2025 -- S 0402
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LC000349
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
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A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- AFFORDABLE CLEAN ENERGY
SECURITY ACT
Introduced By: Senators de la Cruz, and Rogers
Date Introduced: February 26, 2025
Referred To: Senate Environment & Agriculture
It is enacted by the General Assembly as follows:
SECTION 1. Sections 39-31-2, 39-31-3, 39-31-4, 39-31-5 and 39-31-7 of the General 1
Laws in Chapter 39-31 entitled "Affordable Clean Energy Security Act" are hereby amended to 2
read as follows: 3
39-31-2. Purpose. 4
The purpose of this chapter is to: 5
(1) Secure the future of the Rhode Island and New England economies, and their shared 6
environment, by making state and/or coordinated, cost-effective, strategic investments in energy 7
resources and infrastructure such that the New England states improve energy system reliability 8
and security; enhance economic competitiveness by reducing energy costs to attract new 9
investment and job growth opportunities; and protect the quality of life and environment for all 10
residents and businesses; 11
(2) Utilize state and/or coordinated competitive processes, in collaboration with other New 12
England states and their instrumentalities, to advance strategic investment in energy infrastructure 13
and energy resources, provided that the total energy security, reliability, environmental, and 14
economic benefits to the state of Rhode Island and its ratepayers exceed the costs of the projects, 15
and ensure that the benefits and costs of the energy infrastructure investments are shared 16
appropriately among the New England States; and 17
(3) Encourage an a balanced approach to energy policy that advances the objectives of 18
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achieving a reliable, clean-energy future that is consistent with meeting greenhouse gas reduction 1
goals as established by chapter 6.2 of title 42 (the “2021 act on climate”) at reasonable cost 2
affordable to ratepayers. If any provision of this chapter conflicts with the provisions of chapter 6.2 3
of title 42 ("2021 act on climate") the provisions of this chapter shall prevail. 4
39-31-3. Commercially reasonable defined. Definitions. 5
When used in this chapter, “commercially reasonable” (a) "Commercially reasonable" 6
means terms and pricing that are reasonably consistent with what an experienced power market 7
analyst would expect to see in transactions involving regional energy resources and regional energy 8
infrastructure. Commercially reasonable shall include having a credible project operation date, as 9
determined by the commission, but a project need not have completed the requisite permitting 10
process to be considered commercially reasonable. Commercially reasonable shall require a 11
determination by the commission that the benefits to Rhode Island exceed the cost of the project. 12
The commission shall determine, based on the preponderance of the evidence, that the total energy 13
security, reliability, environmental, and economic benefits to the state of Rhode Island and its 14
ratepayers exceed the costs of such projects. If there is a dispute about whether any terms or pricing 15
are commercially reasonable, the commission shall make the final determination after evidentiary 16
hearings. 17
(b) "Emission reduction mitigation" means a technology, process, or method of carbon 18
sequestration, that is recognized by the U.S. Environmental Protection Agency or as identified by 19
the office of energy resources that results in the reduction of greenhouse gas emissions from natural 20
gas transmission or electric generation. 21
39-31-4. Regional energy planning. 22
(a) Consistent with the purposes of this chapter, and utilizing regional stakeholder 23
processes where appropriate, the office of energy resources, in consultation and coordination with 24
the division of public utilities and carriers and the public utility company that provides electric 25
distribution as defined in § 39-1-2(a)(12) as well as natural gas as defined in § 39-1-2(a)(17), is 26
authorized to: 27
(1) Participate in the development and issuance of state, regional, or multistate competitive 28
solicitation(s) for the development and construction of regional electric-transmission projects that 29
would allow for the reliable transmission of large- or small-scale domestic or international 30
hydroelectric power to New England load centers that will benefit the state of Rhode Island and its 31
ratepayers, and such solicitations may be issued by the New England States Committee on 32
Electricity or the electric or natural gas distribution company to further the purposes of this chapter; 33
(2) Participate in the development and issuance of state, regional, or multistate competitive 34
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solicitation(s) for the development and construction of regional electric-transmission projects that 1
would allow for the reliable transmission of eligible renewable energy resources, including offshore 2
wind, as defined by § 39-26-5(a), to New England load centers that will benefit the state of Rhode 3
Island and its ratepayers, and the solicitations may be issued by the New England States Committee 4
on Electricity or the electric or natural gas distribution company to further the purposes of this 5
chapter; and 6
(3) Participate in the development and issuance of regional or multistate competitive 7
solicitation(s) for the development and construction of regional natural-gas-pipeline infrastructure 8
and capacity that will benefit the state of Rhode Island and its ratepayers by strengthening energy 9
system reliability and security and, in doing so, potentially mitigate energy price volatility that 10
threatens the economic vitality and competitiveness of Rhode Island residents and businesses. The 11
solicitations may be issued by the New England States Committee on Electricity or the electric or 12
natural gas distribution company to further the purposes of this chapter; and the solicitations may 13
request proposals that are priced in increments to allow for the evaluation of project costs and 14
benefits associated with adding various levels of additional, natural gas pipeline capacity into New 15
England and assist with the optimization of energy system reliability, economic, and other benefits 16
consistent with the purposes of this chapter. 17
(4) As part of any such state, regional, or multistate competitive solicitation processes 18
conducted pursuant to this chapter, the office of energy resources shall work jointly with the 19
division of public utilities and carriers, and with the electric distribution company as appropriate, 20
to identify incremental, natural-gas-pipeline infrastructure and capacity and/or electric-21
transmission projects that optimize energy reliability, economic, environmental, and ratepayer 22
impacts for Rhode Island, consistent with the legislative findings and purpose of this chapter. The 23
office of energy resources and division of public utilities and carriers shall be authorized to utilize 24
expert consultants, as needed, to assist in any state, regional, multistate, or state-level determination 25
related to the procurement activities identified in § 39-31-5. 26
(5) Identify and participate in the development of regional or multistate emissions 27
reduction mitigation strategies to reduce emissions from natural gas transmission and generated 28
electricity. The office of energy resources shall participate in the identification, development, and 29
promote the use of emission mitigations for natural gas transmission and electric generation with 30
the New England States Committee on Electricity or the electric or natural gas distribution 31
company. 32
(b) Prior to any binding commitments being made by any agencies of the state, the electric 33
distribution company, or any other entity that would result in costs being incurred directly, or 34
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indirectly, by Rhode Island electric and/or gas consumers through distribution or commodity rates, 1
the office of energy resources and division of public utilities and carriers shall jointly file any 2
energy infrastructure project recommendation(s) with the public utilities commission and may 3
make such filing jointly with the electric or natural gas distribution company as appropriate. The 4
public utilities commission shall consider any such recommendation(s) as specified under § 39-31-5
7. 6
(c) A copy of the filing made under subsection (b) of this section shall be provided to the 7
governor, the president of the senate, the speaker of the house, the department of environmental 8
management, and the commerce corporation. 9
(d) The electric distribution company shall be provided with a copy of any filing made 10
under this section at least ten (10) business days in advance of its filing with the public utilities 11
commission and the electric or gas distribution utility may file separate comments when the filing 12
is made. 13
(e) As part of any office of energy resources and division of public utilities and carriers 14
filing made pursuant to this chapter, the agencies shall identify the expected energy reliability, 15
energy security, and ratepayer impacts that are expected to result from commitments being made 16
in connection with the proposed project(s). 17
(f) The office of energy resources and division of public utilities and carriers reserve the 18
right to determine that energy infrastructure projects submitted in any state, regional, or multistate 19
competitive solicitation process are not in Rhode Island’s energy reliability, energy security, and/or 20
ratepayer interests, and shall make such findings available to the governor, the president of the 21
senate, and the speaker of the house. The electric or gas distribution utility may attach a separate 22
opinion to those findings, at its election. 23
39-31-5. State and regional energy procurement. 24
(a) Consistent with the purposes of this chapter, the public utility company that provides 25
electric distribution as defined in § 39-1-2(a)(12), as well as natural gas as defined in § 39-1-26
2(a)(17), in consultation with the office of energy resources and the division of public utilities and 27
carriers is authorized to voluntarily and encouraged to participate in state, multistate, or regional 28
efforts to: 29
(1) Procure domestic or international large- or small-scale hydroelectric power and eligible 30
renewable energy resources, including wind, as defined by § 39-26-5(a), that seek to meet the 31
renewable energy standard goals of chapter 26 of this title but shall not be mandatory if such 32
renewable sources are not found to be commercially reasonable and affordable to ratepayers under 33
this chapter on behalf of electric ratepayers; provided, however, that large-scale hydroelectric 34
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power shall not be eligible under the renewable energy standard established by chapter 26 of this 1
title. If the provisions of this section conflict with the provisions of chapter 26 of this title, the 2
provisions of this section shall prevail; 3
(2) Procure incremental, natural-gas-pipeline infrastructure and capacity into New England 4
to help strengthen energy system reliability and facilitate the economic interests of the state and its 5
ratepayers. Provided that, any natural gas infrastructure or capacity procured that utilizes emissions 6
reduction mitigation shall be counted towards the statewide greenhouse gas emission reduction 7
mandate goals as defined by § 42-6.2-9. The office of energy resources shall determine the amount 8
of emissions reduction to attribute to each emission reduction mitigation identified; 9
(3) Support the development and filing of necessary tariffs and other appropriate cost-10
recovery mechanisms, as proposed by the office of energy resources or the division of public 11
utilities and carriers, that allocate the costs of new, electric-transmission and natural-gas-pipeline 12
infrastructure and capacity projects selected pursuant to the provisions of this chapter to ratepayers, 13
such that costs are shared among participating states in an equitable manner; and 14
(4) To the extent that the public utility company that provides electric distribution as 15
defined in § 39-1-2(a)(12), as well as natural gas as defined in § 39-1-2(a)(17), pursues the 16
objectives identified above, the public utility company shall utilize all appropriate, competitive 17
processes, and maintain compliance with applicable federal and state siting laws. 18
(b) Any procurement authorized under this section shall be commercially reasonable. 19
(c) If any part of this chapter conflicts with chapter 26 of title 39 or chapter 6.2 of title 42 20
("2021 act on climate") the provisions of this chapter shall prevail. 21
39-31-7. Duties of the commission. 22
(a) The commission shall approve any proposals made by the electric and gas distribution 23
company that are commercially reasonable, affordable to ratepayers, and advance the purposes of 24
this chapter. The commission’s authority shall include, without limitation, the authority to: 25
(1) Approve long-term contracts entered into pursuant to the goals and provisions of this 26
chapter for large- or small-scale hydroelectric power and renewable energy resources that are 27
eligible under the renewable energy standard established by chapter 26 of this title; provided, 28
however, that large-scale hydroelectric power shall not be eligible under the renewable energy 29
standard established by chapter 26 of this title; 30
(2) Annually determine the adequacy of renewable energy supplies to meet the increase in 31
the percentage requirement of energy from renewable energy resources effective for the following 32
year. The commission shall annually publish the commission’s determination of adequacy on the 33
agency’s website; 34
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(2)(3) Approve long-term contracts for natural-gas-pipeline infrastructure and capacity 1
consistent with the purposes of this chapter; 2
(3)(4) Approve rate-recovery mechanisms proposed by the electric and gas distribution 3
companies relating to costs incurred under this chapter by the electric and gas distribution company 4
that facilitate the multistate or regional sharing of costs necessary to implement electric 5
transmission and natural-gas-pipeline infrastructure projects pursued under this chapter, including 6
any costs incurred through the Federal Energy Regulatory Commission approved tariffs related to 7
such multistate or regional energy infrastructure procurements; 8
(4)(5) Address any proposed changes to standard-offer procurements, standard-offer 9
pricing, and retail-choice rules; 10
(5)(6) Provide for the recovery of reasonable net costs from all distribution customers 11
incurred by the electric and gas distribution company in furtherance of the purposes of this chapter 12
that may include, but are not limited to, costs to solicit, evaluate, and seek approval of such 13
contracts as well as net costs incurred under any contracts approved by the commission under this 14
section and costs associated with the management of incremental capacity resulting from interstate 15
gas-pipeline-expansion projects pursued pursuant to this chapter and costs associated with 16
investments in local gas-distribution-network assets necessary to implement such interstate gas-17
pipeline-expansion projects; 18
(6)(7) Nothing herein is intended to prohibit the commission from allowing the electric 19
distribution company to use the energy, capacity, and other attributes purchased for resale to 20
customers and approve tariffs that charge those customers for the energy, capacity, and other 21
attributes from the resale to those customers; and/or to use the NE-GIS certificates for purposes of 22
meeting the obligations set forth in chapter 26 of this title (“renewable energy standard”); 23
(7)(8) Approve cost allocation proposals filed by the gas distribution company and/or the 24
electric distribution company that appropriately allocate offshore wind costs incurred under § 39-25
31-10, natural gas infrastructure and capacity costs incurred under § 39-31-6 between electric and 26
gas distribution customers of the electric and gas distribution company in a manner proportional to 27
the energy benefits accrued by Rhode Island’s gas and electric customers from making such 28
investments. In making its determination, the commission shall consider projected reductions in 29
regional, wholesale electric prices as a benefit that accrues to electric ratepayers. The allocation of 30
costs shall include all distribution customers, regardless from whom they are purchasing their 31
commodity service; and 32
(8)(9) Approve any other proposed regulatory or ratemaking changes that reasonably 33
advance the goals set forth herein. 34
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(b) The grant of authorizations under this chapter shall not be construed as creating a 1
mandate or obligation on the part of the electric and gas distribution company to enter into any 2
contracts or file any proposals pursuant to this chapter. 3
(c) The public utilities commission shall docket any proposals made by the office of energy 4
resources and division of public utilities and carriers pursuant to § 39-31-4. Docket materials shall 5
be posted and maintained on the commission’s website. The commission shall conduct 6
proceedings, as provided below, solely for the purpose of determining whether the proposed 7
infrastructure projects, if implemented, are in the public interest and no commitments shall be valid 8
or authorized without such finding being made by the commission. The validity and approval of 9
any commitments made by the electric or gas distribution company in furtherance of the purposes 10
of this chapter shall be separate and subject to § 39-31-5. The docket opened pursuant to this 11
subsection shall proceed as follows: 12
(1) The following state agencies shall provide advisory opinions to the commission on the 13
topics specified below within sixty (60) days from the docketing date: 14
(i) The department of environmental management (DEM) shall provide an advisory 15
opinion on the expected greenhouse gas emissions and statewide environmental impacts, including 16
on forests and the oceans, resulting from the proposed project(s), including a determination as to 17
whether the proposed project(s) advance the goals of chapter 6.2 of title 42 (the “2021 Act on 18
Climate”). 19
(ii) The commerce corporation shall provide an advisory opinion on the expected statewide 20
economic impacts resulting from the proposed project(s). 21
(2) The commission shall notify the aforementioned agencies upon the filing of any 22
proposal made under this section, and notify them of any related hearings and/or proceedings. 23
(3) Advisory opinions issued by agencies designated under subsection (c)(1) of this section 24
shall not be considered as final decisions of the agencies making the opinions and shall not be 25
subject to judicial review under § 42-35-15 or any other provision of the general laws. 26
(4) Upon completion of the sixty-day (60) advisory-opinion period, the commission shall 27
provide for a thirty-day (30) public comment period on any energy infrastructure project(s) selected 28
pursuant to this chapter and hold evidentiary hearings. In addition to evidentiary hearings, the 29
commission shall also hold at least one public hearing to accept public comment on the proposal(s) 30
prior to an open meeting held pursuant to this section. The commission shall also seek input from 31
the ratepayer's advisory board established under § 39-1-37.1 before the end of the thirty (30) day 32
public comment period. 33
(5) The commission shall hold an open meeting no later than one hundred twenty (120) 34
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days from the date of filing by the office of energy resources and division of public utilities and 1
carriers and shall certify that the proposed project(s) are in the public interest if, in the commission’s 2
determination, and in consideration of filed advisory opinions and the opinion of the electric or gas 3
distribution utility, the proposed infrastructure project(s): 4
(i) Are consistent with the findings and purposes of this chapter; 5
(ii) Will benefit Rhode Island by improving local and regional energy system reliability 6
and security; 7
(iii) Will benefit Rhode Island ratepayers by offering the potential for reduced energy price 8
volatility and reduction of energy supply costs in the context of an integrated regional energy 9
system; 10
(iv) Will not cause unacceptable harm to the environment and are consistent with, seeks to 11
reasonably meet the greenhouse gas reduction goals established in chapter 6.2 of title 42 (the “2021 12
Act on Climate”) and does not conflict with this chapter; and 13
(v) Will enhance not harm the economic fabric growth of the state. 14
(6) The commission shall issue a written determination of its findings within ten (10) 15
business days of its open-meeting decision and provide copies of that determination, along with 16
copies of all advisory opinions, public comment, and any other materials deemed relevant to the 17
commission determination, to the governor, the president of the senate, the speaker of the house, 18
the commissioner of the office of energy resources, and the administrator of the division of public 19
utilities and carriers. 20
(d) A determination issued by the commission shall constitute the sole, final, binding, and 21
determinative regulatory decision within the state for the purpose of authorizing the state to support 22
a proposed, regional energy-infrastructure project(s) that is funded through the Federal Energy 23
Regulatory Commission approved tariffs on a regional and/or multistate basis pursuant to this 24
chapter. Appeals shall be governed by § 39-5-1. 25
(e) Upon issuance of a written determination by the commission finding that the proposed 26
project(s) is in the public interest, the office of energy resources and division of public utilities and 27
carriers shall, on behalf of the state, be authorized to support any state, regional, and/or multistate 28
process necessary to implement the project(s), including, without limitation, supporting any 29
necessary and related Federal Energy Regulatory Commission filings; provided, however, that any 30
commitments made by the electric or gas distribution company to implement the proposals remain 31
voluntary and subject to § 39-31-5. 32
(f) Nothing in this section shall be construed to preclude the electric or gas distribution 33
company from making a filing under § 39-31-6, simultaneous with a filing under this section by 34
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the office of energy resources and the division of public utilities and carriers, in which case the 1
filings made under §§ 39-31-6 and 39-31-7 shall be consolidated. 2
SECTION 2. This act shall take effect upon passage. 3
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- AFFORDABLE CLEAN EN ERGY
SECURITY ACT
***
This act would make several amendments relative to the affordable clean energy security 1
act establishing the act's priority over chapter 6.2 of title 42 ("2021 act on climate") and providing 2
for the participation and development of regional or multistate emissions reduction mitigation 3
strategies. 4
This act would take effect upon passage. 5
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