2008 -- S 2852

=======

LC02466

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2008

____________

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - RHODE ISLAND ECONOMIC

DEVELOPMENT CORPORATION

     Introduced By: Senators J Montalbano, Algiere, Walaska, C Levesque, and Bates

     Date Introduced: March 12, 2008

     Referred To: Senate Corporations

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 42-64-13.2 of the General Laws in Chapter 42-64 entitled "Rhode

1-2

Island Economic Development Corporation" is hereby amended to read as follows:

1-3

     42-64-13.2. Renewable energy development fund. -- Renewable energy investment

1-4

coordination. -- The Rhode Island economic development corporation shall, in the furtherance of

1-5

its responsibilities to promote and encourage economic development, establish and administer a

1-6

renewable energy development fund as provided for in section 39-26-7, and may exercise the

1-7

powers set forth in this chapter, as necessary or convenient to accomplish this purpose, and shall

1-8

provide such administrative support as may be needed for the coordinated administration of the

1-9

renewable energy standard as provided for in chapter 26 of title 39 and the renewable energy

1-10

program established by section 39-2-1.2. The corporation, upon the request of any person

1-11

undertaking a renewable energy facility project, may grant project status to the project, and a

1-12

renewable energy facility project which is given project status by the corporation shall be deemed

1-13

an energy project of the corporation.

1-14

     (a) Intent. To develop an integrated organizational structure to secure for Rhode Island

1-15

and its people the full benefits of cost-effective renewable energy development.

1-16

     (b) Definitions. For purposes of this section, the following words and terms shall have the

1-17

meaning set forth in section 42-64-3 unless this chapter provides a different meaning. Within this

1-18

chapter, the following words and terms shall have the following meanings:

2-1

     (1) "Affordable housing" means a housing development as defined in section 42-55-3.

2-2

     (2) "Corporation" means the Rhode Island economic development corporation.

2-3

     (3) "Council" means the energy efficiency and resources management council established

2-4

pursuant to chapter 42-140-1.

2-5

     (4) "Municipality" means any city or town, or other political subdivision of the state.

2-6

     (5) "Office" means the office of energy resources established by chapter 42-140.

2-7

     (c) Purpose. The corporation is authorized to integrate the management of public funds to

2-8

promote the expansion and sound development of renewable energy resources by providing

2-9

coordinated and cost-effective use of funds from:

2-10

     (1) The renewable energy program of the demand side management program as set forth

2-11

in section 39-2-1.2; and

2-12

     (2) The renewable energy development fund of the renewable energy standard, as set

2-13

forth in chapter 39-26.

2-14

     (3) The office of energy resources from the sale of allowances under the greenhouse gas

2-15

initiative act to the extent available for renewable energy, as set forth in chapter 23-82.

2-16

     (d) Renewable energy development fund. – The corporation shall, in the furtherance of its

2-17

responsibilities to promote and encourage economic development, establish and administer a

2-18

renewable energy development fund as provided for in section 39-26-7, may exercise the powers

2-19

set forth in this chapter, as necessary or convenient to accomplish this purpose, and shall provide

2-20

such administrative support as may be needed for the coordinated administration of the renewable

2-21

energy standard as provided for in chapter 39-26 and the renewable energy program established

2-22

by section 39-2-1.2. The corporation may upon the request of any person undertaking a renewable

2-23

energy facility project, grant project status to the project, and a renewable energy facility project,

2-24

which is given project status by the corporation, shall be deemed an energy project of the

2-25

corporation.

2-26

     (e) Duties. The corporation shall, with regards to renewable energy project investment:

2-27

     (1) Establish by rule, in consultation with the office and the council, standards for

2-28

financing renewable energy projects.

2-29

     (2) Enter into agreements, consistent with this chapter and renewable energy investment

2-30

plans adopted by the office, to provide support to renewable energy projects that meet applicable

2-31

standards established by the corporation. Said agreements may include contracts with

2-32

municipalities and public corporations.

2-33

     (f) Conduct of activities. – (1) To the extent reasonable and practical, the conduct of

2-34

activities under the provisions of this chapter shall be open and inclusive; the director and the

3-1

council shall seek, in addressing the purposes of this chapter, to involve the research and analytic

3-2

capacities of institutions of higher education within the state, industry, advocacy groups, and

3-3

regional entities, and shall seek input from stakeholders including, but not limited to, residential

3-4

and commercial energy users.

3-5

     (2) By January 1, 2009, the director shall adopt:

3-6

     (A) Goals for renewable energy facility investment which is beneficial, prudent, and from

3-7

diverse sources;

3-8

     (B) A plan for a period of five (5) years, annually upgraded as appropriate, to meet the

3-9

aforementioned goals; and

3-10

     (C) Standards and procedures for evaluating proposals for renewable energy projects in

3-11

order to determine the consistency of proposed projects with the plan.

3-12

     (g) Reporting. On March 1, of each year after the effective date of this chapter, the

3-13

corporation shall submit to the governor, the president of the senate, the speaker of the house of

3-14

representatives, and the secretary of state, a financial and performance report. These reports shall

3-15

be posted electronically on the general assembly and the secretary of state's websites as

3-16

prescribed in section 42-20-8.2. The reports shall set forth:

3-17

     (1) the corporation's receipts and expenditures in each of the renewable energy program

3-18

funds administered in accordance with this section.

3-19

     (2) a listing of all private consultants engaged by the corporation on a contract basis and a

3-20

statement of the total amount paid to each private consultant from the two (2) renewable energy

3-21

funds administered in accordance with this chapter; a listing of any staff supported by these

3-22

funds, and a summary of any clerical, administrative or technical support received; and

3-23

     (3) a summary of performance during the prior year including accomplishments and

3-24

shortcomings; project investments, the cost-effectiveness of renewable energy investments by the

3-25

corporation; and recommendations for improvement.

3-26

     SECTION 2. Sections 42-140-3 and 42-140-7 of the General Laws in Chapter 42-140

3-27

entitled "Rhode Island Energy Resources Act" are hereby amended to read as follows:

3-28

     42-140-3. Purposes. -- The purposes of the office shall be to:

3-29

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

3-30

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

3-31

social equity, and environmental quality;

3-32

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

3-33

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

3-34

reliability, and procurement, including least-cost procurement;

4-1

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

4-2

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

4-3

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

4-4

conservation and efficiency of investments;

4-5

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

4-6

improved sources of energy supply, increased energy efficiency, and reduced environmental

4-7

impacts from energy supply, transmission and distribution;

4-8

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

4-9

energy office, except as these may be assigned by executive order to other departments and

4-10

agencies of state government;

4-11

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

4-12

comprehensive strategies, including at regional and federal levels, to secure Rhode Island's

4-13

interest in energy resources, their supply and efficient use, and as necessary to interact with

4-14

persons, private sector, non-profit, regional, federal entities and departments and agencies of

4-15

other states to effectuate this purpose;

4-16

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

4-17

political subdivisions of the state in achieving its purposes;

4-18

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

4-19

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

4-20

renewable energy;

4-21

      (9) Administer, as appropriate assigned by law or executive order, state and federally

4-22

funded or authorized energy programs, which may include, but not be limited to:

4-23

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

4-24

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

4-25

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

4-26

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

4-27

heating system upgrades to eligible persons of low-income;

4-28

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

4-29

a heating emergency;

4-30

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

4-31

and

4-32

      (v) The renewable energy program established under Rhode Island general laws chapter

4-33

39-2;

4-34

      (v) The advising of the economic development corporation in the development of

5-1

standards and rules for the solicitation and award of renewable energy program investment funds

5-2

in accordance with section 42-64-13.2;

5-3

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

5-4

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

5-5

of energy supplies, energy conservation, and demand management; and

5-6

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

5-7

all matters relevant to achieving the purposes of the office.

5-8

     42-140-7. Conduct of activities. -- (a) To the extent reasonable and practical, the

5-9

conduct of activities under the provisions of this chapter shall be open and inclusive; the

5-10

commissioner and the council shall seek in addressing the purposes of the office to involve the

5-11

research and analytic capacities of institutions of higher education within the state, industry,

5-12

advocacy groups, and regional entities, and shall seek input from stakeholders including, but not

5-13

limited to, residential and commercial energy users.

5-14

      (b) The commissioner shall, not later than February 1, 2008, adopt, in the manner as set

5-15

forth in section 42-140-9:

5-16

      (1) Goals for renewable energy facility investment and/or procurement, which is

5-17

beneficial and prudent, from diverse sources;

5-18

      (2) A plan for a period of five (5) years, annually upgraded as appropriate, to meet the

5-19

aforementioned goals; and

5-20

      (3) Investment and/or procurement standards and procedures for evaluating proposals for

5-21

renewable energy projects in order to determine the consistency of proposed projects with the

5-22

plan.

5-23

     The commissioner shall transmit any unencumbered funds from the renewable energy

5-24

program under 39-2 to the Economic Development Corporation.

5-25

     SECTION 3. Section 42-140.1-5 of the General Laws in Chapter 42-140.1 entitled "The

5-26

Rhode Island Energy Efficiency and Resource Management Council" is hereby amended to read

5-27

as follows:

5-28

     42-140.1-5. Powers and duties. -- The council shall have the power to:

5-29

      (a) Develop and recommend for implementation plans, programs and standards for

5-30

energy conservation, energy efficiency, and diversification of energy resources.

5-31

      (b) Monitor and evaluate plans and programs for energy conservation, energy efficiency

5-32

and diversification of energy resources; in order to effectuate such evaluations the council may

5-33

request audits, including performance audits, of any program for energy conservation, energy

5-34

efficiency or diversification of energy resources, that is established pursuant to Rhode Island law

6-1

or is administered by a state agency, a request for an audit of any program operative pursuant to

6-2

an order or decision of the public utilities commission shall be made to the commission; the

6-3

council may make findings and recommendations with regard to changes, modification or

6-4

continuation of any programs which it has authority to monitor or evaluate.

6-5

      (c) Submit to the joint committee on energy an annual report on/or before April 15 of

6-6

each year, commencing in 2008, regarding the activities of the council, its assessment of energy

6-7

issues, the status of system reliability, energy efficiency and conservation procurement and its

6-8

recommendations regarding any improvements which might be necessary or desirable.

6-9

      (d) Participate in proceedings of the public utilities commission that pertain to the

6-10

purposes of the council, including but not limited to proceedings regarding least-cost procurement

6-11

as provided for in section 39-1-27.7.

6-12

      (e) Advise electric distribution companies with regard to implementation of least cost

6-13

procurement.

6-14

      (f) Advise the commission of energy resources, and recommend policies, standards,

6-15

strategies, plans, programs, and procedures with regard to functions of the office of energy

6-16

resources including but not limited to plans, strategies, and programs to:

6-17

      (1) implement cost-effective energy conservation and energy efficiency programs;

6-18

      (2) promote the development of eligible renewable energy resources for Rhode Island;

6-19

      (3) foster distributed generation of electricity and demand response;

6-20

      (4) assist low-income households in meeting energy needs;

6-21

      (5) coordinate the use of funds, resources, and programs from diverse resources to

6-22

achieve the purposes of the office.

6-23

      (g) To advise the economic development corporation in the development of standards

6-24

and rules for the solicitation and award of renewable energy program investment funds in

6-25

accordance with section 42-64-13.2.

6-26

      (g)(h) Consider such other matters as it may deem appropriate to the fulfillment of its

6-27

purposes, and may advise the governor, the general assembly, other parties, and the public with

6-28

regard to matters pertaining to its purposes and duties, which advice may include findings and

6-29

recommendations.

6-30

     SECTION 4. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled "Duties of

6-31

Utilities and Carriers" is hereby amended to read as follows:

6-32

     39-2-1.2. Utility base rate -- Advertising, demand side management and renewables.

6-33

-- (a) In addition to costs prohibited in section 39-1-27.4(b), no public utility distributing or

6-34

providing heat, electricity, or water to or for the public shall include as part of its base rate any

7-1

expenses for advertising, either direct or indirect, which promotes the use of its product or

7-2

service, or is designed to promote the public image of the industry. No public utility may furnish

7-3

support of any kind, direct, or indirect, to any subsidiary, group, association, or individual for

7-4

advertising and include the expense as part of its base rate. Nothing contained in this section shall

7-5

be deemed as prohibiting the inclusion in the base rate of expenses incurred for advertising,

7-6

informational or educational in nature, which is designed to promote public safety conservation of

7-7

the public utility's product or service. The public utilities commission shall promulgate such rules

7-8

and regulations as are necessary to require public disclosure of all advertising expenses of any

7-9

kind, direct or indirect, and to otherwise effectuate the provisions of this section.

7-10

      (b) Effective as of January 1, 2003, and for a period of ten (10) years thereafter, each

7-11

electric distribution company shall include charges of 2.0 mills per kilowatt-hour delivered to

7-12

fund demand side management programs and 0.3 mills per kilowatt-hour delivered to fund

7-13

renewable energy programs. Existing charges for these purposes and their method of

7-14

administration shall continue through December 31, 2002. Thereafter, the electric distribution

7-15

company shall establish and after July 1, 2007, maintain two (2) separate accounts, one for

7-16

demand side management programs, which shall be administered and implemented by the

7-17

distribution company, subject to the regulatory reviewing authority of the commission, and as

7-18

directed by the office of energy resources; and one for renewable energy programs, which shall

7-19

be administered and directed by the office of energy resources through June 30, 2007 and

7-20

effective July 1, 2007, economic development corporation pursuant to section 42-64-13.2, shall

7-21

be held and disbursed by the distribution company as directed by the commissioner of the office

7-22

of energy resources, with the approval, if appropriate, of the trustees of the renewable energy

7-23

development fund, for the purposes of developing, promoting and supporting renewable energy

7-24

programs.

7-25

      During the ten (10) year period the commission may, in its discretion, after notice and

7-26

public hearing, increase the sums for demand side management and renewable resources;

7-27

thereafter, the commission shall, after notice and public hearing, determine the appropriate charge

7-28

for these programs. The office of energy resources and/or the administrator of the renewable

7-29

energy programs shall seek to secure for the state an equitable and reasonable portion of

7-30

renewable energy credits or certificates created by projects funded through those programs, and

7-31

shall develop and execute by July 1, 2007, a plan to make the program self-sustaining as of

7-32

January 1, 2013. As used in this section, "renewable energy resources" shall mean: (1) power

7-33

generation technologies as defined in section 39-26-5, "eligible renewable energy resources",

7-34

including off-grid and on-grid generating technologies located in Rhode Island as a priority; (2)

8-1

research and development activities in Rhode Island pertaining to eligible renewable energy

8-2

resources and to other renewable energy technologies for electrical generation; or (3) projects and

8-3

activities directly related to implementing eligible renewable energy resources projects in Rhode

8-4

Island. Technologies for converting solar energy for space heating or generating domestic hot

8-5

water may also be funded through the renewable energy programs, so long as these technologies

8-6

are installed on housing projects that have been certified by the executive director of the Rhode

8-7

Island housing and mortgage finance corporation as serving low-income Rhode Island residents.

8-8

Fuel cells may be considered an energy efficiency technology to be included in demand sided

8-9

management programs. Special rates for low-income customers in effect as of August 7, 1996

8-10

shall be continued, and the costs of all of these discounts shall be included in the distribution rates

8-11

charged to all other customers. Nothing in this section shall be construed as prohibiting an electric

8-12

distribution company from offering any special rates or programs for low-income customers

8-13

which are not in effect as of August 7, 1996, subject to the approval by the commission.

8-14

     (c) On or before November 15, 2008, the economic development corporation shall create

8-15

the municipal renewable energy investment program utilizing the lesser of fifty percent (50%) or

8-16

one million dollars ($1,000,000) annually from the demand side management program monies

8-17

collected to fund renewable energy projects in accordance with this chapter and the following

8-18

provisions:

8-19

     (1) The municipal renewable energy investment programs shall be administered pursuant

8-20

to rules established by the economic development corporation in consultation with the energy

8-21

efficiency and resource management council established by chapter 42-140.1. Said rules shall

8-22

provide transparent criteria to rank qualified renewable energy projects, giving consideration to:

8-23

     (i) the feasibility of project completion;

8-24

     (ii) the anticipated amount of renewable energy the project will produce;

8-25

     (iii) the potential of the project to mitigate energy costs over the life of the project; and

8-26

     (iv) the estimated cost per kilo-watt hour (kwh) of the energy produced from the project.

8-27

Municipalities that have not previously received financing from this program shall be given

8-28

priority over those municipalities that have received funding under this program.

8-29

     (2) Beginning on January 1, 2009, the economic development corporation shall solicit

8-30

proposals from municipalities for eligible projects and shall award grants or loans, in accordance

8-31

with the roles and ranking criteria, of no more than five hundred thousand dollars ($500,000) to

8-32

each eligible project.

8-33

     (3) Any funds not expended from the municipal renewable energy investment programs

8-34

in a given year shall remain in the fund and be added to the balance to be distributed in the next

9-1

award cycle. For the purposes of this section, qualified municipal renewable energy projects

9-2

means any project that produces renewable energy resources and whose output of power and

9-3

other attributes is controlled in its entirety by at least one Rhode Island city or town.

9-4

     (d) On or before November 15, 2008, the economic development corporation shall create

9-5

the nonprofit affordable housing renewable energy investment program utilizing the lesser of ten

9-6

percent (10%) or two hundred thousand dollars ($200,000) annually from the demand side

9-7

management program monies collected to fund renewable energy projects in accordance with this

9-8

chapter and the following provisions:

9-9

     (1) The nonprofit affordable housing renewable energy investment programs shall be

9-10

administered pursuant to rules established by the economic development corporation in

9-11

consultation with the energy efficiency and resource management council established by chapter

9-12

42-140.1 and with the Rhode Island housing mortgage finance corporation. Said rules shall

9-13

provide transparent criteria to rank qualified renewable energy projects, giving consideration to:

9-14

     (i) the feasibility of project completion;

9-15

     (ii) the anticipated amount of renewable energy the project will produce;

9-16

     (iii) the potential of the project to mitigate energy costs over the life of the project; and

9-17

     (iv) the estimated cost per kilo-watt hour (kwh) of the energy produced from the project.

9-18

Nonprofit affordable housing agencies that have not previously received financing from this

9-19

program shall be given priority over those agencies that have received funding under this

9-20

program.

9-21

     (2) Beginning on January 1, 2009, the economic development corporation, in consultation

9-22

with the Rhode Island housing and mortgage finance corporation, shall solicit proposals from

9-23

eligible nonprofit housing agencies for renewable energy projects and shall award grants or loans,

9-24

in accordance with the rules and ranking criteria. The economic development corporation shall

9-25

consult with the Rhode Island housing and mortgage finance corporation in the grant-making

9-26

process and shall notify the corporation of the awardees.

9-27

     (3) Any funds not expended from the affordable housing renewable energy investment

9-28

program in a given year shall remain in the fund and be added to the balance to be distributed in

9-29

the next award cycle. For the purposes of this section, qualified affordable housing renewable

9-30

energy projects means any project that produces renewable energy resources and whose output of

9-31

power and other attributes is controlled in its entirety by at least one nonprofit housing agency

9-32

and is restricted to producing energy for affordable housing units and buildings.

9-33

      (c) (e) The commissioner of the office of energy resources executive director of the

9-34

economic development corporation is authorized and may enter into a contract with a contractor

10-1

for the cost effective administration of the renewable energy programs funded by this section.

10-2

The director shall initiate the competitive bid process by the issuance and advertisement of

10-3

specifications and request for proposals, on or before September 1, 2002. The contract resulting

10-4

from the competitive bid process shall be awarded to become effective for a three (3) year period

10-5

commencing no later than January 1, 2003. A competitive bid and contract award for

10-6

administration of the renewable energy programs may occur every three (3) years thereafter, and

10-7

shall include as a condition that after July 1, 2007 2008 the account for the renewable energy

10-8

programs shall be maintained and administered by the distribution company economic

10-9

development corporation as provided for in subdivision (b) above. and, with the approval of the

10-10

commissioner of the office of energy resources and the trustees of the renewable energy fund,

10-11

may be administered by the economic development corporation.

10-12

      (d) (f) Effective January 1, 2007, and for a period of seven (7) years thereafter, each gas

10-13

distribution company shall include, with the approval of the commission, a charge of up to fifteen

10-14

cents ($0.15) per deca therm delivered to demand side management programs, including, but not

10-15

limited to, programs for cost-effective energy efficiency, energy conservation, combined heat and

10-16

power systems, and weatherization services for low income households.

10-17

      (e) (g) The gas company shall establish a separate account for demand side management

10-18

programs, which shall be administered and implemented by the distribution company, subject to

10-19

the regulatory reviewing authority of the commission. The commission may establish

10-20

administrative mechanisms and procedures that are similar to those for electric demand side

10-21

management programs administered under the jurisdiction of the commissions and that are

10-22

designed to achieve cost-effectiveness and high life-time savings of efficiency measures

10-23

supported by the program.

10-24

      (f) (h) The commission may, if reasonable and feasible, except from this demand side

10-25

management change:

10-26

      (i) gas used for distribution generation; and

10-27

      (ii) gas used for the manufacturing processes, where the customer has established a self-

10-28

directed program to invest in and achieve best effective energy efficiency in accordance with a

10-29

plan approved by the commission and subject to periodic review and approval by the

10-30

commission, which plan shall require annual reporting of the amount invested and the return on

10-31

investments in terms of gas savings.

10-32

      (g) (i) The commission may provide for the coordinated and/or integrated administration

10-33

of electric and gas demand side management programs in order to enhance the effectiveness of

10-34

the programs. Such coordinated and/or integrated administration may after March 1, 2009, upon

11-1

the recommendation of the office of energy resources, be through one or more third-party entities

11-2

designated by the commission pursuant to a competitive selection process.

11-3

      (h) (j) Effective January 1, 2007, the commission shall allocate from demand-side

11-4

management gas and electric funds authorized pursuant to this section 39-2-1.2, an amount not to

11-5

exceed two percent (2%) of such funds on an annual basis for the retention of expert consultants,

11-6

and reasonable administrations costs of the energy efficiency and resources management council

11-7

associated with planning, management, and evaluation of energy efficiency programs, renewable

11-8

energy programs and least-cost procurement, and with regulatory proceedings, contested cases,

11-9

and other actions pertaining to the purposes, powers and duties of the council, which allocation

11-10

may by mutual agreement, be used in coordination with the office of energy resources to support

11-11

such activities.

11-12

     SECTION 5. Section 39-26-7 of the General Laws in Chapter 39-26 entitled "Renewable

11-13

Energy Standard" is hereby amended to read as follows:

11-14

     39-26-7. Renewable energy development fund. -- (a) There is hereby authorized and

11-15

created within the economic development corporation a renewable energy development fund for

11-16

the purpose of increasing the supply of NE-GIS certificates available for compliance in future

11-17

years by obligated entities with renewable energy standard requirements, as established in this

11-18

chapter. The fund shall be located at and administered by the Rhode Island economic

11-19

development corporation in accordance with section 42-64-13.2. and shall have a board of

11-20

trustees of five (5) members as follows: the executive director of the economic development

11-21

corporation, who shall be chairperson; the director of the department of administration or a

11-22

designee of the director; the administrator of the division of public utilities; and two (2) public

11-23

members appointed by the governor with advice and consent of the senate, who shall serve terms

11-24

of three (3) years; provided, however, that no public members may serve more than two (2)

11-25

consecutive (3) three year terms. One of the public members shall be a representative of an

11-26

organization that advocates for renewable energy development. Each member shall hold office

11-27

for the term appointed and until the member's successor shall have been duly appointed and

11-28

qualified, or until the member's earlier death, resignation or removal. Members of the board of

11-29

trustees of the fund shall receive no compensation for the performance of their duties, but may be

11-30

reimbursed for reasonable expenses incurred in carrying out those duties. The board of trustees

11-31

shall recommend to the economic development corporation: shall:

11-32

      (1) Plans Adopt plans and guidelines for the management and use of the fund in

11-33

accordance with section 42-64-13.2, and

11-34

      (2) Its evaluation of proposals and/or actions to obligate, use and/or sell, dispose, trade or

12-1

exchange assets held by the fund. The board of trustees shall have the power to adopt, with the

12-2

approval of the economic development corporation, such by-laws as may be necessary or

12-3

convenient for the conduct of its affairs.

12-4

      (b) The economic development corporation shall enter into agreements with obligated

12-5

entities to accept alternative compliance payments, consistent with rules of the commission and

12-6

the purposes set forth in this section; and alternative compliance payments received pursuant to

12-7

this section shall be trust funds to be held and applied solely for the purposes set forth in this

12-8

section.

12-9

      (c) The uses of the fund shall include but not be limited to:

12-10

      (1) Stimulating investment in renewable energy development by entering into

12-11

agreements, including multi-year agreements, for renewable energy certificates;

12-12

      (2) Issuing assurances and/or guarantees to support the acquisition of renewable energy

12-13

certificates and/or the development of new renewable energy sources for Rhode Island;

12-14

      (3) Establishing escrows, reserves, and/or acquiring insurance for the obligations of the

12-15

fund;

12-16

      (4) Paying administrative costs of the fund incurred by the economic development

12-17

corporation or the board of trustees, not to exceed ten percent (10%) of the income of the fund,

12-18

including, but not limited to, alternative compliance payments.

12-19

      (d) NE-GIS certificates acquired through the fund may be conveyed to obligated entities

12-20

or may be credited against the renewable energy standard for the year of the certificate provided

12-21

that the commission assesses the cost of the certificates to the obligated entity, or entities,

12-22

benefiting from the credit against the renewable energy standard, which assessment shall be

12-23

reduced by previously made alternative compliance payments and shall be paid to the fund.

12-24

      (e) The trustees, in cooperation and concurrence with the commissioner of the office of

12-25

energy resources, consistent with rules as may be adopted by the commission, develop an

12-26

integrated plan and strategy, by July 1, 2007, for stimulating the development of and financing

12-27

eligible renewable energy resources.

12-28

     SECTION 6. Chapter 42-55 of the General Laws entitled "Rhode Island Housing and

12-29

Mortgage Finance Corporation" is hereby amended by adding thereto the following section:

12-30

     42-55-5.4. Renewable energy in housing developments. -- On or before July 1, 2009,

12-31

the corporation shall establish, in appropriate housing development programs it administers,

12-32

criteria for priority consideration of housing development proposals which include renewable

12-33

energy features which are demonstrated to be cost-effective and can be implemented in a

12-34

reasonable period of time.

13-1

     SECTION 7. This act shall take effect upon passage.

=======

LC02466

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - RHODE ISLAND ECONOMIC

DEVELOPMENT CORPORATION

***

14-1

     This act would develop an organizational structure to provide Rhode Island with the full

14-2

benefits of cost-effective renewable energy development.

14-3

     This act would take effect upon passage.

=======

LC02466

=======