| 6/29/2006 |
Comprehensive energy bill signed into law
STATE HOUSE – A comprehensive energy bill that provides a mechanism to address the state’s energy needs and costs and that addresses the plight of low-income households in the face of astronomical heating costs has become law.
At a ceremony today at the State House, the governor signed the bills passed by the General Assembly late last week, at the end of this year’s legislative session. The legislation, “The Comprehensive Energy Conservation, Efficiency & Affordability Act of 2006,” is a synthesis of eight separate pieces of legislation introduced during the 2006 session.
The new law, based on House bill (2006 - H8025Aaa) and Senate bill (2006 - S2903Baa), has the following principal features:
It creates a long-term, stable platform for electrical supply procurement. It extends standard offer service through 2020
It helps Rhode Islanders control the cost of energy. The Act establishes “least cost procurement” as a principle for meeting electrical demand and a demand side management program for natural gas.
It builds electrical system reliability by providing for diversification of fuel sources, distributed generation, and demand response usage reductions and/or deployment of distributed generation capacity. This is a guard against brownouts and rolling blackouts.
It creates a pro-active institutional framework for addressing energy issues in Rhode Island. The Act establishes the state Office of Energy Resources to replace the old energy office that existed only through a succession of executive orders. The new statutory provisions are a firmer foundation, and the Office’s duties are clarified and expanded. A new Energy Efficiency and Resources Management Council is created to provide stakeholder involvement and leadership in vital decision-making processes. A Permanent Joint Committee on Energy is created to provide oversight of energy issues and develop any necessary refinements and changes in law. Finally, the act respects and builds upon the existing capacities and powers of the Public Utilities Commission and the Division of Public Utilities.
It promotes renewable energy development by coordinating financing mechanisms and provides for siting guidelines through the State Planning Council.
It addresses the plight of low-income households by authorizing a system of discounted electric and gas rates and discounted heating oil procurement. The Act makes weatherization a priority and provides for forgiveness of the balance of arrearages for households that make payments over three years. The program would start in fiscal 2008 and would not require new taxes or rate increases; it would be supported through allocation from the existing gross receipts tax on gas and electric utilities and the existing sales tax on residential heating fuels.
Principal sponsors of the comprehensive bill are, in the Senate, Sen. William A. Walaska (D-Dist. 30, Warwick) and Sen. V. Susan Sosnowski (D-Dist. 37, New Shoreham, South Kingstown), and in the House of Representative, House Majority Leader Gordon D. Fox (D-Dist. 4, Providence) and Rep. Brian Patrick Kennedy (D-Dist. 38, Hopkinton, Westerly).
House Majority Leader Fox said, “This legislation prioritizes prudent energy planning for the state of Rhode Island, which is critical in this time of rising costs for electricity and heating fuel. By creating guidelines for ‘least cost procurement,’ ensuring more ratepayer input, fostering more renewable energy, and by creating a discount program for low-income households, this legislation gives Rhode Islanders more control over their energy future.”
“The new approach included in this bill establishes the next generation of energy planning and sets a new standard for how states should address energy planning,” said Leader Fox. “It levels the playing field for energy efficiency and other lower-cost, consumer-friendly options, allowing them to compete equally with more traditional energy sources for the first time.”
Said Senator Walaska, “The prices of energy are rising faster than the cost of living and are subject to sharp fluctuations, which creates hardships for many households, institutions, organizations and businesses in the state. The state’s economy and the health and general welfare of the people of Rhode Island depend on finding solutions to the many and various energy problems and issues facing us.”
“When we held the Energy Summit last November, it was an enormous eye-opener for all the legislators who participated,” said Senator Walaska. “We realized how broad and extensive the energy issue is for our state and also realized that we needed a comprehensive solution, not a piecemeal approach. This bill is the result of that, having been developed over a good deal of time, with the input of a great many people, beginning with that summit last year. It is a good whole from many good ideas, and a well-constructed approach to addressing Rhode Island’s many important energy issues.”
The Energy Summit that was held last year was jointly chaired by Senator Walaska, Chair of the Senate Committee on Financial Services, Technology and Regulatory Issues; Senator Sosnowski, Chair of the Senate Committee on Environment and Agriculture, and Representative Kennedy, Chair of the House Committee on Corporations.
Among the ideas and solutions generated by the Energy Summit and incorporated into the comprehensive bill were: adopting a long-term energy strategy for Rhode Island that addresses capacity, accountability and administration of programs; expanding energy efficiency programs; diversifying the state’s energy supply portfolio, creating a better buying agent for the state; promoting broad education and outreach programs, and continuing to support and expand the assistance programs available to Rhode Islanders.
“This energy bill is a great melding of many ideas from the House of Representatives and the Senate,” said Representative Kennedy. “Most significantly, it incorporates what has been a House priority – to ensure that there is transparency in any process and accountability to utility customers, to ensure that full and complete information reaches the ratepayers, for whose welfare this bill has been crafted.” Another important aspect, said Representative Kennedy, “is that the bill extends the standard offer until 2020 to enable least cost procurement and lower rates for the state.”
Senator Sosnowski praised the comprehensive legislation for putting much-needed emphasis on renewable energy. “This bill will create mechanisms and remove barriers so that the state can obtain more of its energy from renewable sources, like wind. It will also provide for better coordination of the state’s programs to utilize renewable energy sources. The bill will help to harmonize local laws and make siting of renewable energy projects within Rhode Island easier.”
Among the other provisions of the bill:
The new Office of Energy Resources will be given a mandate to engage in long-term energy planning, least cost procurement, renewable energy, distributed generation and efficiency to deliver savings to Rhode Islanders.
The new Permanent Joint Legislative Committee on Energy – comprised of four members of the House and four members of the Senate – will oversee the new least cost procurement process, ensure results and work to continually improve energy planning in the state to lower costs for Rhode Island ratepayers.
The Energy Efficiency and Resources Management Council, a new consumer, business and environmental ratepayer council, will participate in the “least cost procurement” mandate and ensure all cost-effective resources are purchased and the savings passed on to ratepayers.
Co-sponsors of the bills are: Senate Majority Leader M. Teresa Paiva Weed (D-Dist. 13, Jamestown, Newport), Senate President Joseph A. Montalbano (D-Dist. 17, Lincoln, North Providence, Pawtucket), Sen. J. Michael Lenihan (D-Dist. 35, East Greenwich, North Kingstown, Warwick), House Majority Whip Peter F. Kilmartin (D-Dist. 61, Pawtucket), House Speaker Tempore Charlene M. Lima (D-Dist. 14, Cranston) and Rep. Edith H. Ajello (D-Dist. 3, Providence).
For more information, contact:
Randall T. Szyba, Publicist
State House Room 20
Providence, RI 02903
(401) 222-2457 |
LEGISLATIVE INFO
