Rhode Island 2025 Regular Session

Rhode Island Senate Bill S0402 Compare Versions

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99 S T A T E O F R H O D E I S L A N D
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2025
1212 ____________
1313
1414 A N A C T
1515 RELATING TO PUBLIC UTILITIES AND CARRIERS -- AFFORDABLE CLEAN ENERGY
1616 SECURITY ACT
1717 Introduced By: Senators de la Cruz, and Rogers
1818 Date Introduced: February 26, 2025
1919 Referred To: Senate Environment & Agriculture
2020
2121
2222 It is enacted by the General Assembly as follows:
2323 SECTION 1. Sections 39-31-2, 39-31-3, 39-31-4, 39-31-5 and 39-31-7 of the General 1
2424 Laws in Chapter 39-31 entitled "Affordable Clean Energy Security Act" are hereby amended to 2
2525 read as follows: 3
2626 39-31-2. Purpose. 4
2727 The purpose of this chapter is to: 5
2828 (1) Secure the future of the Rhode Island and New England economies, and their shared 6
2929 environment, by making state and/or coordinated, cost-effective, strategic investments in energy 7
3030 resources and infrastructure such that the New England states improve energy system reliability 8
3131 and security; enhance economic competitiveness by reducing energy costs to attract new 9
3232 investment and job growth opportunities; and protect the quality of life and environment for all 10
3333 residents and businesses; 11
3434 (2) Utilize state and/or coordinated competitive processes, in collaboration with other New 12
3535 England states and their instrumentalities, to advance strategic investment in energy infrastructure 13
3636 and energy resources, provided that the total energy security, reliability, environmental, and 14
3737 economic benefits to the state of Rhode Island and its ratepayers exceed the costs of the projects, 15
3838 and ensure that the benefits and costs of the energy infrastructure investments are shared 16
3939 appropriately among the New England States; and 17
4040 (3) Encourage an a balanced approach to energy policy that advances the objectives of 18
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4444 achieving a reliable, clean-energy future that is consistent with meeting greenhouse gas reduction 1
4545 goals as established by chapter 6.2 of title 42 (the “2021 act on climate”) at reasonable cost 2
4646 affordable to ratepayers. If any provision of this chapter conflicts with the provisions of chapter 6.2 3
4747 of title 42 ("2021 act on climate") the provisions of this chapter shall prevail. 4
4848 39-31-3. Commercially reasonable defined. Definitions. 5
4949 When used in this chapter, “commercially reasonable” (a) "Commercially reasonable" 6
5050 means terms and pricing that are reasonably consistent with what an experienced power market 7
5151 analyst would expect to see in transactions involving regional energy resources and regional energy 8
5252 infrastructure. Commercially reasonable shall include having a credible project operation date, as 9
5353 determined by the commission, but a project need not have completed the requisite permitting 10
5454 process to be considered commercially reasonable. Commercially reasonable shall require a 11
5555 determination by the commission that the benefits to Rhode Island exceed the cost of the project. 12
5656 The commission shall determine, based on the preponderance of the evidence, that the total energy 13
5757 security, reliability, environmental, and economic benefits to the state of Rhode Island and its 14
5858 ratepayers exceed the costs of such projects. If there is a dispute about whether any terms or pricing 15
5959 are commercially reasonable, the commission shall make the final determination after evidentiary 16
6060 hearings. 17
6161 (b) "Emission reduction mitigation" means a technology, process, or method of carbon 18
6262 sequestration, that is recognized by the U.S. Environmental Protection Agency or as identified by 19
6363 the office of energy resources that results in the reduction of greenhouse gas emissions from natural 20
6464 gas transmission or electric generation. 21
6565 39-31-4. Regional energy planning. 22
6666 (a) Consistent with the purposes of this chapter, and utilizing regional stakeholder 23
6767 processes where appropriate, the office of energy resources, in consultation and coordination with 24
6868 the division of public utilities and carriers and the public utility company that provides electric 25
6969 distribution as defined in § 39-1-2(a)(12) as well as natural gas as defined in § 39-1-2(a)(17), is 26
7070 authorized to: 27
7171 (1) Participate in the development and issuance of state, regional, or multistate competitive 28
7272 solicitation(s) for the development and construction of regional electric-transmission projects that 29
7373 would allow for the reliable transmission of large- or small-scale domestic or international 30
7474 hydroelectric power to New England load centers that will benefit the state of Rhode Island and its 31
7575 ratepayers, and such solicitations may be issued by the New England States Committee on 32
7676 Electricity or the electric or natural gas distribution company to further the purposes of this chapter; 33
7777 (2) Participate in the development and issuance of state, regional, or multistate competitive 34
7878
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8181 solicitation(s) for the development and construction of regional electric-transmission projects that 1
8282 would allow for the reliable transmission of eligible renewable energy resources, including offshore 2
8383 wind, as defined by § 39-26-5(a), to New England load centers that will benefit the state of Rhode 3
8484 Island and its ratepayers, and the solicitations may be issued by the New England States Committee 4
8585 on Electricity or the electric or natural gas distribution company to further the purposes of this 5
8686 chapter; and 6
8787 (3) Participate in the development and issuance of regional or multistate competitive 7
8888 solicitation(s) for the development and construction of regional natural-gas-pipeline infrastructure 8
8989 and capacity that will benefit the state of Rhode Island and its ratepayers by strengthening energy 9
9090 system reliability and security and, in doing so, potentially mitigate energy price volatility that 10
9191 threatens the economic vitality and competitiveness of Rhode Island residents and businesses. The 11
9292 solicitations may be issued by the New England States Committee on Electricity or the electric or 12
9393 natural gas distribution company to further the purposes of this chapter; and the solicitations may 13
9494 request proposals that are priced in increments to allow for the evaluation of project costs and 14
9595 benefits associated with adding various levels of additional, natural gas pipeline capacity into New 15
9696 England and assist with the optimization of energy system reliability, economic, and other benefits 16
9797 consistent with the purposes of this chapter. 17
9898 (4) As part of any such state, regional, or multistate competitive solicitation processes 18
9999 conducted pursuant to this chapter, the office of energy resources shall work jointly with the 19
100100 division of public utilities and carriers, and with the electric distribution company as appropriate, 20
101101 to identify incremental, natural-gas-pipeline infrastructure and capacity and/or electric-21
102102 transmission projects that optimize energy reliability, economic, environmental, and ratepayer 22
103103 impacts for Rhode Island, consistent with the legislative findings and purpose of this chapter. The 23
104104 office of energy resources and division of public utilities and carriers shall be authorized to utilize 24
105105 expert consultants, as needed, to assist in any state, regional, multistate, or state-level determination 25
106106 related to the procurement activities identified in § 39-31-5. 26
107107 (5) Identify and participate in the development of regional or multistate emissions 27
108108 reduction mitigation strategies to reduce emissions from natural gas transmission and generated 28
109109 electricity. The office of energy resources shall participate in the identification, development, and 29
110110 promote the use of emission mitigations for natural gas transmission and electric generation with 30
111111 the New England States Committee on Electricity or the electric or natural gas distribution 31
112112 company. 32
113113 (b) Prior to any binding commitments being made by any agencies of the state, the electric 33
114114 distribution company, or any other entity that would result in costs being incurred directly, or 34
115115
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118118 indirectly, by Rhode Island electric and/or gas consumers through distribution or commodity rates, 1
119119 the office of energy resources and division of public utilities and carriers shall jointly file any 2
120120 energy infrastructure project recommendation(s) with the public utilities commission and may 3
121121 make such filing jointly with the electric or natural gas distribution company as appropriate. The 4
122122 public utilities commission shall consider any such recommendation(s) as specified under § 39-31-5
123123 7. 6
124124 (c) A copy of the filing made under subsection (b) of this section shall be provided to the 7
125125 governor, the president of the senate, the speaker of the house, the department of environmental 8
126126 management, and the commerce corporation. 9
127127 (d) The electric distribution company shall be provided with a copy of any filing made 10
128128 under this section at least ten (10) business days in advance of its filing with the public utilities 11
129129 commission and the electric or gas distribution utility may file separate comments when the filing 12
130130 is made. 13
131131 (e) As part of any office of energy resources and division of public utilities and carriers 14
132132 filing made pursuant to this chapter, the agencies shall identify the expected energy reliability, 15
133133 energy security, and ratepayer impacts that are expected to result from commitments being made 16
134134 in connection with the proposed project(s). 17
135135 (f) The office of energy resources and division of public utilities and carriers reserve the 18
136136 right to determine that energy infrastructure projects submitted in any state, regional, or multistate 19
137137 competitive solicitation process are not in Rhode Island’s energy reliability, energy security, and/or 20
138138 ratepayer interests, and shall make such findings available to the governor, the president of the 21
139139 senate, and the speaker of the house. The electric or gas distribution utility may attach a separate 22
140140 opinion to those findings, at its election. 23
141141 39-31-5. State and regional energy procurement. 24
142142 (a) Consistent with the purposes of this chapter, the public utility company that provides 25
143143 electric distribution as defined in § 39-1-2(a)(12), as well as natural gas as defined in § 39-1-26
144144 2(a)(17), in consultation with the office of energy resources and the division of public utilities and 27
145145 carriers is authorized to voluntarily and encouraged to participate in state, multistate, or regional 28
146146 efforts to: 29
147147 (1) Procure domestic or international large- or small-scale hydroelectric power and eligible 30
148148 renewable energy resources, including wind, as defined by § 39-26-5(a), that seek to meet the 31
149149 renewable energy standard goals of chapter 26 of this title but shall not be mandatory if such 32
150150 renewable sources are not found to be commercially reasonable and affordable to ratepayers under 33
151151 this chapter on behalf of electric ratepayers; provided, however, that large-scale hydroelectric 34
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155155 power shall not be eligible under the renewable energy standard established by chapter 26 of this 1
156156 title. If the provisions of this section conflict with the provisions of chapter 26 of this title, the 2
157157 provisions of this section shall prevail; 3
158158 (2) Procure incremental, natural-gas-pipeline infrastructure and capacity into New England 4
159159 to help strengthen energy system reliability and facilitate the economic interests of the state and its 5
160160 ratepayers. Provided that, any natural gas infrastructure or capacity procured that utilizes emissions 6
161161 reduction mitigation shall be counted towards the statewide greenhouse gas emission reduction 7
162162 mandate goals as defined by § 42-6.2-9. The office of energy resources shall determine the amount 8
163163 of emissions reduction to attribute to each emission reduction mitigation identified; 9
164164 (3) Support the development and filing of necessary tariffs and other appropriate cost-10
165165 recovery mechanisms, as proposed by the office of energy resources or the division of public 11
166166 utilities and carriers, that allocate the costs of new, electric-transmission and natural-gas-pipeline 12
167167 infrastructure and capacity projects selected pursuant to the provisions of this chapter to ratepayers, 13
168168 such that costs are shared among participating states in an equitable manner; and 14
169169 (4) To the extent that the public utility company that provides electric distribution as 15
170170 defined in § 39-1-2(a)(12), as well as natural gas as defined in § 39-1-2(a)(17), pursues the 16
171171 objectives identified above, the public utility company shall utilize all appropriate, competitive 17
172172 processes, and maintain compliance with applicable federal and state siting laws. 18
173173 (b) Any procurement authorized under this section shall be commercially reasonable. 19
174174 (c) If any part of this chapter conflicts with chapter 26 of title 39 or chapter 6.2 of title 42 20
175175 ("2021 act on climate") the provisions of this chapter shall prevail. 21
176176 39-31-7. Duties of the commission. 22
177177 (a) The commission shall approve any proposals made by the electric and gas distribution 23
178178 company that are commercially reasonable, affordable to ratepayers, and advance the purposes of 24
179179 this chapter. The commission’s authority shall include, without limitation, the authority to: 25
180180 (1) Approve long-term contracts entered into pursuant to the goals and provisions of this 26
181181 chapter for large- or small-scale hydroelectric power and renewable energy resources that are 27
182182 eligible under the renewable energy standard established by chapter 26 of this title; provided, 28
183183 however, that large-scale hydroelectric power shall not be eligible under the renewable energy 29
184184 standard established by chapter 26 of this title; 30
185185 (2) Annually determine the adequacy of renewable energy supplies to meet the increase in 31
186186 the percentage requirement of energy from renewable energy resources effective for the following 32
187187 year. The commission shall annually publish the commission’s determination of adequacy on the 33
188188 agency’s website; 34
189189
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192192 (2)(3) Approve long-term contracts for natural-gas-pipeline infrastructure and capacity 1
193193 consistent with the purposes of this chapter; 2
194194 (3)(4) Approve rate-recovery mechanisms proposed by the electric and gas distribution 3
195195 companies relating to costs incurred under this chapter by the electric and gas distribution company 4
196196 that facilitate the multistate or regional sharing of costs necessary to implement electric 5
197197 transmission and natural-gas-pipeline infrastructure projects pursued under this chapter, including 6
198198 any costs incurred through the Federal Energy Regulatory Commission approved tariffs related to 7
199199 such multistate or regional energy infrastructure procurements; 8
200200 (4)(5) Address any proposed changes to standard-offer procurements, standard-offer 9
201201 pricing, and retail-choice rules; 10
202202 (5)(6) Provide for the recovery of reasonable net costs from all distribution customers 11
203203 incurred by the electric and gas distribution company in furtherance of the purposes of this chapter 12
204204 that may include, but are not limited to, costs to solicit, evaluate, and seek approval of such 13
205205 contracts as well as net costs incurred under any contracts approved by the commission under this 14
206206 section and costs associated with the management of incremental capacity resulting from interstate 15
207207 gas-pipeline-expansion projects pursued pursuant to this chapter and costs associated with 16
208208 investments in local gas-distribution-network assets necessary to implement such interstate gas-17
209209 pipeline-expansion projects; 18
210210 (6)(7) Nothing herein is intended to prohibit the commission from allowing the electric 19
211211 distribution company to use the energy, capacity, and other attributes purchased for resale to 20
212212 customers and approve tariffs that charge those customers for the energy, capacity, and other 21
213213 attributes from the resale to those customers; and/or to use the NE-GIS certificates for purposes of 22
214214 meeting the obligations set forth in chapter 26 of this title (“renewable energy standard”); 23
215215 (7)(8) Approve cost allocation proposals filed by the gas distribution company and/or the 24
216216 electric distribution company that appropriately allocate offshore wind costs incurred under § 39-25
217217 31-10, natural gas infrastructure and capacity costs incurred under § 39-31-6 between electric and 26
218218 gas distribution customers of the electric and gas distribution company in a manner proportional to 27
219219 the energy benefits accrued by Rhode Island’s gas and electric customers from making such 28
220220 investments. In making its determination, the commission shall consider projected reductions in 29
221221 regional, wholesale electric prices as a benefit that accrues to electric ratepayers. The allocation of 30
222222 costs shall include all distribution customers, regardless from whom they are purchasing their 31
223223 commodity service; and 32
224224 (8)(9) Approve any other proposed regulatory or ratemaking changes that reasonably 33
225225 advance the goals set forth herein. 34
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229229 (b) The grant of authorizations under this chapter shall not be construed as creating a 1
230230 mandate or obligation on the part of the electric and gas distribution company to enter into any 2
231231 contracts or file any proposals pursuant to this chapter. 3
232232 (c) The public utilities commission shall docket any proposals made by the office of energy 4
233233 resources and division of public utilities and carriers pursuant to § 39-31-4. Docket materials shall 5
234234 be posted and maintained on the commission’s website. The commission shall conduct 6
235235 proceedings, as provided below, solely for the purpose of determining whether the proposed 7
236236 infrastructure projects, if implemented, are in the public interest and no commitments shall be valid 8
237237 or authorized without such finding being made by the commission. The validity and approval of 9
238238 any commitments made by the electric or gas distribution company in furtherance of the purposes 10
239239 of this chapter shall be separate and subject to § 39-31-5. The docket opened pursuant to this 11
240240 subsection shall proceed as follows: 12
241241 (1) The following state agencies shall provide advisory opinions to the commission on the 13
242242 topics specified below within sixty (60) days from the docketing date: 14
243243 (i) The department of environmental management (DEM) shall provide an advisory 15
244244 opinion on the expected greenhouse gas emissions and statewide environmental impacts, including 16
245245 on forests and the oceans, resulting from the proposed project(s), including a determination as to 17
246246 whether the proposed project(s) advance the goals of chapter 6.2 of title 42 (the “2021 Act on 18
247247 Climate”). 19
248248 (ii) The commerce corporation shall provide an advisory opinion on the expected statewide 20
249249 economic impacts resulting from the proposed project(s). 21
250250 (2) The commission shall notify the aforementioned agencies upon the filing of any 22
251251 proposal made under this section, and notify them of any related hearings and/or proceedings. 23
252252 (3) Advisory opinions issued by agencies designated under subsection (c)(1) of this section 24
253253 shall not be considered as final decisions of the agencies making the opinions and shall not be 25
254254 subject to judicial review under § 42-35-15 or any other provision of the general laws. 26
255255 (4) Upon completion of the sixty-day (60) advisory-opinion period, the commission shall 27
256256 provide for a thirty-day (30) public comment period on any energy infrastructure project(s) selected 28
257257 pursuant to this chapter and hold evidentiary hearings. In addition to evidentiary hearings, the 29
258258 commission shall also hold at least one public hearing to accept public comment on the proposal(s) 30
259259 prior to an open meeting held pursuant to this section. The commission shall also seek input from 31
260260 the ratepayer's advisory board established under § 39-1-37.1 before the end of the thirty (30) day 32
261261 public comment period. 33
262262 (5) The commission shall hold an open meeting no later than one hundred twenty (120) 34
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266266 days from the date of filing by the office of energy resources and division of public utilities and 1
267267 carriers and shall certify that the proposed project(s) are in the public interest if, in the commission’s 2
268268 determination, and in consideration of filed advisory opinions and the opinion of the electric or gas 3
269269 distribution utility, the proposed infrastructure project(s): 4
270270 (i) Are consistent with the findings and purposes of this chapter; 5
271271 (ii) Will benefit Rhode Island by improving local and regional energy system reliability 6
272272 and security; 7
273273 (iii) Will benefit Rhode Island ratepayers by offering the potential for reduced energy price 8
274274 volatility and reduction of energy supply costs in the context of an integrated regional energy 9
275275 system; 10
276276 (iv) Will not cause unacceptable harm to the environment and are consistent with, seeks to 11
277277 reasonably meet the greenhouse gas reduction goals established in chapter 6.2 of title 42 (the “2021 12
278278 Act on Climate”) and does not conflict with this chapter; and 13
279279 (v) Will enhance not harm the economic fabric growth of the state. 14
280280 (6) The commission shall issue a written determination of its findings within ten (10) 15
281281 business days of its open-meeting decision and provide copies of that determination, along with 16
282282 copies of all advisory opinions, public comment, and any other materials deemed relevant to the 17
283283 commission determination, to the governor, the president of the senate, the speaker of the house, 18
284284 the commissioner of the office of energy resources, and the administrator of the division of public 19
285285 utilities and carriers. 20
286286 (d) A determination issued by the commission shall constitute the sole, final, binding, and 21
287287 determinative regulatory decision within the state for the purpose of authorizing the state to support 22
288288 a proposed, regional energy-infrastructure project(s) that is funded through the Federal Energy 23
289289 Regulatory Commission approved tariffs on a regional and/or multistate basis pursuant to this 24
290290 chapter. Appeals shall be governed by § 39-5-1. 25
291291 (e) Upon issuance of a written determination by the commission finding that the proposed 26
292292 project(s) is in the public interest, the office of energy resources and division of public utilities and 27
293293 carriers shall, on behalf of the state, be authorized to support any state, regional, and/or multistate 28
294294 process necessary to implement the project(s), including, without limitation, supporting any 29
295295 necessary and related Federal Energy Regulatory Commission filings; provided, however, that any 30
296296 commitments made by the electric or gas distribution company to implement the proposals remain 31
297297 voluntary and subject to § 39-31-5. 32
298298 (f) Nothing in this section shall be construed to preclude the electric or gas distribution 33
299299 company from making a filing under § 39-31-6, simultaneous with a filing under this section by 34
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303303 the office of energy resources and the division of public utilities and carriers, in which case the 1
304304 filings made under §§ 39-31-6 and 39-31-7 shall be consolidated. 2
305305 SECTION 2. This act shall take effect upon passage. 3
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312312 EXPLANATION
313313 BY THE LEGISLATIVE COUNCIL
314314 OF
315315 A N A C T
316316 RELATING TO PUBLIC UTILITIES AND CARRIERS -- AFFORDABLE CLEAN EN ERGY
317317 SECURITY ACT
318318 ***
319319 This act would make several amendments relative to the affordable clean energy security 1
320320 act establishing the act's priority over chapter 6.2 of title 42 ("2021 act on climate") and providing 2
321321 for the participation and development of regional or multistate emissions reduction mitigation 3
322322 strategies. 4
323323 This act would take effect upon passage. 5
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