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Rhode Island Senate Bill S0504

Rhode Island 2023 Regular Session

Rhode Island Senate Bill S0504 Compare Versions

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99 S TATE OF RHODE IS LAND
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2023
1212 ____________
1313
1414 A N A C T
15-RELATING TO STATE AFFAIRS AND GOVERNME NT -- RENEWABLE READY
15+RELATING TO STATE AFFAIRS AND GOVERNMENT – RENEWABLE READY
1616 PROGRAM
1717 Introduced By: Senators DiMario, Euer, Tikoian, LaMountain, Gu, Britto, Valverde,
1818 Miller, and Pearson
1919 Date Introduced: March 07, 2023
2020 Referred To: Senate Environment & Agriculture
2121
2222
2323 It is enacted by the General Assembly as follows:
2424 SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND 1
2525 GOVERNMENT" is hereby amended by adding thereto the following chapter: 2
2626 CHAPTER 140.5 3
2727 RENEWABLE READY PROGRAM 4
2828 42-140.5-1. Statement of purpose. 5
2929 The purpose of this program is to promote the responsible siting and development of 6
3030 renewable energy generating resources in locations where it would be an ancillary beneficial use 7
3131 to the redevelopment of previously contaminated property. Greenhouse gas emissions pose threats 8
3232 to the health and safety of Rhode Islanders through flooding, sea level rise, extreme heat, and 9
3333 increased storm intensity. In order to reduce this threat, Rhode Island must promote the deployment 10
3434 of renewable energy generating projects, while preserving the most valuable forests. 11
3535 42-140.5-2. Definitions. 12
3636 As used in this chapter, the following words and terms shall have the following meanings, 13
3737 unless the context indicates another or different meaning or intent: 14
38-(1) "Commissioner" means the commissioner of the office of energy resources. 15
39-(2) "Corporation" means any corporate person, including, but not limited to: corporations, 16
40-societies, associations, limited liability companies, partnerships, and sole proprietorships. 17
41-(3) "Department" means the department of environmental management. 18
38+(1) “Commissioner” means the commissioner of the office of energy resources. 15
39+(2) “Department” means the department of environmental management. 16
40+(3) “Fund” means the renewable ready fund described in § 42-140.5-4. 17
41+(4) “Infrastructure bank” means the Rhode Island infrastructure bank. 18
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45-(4) "Eligible entities" means any local governmental unit, corporation or person. 1
46-(5) "Financial assistance" means any form of financial assistance provided by the 2
47-infrastructure bank to a local governmental unit, person, or corporation in accordance with this 3
48-chapter for all or any part of the cost of an approved project, including, without limitation: grants, 4
49-temporary and permanent loans, with or without interest, guarantees, insurance, subsidies for the 5
50-payment of debt service on loans, lines of credit, and similar forms of financial assistance, principal 6
51-forgiveness and negative interest loans. 7
52-(6) "Fund" means the renewable ready fund described in § 42-140.5-4. 8
53-(7) "Infrastructure bank" means the Rhode Island infrastructure bank. 9
54-(8) "Interconnection costs" means charges from the electric distribution company to a 10
55-renewable energy customer or developer as described in § 39-26.3-4.1. 11
56-(9) "Interconnection study" means either a feasibility study or impact study as described in 12
57-§ 39-26.3-2. 13
58-(10) "Local governmental unit" means any town, city, district, commission, agency, 14
59-authority, board, bodies politic and corporate, public corporation, or other political subdivision or 15
60-instrumentality of the state or of any political subdivision thereof. 16
61-(11) "Office" means the office of energy resources. 17
62-(12) "Person" means any natural person. 18
63-42-140.5-3. Identification of eligible sites. 19
64-(a) The office, in coordination with the department, shall prepare a list of locations that 20
65-meet the following criteria: 21
66-(1) Is a current or former contaminated site as determined by the department; 22
67-(2) Is property or a facility owned and/or managed by the state; 23
68-(3) Is a rooftop of a commercial, industrial, or municipal building; 24
69-(4) Is state property adjacent to a highway or major road; or 25
70-(5) Is owned by the electric distribution company and subject to their environmental 26
71-response fund. 27
72-(b) The list shall exclude properties where the owner has begun the process of permitting 28
73-or developing a renewable energy generation project or any other development. 29
74-(c) The list shall include a reasonable estimate of the renewable energy production capacity 30
75-of the locations. 31
76-(d) The list shall identify the current owner of the property and provide their contact 32
77-information, if available. 33
78-(e) The list shall also include a reasonable estimate of any utility interconnection costs that 34
44+LC002166 - Page 2 of 5
45+(5) “Interconnection costs” means charges from the electric distribution company to a 1
46+renewable energy customer or developer as described in § 39-26.3-4.1. 2
47+(6) “Interconnection study” means either a feasibility study or impact study as described in 3
48+§ 39-26.3-2. 4
49+(7) “Office” means the office of energy resources. 5
50+42-140.5-3. Identification of eligible sites. 6
51+(a) The office, in coordination with the department, shall prepare a list of locations that 7
52+meet the following criteria: 8
53+(1) Is a current or former contaminated site as determined by the department; 9
54+(2) Is property or a facility owned and/or managed by the state; 10
55+(3) Is a rooftop of a commercial, industrial, or municipal building; 11
56+(4) Is state property adjacent to a highway or major road; or 12
57+(5) Is owned by the electric distribution company and subject to their environmental 13
58+response fund. 14
59+(b) The list shall exclude properties where the owner has begun the process of permitting 15
60+or developing a renewable energy generation project or any other development. 16
61+(c) The list shall include a reasonable estimate of the renewable energy production capacity 17
62+of the locations. 18
63+(d) The list shall identify the current owner of the property and provide their contact 19
64+information, if available. 20
65+(e) The list shall also include a reasonable estimate of any utility interconnection costs that 21
66+would be required to connect the project to the existing electricity transmission and distribution 22
67+system; provided that: 23
68+(1) Any available impact study shall be conclusive evidence of estimated costs; 24
69+(2) Any variables that the office or department relied upon in the creation of the estimate 25
70+shall be included and described; 26
71+(3) The office may consult with the electric distribution company in the creation of its 27
72+estimates; and 28
73+(4) The cost of an interconnection study shall not be included in the estimation of 29
74+interconnection costs. 30
75+(f) The list shall prioritize locations based upon surrounding infrastructure that can support 31
76+the development of distributed generation resources. 32
77+42-140.5-4. Establishment of the renewable ready fund. 33
78+(a) There is hereby established a renewable ready fund at the infrastructure bank. 34
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82-would be required to connect the project to the existing electricity transmission and distribution 1
83-system; provided that: 2
84-(1) Any available impact study shall be conclusive evidence of estimated costs; 3
85-(2) Any variables that the office or department relied upon in the creation of the estimate 4
86-shall be included and described; 5
87-(3) The office may consult with the electric distribution company in the creation of its 6
88-estimates; and 7
89-(4) The cost of an interconnection study shall not be included in the estimation of 8
90-interconnection costs. 9
91-(f) The list shall prioritize locations based upon surrounding infrastructure that can support 10
92-the development of distributed generation resources. 11
93-42-140.5-4. Establishment of the renewable ready fund. 12
94-(a) There is hereby established a renewable ready fund at the infrastructure bank. 13
95-(b) The purpose of the fund is to provide financial assistance to eligible entities to reduce 14
96-the site preparation and interconnection costs for renewable energy development projects on current 15
97-or formerly contaminated sites to support and encourage the development of these locations. 16
98-(c) The infrastructure bank is hereby authorized and directed to seek all available federal 17
99-resources, in consultation with the office and any electric distribution company, to fulfill the 18
100-purpose of the fund. In pursuing federal funding sources, efforts shall include, but not be limited 19
101-to, funding programs and other financing mechanisms established through the federal Infrastructure 20
102-Investment and Jobs Act, the Inflation Reduction Act, and any applicable federal statute. 21
103-(d) The fund shall consist of: 22
104-(1) Money appropriated in the state budget to the fund or otherwise made available to the 23
105-infrastructure bank; 24
106-(2) Money made available to the fund through federal programs or private contributions; 25
107-(3) Repayments of principal and interest from loans made from the fund; 26
108-(4) Proceeds from the sale, disposition, lease, or rental of collateral related to financial 27
109-assistance provided under this chapter; 28
110-(5) Application or other fees paid to the infrastructure bank to process applications for 29
111-financial assistance; and 30
112-(6) Any other money made available to the fund. 31
113-42-140.5-5. Powers of the infrastructure bank. 32
114-(a) The infrastructure bank shall review and approve applications for financial assistance 33
115-from the fund, subject to the availability of funds, upon the submission of a complete application 34
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82+(b) The purpose of the fund is to reduce the site preparation and interconnection costs for 1
83+renewable energy development projects on current or formerly contaminated sites to support and 2
84+encourage the development of these locations. 3
85+(c) The infrastructure bank is hereby authorized and directed to seek all available federal 4
86+resources, in consultation with the office and any electric distribution company, to fulfill the 5
87+purpose of the fund and relevant activities, including, but not limited to, installation of transformers 6
88+and substations, transmission facilitation, grid flexibility, and electrification planning for sites and 7
89+facilities. In pursuing federal funding sources, efforts shall include, but not be limited to, funding 8
90+programs and other financing mechanisms established through the federal Infrastructure 9
91+Investment and Jobs Act, the Inflation Reduction Act, and any applicable federal statute. 10
92+(d) The fund shall consist of: 11
93+(1) Money appropriated in the state budget to the fund; 12
94+(2) Money made available to the fund through federal programs or private contributions; 13
95+(3) Repayments of principal and interest from loans made from the fund; 14
96+(4) Proceeds from the sale, disposition, lease, or rental of collateral related to financial 15
97+assistance provided under this chapter; 16
98+(5) Application or other fees paid to the fund to process requests for financial assistance; 17
99+and 18
100+(6) Any other money made available to the fund. 19
101+42-140.5-5. Powers of the infrastructure bank. 20
102+(a) The infrastructure bank shall approve awards of money from the fund, subject to the 21
103+availability of funds, upon the approval of a complete application from eligible entities to receive 22
104+funds for a purpose consistent with this chapter. 23
105+(b) The infrastructure bank shall create a standard application and annual application 24
106+deadlines to be used in the management of fund requests. 25
107+(c) The infrastructure bank, upon a determination that an application is incomplete, may 26
108+direct applicants to revise their application or deny the application after a reasonable opportunity 27
109+for the applicant to provide additional information. 28
110+(d) The infrastructure bank, in the event that there are insufficient funds to cover the costs 29
111+of all projects that meet the criteria to be approved, shall give priority to projects where there is 30
112+existing infrastructure over those that would require more investment in new infrastructure. 31
113+(e) Approval of an application shall only occur if funds are currently available in the fund, 32
114+or if the infrastructure bank reasonably expects that funds will be available in the six (6) months 33
115+following the approval of an application. 34
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119-from eligible entities to receive funds for a purpose consistent with this chapter. 1
120-(b) The infrastructure bank shall create a standard application and annual application 2
121-deadlines to be used in the management of fund requests. 3
122-(c) The infrastructure bank, upon a determination that an application is incomplete, may 4
123-direct applicants to revise their application or deny the application after a reasonable opportunity 5
124-for the applicant to provide additional information. 6
125-(d) The infrastructure bank, in the event that there are insufficient funds to cover the costs 7
126-of all projects that meet the criteria to be approved, shall follow the prioritized list prepared by the 8
127-office in accordance with this chapter. 9
128-(e) Approval of an application shall only occur if funds are currently available in the fund, 10
129-or if the infrastructure bank reasonably expects that funds will be available in the six (6) months 11
130-following the approval of an application. 12
131-(f) The infrastructure bank shall set an application fee, due upon submission, to cover the 13
132-reasonable costs to the bank for the investigation and review of the application. 14
133-42-140.5-6. Use of funds. 15
134-(a) Funds shall be used to cover the costs of connecting a renewable energy generation 16
135-project to the electric distribution system on sites identified by the office and department and 17
136-published on the list of eligible sites, and shall include, but not be limited to, the following activities: 18
137-(1) Installation of transformers and substations; 19
138-(2) Transmission facilitation; 20
139-(3) Grid flexibility; and 21
140-(4) Electrification planning for sites and facilities. 22
141-(b) Funds shall not be used to conduct any interconnection study or other preliminary work 23
142-as may be required by the electric distribution company or the public utilities commission. 24
143-(c) Funds shall not be distributed to applicants, or an entity to whom the applicant must 25
144-pay to make the interconnection, until the following criteria are met: 26
145-(1) The project site is listed on the list of eligible sites prepared by the office; 27
146-(2) The application is approved by the infrastructure bank; 28
147-(3) An impact study, as described in § 39-26.3-2, is complete; 29
148-(4) Certification is provided demonstrating that funds are available in the fund; and 30
149-(5) The applicant’s project is approved by the public utilities commission, if such approval 31
150-is required. 32
151-(d) Should an application be approved but funds are not disbursed within twelve (12) 33
152-months from the application’s approval by the infrastructure bank, then the approval may be 34
153-
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156-considered void and funds allocated to project shall be made available for other applications. 1
157-42-140.5-7. Property owned by the electric or gas distribution company. 2
158-(a) Properties included or listed on the electric or gas distribution company’s environmental 3
159-response fund are eligible to be included on the eligible site list described in § 42-140.5-3(a). 4
160-(b) The electric or gas distribution company is encouraged to lease these properties, 5
161-following successful remediation, to developers through a competitive bidding process. 6
162-(c) Any lease payments to the gas or electric distribution companies for use of their site 7
163-shall be deposited in the environmental response fund. 8
164-42-140.5-8. Adoption of rules and regulations. 9
165-The infrastructure bank shall have the authority to adopt, amend, and implement such rules 10
166-and regulations as may be necessary and desirable to effectuate the purposes of this chapter. 11
167-SECTION 2. This act shall take effect upon passage. 12
118+LC002166 - Page 4 of 5
119+(f) The infrastructure bank shall set an application fee, due upon submission, to cover the 1
120+reasonable costs to the bank for the investigation and review of the application. 2
121+42-140.5-6. Use of funds. 3
122+(a) Funds shall only be used to cover the costs of connecting a renewable energy generation 4
123+project to the electric distribution system on sites identified by the office and department and 5
124+published on the list of eligible sites. 6
125+(b) Funds shall not be used to conduct any interconnection study or other preliminary work 7
126+as may be required by the electric distribution company or the public utilities commission. 8
127+(c) Funds shall not be distributed to applicants, or an entity to whom the applicant must 9
128+pay to make the interconnection, until the following criteria are met: 10
129+(1) The application is approved by the infrastructure bank; 11
130+(2) An impact study, as described in § 39-26.3-2, is complete; 12
131+(3) Certification is provided demonstrating that funds are available in the fund; and 13
132+(4) The applicant’s project is approved by the public utilities commission. 14
133+(d) Should an application be approved but funds are not disbursed within twelve (12) 15
134+months from the application’s approval, then the application shall be considered void and funds 16
135+allocated to project shall be made available for other applications. 17
136+42-140.5-7. Property owned by the electric or gas distribution company. 18
137+(a) Properties included or listed on the electric or gas distribution company’s environmental 19
138+response fund are eligible to be included on the eligible site list described in § 42-140.5-3(a). 20
139+(b) The electric or gas distribution company is encouraged to lease these properties, 21
140+following successful remediation, to developers through a competitive bidding process. 22
141+(c) Any lease payments to the gas or electric distribution companies for use of their site 23
142+shall be deposited in the environmental response fund. 24
143+42-140.5-8. Adoption of rules and regulations. 25
144+The infrastructure bank shall have the authority to adopt, amend, and implement such rules 26
145+and regulations as may be necessary and desirable to effectuate the purposes of this chapter. 27
146+SECTION 2. This act shall take effect upon passage. 28
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174153 EXPLANATION
175154 BY THE LEGISLATIVE COUNCIL
176155 OF
177156 A N A C T
178-RELATING TO STATE AFFAIRS AND GOVERNMENT -- RENEWABLE READY
157+RELATING TO STATE AFFAIRS AND GOVERNMENT – RENEWABLE READY
179158 PROGRAM
180159 ***
181160 This act would establish the renewable ready program which is designed to promote 1
182161 responsible siting and development of renewable energy on certain enumerated sites such as 2
183162 formerly contaminated sites. Projects would be funded through the infrastructure bank. 3
184163 This act would take effect upon passage. 4
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