2025 -- S 0769 ======== LC002230 ======== 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 ____________ A N A C T RELATING TO PUBLIC UTILITIES AND CARRIERS -- AFFORDABLE CLEAN ENERGY SECURITY ACT Introduced By: Senator Samuel D. Zurier Date Introduced: March 14, 2025 Referred To: Senate Commerce It is enacted by the General Assembly as follows: SECTION 1. Section 39-31-10 of the General Laws in Chapter 39-31 entitled "Affordable 1 Clean Energy Security Act" is hereby amended to read as follows: 2 39-31-10. Offshore wind procurement. 3 (a) The electric distribution company, is hereby authorized and required to issue a request 4 for proposals for at least six hundred megawatts (600 MW) but no greater than one thousand 5 megawatts (1,000 MW) of newly-developed offshore wind capacity no later than October 15, 2022 6 in collaboration with the Rhode Island office of energy resources, shall establish a schedule for 7 competitive solicitations for the development and construction of offshore wind power projects, 8 subject to review and approval by the commission. The electric distribution company shall conduct 9 one or more competitive solicitations through a staggered procurement schedule developed with 10 the office of energy resources; provided that, the schedule shall ensure that the electric distribution 11 company enters into cost-effective long-term contracts for offshore wind energy generation equal 12 to approximately twelve hundred megawatts (1200 MW) of aggregate nameplate capacity not later 13 than March 30, 2029; and provided further, that individual solicitations shall seek proposals for no 14 less than four hundred megawatts (400 MW) of aggregate nameplate capacity of offshore wind 15 energy generation resources. A staggered procurement schedule shall be developed by the electric 16 distribution company and the office of energy resources and shall specify that any subsequent 17 solicitation shall occur within thirty-six (36) months of a previous solicitation. Proposals received 18 LC002230 - Page 2 of 6 pursuant to a solicitation under this section shall be subject to review by the electric company 1 distribution company and the office of energy resources. 2 (b) The electric distribution company shall develop the each request for proposals (RFP) 3 in consultation with the Rhode Island office of energy resources and the Rhode Island division of 4 public utilities and carriers. Review of any proposed contract(s) resulting from this procurement 5 shall be conducted by the commission consistent with the requirements of this chapter. The request 6 for proposals shall require all bidders to provide, at a minimum, information on potential 7 environmental impacts through the submittal of an environmental and fisheries mitigation plan, 8 which shall include site and environmental data transparency requirements; a site layout plan and 9 maps that illustrate the location of all on-shore and offshore equipment and facilities and clearly 10 delineates the perimeter of the area in which offshore wind turbines will be placed; annualized 11 estimates for all economic benefits, including the specific in-state expenditures and employment 12 proposed during the development, construction, and operation and maintenance phases of the 13 project; a diversity, equity, and inclusion plan that, at a minimum, provides the bidder’s proposed 14 strategy to enable access to employment and vendor opportunities for historically marginalized 15 communities; identification of Rhode Island vendors and other domestic offshore wind supply 16 chain opportunities associated with the project; and a plan outlining the bidder’s intentions with 17 respect to the negotiation of a project labor agreement(s) to cover construction activities on a 18 proposed project. This information shall be incorporated in the procurement’s evaluation and 19 scoring criteria. 20 (c) In reviewing responses to the request for proposals, the electric distribution company 21 shall give priority to offshore wind projects that: 22 (1) Provide employment and contracting opportunities for workers from disadvantaged 23 communities as defined by: 24 (i) The United States Council on Environmental Quality’s climate and economic justice 25 screening tool or by an agency of this state using standards similar to those in the screening tool as 26 determined by the commission; 27 (ii) The United States Department of Commerce, Economic Development Administration’s 28 economic distress criteria; or 29 (iii) The United States Department of Energy’s disadvantaged community criteria. 30 (2) Provide community benefits, as determined preconstruction through a stakeholder 31 engagement process that includes disadvantaged communities and investments in fishing 32 communities; 33 (3) Provide financial contributions or technical assistance to support research, monitoring 34 LC002230 - Page 3 of 6 and mitigation of impacts to wildlife, fisheries and habitats and the minimization of environmental 1 impacts from the offshore wind power project and related transmission and interconnection 2 infrastructure; 3 (4) Provide economic benefits to the state, including using an offshore wind port located 4 in this state; 5 (5) Maximize the hiring of residents of this state; 6 (6) Maximize economic, employment and contracting opportunities for residents of this 7 state and all businesses in this state; and 8 (7) Provide ratepayer benefits including, but not limited to, enhanced electric reliability, 9 resource adequacy including contributing to reducing winter electric price spikes and overall price 10 impacts, avoidance of line loss and mitigation of transmission costs to the extent possible. 11 (b)(c) The electric distribution company, prior to its issuance, shall file the RFP as 12 described in subsection (a) of this section with the commission solely for the purpose of soliciting 13 public comment. The RFP shall be available for thirty (30) days and the commission shall accept 14 written comment throughout that period, and it shall hold one public hearing to accept oral 15 comments. Following the public comment period, the electric distribution company shall issue the 16 RFP with no further action of the commission. Should the electric distribution company 17 subsequently file a contract resulting from the RFP under subsection (c) of this section, or an 18 alternative filing under subsection (d) of this section, it shall provide testimony responding to the 19 public comments either indicating how it was incorporated into the final filing or was not germane 20 to the procurement. 21 (c)(d) Unless the electric distribution company determines that the bids are unlikely to lead 22 to contracts that comply with all of the requirements of this section and § 39-31-6, it shall select a 23 project or projects during each solicitation for negotiating a contract that shall be conditioned upon 24 approval by the commission. Negotiations shall proceed in good faith to achieve a commercially 25 reasonable contract that meets the standards set forth in this chapter. Should the distribution 26 company and the selected party agree to a contract, the contract shall be filed with the commission 27 no later than March 15, 2024 sixteen (16) months after issuance of the solicitation, for commission 28 approval. The commission shall review the contract and issue an order approving or disapproving 29 the contract within one hundred twenty (120) days of the filing. If the parties are unable to reach 30 agreement on a contract prior to March 15, 2024 sixteen (16) months after issuance of the 31 solicitation, an unsigned copy noting which items have mutual agreement and providing each 32 parties’ preferred terms that remain in dispute shall be filed with the commission by the electric 33 distribution company prior to that same date. The commission shall have the authority to evaluate 34 LC002230 - Page 4 of 6 the unsigned contract consistent with the terms of this chapter, rule on any outstanding terms in 1 dispute, and order the electric distribution company to execute the approved contract. In such case 2 of a disputed contract, the commission has the discretion to extend the deadline for approval as 3 needed to complete its review. 4 (d)(e) If the electric distribution company determines that the bids are unlikely to lead to 5 contracts that meet all of the requirements of this section and § 39-31-6, it shall submit a filing to 6 the commission together with testimony to explain why it should not be required to negotiate a 7 contract. The commission shall review and rule on the filing within ninety (90) days, which review 8 shall include soliciting input from the agencies required to provide advisory opinions to the 9 commission, and public comment. If the electric distribution company fails to show that the bids 10 are unlikely to lead to a contract that meets all the requirements of this section and § 39-31-6 the 11 commission may order the utility to proceed with negotiations as set forth in subsection (c) of this 12 section. 13 (e)(f) Long-term contracts shall require that developers of newly developed renewable 14 energy resources will enter into a labor peace agreement with at least one bona fide labor 15 organization either where such bona fide labor organization is actively representing employees 16 providing necessary construction, operations and maintenance services for the newly developed 17 renewable energy resource at the time of such agreement or upon notice by a bona fide labor 18 organization that is attempting to represent employees who will provide necessary operations and 19 maintenance services for the renewable energy system employed in the state. The maintenance of 20 such a labor peace agreement shall be an ongoing material condition of any continuation of 21 payments under the contract. 22 (f)(g) Developers of newly developed renewable energy resources shall pay each 23 construction, operations and maintenance employees wages and benefits that are not less than the 24 prevailing wage and fringe benefit rates at the journeyman level that are prescribed by the 25 department of labor and training pursuant to chapter 13 of title 37, for the corresponding 26 classification in which the employee is employed, and not less than the prevailing wage rates for 27 employees for which there is no classification prescribed by the department of labor and training; 28 provided that, a worker may be paid wages and benefits not less than the rate applicable to 29 apprentices for the pertinent classification if: 30 (1) The worker is a participant in an approved apprenticeship program; and 31 (2) The approved apprenticeship program from which the apprentice is hired maintains a 32 direct entry agreement with a certified pre-apprenticeship training program. 33 (g)(h) Solicitations by the electric distribution company shall reflect the requirements of 34 LC002230 - Page 5 of 6 this section. 1 SECTION 2. This act shall take effect upon passage. 2 ======== LC002230 ======== LC002230 - Page 6 of 6 EXPLANATION BY THE LEGISLATIVE COUNCIL OF A N A C T RELATING TO PUBLIC UTILITIES AND CARRIERS -- AFFORDABLE CLEAN ENERGY SECURITY ACT *** This act would mandate that the state and electric distribution companies develop proposals 1 and encourage off shore wind power development and give priority in those projects to providing 2 employment and business opportunities to workers from disadvantaged communities. 3 This act would take effect upon passage. 4 ======== LC002230 ========