the period July 1, 2019,

through June 30, 2022, during which such amount or a portion thereof may come from federal

coronavirus relief funds.

     (f) Provided, further that beginning July 1, 2026, and annually thereafter, twenty-five

percent (25%) of available proceeds in the Rhode Island highway maintenance account shall be

allocated annually to the Rhode Island public transit authority for operating expenditures.

     SECTION 4. This article shall take effect upon passage, except Section 2 which shall take

effect retroactively as of July 1, 2025.