Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0503 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- S 0503
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7	7	LC002176
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO PUBLIC UTILITIES AND CARRIERS -- DEPARTMENT OF ENERGY
16	16	TRANSFORMATION PLANN ING
17	17	Introduced By: Senators Euer, Zurier, Ruggerio, Lawson, DiMario, Sosnowski, Pearson,
18	18	Ujifusa, Murray, and Lauria
19	19	Date Introduced: March 07, 2023
20	20	Referred To: Senate Environment & Agriculture
21	21
22	22
23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND 1
25	25	CARRIERS" is hereby amended by adding thereto the following chapter: 2
26	26	CHAPTER 33 3
27	27	DEPARTMENT OF ENERGY TRANSFORMATION PLANNING 4
28	28	39-33-1. Definitions. 5
29	29	As used in this chapter the following words shall, unless the context clearly requires 6
30	30	otherwise, have the following meanings: 7
31	31	(1) "Department" means the department of energy transformation planning established in 8
32	32	§ 39-39-2. 9
33	33	(2) "Distributed energy resources" means distributed renewable generation facilities, 10
34	34	energy efficiency, energy storage, electric vehicles, active demand management, and load 11
35	35	management technologies. 12
36	36	(3) "Division" means the division of public utilities and carriers. 13
37	37	(4) "Energy distribution system" means the components of the electric grid, natural gas 14
38	38	distribution network, microgrid, or other utility-scale investment that collectively distribute 15
39	39	electricity and/or thermal energy to consumers. 16
40	40	(5) "Environmental burdens" means any destruction, damage or impairment of natural 17
41	41	resources that is not insignificant, resulting from intentional or reasonably foreseeable causes, 18
42	42
43	43
44	44	LC002176 - Page 2 of 6
45	45	including, but not limited to, climate change, air pollution, water pollution, improper sewage 1
46	46	disposal, dumping of solid wastes and other noxious substances, excessive noise, activities that 2
47	47	limit access to natural resources and constructed outdoor recreational facilities and venues, 3
48	48	inadequate remediation of pollution, reduction of ground water levels, impairment of water quality, 4
49	49	increased flooding or storm water flows, and damage to inland waterways and waterbodies, 5
50	50	wetlands, marine shores and waters, forests, open spaces, and playgrounds from private industrial, 6
51	51	commercial or government operations or other activity that contaminates or alters the quality of the 7
52	52	environment and poses a risk to public health. 8
53	53	(6) "Environmental justice population" means a neighborhood, community, census tract or 9
54	54	other geographically bounded region that meets one or more of the following criteria: 10
55	55	(i) Annual median household income is not more that sixty-five percent (65%) of the 11
56	56	statewide annual median household income; 12
57	57	(ii) Minority population is equal to or greater than forty percent (40%) of the population; 13
58	58	(iii) Twenty-five percent (25%) or more of the households lack English language 14
59	59	proficiency; or 15
60	60	(iv) Minorities comprise twenty-five percent (25%) or more of the population and the 16
61	61	annual median household income of the municipality in the proposed area does not exceed one 17
62	62	hundred fifty percent (150%) of the statewide annual median household income. 18
63	63	(7) "Environmental justice principles" mean principles that support protection from 19
64	64	environmental pollution and the ability to live in and enjoy a clean and healthy environment, 20
65	65	regardless of race, color, income, class, handicap, gender identity, sexual orientation, national 21
66	66	origin, ethnicity or ancestry, religious belief or English language proficiency, which includes: 22
67	67	(i) The meaningful involvement of all people with respect to the development, 23
68	68	implementation and enforcement of environmental laws, regulations and policies, including climate 24
69	69	change policies; and 25
70	70	(ii) The equitable distribution of energy and environmental benefits and environmental 26
71	71	burdens. 27
72	72	(8) "Long-term distribution system planning" means a comprehensive ten (10) year plan 28
73	73	for the energy distribution system to meet customers' energy, capacity, and thermal needs. 29
74	74	39-33-2. Establishment of department of energy transformation planning. 30
75	75	(a) There shall be within the division of public utilities and carriers a department called the 31
76	76	department of energy transformation planning, under the supervision of administrator of the 32
77	77	division. 33
78	78	(b) The department shall advance the state's public interest by conducting statewide long 34
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81	81	LC002176 - Page 3 of 6
82	82	term distribution system planning. 1
83	83	(c) The department shall be staffed by a director, who shall be appointed by the governor 2
84	84	with the advice and consent of the senate. The director shall have the authority, subject to 3
85	85	appropriation by the general assembly, to hire such technical and clerical staff as may be necessary 4
86	86	to fulfill the requirements of this chapter. 5
87	87	(d) The director shall be the executive and administrative head of the department of energy 6
88	88	transformation planning and shall be responsible for administering and enforcing the provisions of 7
89	89	law relative to the division and to each administrative unit thereof. 8
90	90	39-33-3. Duties of the department. 9
91	91	(a) The department shall develop and implement long-term distribution system plans to 10
92	92	assist in the transition to a clean, affordable, and reliable electric grid and restructured natural gas 11
93	93	distribution system in a cost-effective manner. 12
94	94	(b) No later than December 31, 2024 and every three (3) years thereafter, the department 13
95	95	shall issue a ten (10) year plan for the energy distribution system to enable the cost-effective 14
96	96	achievement of chapter 6.2 of title 42 ("act on climate"). The plan must examine the energy 15
97	97	distribution system's relationship to the regional grid, to identify cost-effective solutions to improve 16
98	98	reliability and resiliency, and to achieve greenhouse gas reductions. 17
99	99	(c) The department shall be responsible for the following functions and duties: 18
100	100	(1) Enhanced load forecasting that reflects end-use electrification and distributed energy 19
101	101	resources, in coordination with relevant electric distribution companies; 20
102	102	(2) Coordinating with utilities to ensure data adequacy, accuracy, consistency, and 21
103	103	transparency; 22
104	104	(3) Coordinating with the office of energy resources to incorporate other public policy 23
105	105	programs and objectives, including equitable access to the benefits of distributed energy resources; 24
106	106	and 25
107	107	(4) Development of related metrics for monitoring incremental progress toward planning 26
108	108	goals including the purposes of evaluating electric or natural gas distribution company service. 27
109	109	(d) The department shall conduct its long-term distribution system planning in a fully 28
110	110	transparent and accessible way and shall allow for comprehensive public review. The department 29
111	111	shall run technical sessions and stakeholder workshops before the plans are developed to define 30
112	112	requirements and inform inputs, assumptions, methodologies, and tools that will assist the 31
113	113	department in determining what actions it shall direct an electric distribution company to take. An 32
114	114	electric distribution company shall ensure, to the greatest extent practicable, that any information 33
115	115	requested by the department is provided in a form accessible to interested parties and all relevant 34
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118	118	LC002176 - Page 4 of 6
119	119	data and distribution planning modeling tools are available to stakeholders subject to commercial 1
120	120	non-disclosure, confidential energy infrastructure, codes of conduct, and other commercial, public 2
121	121	utilities commission, and federal energy regulatory commission requirements. 3
122	122	(e) Plans shall include, but not be limited to: 4
123	123	(1) Forecasts of projected load that accounts for factors including projected end-use 5
124	124	electrification, energy efficiency, and distributed energy resources; 6
125	125	(2) Baseline energy supply data and assessment, including, but not limited to, energy 7
126	126	generation additions including renewable energy, and energy storage installations; 8
127	127	(3) Hosting capacity analysis including locational benefits of distributed energy resources 9
128	128	and areas of existing or potential system congestion; 10
129	129	(4) Analysis of available and emerging technologies necessary to enable load management 11
130	130	and flexibility; 12
131	131	(5) An assessment of the environmental burdens and impacts upon environmental justice 13
132	132	populations of integrated distribution plans; 14
133	133	(6) An assessment of consumer cost impacts and protections for low-income communities; 15
134	134	(7) A Three (3) year action plan to optimize near-term grid investment and operations; and 16
135	135	(8) Pathways that address the strategic wind-down of the natural gas system, including 17
136	136	whether components of the gas distribution system should be safely decommissioned, replaced, 18
137	137	repaired, or repurposed to meet customer needs, including the possibility of using networked 19
138	138	geothermal systems that use nonemitting renewable thermal infrastructure. 20
139	139	39-33-4. Goals and objectives of department. 21
140	140	(a) The department shall conduct long-term distribution system planning for the 22
141	141	technologies and services that are required to meet chapter 6.2 of title 42 ("act on climate"), 23
142	142	emissions limits. The department shall conduct long-term system planning so that the state can 24
143	143	mitigate and equitably adapt to a changing climate while minimizing stranded costs. 25
144	144	(b) Each plan shall prioritize the alleviation and mitigation of energy burdens experienced 26
145	145	by environmental justice populations and shall equitably allocate costs. 27
146	146	(c) The department shall integrate and utilize distributed and local energy resources to meet 28
147	147	customers' energy, capacity, and thermal needs and shall maximize customer benefits while 29
148	148	attempting to minimize costs. The department shall consider the costs of climate change impacts, 30
149	149	including societal impacts and impacts to the distribution system itself, when evaluating alternate 31
150	150	pathways for meeting distribution system needs. 32
151	151	39-33-5. Plan revision and enforcement. 33
152	152	The department may at any time it determines necessary revise an energy distribution 34
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155	155	LC002176 - Page 5 of 6
156	156	system plan to address any deficiencies and may order an electric or gas distribution company to 1
157	157	take any reasonable actions to align its business, programs, operations, and investments with the 2
158	158	plan. 3
159	159	39-33-6. Transparent procurement. 4
160	160	(a) The division shall conduct open and competitive procurement processes to solicit 5
161	161	proposals to fill the system needs identified in the energy distribution system plan. The division, in 6
162	162	consultation with the division, shall oversee open markets to solicit and to select projects that meet 7
163	163	the grid, consumer, environmental justice principles, and climate objectives. 8
164	164	(b) The department shall determine which distribution assets may provide consumer and 9
165	165	grid benefits by remaining under monopoly ownership and control and shall assign those needs 10
166	166	directly to the electric distribution company who shall incorporate them in their net rate case or 11
167	167	grid modernization proceeding before the public utilities commission. 12
168	168	39-33-7. Staffing report. 13
169	169	No later than January 1, 2024 the division shall submit a report to the speaker of the house, 14
170	170	president of the senate, chair of the house finance committee, and chair of the senate finance 15
171	171	committee that includes an assessment of staffing and resource needs to implement the long-term 16
172	172	distribution planning provisions of this chapter. 17
173	173	SECTION 2. This act shall take effect upon passage. 18
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175	175	LC002176
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180	180	EXPLANATION
181	181	BY THE LEGISLATIVE COUNCIL
182	182	OF
183	183	A N A C T
184	184	RELATING TO PUBLIC UTILITIES AND CARRIERS -- DEPARTMENT OF ENERGY
185	185	TRANSFORMATION PLANN ING
186	186	***
187	187	This act would create the "department of energy transformation planning" chapter within 1
188	188	the division of public utilities to implement long-term distribution system planning. 2
189	189	This act would take effect upon passage. 3
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191	191	LC002176
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