law26084-11

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art.011/7/011/6/011/5/011/4/011/3/011/2

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ARTICLE 11 AS AMENDED

RELATING TO ENERGY

SECTION 1. Sections 37-24-3 and 37-24-5 of the General Laws in Chapter 37-24 entitled

"The Green Buildings Act" are hereby amended to read as follows:

37-24-3. Definitions.

For purposes of this chapter, the following definitions shall apply:

(1) “Construction” means the process of building, altering, repairing, improving, or

demolishing forty percent (40%) or more of any public structures, public buildings, public real

property or other public improvements of any kind to any public structures, public buildings or

public real property.

(2) “Department” means the department of administration the office of the state building

code commissioner.

(3) “Equivalent standard” means a high-performance green building standard, other than

LEED, LEED for Neighborhood Development, and SITES, that provides an independent, third-

party verification and certification of a rating system or measurement tool, that, when used, leads

to outcomes equivalent to, LEED, LEED for Neighborhood Development, and SITES outcomes,

in terms of green building, green infrastructure, and green site performance; current accepted

equivalent standards include green globes, Northeast collaborative high-performance schools

protocol; or other equivalent high-performance green building, green infrastructure, and green site

standards accepted by the department.

(4) “LEED” also, “LEED for Neighborhood Development, and SITES certified standard”

means the current version of the U.S. Green Building Council Leadership in Energy and

Environmental Design (LEED) green building rating standard referred to as LEED, LEED for

Neighborhood Development, and SITES certified. SITES means the U.S. Green Building Council’s

SITES — The Sustainable SITES Initiative.

(5) “Public agency” means every state or municipal office, board, commission, committee,

bureau, department, or public institution of education, or any political subdivision thereof.

(6) “Public facility” means any public institution, public facility, public equipment, or any

physical asset owned, including its public real-property site, leased or controlled in whole or in part

by this state, a public agency, a municipality or a political subdivision, that is for public or

government use.

(7) “Public major facility project” means:

(i) A public facility building construction project larger than ten thousand (10,000) gross

square feet of occupied or conditioned space, and its public real-property site; or

(ii) A public facility building renovation project larger than ten thousand (10,000) gross

square feet of occupied or conditioned space, and its public real-property site.

37-24-5. Administration and reports — Green buildings advisory committee.

(a) The department shall promulgate such regulations as are necessary to enforce this

section by January 1, 2023. Effective July 1, 2026, the office of the state building code

commissioner will assume responsibility for promulgating the rules and regulations regarding the

green buildings advisory committee. The rules and regulations promulgated under title 220, chapter

70, subchapter 00, part 1 of the Rhode Island code of regulations will remain in full force and effect

and shall be enforced by the department of administration until such a time as the rules and

regulations are properly transferred to and promulgated by the office of the state building code

commissioner title within the Rhode Island code of regulations.

Those regulations shall include how the department will determine whether a project

qualifies for an exception from the LEED, LEED for Neighborhood Development, and SITES

certified or equivalent high-performance green building standard, and the green building standards

that may be imposed on projects that are granted exceptions.

(b) The department shall monitor and document ongoing operating savings that result from

major facility projects designed, constructed, and certified as meeting the LEED, LEED for

Neighborhood Development, and SITES certified standard annually publish a public report of

findings and recommended changes in policy. The report shall also include a description of projects

that were granted exceptions from the LEED, LEED for Neighborhood Development, and SITES

certified standard, the reasons for exception, and the lesser green building standards imposed.

(g) A green buildings advisory committee shall be created composed of nineteen (19)

members. The advisory committee shall have eleven (11) public members and eight (8) public

agency members. Five (5) of the public members shall be appointed by the governor; three (3) of

the public members shall be appointed by the president of the senate; and, three (3) of the public

members shall be appointed by the speaker of the house of representatives.

(1) The eleven (11) public members of the advisory committee shall be composed of nine

(9) representatives one from each of the following fields: architecture, engineering, landscape

architecture, energy, labor through the Rhode Island AFL-CIO, general construction contracting,

building product and building materials industries who are involved in, and have recognized

knowledge and accomplishment in their respective professions, of high-performance green

building standards, relating to the standards set forth in § 37-24-4; in addition to two (2) public

members, one representing an urban municipality from Providence, Cranston, Warwick,

Pawtucket, Woonsocket, or Newport, and one public member representing the other thirty-two (32)

municipalities in the state in order to ensure geographic diversity.

(2) The advisory committee shall have eight (8) public agency members representing

personnel from affected public agencies, and cities and towns, that oversee public works projects

and workforce development, who shall be appointed by the directors or chief executive officers of

the respective public agencies which shall include the department of administration; the department

of environmental management; the department of education; the department of transportation; the

department of labor and training; the office of the state building code commissioner; the Rhode

Island infrastructure bank, and the Rhode Island League of Cities and Towns.

(3) The chairperson of the green buildings advisory committee shall be a public member

chosen by the green buildings advisory committee.

(4) Of the initial eleven (11) public members, six (6) shall serve three-year (3) terms and

five (5) shall have two-year (2) terms. Each appointing authority shall appoint two (2) public

members to three-year (3) terms with the remainder of the public member appointments serving

two-year terms. Thereafter, all public members shall be appointed to three-year (3) terms.

(h) The green buildings advisory committee shall:

(1) Make recommendations regarding an ongoing evaluation process of the green buildings

act to help the department and the executive climate change coordinating council implement this

chapter;

(2) Identify the needs, actions, and funding required to implement the requirements set

forth in this chapter, in achieving high-performance green building projects for our public

buildings, public structures, and our public real properties;

(3) Establish clear, measurable targets for implementing the standards, defined in this

chapter, for all public major facility projects including timeline, workforce needs, anticipated costs

and other measures identified by the green buildings advisory committee and required by chapter

6.2 of title 42 (“2021 act on climate”); and

(4) Identify ways to monitor and document ongoing operating savings and greenhouse gas

emission reductions that result from public major facility projects designed, constructed and

certified as meeting the LEED, LEED for Neighborhood Development, SITES certified standard,

Green Globes, Northeast Collaborative for High-Performance Schools Protocol, Version 1.1 or

above and annually publish a report to the general assembly and the executive climate change

coordinating council of findings and recommended changes in policy.

(i) All requests for proposals, requests for information, requests for bids, requests for

design/build, requests for construction managers, and any requests relating to obtaining the

professional services, pricing, and construction for major facility projects by a public agency for a

public facility, shall include the notice of the statutory requirements of this chapter (“the green

buildings act”).

(j) The green buildings advisory committee shall have no responsibility for, and shall not

develop requests for proposals, requests for information, requests for bids, requests for

design/build, requests for construction managers, and any requests relating to obtaining the

professional services, pricing, and construction for major facility projects by a public agency for a

public facility; and the green buildings advisory committee shall have no responsibility for, and

shall not select any vendors for any requests for proposals, requests for information, requests for

bids, requests for design/build, requests for construction managers, and any requests relating to

obtaining the professional services, pricing, and construction for major facility projects by a public

agency for a public facility. Nothing shall prohibit public members of the green buildings advisory

committee from responding to, and being involved with, any submittals of requests for proposals,

requests for information, requests for bids, requests for design/build, requests for construction

managers, and any requests relating to obtaining the professional services, pricing, and construction

for major facility projects by a public agency for a public facility.

(k) The department of administration shall commission a report to analyze the costs and/or

benefits of LEED certification compared to equivalent standards. This includes, but is not limited

to, the impact of obtaining formal LEED certification on project budget and timeline.

SECTION 2. Section 39-2.2-2 of the General Laws in Chapter 39-2.2 entitled "Rhode

Island Utility Fair Share Roadway Repair Act" is hereby amended to read as follows:

39-2.2-2. Road repair by public utility or utility facility.

(a) Any public utility as defined by § 39-1-2 or any utility facility as defined by chapter 8.1

of title 24 that shall alter, excavate, disrupt, or disturb a roadway shall be responsible for complete

repaving and repair of the roadway from curbline to curbline complete repaving and repair or

restoration of the full width of the affected travel lane for the entire length of the excavation or as

required in accordance with the state or municipal utility permit requirements.

(b) Any public utility as defined by § 39-1-2 or any utility facility as defined by chapter

8.1 of title 24 shall recover all costs required of this chapter in accordance with generally accepted

accounting principles.

SECTION 3. Chapter 39-2 of the General Laws entitled "Duties of Utilities and Carriers"

is hereby amended by adding thereto the following section:

39-2-29. In-state transmission owner required to participate in the regional

independent system operator.

On and after the effective date of this section, no electric distribution company, as defined

in § 39-1-2, shall own, operate, or control a transmission facility, as defined in § 39-1-2, located in

the state unless such company joins or is a member of ISO New England, Inc. or its successor

organization as approved by the federal energy regulatory commission.

SECTION 4. Section 39-26.1-4 of the General Laws in Chapter 39-26.1 entitled "Long-

Term Contracting Standard for Renewable Energy" is hereby repealed.

39-26.1-4. Financial remuneration and incentives.

In order to achieve the purposes of this chapter, electric distribution companies shall be

entitled to financial remuneration and incentives for long-term contracts for newly developed

renewable energy resources, which are over and above the base rate revenue requirement

established in its cost of service for distribution ratemaking. Such remuneration and incentives shall

compensate the electric distribution company for accepting the financial obligation of the long-

term contracts. The financial remuneration and incentives described in this section shall apply only

to long-term contracts for newly developed renewable energy resources. For long-term contracts

approved pursuant to this chapter before January 1, 2022, the financial remuneration and incentives

shall be in the form of annual compensation, equal to two and three quarters percent (2.75%) of the

actual annual payments made under the contracts for those projects that are commercially

operating, unless determined otherwise by the commission at the time of approval. For long-term

contracts approved pursuant to this chapter on or after January 1, 2022, including contracts above

the minimum long-term contract capacity, the financial remuneration and incentives shall be in the

form of annual compensation up to one percent (1.0%) of the actual annual payments made under

the contracts through December 31, 2026, for those projects that are commercially operating. For

all long-term contracts approved pursuant to this chapter on or after January 1, 2027, financial

remuneration and incentives shall not be applied, unless otherwise granted by the commission. For

any calendar year in which the electric distribution company’s actual return on equity exceeds the

return on equity allowed by the commission in the electric distribution company’s last general rate

case, the commission shall have the authority to adjust any or all remuneration paid to the electric

distribution company pursuant to this section in order to assure that such remuneration does not

result in or contribute toward the electric distribution company earning above its allowed return for

such calendar year.

SECTION 5. Sections 39-26.4-2 and 39-26.4-3 of the General Laws in Chapter 39-26.4

entitled "Net Metering" are hereby amended to read as follows:

39-26.4-2. Definitions.

Terms not defined in this section herein shall have the same meaning as contained in

chapter 26 of this title. When used in this chapter:

(1) “Community remote net-metering system” means a facility generating electricity using

an eligible net-metering resource that allocates net-metering credits to a minimum of one account

for a system associated with low- or moderate-income housing eligible credit recipients, or three

(3) eligible credit-recipient customer accounts, provided that no more than fifty percent (50%) of

the credits produced by the system are allocated to one eligible credit recipient, and provided further

at least fifty percent (50%) of the credits produced by the system are allocated to the remaining

eligible credit recipients in an amount not to exceed that which is produced annually by twenty-

five kilowatt (25 KW) AC capacity. The community remote net-metering system may transfer

credits to eligible credit recipients in an amount that is equal to or less than the sum of the usage of

the eligible credit recipient accounts measured by the three-year (3) average annual consumption

of energy over the previous three (3) years. A projected annual consumption of energy may be used

until the actual three-year (3) average annual consumption of energy over the previous three (3)

years at the eligible credit recipient accounts becomes available for use in determining eligibility

of the generating system. The community remote net-metering system may be owned by the same

entity that is the customer of record on the net-metered account or may be owned by a third party.

(2) “Core forest” refers to unfragmented forest blocks of single or multiple parcels totaling

two hundred fifty (250) acres or greater unbroken by development and at least twenty-five (25)

yards from mapped roads, with eligibility questions to be resolved by the director of the department

of environmental management. Such determination shall constitute a contested case as defined in

§ 42-35-1.

(3) “Electric distribution company” shall have the same meaning as § 39-1-2, but shall not

include Block Island Power Company or Pascoag Utility District, each of whom shall be required

to offer net metering to customers through a tariff approved by the public utilities commission after

a public hearing. Any tariff or policy on file with the public utilities commission on the date of

passage of this chapter shall remain in effect until the commission approves a new tariff.

(4) “Eligible credit recipient” means one of the following eligible recipients in the electric

distribution company’s service territory whose electric service account or accounts may receive

net-metering credits from a community remote net-metering system. Eligible credit recipients

include the following definitions:

(i) Residential accounts in good standing.

(ii) “Low- or moderate-income housing eligible credit recipient” means an electric service

account or accounts in good standing associated with any housing development or developments

owned or operated by a public agency, nonprofit organization, limited-equity housing cooperative,

or private developer that receives assistance under any federal, state, or municipal government

program to assist the construction or rehabilitation of housing affordable to low- or moderate-

income households, as defined in the applicable federal or state statute, or local ordinance,

encumbered by a deed restriction or other covenant recorded in the land records of the municipality

in which the housing is located, that:

(A) Restricts occupancy of no less than fifty percent (50%) of the housing to households

with a gross, annual income that does not exceed eighty percent (80%) of the area median income

as defined annually by the United States Department of Housing and Urban Development (HUD);

(B) Restricts the monthly rent, including a utility allowance, that may be charged to

residents, to an amount that does not exceed thirty percent (30%) of the gross, monthly income of

a household earning eighty percent (80%) of the area median income as defined annually by HUD;

Electric service account or accounts in good standing associated with housing

developments that are under common ownership or control may be considered a single low- or

moderate-income housing eligible credit recipient for purposes of this section. The value of the

credits shall be used to provide benefits to tenants.

(iii) “Educational institutions” means public and private schools at the primary, secondary,

and postsecondary levels.

(iv) “Commercial or industrial customers” means any nonresidential customer of the

electric distribution company.

(5) “Eligible net-metering resource” means eligible renewable energy resource, as defined

in § 39-26-5 including biogas created as a result of anaerobic digestion, but, specifically excluding

all other listed eligible biomass fuels.

(6) “Eligible net-metering system” means a facility generating electricity using an eligible

net-metering resource that, for any system with a nameplate capacity in excess of twenty-five

kilowatts (25 KW), is reasonably designed and sized to annually produce electricity in an amount

that is equal to, or less than, the renewable self-generator’s usage at the eligible net-metering system

site measured by the three-year (3) average annual consumption of energy over the previous three

(3) years at the electric distribution account(s) located at the eligible net-metering system site. A

projected annual consumption of energy may be used until the actual three-year (3) average annual

consumption of energy over the previous three (3) years at the electric distribution account(s)

located at the eligible net-metering system site becomes available for use in determining eligibility

of the generating system. For any system with a nameplate capacity equal to or less than twenty-

five kilowatts (25 KW), eligibility shall not be restricted based on prior consumption. The eligible

net-metering system may be owned by the same entity that is the customer of record on the net-

metered accounts or may be owned by a third party that is not the customer of record at the eligible

net-metering system site and which may offer a third-party, net-metering financing arrangement or

net-metering financing arrangement, as applicable. Notwithstanding any other provisions of this

chapter, any eligible net-metering resource: (i) Owned by a public entity, educational institution,

hospital, nonprofit, or multi-municipal collaborative; or (ii) Owned and operated by a renewable-

generation developer on behalf of a public entity, educational institution, hospital, nonprofit, or

multi-municipal collaborative through a net-metering financing arrangement shall be treated as an

eligible net-metering system and all accounts designated by the public entity, educational

institution, hospital, nonprofit, or multi-municipal collaborative for net metering shall be treated as

accounts eligible for net metering within an eligible net-metering system site; or (iii) Owned and

operated by a renewable-generation developer on behalf of one or more commercial or industrial

customer(s) through net-metering financing arrangement(s) shall be treated as an eligible net-

metering system within an eligible net-metering system site. Notwithstanding any other provision

to the contrary, effective July 1, 2060, an eligible net-metering system means a facility generating

electricity using an eligible net-metering resource that is interconnected behind the same meter as

the net-metering customer’s load.

(7) “Eligible net-metering system site” means the site where the eligible net-metering

system or community remote net-metering system is located or is part of the same campus or

complex of sites contiguous to one another and the site where the eligible net-metering system or

community remote net-metering system is located or a farm on which the eligible net-metering

system or community remote net-metering system is located. Except for an eligible net-metering

system owned by or operated on behalf of a public entity, educational institution, hospital,

nonprofit, or multi-municipal collaborative or for a commercial or industrial customer through a

net-metering financing arrangement, the purpose of this definition is to reasonably assure that

energy generated by the eligible net-metering system is consumed by net-metered electric service

account(s) that are actually located in the same geographical location as the eligible net-metering

system. All energy generated from any eligible net-metering system is, and will be considered,

consumed at the meter where the renewable energy resource is interconnected for valuation

purposes. Except for an eligible net-metering system owned by, or operated on behalf of, a public

entity, educational institution, hospital, nonprofit, or multi-municipal collaborative, or for a

commercial or industrial customer through a net-metering financing arrangement, or except for a

community remote net-metering system, all of the net-metered accounts at the eligible net-metering

system site must be the accounts of the same customer of record and customers are not permitted

to enter into agreements or arrangements to change the name on accounts for the purpose of

artificially expanding the eligible net-metering system site to contiguous sites in an attempt to avoid

this restriction. However, a property owner may change the nature of the metered service at the

accounts at the site to be master metered in the owner’s name, or become the customer of record

for each of the accounts, provided that the owner becoming the customer of record actually owns

the property at which the account is located. As long as the net-metered accounts meet the

requirements set forth in this definition, there is no limit on the number of accounts that may be net

metered within the eligible net-metering system site.

(8) “Excess renewable net-metering credit” means a credit that applies to an eligible net-

metering system or community remote net-metering system for that portion of the production of

electrical energy beyond one hundred percent (100%) and no greater than one hundred twenty-five

percent (125%), except for any system with a nameplate capacity equal to or less than twenty-five

kilowatts (25 KW) for which excess renewable net-metering credit applies to all production of

electrical energy beyond one hundred percent (100%) of the renewable self-generator’s own

consumption at the eligible net-metering system site or the sum of the usage of the eligible credit

recipient accounts associated with the community remote net-metering system during the

applicable billing period.

For electrical energy produced greater than one hundred percent (100%) of the renewable

self-generator’s own electricity consumption at the eligible net-metering system site or the sum of

the usage of the eligible credit recipient accounts associated with the community remote net-

metering system during the applicable billing period, excess renewable net-metering credits shall

be equal to the wholesale electricity rate, which is hereby declared to be the ISO-New England

energy clearing price. When applying the ISO-New England energy clearing price to calculate the

value of excess renewable net-metering credits, the electric distribution company, subject to

commission approval and subject to amendment from time to time, may use an annual average,

monthly average, or other time increment and may use Rhode Island zone pricing or other

applicable locational pricing. The commission shall have the authority to make determinations as

to the applicability of this credit to specific generation facilities to the extent there is any uncertainty

or disagreement.

(9) “Farm” shall be defined in accordance with § 44-27-2, except that all buildings

associated with the farm shall be eligible for net-metering credits as long as: (i) The buildings are

owned by the same entity operating the farm or persons associated with operating the farm; and (ii)

The buildings are on the same farmland as the project on either a tract of land contiguous with, or

reasonably proximate to, such farmland or across a public way from such farmland.

(10) “Hospital” means and shall be defined and established as set forth in chapter 17 of

title 23.

(11) “Multi-municipal collaborative” means a group of towns and/or cities that enter into

an agreement for the purpose of co-owning a renewable-generation facility or entering into a

financing arrangement pursuant to subsection (15).

(12) “Municipality” means any Rhode Island town or city, including any agency or

instrumentality thereof, with the powers set forth in title 45.

(13) “Net metering” means using electrical energy generated by an eligible net-metering

system for the purpose of self-supplying electrical energy and power at the eligible net-metering

system site, or with respect to a community remote net-metering system, for the purpose of

generating net-metering credits to be applied to the electric bills of the eligible credit recipients

associated with the community net-metering system. The amount so generated will thereby offset

consumption at the eligible net-metering system site through the netting process established in this

chapter, or with respect to a community remote net-metering system, the amounts generated in

excess of that amount will result in credits being applied to the eligible credit-recipient accounts

associated with the community remote net-metering system.

(14) “Net-metering customer” means a customer of the electric distribution company

receiving and being billed for distribution service whose distribution account(s) are being net

metered.

(15) “Net-metering financing arrangement” means arrangements entered into by a public

entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or a commercial

or industrial customer with a private entity to facilitate the financing and operation of a net-metering

resource, in which the private entity owns and operates an eligible net-metering resource on behalf

of a public entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or

commercial or industrial customer, where: (i) The eligible net-metering resource is located on

property owned or controlled by the public entity, educational institution, hospital, municipality,

multi-municipal collaborative, or commercial or industrial customer as applicable; and (ii) The

production from the eligible net-metering resource and primary compensation paid by the public

entity, educational institution, hospital, nonprofit, multi-municipal collaborative, or commercial or

industrial customer to the private entity for such production is directly tied to the consumption of

electricity occurring at the designated net-metered accounts.

(16) “Nonprofit” means a nonprofit corporation as defined and established through chapter

6 of title 7, and shall include religious organizations that are tax exempt pursuant to 26 U.S.C. §

501(d).

(17) “Person” means an individual, firm, corporation, association, partnership, farm, town

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

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

state.

(18)“Preferred site” means a location for a renewable energy system that has had prior

development, including, but not limited to: landfills, gravel pits and quarries, highway and major

road median strips, brownfields, superfund sites, parking lots or sites that are designated

appropriate for carports, and all rooftops including, but not limited to, residential, commercial,

industrial, and municipal buildings.

(19) “Project” means a distinct installation of an eligible net-metering system or a

community remote net-metering system. An installation will be considered distinct if it is installed

in a different location, or at a different time, or involves a different type of renewable energy.

Subject to the safe-harbor provisions in § 39-26.4-3(a)(1), new and distinct projects cannot be

located on adjoining parcels of land within core forests, except for preferred sites.

(20) “Public entity” means the federal government, the state of Rhode Island,

municipalities, wastewater treatment facilities, public transit agencies, or any water distributing

plant or system employed for the distribution of water to the consuming public within this state

including the water supply board of the city of Providence.

(21) “Public entity net-metering system” means a system generating renewable energy at

a property owned or controlled by the public entity that is participating in a net-metering financing

arrangement where the public entity has designated accounts in its name to receive net-metering

credits.

(22) “Renewable net-metering credit” means a credit that applies to an eligible net-

metering system or a community remote net-metering system up to one hundred percent (100%) of

either the renewable self-generator’s usage at the eligible net-metering system site or the sum of

the usage of the eligible credit-recipient accounts associated with the community remote net-

metering system over the applicable billing period. This credit shall be equal to the total kilowatt

hours of electrical energy generated up to the amount consumed on-site, and/or generated up to the

sum of the eligible credit-recipient account usage during the billing period multiplied by the sum

of the distribution company’s:

(i) Last resort service kilowatt-hour charge for the rate class applicable to the net-metering

customer, except that for remote public entity and multi-municipality collaborative net-metering

systems that submit an application for an interconnection study on or after July 1, 2017, and

community remote net-metering systems, the last resort service kilowatt-hour charge shall be net

of the renewable energy standard charge or credit;

(ii) Distribution kilowatt-hour charge;

(iii) Transmission kilowatt-hour charge; and

(iv) Transition kilowatt-hour charge.

For projects after April 15, 2023 that have not elected to receive the fixed renewable net-

metering credit pursuant to § 39-26.4-3(f), subject to the allowable be two hundred seventy-five

one hundred seventy-five megawatts, alternating current (275 175 MWac), under § 39-26.4-

3(a)(1)(vi), the credit shall be reduced by twenty percent (20%).

Notwithstanding the foregoing, except for systems that have requested an interconnection

study for which payment has been received by the distribution company, or if an interconnection

study is not required, a completed and paid interconnection application, by December 31, 2018, the

renewable net-metering credit for all remote public entity and multi-municipal collaborative net-

metering systems shall not include the distribution kilowatt-hour charge commencing on January

1, 2060.

(23) “Renewable self-generator” means an electric distribution service customer of record

for the eligible net-metering system or community remote net-metering system at the eligible net-

metering system site which system is primarily designed to produce electrical energy for

consumption by that same customer at its distribution service account(s), and/or, with respect to

community remote net-metering systems, electrical energy which generates net-metering credits to

be applied to offset the eligible credit-recipient account usage.

(24) “Third party” means and includes any person or entity, other than the renewable self-

generator, who or that owns or operates the eligible net-metering system or community remote net-

metering system on the eligible net-metering system site for the benefit of the renewable self-

generator.

(25) “Third-party, net-metering financing arrangement” means the financing of eligible

net-metering systems or community remote net-metering systems through lease arrangements or

power/credit purchase agreements between a third party and renewable self-generator, except for

those entities under a public entity net-metering financing arrangement. A third party engaged in

providing financing arrangements related to such net-metering systems with a public or private

entity is not a public utility as defined in § 39-1-2.

39-26.4-3. Net metering.

(a) The following policies regarding net metering of electricity from eligible net-metering

systems and community remote net-metering systems and regarding any person that is a renewable

self-generator shall apply:

(1)(i) The maximum allowable capacity for eligible net-metering systems, based on

nameplate capacity, shall be ten megawatts (10 MW).

(ii) Eligible net-metering systems shall be sited outside of core forests with the exception

of development on preferred sites in the core forest and the exception of systems that, as of April

15, 2023, (A) Have submitted a complete application to the appropriate municipality for any

required permits and/or zoning changes, or (B) Have requested an interconnection study for which

payment has been received by the distribution company, or (C) If an interconnection study is not

required, systems that have a completed and paid interconnection application.

(iii) For systems developed in core forests on preferred sites, no more than one hundred

thousand square feet (100,000 sq. ft) of core forest shall be removed, except for work required for

utility interconnection or development of a brownfield, in which case no more core forest than

necessary for interconnection or brownfield development shall be removed.

(iv) The aggregate amount of net metering in the Block Island Utility District doing

business as Block Island Power Company and the Pascoag Utility District shall not exceed a

maximum percentage of peak load for each utility district as set by the utility district based on its

operational characteristics, subject to commission approval.

(v) Through December 31, 2018, the maximum aggregate amount of community remote

net-metering systems built shall be thirty megawatts (30 MW). Any of the unused MW amount

after December 31, 2018, shall remain available to community remote net-metering systems until

the MW aggregate amount is interconnected.

(vi) The maximum aggregate capacity of remote net metering allowable for ground-

mounted eligible net-metering systems, as defined by § 39-26.4-2(6), with the exception of systems

under § 39-26.4-3(e) and systems that have, as of April 15, 2023, submitted a complete application

to the appropriate municipality for any required permits and/or zoning changes or have requested

an interconnection study for which payment has been received by the distribution company, or if

an interconnection study is not required, a completed and paid interconnection application by the

distribution company as of June 24, 2023, shall be two hundred seventy-five one hundred seventy-

five megawatts, alternating current (275 175 MWac), excluding off-shore wind. None of the

systems to which this cap applies shall be in core forests unless on a preferred site located within

the core forest. A project counts against this maximum if it is in operation or under construction by

July 1, 2030 December 31, 2032, as determined by the local distribution company. All eligible

ground-mounted net-metering systems must be under construction or in operation by July 1, 2030

December 31, 2032. This restriction shall not apply to the following: (A) The eligible net-metering

system is interconnected behind the same meter as the net-metering customer’s load; and/or (B)

The energy generated by the eligible net-metering system is consumed by net-metered electric

service account(s) of the same owner of record that are actually located on the same or contiguous

parcels as the eligible net-metering system.

(2) For ease of administering net-metered accounts and stabilizing net-metered account

bills, the electric distribution company may elect (but is not required) to estimate for any twelve-

month (12) period:

(i) The production from the eligible net-metering system or community remote net-

metering system; and

(ii) Aggregate consumption of the net-metered accounts at the eligible net-metering system

site or the sum of the consumption of the eligible credit-recipient accounts associated with the

community remote net-metering system, and establish a monthly billing plan that reflects the

expected credits that would be applied to the net-metered accounts over twelve (12) months. The

billing plan would be designed to even out monthly billings over twelve (12) months, regardless of

actual production and usage. If such election is made by the electric distribution company, the

electric distribution company would reconcile payments and credits under the billing plan to actual

production and consumption at the end of the twelve-month (12) period and apply any credits or

charges to the net-metered accounts for any positive or negative difference, as applicable. Should

there be a material change in circumstances at the eligible net-metering system site or associated

accounts during the twelve-month (12) period, the estimates and credits may be adjusted by the

electric distribution company during the reconciliation period. The electric distribution company

also may elect (but is not required) to issue checks to any net-metering customer in lieu of billing

credits or carry-forward credits or charges to the next billing period. For residential-eligible net-

metering systems and community remote net-metering systems twenty-five kilowatts (25 KW) or

smaller, the electric distribution company, at its option, may administer renewable net-metering

credits month to month allowing unused credits to carry forward into the following billing period.

(3) If the electricity generated by an eligible net-metering system or community remote

net-metering system during a billing period is equal to, or less than, the net-metering customer’s

usage at the eligible net-metering system site or the sum of the usage of the eligible credit-recipient

accounts associated with the community remote net-metering system during the billing period, the

customer shall receive renewable net-metering credits, that shall be applied to offset the net-

metering customer’s usage on accounts at the eligible net-metering system site, or shall be used to

credit the eligible credit-recipient’s electric account.

(4) If the electricity generated by an eligible net-metering system or community remote

net-metering system during a billing period is greater than the net-metering customer’s usage on

accounts at the eligible net-metering system site or the sum of the usage of the eligible credit-

recipient accounts associated with the community remote net-metering system during the billing

period, the customer shall be paid by excess renewable net-metering credits for the excess

electricity generated; provided that, for any excess electricity generated by a system with a

nameplate capacity in excess of twenty-five kilowatts (25 KW), excess renewable net-metering

credits shall be limited to excess up to an additional twenty-five percent (25%) beyond the net-

metering customer’s usage at the eligible net-metering system site, or the sum of the usage of the

eligible credit-recipient accounts associated with the community remote net-metering system

during the billing period; unless the electric distribution company and net-metering customer have

agreed to a billing plan pursuant to subsection (a)(2). Subject to the completion of any applicable

annual reconciliation of renewable net-metering credits and excess renewable net metering credits,

customers shall have the option to cash out any credit balance remaining provided that the amount

of the cash out shall be the lower of:

(i) The credit balance shown from the annual reconciliation of the applicable account; or

(ii) The credit balance on the applicable account on the date the electric distribution

company processes the cash out.

(5) The rates applicable to any net-metered account shall be the same as those that apply

to the rate classification that would be applicable to such account in the absence of net metering,

including customer and demand charges, and no other charges may be imposed to offset net-

metering credits.

(b) The commission shall exempt electric distribution company customer accounts

associated with an eligible net-metering system from back-up or standby rates commensurate with

the size of the eligible net-metering system, provided that any revenue shortfall caused by any such

exemption shall be fully recovered by the electric distribution company through rates.

pursuant to achieving compliance with subsection (a) and the annual amount of any renewable net-

metering credits or excess renewable net-metering credits provided to accounts associated with

eligible net-metering systems or community remote net-metering systems, shall be aggregated by

the distribution company and billed to all distribution customers on an annual basis through a

uniform, per-kilowatt-hour (KWh) surcharge embedded in the distribution component of the rates

reflected on customer bills.

(d) The billing process set out in this section shall be applicable to electric distribution

companies thirty (30) days after the enactment of this chapter.

(e) The Rhode Island office of energy resources shall redesign the community solar remote

net metering program to reflect the provisions of this chapter and to include a commercial or

industrial anchor tenant up to but not to exceed fifty percent (50%) of the project. The remaining

fifty percent (50%) must be allocated or subscribed to low- and moderate-income (LMI) residents

and/or those living in areas defined as disadvantaged and environmental justice communities. The

Rhode Island office of energy resources shall design the net metering credit rate and factor in

federal energy funding and tax credits to develop the most cost-effective rate for community solar

projects. It is expected that these projects will be operational for a twenty-year (20) period. The

Rhode Island office of energy resources shall file a benefit and cost analysis with any program

proposal filed to the Rhode Island public utilities commission. Once the Rhode Island office of

energy resources files a program proposal to the Rhode Island public utilities commission, a docket

shall be established, and the Rhode Island public utilities commission shall issue a ruling on the

program no later than one hundred and fifty (150) days. If a program is approved, it will be subject

to no greater than twenty megawatts (20 MW) per year for two years until the forty megawatts (40

MW) cap is met. Eligible net-metering systems shall be sited outside of core forests with the

exception of development on preferred sites in the core forest.

(f)(1) An eligible net-metering system owned by, or operated on behalf of, a public entity,

educational institution, hospital, nonprofit, or multi-municipal collaborative, or for a commercial

or industrial customer through a net-metering financing arrangement, or an eligible community

remote net-metering system may make a one-time, irrevocable election by the later of: (i) the date

that is ninety (90) days after the commission approves a tariff pursuant to § 39-26.4-3(f)(2); or (ii)

the date that is sixty (60) days after execution of an interconnection agreement, to receive a fixed

renewable net-metering credit rate of nineteen cents ($0.19) per kilowatt-hour. Such fixed credit

rate shall be increased by 2.75% on a compound annual basis beginning January 1, 2028, and on

January 1 of each year thereafter. The fixed credit rate elected pursuant to this subsection shall

apply for a term of twenty-five (25) years from the date of such election and shall be governed by

§ 39-26.4-3(f)(4). Eligible net-metering systems making an election under this subsection shall

remain subject to the requirements of § 39-26.4-3(a)(4).

(2) No later than August 15, 2026, the electric distribution company shall file a tariff with

the commission to implement the fixed renewable net-metering credit for eligible net metering

systems that elect such credit, under terms and conditions set forth in the tariff. The tariff shall set

forth, at a minimum, the rights and obligations of the eligible net-metering systems and the electric

distribution company, including the conditions governing the calculation and payment of credits

by the electric distribution company. The commission shall approve a tariff no later than December

1, 2026.

(3) The commission shall have the authority to determine the final terms and conditions in

the tariff that is filed with the commission pursuant to this section. Once approved, the commission

shall retain exclusive jurisdiction over all payments, terms, conditions, rights, enforcement, and

implementation of the tariff, subject to appeals pursuant to chapter 5 of this title.

(4) It is the intention of the general assembly in enacting this provision that the developers,

owners, investors, customers, and lenders of eligible net-metering systems receiving credits under

the tariff be able to rely on the tariff for the entire term of the tariff for purposes of obtaining

financing. Consistent with that intention and expectation, the terms under the tariff, once approved

by the commission, shall not be altered in any way that would undermine such reliance on those

tariffs during the applicable terms of the tariff; and in no circumstance will the credit rate paid to

an eligible net-metering system be reduced during the term of the tariff once a project has elected

to receive a tariff under the terms of this chapter.

SECTION 6. Chapter 39-26 of the General Laws entitled "Renewable Energy Standard" is

hereby amended by adding thereto the following section:

39-26-5.1. Zero-emission resources.

(a) Zero-emission resources are:

(1) Nuclear energy resources, meaning electricity generated by a nuclear fission or nuclear

fusion facility that is licensed by the United States Regulatory Commission or its successor, and

that produces no direct emissions of greenhouse gases or criteria air pollutants at the point of

generation.

(2) Large-scale hydroelectric facilities, meaning hydroelectric generation units that are not

“small hydro facilities” as defined in § 39-26-2, that generate electricity through the conversion of

the energy of flowing or falling water and that produce no direct emissions of greenhouse gases or

criteria air pollutants at the point of generation.

(b) For the purposes of the regulations promulgated under this chapter, eligible zero-

emission energy resources are generation units in the NEPOOL control area using zero-emission

energy resources as defined in this section.

qualify as an eligible zero-emission energy resource, but the associated generation attributes shall

be applied to any zero-emission standard established under this chapter only to the extent that the

energy produced by the generation unit is actually delivered into NEPOOL for consumption by

New England customers. The delivery of the energy from the generation unit into NEPOOL shall

be demonstrated by:

(1) A unit-specific bilateral contract for the sale and delivery of such energy into NEPOOL;

(2) Confirmation from ISO-New England that the zero-emission energy was actually

settled in the NEPOOL system; and

(3) Confirmation through the North American Electric Reliability Corporation tagging

system, or its successor, that the import of the energy into NEPOOL actually occurred; or

(4) Any such other requirements as the commission deems appropriate.

(d) NE-GIS certificates associated with the energy production from off-grid generation and

customer-sited generation facilities certified by the commission as eligible zero-emission energy

resources may also be used to demonstrate compliance with any zero-emission standard.

SECTION 7. Sections 39-26-1, 39-26-2, 39-26-4 and 39-26-6 of the General Laws in

Chapter 39-26 entitled "Renewable Energy Standard" are hereby amended to read as follows:

39-26-1. Legislative findings.

The General Assembly finds that:

(1) The people and energy users of Rhode Island have an interest in having electricity

supplied in the state come from a diversity of energy sources including renewable and zero-

emission resources;

(2) Increased use of renewable and zero-emission energy may have the potential to lower

and stabilize future energy costs and protect ratepayers from the volatility of regional energy

markets;

(3) Increased use of renewable and zero-emission energy can reduce air pollutants,

including carbon dioxide emissions, that adversely affect public health and contribute to global

warming;

(4) Massachusetts, Connecticut, and other states have established renewable and zero-

emission energy standard programs to encourage the development of renewable energy sources;

(5) It is in the interest of the people, in order to protect public health and the environment

and to promote the general welfare and to ensure affordability and reliability, to establish a

renewable and zero-emission energy standard program to increase levels of electrical energy

supplied in the state from renewable resources in a manner that prioritizes efficiency and cost-

effectiveness.

39-26-2. Definitions.

When used in this chapter:

(1) “Alternative compliance payment” means a payment to the renewable energy

development fund of fifty dollars ($50.00) per megawatt-hour of renewable energy obligation, in

2003 dollars, adjusted annually up or down by the consumer price index, which may be made in

lieu of standard means of compliance with this statute.

(1) “Alternative compliance payment” starting with compliance year 2026 means a

payment made in lieu of standard means of compliance with this statute, as follows:

(i) For new renewable energy and zero-emission resources, an alternative compliance

payment of forty dollars ($40.00) per megawatt-hour of renewable energy obligation;

(ii) For existing renewable energy and zero-emission resources, an alternative compliance

payment of eleven dollars ($11.00) per megawatt-hour of renewable energy obligation;

(iii) All such payments shall be deposited into the renewable energy development fund and

distributed in accordance with § 39-26-7.

(2) “Commission” means the Rhode Island public utilities commission.

(3) “Compliance year” means a calendar year beginning January 1 and ending December

31, for which an obligated entity must demonstrate that it has met the requirements of this statute.

(4) “Customer-sited generation facility” means a generation unit that is interconnected on

the end-use customer’s side of the retail electricity meter in such a manner that it displaces all or

part of the metered consumption of the end-use customer.

(5) “Electrical energy product” means an electrical energy offering, including, but not

limited to, last-resort and standard-offer service, that can be distinguished by its generation

attributes or other characteristics, and that is offered for sale by an obligated entity to end-use

customers.

(6) “Eligible biomass fuel” means fuel sources including brush, stumps, lumber ends and

trimmings, wood pallets, bark, wood chips, shavings, slash, and other clean wood that is not mixed

with other solid wastes; agricultural waste, food, and vegetative material; energy crops; landfill

methane; biogas; or neat biodiesel and other neat liquid fuels that are derived from such fuel

sources.

(7) “Eligible renewable energy resource” means resources as defined in § 39-26-5.

(8) “End-use customer” means a person or entity in Rhode Island that purchases electrical

energy at retail from an obligated entity.

(9) “Existing renewable energy resources” means generation units using eligible renewable

energy resources and first going into commercial operation before December 31, 1997.

(10) “Generation attributes” means the nonprice characteristics of the electrical energy

output of a generation unit including, but not limited to, the unit’s fuel type, emissions, vintage,

and policy eligibility.

(11) “Generation unit” means a facility that converts a fuel or an energy resource into

electrical energy.

(12) “High-heat medical waste processing facility” means a facility that:

(i) Generates electricity from the combustion, gasification, or pyrolysis of regulated

medical waste;

(ii) Generates electricity from the combustion of fuel derived from the gasification or

pyrolysis of regulated medical waste; or

(iii) Disposes of, processes, or treats regulated medical waste through combustion,

gasification, pyrolysis, or any process that exposes waste to temperatures above four hundred

degrees Fahrenheit (400ºF).

(13) “NE-GIS” means the generation information system operated by NEPOOL, its

designee or successor entity, that includes a generation information database and certificate system,

and that accounts for the generation attributes of electrical energy consumed within NEPOOL.

(14) “NE-GIS certificate” means an electronic record produced by the NE-GIS that

identifies the relevant generation attributes of each megawatt-hour accounted for in the NE-GIS.

(15) “NEPOOL” means the New England Power Pool or its successor.

(16) “New renewable energy resources” means generation units using eligible renewable

energy resources and first going into commercial operation after December 31, 1997; or the

incremental output of generation units using eligible renewable energy resources that have

demonstrably increased generation in excess of ten percent (10%) using eligible renewable energy

resources through capital investments made after December 31, 1997; but in no case involve any

new impoundment or diversion of water with an average salinity of twenty (20) parts per thousand

or less.

(17) “Obligated entity” means a person or entity who or that sells electrical energy to end-

use customers in Rhode Island, including, but not limited to: nonregulated power producers and

electric utility distribution companies, as defined in § 39-1-2, supplying standard-offer service, last-

resort service, or any successor service to end-use customers, including Narragansett Electric, but

not to include Block Island Power Company as described in § 39-26-7 or Pascoag Utility District.

(18) “Off-grid generation facility” means a generation unit that is not connected to a utility

transmission or distribution system.

(19) “Renewable energy resource” means any one or more of the renewable energy

resources described in § 39-26-5(a).

(20) “Reserved certificate” means a NE-GIS certificate sold independent of a transaction

involving electrical energy, pursuant to Rule 3.4 or a successor rule of the operating rules of the

NE-GIS.

(21) “Reserved certificate account” means a specially designated account established by

an obligated entity, pursuant to Rule 3.4 or a successor rule of the operating rules of the NE-GIS,

for transfer and retirement of reserved certificates from the NE-GIS.

(22) “Self-generator” means an end-use customer in Rhode Island that displaces all or part

of its retail electricity consumption, as metered by the distribution utility to which it interconnects,

through the use of a customer-sited generation facility, and the ownership of any such facility shall

not be considered an obligated entity as a result of any such ownership arrangement.

(23) “Small hydro facility” means a facility employing one or more hydroelectric turbine

generators and with an aggregate capacity not exceeding thirty megawatts (30 MW). For purposes

of this definition, “facility” shall be defined in a manner consistent with Title 18 of the Code of

Federal Regulations, section 292.204; provided, however, that the size of the facility is limited to

thirty megawatts (30 MW), rather than eighty megawatts (80 MW).

39-26-4. Renewable energy standard.

(a) Starting in compliance year 2007, all obligated entities shall obtain at least three percent

(3%) of the electricity they sell at retail to Rhode Island end-use customers, adjusted for electric

line losses, from eligible renewable energy resources, escalating, according to the following

schedule:

(1) At least three percent (3%) of retail electricity sales in compliance year 2007;

(2) An additional one-half of one percent (0.5%) of retail electricity sales in each of the

following compliance years 2008, 2009, 2010;

(3) An additional one percent (1%) of retail electricity sales in each of the following

compliance years 2011, 2012, 2013, 2014, provided that the commission has determined the

adequacy, or potential adequacy, of renewable energy supplies to meet these percentage

requirements;

(4) There shall be no increase to the renewable energy standard for compliance year 2015,

and the incremental increases shall resume in the subsequent compliance years as provided in

subsections (a)(5) through (a)(12) of this section;

(4)(5) An additional one and one-half percent (1.5%) of retail electricity sales in each of

the following compliance years 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022;

(5)(6) [Deleted by P.L. 2016, ch. 144, § 1 and P.L. 2016, ch. 155, § 1.]

(6)(7) An additional four percent (4%) of retail electricity sales in 2023;

(7)(8) An additional five percent (5%) of retail electricity sales in 2024;

(8)(9) An additional six percent (6%) of retail electricity sales in 2025;

(9)(10) An additional seven percent (7%) of retail electricity sales in 2026 and 2027;

(10)(11) An additional seven and one-half percent (7.5%) of retail electricity sales in 2028;

(11)(12) An additional eight percent (8%) of retail electricity sales in 2029;

(12)(13) An additional eight and one-half percent (8.5%) of retail electricity sales in 2030;

(13)(14) An additional nine percent (9%) of retail electricity sales in 2031; and

(14)(15) An additional nine and one-half percent (9.5%) of retail electricity sales in 2032

and 2033 to achieve the goal that one hundred percent (100%) of Rhode Island’s retail electricity

demand sales is from renewable energy and zero-emission resources by 2033 and each year

thereafter.

(b) For each obligated entity and in each compliance year, the amount of retail electricity

sales used to meet obligations under this statute that are derived from existing renewable energy

and zero-emission resources shall not exceed two percent (2%) of total retail electricity sales

through compliance year 2026. For compliance year 2027, for each obligated entity the amount of

retail electricity sales used to meet obligations under this statute that are derived from existing

renewable energy resources and zero-emission resources shall not exceed fourteen percent (14%)

of total retail sales and an additional one percent (1% ) of total retail electricity sales for each of

compliance years, 2028, 2029, 2030, 2031, 2032, and for compliance year 2033 and each

compliance year thereafter, shall not exceed twenty percent (20%).

each electrical energy product offered to end-use customers, in a manner that ensures that the

amount of renewable energy of end-use customers voluntarily purchasing renewable energy is not

counted toward meeting such percentages. Notwithstanding the foregoing, municipalities engaged

in aggregation pursuant to § 39-3-1.2 may include in their aggregation plan terms that would allow

voluntary renewable energy products to be counted toward meeting such percentages. In 2024, the

commission, with input from the office of energy resources, division of public utilities and carriers,

obligated entities, other market participants, and the public, shall assess the impact of allowing

voluntary renewable energy purchases to be counted toward meeting the annual percentages. The

commission shall submit a report of its findings and recommendations to the governor, speaker of

the house, and senate president no later than September 1, 2024.

(d) To the extent consistent with the requirements of this chapter, compliance with the

renewable energy standard may be demonstrated through procurement of NE-GIS certificates

relating to generating units certified by the commission as using eligible renewable energy sources

and zero-emission resources, as evidenced by reports issued by the NE-GIS administrator.

Procurement of NE-GIS certificates from off-grid and customer-sited generation facilities, verified

by the commission as eligible renewable energy resources and zero-emission resources, may also

be used to demonstrate compliance. With the exception of contracts for generation supply entered

into prior to 2002, initial title to NE-GIS certificates from off-grid and customer-sited generation

facilities and from all other eligible renewable energy and zero-emission resources, shall accrue to

the owner of such a generation facility, unless such title has been explicitly deemed transferred

pursuant to contract or regulatory order.

(e) In lieu of providing NE-GIS certificates pursuant to subsection (d) of this section, an

obligated entity may also discharge all or any portion of its compliance obligations by making an

alternative compliance payment to the renewable energy development fund established pursuant to

§ 39-26-7.

(f) Retail electricity sales pursuant to a nonregulated power producer’s supply contract that

was executed prior to July 1, 2022, shall be required to obtain an additional one and one-half percent

(1.5%) of retail electricity sales each year and are exempted from the requirements of subsections

(a)(6) through (a)(14) of this section until the end date of the term of the nonregulated power

producer’s supply contract.

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 and zero-emission 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;

(ii) Standards for contracts and procurement plans for renewable energy and zero-emission

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 new and existing renewable and zero-emissions resources for

two (2) subsequent compliance years, capped at thirty percent (30%) of the current year’s obligation

up to three (3) subsequent compliance years with no limitation on quantity; 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 including certificates from zero-emission resources; 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 and zero-emission 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.]

(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

renewable energy and zero-emission 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 8. Chapter 39-26 of the General Laws entitled "Renewable Energy Standard" is

hereby amended by adding thereto the following section:

39-26-4.1. Legislative reporting.

(a) On or before January 1, 2027, the public utilities commission shall conduct a

comprehensive review of:

(1) The status of the state’s progress toward meeting the renewable energy standard;

(2) The status of the state’s progress toward meeting the greenhouse gas emissions

reduction requirements;

(3) The extent to which renewable energy procurement and development within the state

is sufficient to ensure long-term compliance with such requirements;

(4) The impact on meeting mandated carbon reduction goals in § 42-6.2-9;

(5) Estimated cost of compliance of the renewable energy standard; and

(6) Recommendations for creation of an intervenor compensation program to provide

compensation in the form of a grant for legal fees, expert witness fees and other reasonable costs

to an intervenor in public utility commission proceedings.

(b) On or before December 31, 2027, public utilities commission shall submit a report of

their findings, and recommendation of actions required pursuant to this section, to the governor,

the speaker of the house, the president of the senate, and the chairs of the house committees on

environment and natural resources, finance, and corporations and the senate committees on finance,

environment and agriculture, and commerce. The report shall detail the following:

(1) Renewable and zero-emission resources used for compliance;

(2) Estimated cost of compliance of the renewable energy standard;

(3) Impact on meeting mandated carbon reduction goals in § 42-6.2-9; and

(4) Any statutory changes needed to reach the 2033 targets established pursuant to this

chapter.

SECTION 9. Section 39-31-11 of the General Laws in Chapter 39-31 entitled "Affordable

Clean Energy Security Act" is hereby repealed.

39-31-11. Financial remuneration and incentives.

In order to achieve the purposes of this chapter, electric distribution companies shall be

entitled to financial remuneration and incentives for long-term contracts for newly developed

renewable energy resources, which are over and above the base rate revenue requirement

established in its cost of service for distribution ratemaking. Such remuneration and incentives shall

compensate the electric distribution company for accepting the financial obligation of the long-

term contracts. For long-term contracts approved pursuant to this chapter on or after January 1,

2022, the financial remuneration and incentives shall be in the form of annual compensation up to

one percent (1.0%) of the actual annual payments made under the contracts through December 31,

2026, for those projects that are commercially operating. For long-term contracts approved

pursuant to this chapter on or after January 1, 2027, financial remuneration and incentives shall not

be applied, unless otherwise granted by the commission. For any calendar year in which the electric

distribution company’s actual return on equity exceeds the return on equity allowed by the

commission in the electric distribution company’s last general rate case, the commission shall have

the authority to adjust any or all remuneration paid to the electric distribution company pursuant to

this section in order to assure that such remuneration does not result in or contribute toward the

electric distribution company earning above its allowed return for such calendar year.

SECTION 10. Chapter 42-12 of the General Laws entitled "Department of Human

Services" is hereby amended by adding thereto the following section:

42-12-1.6. Transfer of functions to the office of energy resources.

(a) There is hereby transferred from the department of human services to the office of

energy resources the administration, management, all functions and resources associated with:

(1) The weatherization assistance program which offers weatherization grants and heating

system upgrades using funds from the federal department of energy and the federal low-income

home energy assistance program, and any state funded or privately funded weatherization

assistance program of a similar nature assigned to it;

(b) The department is authorized to offer advisory assistance to the office of energy

resources in order to maintain continuity to eligible households.

SECTION 11. Section 42-12-1.5 of the General Laws in Chapter 42-12 entitled

"Department of Human Services" is hereby amended to read as follows:

42-12-1.5. Transfer of functions from the office of energy resources.

(a) There is hereby transferred from the office of energy resources to the department of

human services the administration, management, all functions and resources associated with:

(1) The federal low-income home energy assistance program (LIHEAP), which provides

heating assistance to eligible low-income persons and any state funded or privately funded heating

assistance program of a similar nature assigned to it for administration;

(2) The weatherization assistance program, which offers home weatherization grants and

heating system upgrades to LIHEAP eligible households; and,

(3)(2) The emergency fuel program, which provides oil deliveries to families experiencing

a heating emergency.

(b) The department is authorized to request advisory assistance from the office of energy

resources in order to maintain continuity of assistance provided to LIHEAP eligible households

pursuant to § 39-2-1(d).

SECTION 12. Section 42-140-3 of the General Laws in Chapter 42-140 entitled "Rhode

Island Energy Resources Act" is hereby amended to read as follows:

42-140-3. Purposes.

The purposes of the office shall be to:

(1) Develop and put into effect plans and programs to promote, encourage, and assist the

provision of energy resources for Rhode Island in a manner that enhances economic well-being,

social equity, and environmental quality;

(2) Monitor, forecast, and report on energy use, energy prices, and energy demand and

supply forecasts, and make findings and recommendations with regard to energy supply diversity,

reliability, and procurement, including least-cost procurement;

(3) Develop and to put into effect plans and programs to promote, encourage, and assist

the efficient and productive use of energy resources in Rhode Island, and to coordinate energy

programs for natural gas, electricity, and heating oil to maximize the aggregate benefits of

conservation and efficiency of investments;

(4) Monitor and report technological developments that may result in new and/or improved

sources of energy supply, increased energy efficiency, and reduced environmental impacts from

energy supply, transmission, and distribution;

(5) Administer the programs, duties, and responsibilities heretofore exercised by the state

energy office, except as these may be assigned by executive order or the general laws to other

departments and agencies of state government;

(6) Develop, recommend, and, as appropriate, implement integrated and/or comprehensive

strategies, including at regional and federal levels, to secure Rhode Island’s interest in energy

resources, their supply and efficient use, and as necessary to interact with persons, private sector,

nonprofit, regional, federal entities and departments and agencies of other states to effectuate this

purpose;

(7) Cooperate with agencies, departments, corporations, and entities of the state and of

political subdivisions of the state in achieving its purposes;

(8) Cooperate with and assist the state planning council and the division of state planning

in developing, maintaining, and implementing state guide plan elements pertaining to energy and

renewable energy;

(9) Coordinate the energy efficiency, least-cost procurement, and systems reliability plans

and programs with the energy efficiency and resources management council;

(10) Participate in, monitor implementation of, and provide technical assistance for the

low-income home energy assistance program enhancement plan established pursuant to § 39-1-

27.12;

(11) Participate in and monitor the distributed generation standard contracts program

pursuant to chapter 26.2 of title 39;

(12)(11) Coordinate opportunities with and enter into contracts and/or agreements with the

commerce corporation associated with the energy efficiency, least-cost procurement, system

reliability, and renewable energy fund programs;

(13)(12) Provide support and information to the division of planning and the state planning

council in the development of a ten-year (10) Rhode Island Energy Guide Plan, which shall be

reviewed and amended if necessary every five (5) years;

(13) Administer the federal Weatherization Assistance Program and any state or privately

funded weatherization program;

(14) Advise and provide technical assistance to state and federally funded energy programs

to support:

(i) The federal low-income home energy assistance program which provides heating

assistance to eligible low-income persons and any state funded or privately funded heating

assistance program of a similar nature assigned to it for administration;

(ii) The weatherization assistance program which offers home weatherization grants and

heating system upgrades to eligible persons of low-income;

(iii) The emergency fuel program which provides oil deliveries to families experiencing a

heating emergency;

(iv) The energy conservation program, which offers service and programs to all sectors;

(v) [Deleted by P.L. 2008, ch. 228, § 2, and P.L. 2008, ch. 422, § 2.]

(15) Advise the commerce corporation in the development of standards and rules for the

solicitation and award of renewable energy program investment funds in accordance with § 42-64-

13.2;

(16) Develop, recommend, and evaluate energy programs for state facilities and operations

in order to achieve and demonstrate the benefits of energy-efficiency, diversification of energy

supplies, energy conservation, and demand management; and

(17) Advise the governor and the general assembly with regard to energy resources and all

matters relevant to achieving the purposes of the office.

SECTION 13. Chapter 42-140 of the General Laws entitled "Rhode Island Energy

Resources Act" is hereby amended by adding thereto the following section:

42-140-13. Energy Benchmarking And Performance Standards Program.

(a) Definitions. For the purposes of this section:

(1) “Department” means all state departments whose directors are enumerated in § 42-6-3

and shall additionally include the executive office of health and human services, the executive

office of commerce, and the executive office of housing.

(2) “Public buildings” for the purpose of this section means all municipal and school

buildings owned by a municipality that are at least twenty-five thousand gross square feet (25,000

GSF).

(3) “State-owned, state-occupied facilities” means buildings owned by the state that

primarily contain offices or other administrative work space for state employees and are at least

twenty-five thousand gross square feet (25,000 GSF).

(b) State facilities energy usage reporting

(1) State departments, coordinated and supported by the office of energy resources, shall

be required to measure and report monthly energy usage by energy source for their respective state-

owned, state-occupied facilities, as well as the gross square footage for each building.

(2) Beginning March 31, 2029, and recurring annually thereafter, departments, coordinated

and supported by the office of energy resources, shall report to the office energy use data by source

for state-owned, state-occupied facilities for the preceding calendar year. No later than one hundred

eighty (180) days from the March 31 reporting deadline each year, the office shall compile, publish,

and post on its website each facility’s energy use data by fuel and total emissions.

(1) Utilizing the data due March 31, 2029, in subsection (b)(2), the office of energy

resources shall, with consultation from departments, develop and publish performance standards

for state-owned, state-occupied facilities by March 31, 2030, and may update the performance

standards and any revision to the standards thereafter. The performance standards published must

include:

(i) An annualized emissions standard based on energy usage for each state-owned, state-

occupied facility as necessary, to achieve by specified dates;

(ii) A schedule for compliance terminating in 2050; and

(iii) The cost-benefit analysis used to determine which state-owned, state-occupied

facilities are assigned performance standards, as set forth in subsection (c)(2) below.

(2) The performance standards shall be determined by evaluating:

(i) The total amount of emissions reductions that could be achieved while maintaining state

operations;

(ii) The relative contribution of the emissions reductions to decadal targets established by

§ 42-6.2-2 compared to other strategies, programs, and actions established by the executive climate

change coordinating council in its plan due December 31, 2025, in accordance with § 42-6.2-

2(2)(i); and

(iii) The fiscal impacts of achieving the performance standards.

(3) The departments shall meet the performance standards set in accordance with

subsection (c)(2). No later than ninety (90) days after each specified compliance date established

in accordance with subsection (c)(1), the office of energy resources shall publish a performance

standards compliance report demonstrating the status of each state-owned, state-occupied facility

subject to a performance standard and post on its website. In the event that a state-owned, state-

occupied facility fails to meet a performance standard, the office of energy resources shall provide

a corrective action plan with which the state-owned, state-occupied facility shall comply within

ninety (90) days of the compliance deadline.

(4) Subsections (c)(1), (c)(2), and (c)(3) shall not apply to state-owned, state-occupied

facilities whichthat the office and department of administration determine are not suitable

candidates for achieving greenhouse gas emission reductions due to economic infeasibility or

unique operational or physical limitations. Any such determinations shall be published in addition

to the standards required in subsection (c)(2) and posted on the office’s website.

(d) Voluntary energy benchmarking program for public buildings

(i) The office of energy resources shall provide technical and financial assistance to

municipalities for a voluntary public buildings energy benchmarking program of public buildings

on municipal properties in which buildings are greater than twenty-five thousand square feet

(25,000 ft2).

(ii) The office of energy resources shall maintain a website that tracks its implementation

of the voluntary public buildings energy benchmarking program. The office shall submit to the

governor and general assembly by May 1, 2028, and annually thereafter a progress report on the

voluntary public buildings energy benchmarking program.

SECTION 14. This article shall take effect upon passage.