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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.