SECTION 1. Section 39-2-1.2 of the General Laws in Chapter 39-2 entitled "Duties of Utilities and Carriers" is hereby amended to read as follows: 39-2-1.2. Utility base rate — Advertising, demand-side management, and renewables.
(a) In addition to costs prohibited in § 39-1-27.4(b), no public utility distributing or providing heat, electricity, or water to or for the public shall include as part of its base rate any expenses for advertising, either direct or indirect, that promotes the use of its product or service, or is designed to promote the public image of the industry. No public utility may furnish support of any kind, direct or indirect, to any subsidiary, group, association, or individual for advertising and include the expense as part of its base rate. Nothing contained in this section shall be deemed as prohibiting the inclusion in the base rate of expenses incurred for advertising, informational or educational in nature, that is designed to promote public safety conservation of the public utility’s product or service. The public utilities commission shall promulgate such rules and regulations as are necessary to require public disclosure of all advertising expenses of any kind, direct or indirect, and to otherwise effectuate the provisions of this section.
(b) Effective as of January 1, 2008, and for a period of twenty (20) years thereafter, each electric distribution company shall include a charge per kilowatt-hour delivered to fund demand- side management programs. The 0.3 mills per kilowatt-hour delivered to fund renewable energy programs shall remain in effect until December 31, 2028. The electric distribution company shall establish and, after July 1, 2007, maintain, two (2) separate accounts, one for demand-side management programs (the “demand-side account”), which shall be funded by the electric demand- side charge and administered and implemented by the distribution company, subject to the regulatory reviewing authority of the commission, and one for renewable energy programs, which shall be administered by the Rhode Island commerce corporation pursuant to § 42-64-13.2 and shall be held and disbursed by the distribution company as directed by the Rhode Island commerce corporation for the purposes of developing, promoting, and supporting renewable energy programs. During the time periods established in this subsection, the commission may, in its discretion, after notice and public hearing, increase the sums for demand-side management and renewable resources. In addition, the commission shall, after notice and public hearing, determine the appropriate charge for these programs. The office of energy resources, and/or the administrator of the renewable energy programs, may seek to secure for the state an equitable and reasonable portion of renewable energy credits or certificates created by private projects funded through those programs. As used in this section, “renewable energy resources” shall mean: (1) Power generation technologies, as defined in § 39-26-5, “eligible renewable energy resources,” including off-grid and on-grid generating technologies located in Rhode Island, as a priority; (2) Research and development activities in Rhode Island pertaining to eligible renewable energy resources and to other renewable energy technologies for electrical generation; or (3) Projects and activities directly related to implementing eligible renewable energy resources projects in Rhode Island. Technologies for converting solar energy for space heating or generating domestic hot water may also be funded through the renewable energy programs. Fuel cells may be considered an energy efficiency technology to be included in demand-side management programs. Special rates for low- income customers in effect as of August 7, 1996, shall be continued, and the costs of all of these discounts shall be included in the distribution rates charged to all other customers. Nothing in this section shall be construed as prohibiting an electric distribution company from offering any special rates or programs for low-income customers which are not in effect as of August 7, 1996, subject to the approval by the commission.
(1) The renewable energy investment programs shall be administered pursuant to rules established by the Rhode Island commerce corporation. Said rules shall provide transparent criteria to rank qualified renewable energy projects, giving consideration to:
(i) The feasibility of project completion;
(ii) The anticipated amount of renewable energy the project will produce;
(iii) The potential of the project to mitigate energy costs over the life of the project; and
(iv) The estimated cost per kilowatt-hour (KWh) of the energy produced from the project.
(c) [Deleted by P.L. 2012, ch. 241, art. 4, § 14.]
(d) The chief executive officer of the commerce corporation is authorized and may enter into a contract with a contractor for the cost-effective administration of the renewable energy programs funded by this section. A competitive bid and contract award for administration of the renewable energy programs may occur every three (3) years and shall include, as a condition, that after July 1, 2008, the account for the renewable energy programs shall be maintained and administered by the commerce corporation as provided for in subsection (b) of this section.
(e) Effective January 1, 2007, and for a period of twenty-one (21) years thereafter, each gas distribution company shall include, with the approval of the commission, a charge per deca therm delivered to fund demand-side management programs (the “gas demand-side charge”), including, but not limited to, programs for cost-effective energy efficiency, energy conservation, combined heat and power systems, and weatherization services for low-income households.
(f) Each gas company shall establish a separate account for demand-side management programs (the “gas demand-side account”) that shall be funded by the gas demand-side charge and administered and implemented by the distribution company, subject to the regulatory reviewing authority of the commission. The commission may establish administrative mechanisms and procedures that are similar to those for electric demand-side management programs administered under the jurisdiction of the commission and that are designed to achieve cost-effectiveness and high, life-time savings of efficiency measures supported by the program.
(g) The commission may, if reasonable and feasible, except from this demand-side management charge:
(1) Gas used for distribution generation; and
(2) Gas used for the manufacturing processes, where the customer has established a self- directed program to invest in and achieve best-effective energy efficiency in accordance with a plan approved by the commission and subject to periodic review and approval by the commission, which plan shall require annual reporting of the amount invested and the return on investments in terms of gas savings.
(h) The commission may provide for the coordinated and/or integrated administration of electric and gas demand-side management programs in order to enhance the effectiveness of the programs. Such coordinated and/or integrated administration may after March 1, 2009, upon the recommendation of the office of energy resources, be through one or more third-party entities designated by the commission pursuant to a competitive selection process.
(i) Effective January 1, 2007, the commission shall allocate, from demand-side management gas and electric funds authorized pursuant to this section, an amount not to exceed three percent (3%) of such funds on an annual basis for the retention of expert consultants, and reasonable administration costs of the energy efficiency and resource management council associated with planning, management, and evaluation of energy-efficiency programs, renewable energy programs, system reliability, least-cost procurement, and with regulatory proceedings, contested cases, and other actions pertaining to the purposes, powers, and duties of the council, which allocation may by mutual agreement, be used in coordination with the office of energy resources to support such activities.
(j) Effective January 1, 2016, the commission shall annually allocate from the administrative funding amount allocated in subsection (i) from the demand-side management program as described in subsection (i) as follows: (1) for the energy efficiency and resource management council, no more than forty percent (40%) for the purposes identified in subsection (i) and (2) sixty percent (60%) of three percent (3%) from the demand-side management gas and electric funds annually to the office of energy resources for activities associated with planning, management, and evaluation of energy-efficiency programs, renewable energy programs, system reliability, least-cost procurement, and with regulatory proceedings, contested cases, and other actions pertaining to the purposes, powers, and duties of the office of energy resources and shall have exclusive authority to direct the use of the office administrative and programmatic funds.
(k) On April 15, of each year, the office and the council shall submit to the governor, the president of the senate, and the speaker of the house of representatives, separate financial and performance reports regarding the demand-side management programs, including the specific level of funds that were contributed by the residential, municipal, and commercial and industrial sectors to the overall programs; the businesses, vendors, and institutions that received funding from demand-side management gas and electric funds used for the purposes in this section; and the businesses, vendors, and institutions that received the administrative funds for the purposes in subsections (i) and (j). These reports shall be posted electronically on the websites of the office of energy resources and the energy efficiency and resources management council.
(l) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each electric distribution company, except for the Pascoag Utility District and Block Island Power Company, shall remit two percent (2%) of the amount of the 2014 electric demand-side charge collections to the Rhode Island infrastructure bank.
(m) On or after August 1, 2015, at the request of the Rhode Island infrastructure bank, each gas distribution company shall remit two percent (2%) of the amount of the 2014 gas demand-side charge collections to the Rhode Island infrastructure bank.
(n) Effective January 1, 2022, the commission shall allocate, from demand-side management gas and electric funds authorized pursuant to this section, five million dollars ($5,000,000) of such funds on an annual basis to the Rhode Island infrastructure bank. Gas and electric demand-side funds transferred to the Rhode Island infrastructure bank pursuant to this section shall be eligible to be used in any energy efficiency, renewable energy, clean transportation, clean heating, energy storage, or demand-side management project financing program administered by the Rhode Island infrastructure bank notwithstanding any other restrictions on the use of such collections set forth in this chapter. The infrastructure bank shall report annually to the commission within ninety (90) days of the end of each calendar year how collections transferred under this section were utilized.
(o) The Rhode Island office of energy resources, in coordination with the energy efficiency and resource management council, and following consultation with the public utilities commission and division of public utilities and carriers, shall issue a request for proposals for the cost-effective administration and implementation of statewide energy efficiency programs funded by this section no later than September 30, 2023. The draft request for proposals shall be reviewed through at least one technical session at the public utilities commission prior to issuance. Public utilities commission approval shall not be required. The Rhode Island office of energy resources, in coordination with the energy efficiency and resource management council, shall evaluate proposals and determine whether energy efficiency administration and implementation by the electric and gas distribution company or a third party is likely to achieve the most net benefits for electric and gas customers in Rhode Island. After January 1, 2025, the office of energy resources may, periodically, and at its discretion, issue additional requests for proposals for the administration and implementation of statewide energy efficiency programs funded through this chapter of an electric distribution company as defined in § 39-1-2(a)(12) or gas distribution company included as a public utility in § 39-1-2(a)(20) that has greater than one hundred thousand (100,000) customers.
(1) Nothing in this chapter shall prohibit the electric and/or gas distribution company from submitting a proposal to administer and implement the state energy efficiency programs.
(2) If the office of energy resources, in coordination with the energy efficiency and resource management council, determines that the use of a third-party administrator is likely to achieve the most net benefits for electric and gas customers in Rhode Island, it shall file its recommendation with the public utilities commission, which shall docket and rule on the matter pursuant to its general statutory authorization.
(3) If the commission determines that the recommended third-party administrator is in the interest of Rhode Island utility customers, it shall provide for the full cost recovery for the third- party administrator consistent with the terms of the approved contract, and which shall reflect the overall annual budget approved by the commission. The third-party administrator shall be subject to all the requirements set forth for the electric and gas distribution company per § 39-1-27.7.
(4) If the commission determines that a third-party administrator will administer the state energy efficiency programs on or after June 1, 2024, the commission shall direct the gas and electric distribution company to collect and transfer the gas and electric energy efficiency funds to the third- party administrator for the annual state energy efficiency program beginning with the program year and thereafter for the remaining program years. The gas and electric distribution company shall transfer the annual administrative funds to the office of energy resources and energy efficiency and resource management council.
(5) If a third-party administrator implements the annual energy efficiency programs then they shall be required to develop and design the annual state energy efficiency program with the office of energy resources and energy efficiency and resource management council, including a vote by the energy efficiency and resource management council prior to the third-party administrator filing the annual program plan to the public utilities commission for review and a decision.
(6) The third-party administrator shall file the annual state energy efficiency program plan to the public utilities commission for review and approval no later than September 30, 2024, and annually thereafter on such date.
(7) The third-party administrator shall provide all information requested by the office of energy resources, energy efficiency and resource management council, division of public utilities and carriers, and the public utilities commission, including responses to data requests, which are necessary for the agencies to carry out their respective oversight roles, and shall be accountable to the same standards as the utility with administering and implementing energy efficiency, system reliability, and least-cost procurement standards and goals in accordance with § 39-1-27.7 and this section.
(8) If the office does not recommend advancement of a third-party administrator, the electric and gas distribution company shall continue to administer statewide energy efficiency programs.
(p) Notwithstanding any other provisions of the general laws to the contrary including, but not limited to, the provisions of this section and chapters 26.4 and 26.6 of title 39, no green energy surcharge shall be accessed or collected with respect to any electric energy billing or usage for the period from July 1, 2026, until June 30, 2031 including, but not limited to, the RE growth program charge, the renewable energy distribution charge, and energy efficiency programs.
SECTION 2. Section 39-26.4-3 of the General Laws in Chapter 39-26.4 entitled "Net Metering" is hereby amended to read as follows: 39-26.4-3. Net metering.
(a) The following policies regarding net metering of electricity from eligible net-metering systems and community remote net-metering systems and regarding any person that is a renewable self-generator shall apply: (1)(i) The maximum allowable capacity for eligible net-metering systems, based on nameplate capacity, shall be ten megawatts (10 MW).
(ii) Eligible net-metering systems shall be sited outside of core forests with the exception of development on preferred sites in the core forest and the exception of systems that, as of April 15, 2023, (A) Have submitted a complete application to the appropriate municipality for any required permits and/or zoning changes, or (B) Have requested an interconnection study for which payment has been received by the distribution company, or (C) If an interconnection study is not required, systems that have a completed and paid interconnection application.
(iii) For systems developed in core forests on preferred sites, no more than one hundred thousand square feet (100,000 sq. ft) of core forest shall be removed, except for work required for utility interconnection or development of a brownfield, in which case no more core forest than necessary for interconnection or brownfield development shall be removed.
(iv) The aggregate amount of net metering in the Block Island Utility District doing business as Block Island Power Company and the Pascoag Utility District shall not exceed a maximum percentage of peak load for each utility district as set by the utility district based on its operational characteristics, subject to commission approval.
(v) Through December 31, 2018, the maximum aggregate amount of community remote net-metering systems built shall be thirty megawatts (30 MW). Any of the unused MW amount after December 31, 2018, shall remain available to community remote net-metering systems until the MW aggregate amount is interconnected.
(vi) The maximum aggregate capacity of remote net metering allowable for ground- mounted eligible net-metering systems, as defined by § 39-26.4-2(6), with the exception of systems that have, as of April 15, 2023, submitted a complete application to the appropriate municipality for any required permits and/or zoning changes or have requested an interconnection study for which payment has been received by the distribution company, or if an interconnection study is not required, a completed and paid interconnection application by the distribution company as of June 24, 2023, shall be two hundred seventy-five megawatts, alternating current (275 MWac), excluding off-shore wind. None of the systems to which this cap applies shall be in core forests unless on a preferred site located within the core forest. A project counts against this maximum if it is in operation or under construction by July 1, 2030, as determined by the local distribution company. All eligible ground-mounted net-metering systems must be under construction or in operation by July 1, 2030. This restriction shall not apply to the following: (A) The eligible net-metering system is interconnected behind the same meter as the net-metering customer’s load; and/or (B) The energy generated by the eligible net-metering system is consumed by net-metered electric service account(s) of the same owner of record that are actually located on the same or contiguous parcels as the eligible net-metering system.
(2) For ease of administering net-metered accounts and stabilizing net-metered account bills, the electric distribution company may elect (but is not required) to estimate for any twelve- month (12) period:
(i) The production from the eligible net-metering system or community remote net- metering system; and
(ii) Aggregate consumption of the net-metered accounts at the eligible net-metering system site or the sum of the consumption of the eligible credit-recipient accounts associated with the community remote net-metering system, and establish a monthly billing plan that reflects the expected credits that would be applied to the net-metered accounts over twelve (12) months. The billing plan would be designed to even out monthly billings over twelve (12) months, regardless of actual production and usage. If such election is made by the electric distribution company, the electric distribution company would reconcile payments and credits under the billing plan to actual production and consumption at the end of the twelve-month (12) period and apply any credits or charges to the net-metered accounts for any positive or negative difference, as applicable. Should there be a material change in circumstances at the eligible net-metering system site or associated accounts during the twelve-month (12) period, the estimates and credits may be adjusted by the electric distribution company during the reconciliation period. The electric distribution company also may elect (but is not required) to issue checks to any net-metering customer in lieu of billing credits or carry-forward credits or charges to the next billing period. For residential-eligible net- metering systems and community remote net-metering systems twenty-five kilowatts (25 KW) or smaller, the electric distribution company, at its option, may administer renewable net-metering credits month to month allowing unused credits to carry forward into the following billing period.
(3) If the electricity generated by an eligible net-metering system or community remote net-metering system during a billing period is equal to, or less than, the net-metering customer’s usage at the eligible net-metering system site or the sum of the usage of the eligible credit-recipient accounts associated with the community remote net-metering system during the billing period, the customer shall receive renewable net-metering credits, that shall be applied to offset the net- metering customer’s usage on accounts at the eligible net-metering system site, or shall be used to credit the eligible credit-recipient’s electric account.
(4) If the electricity generated by an eligible net-metering system or community remote net-metering system during a billing period is greater than the net-metering customer’s usage on accounts at the eligible net-metering system site or the sum of the usage of the eligible credit- recipient accounts associated with the community remote net-metering system during the billing period, the customer shall be paid by excess renewable net-metering credits for the excess electricity generated; provided that, for any excess electricity generated by a system with a nameplate capacity in excess of twenty-five kilowatts (25 KW), excess renewable net-metering credits shall be limited to excess up to an additional twenty-five percent (25%) beyond the net- metering customer’s usage at the eligible net-metering system site, or the sum of the usage of the eligible credit-recipient accounts associated with the community remote net-metering system during the billing period; unless the electric distribution company and net-metering customer have agreed to a billing plan pursuant to subsection (a)(2). Subject to the completion of any applicable annual reconciliation of renewable net-metering credits and excess renewable net metering credits, customers shall have the option to cash out any credit balance remaining provided that the amount of the cash out shall be the lower of:
(i) The credit balance shown from the annual reconciliation of the applicable account; or
(ii) The credit balance on the applicable account on the date the electric distribution company processes the cash out.
(5) The rates applicable to any net-metered account shall be the same as those that apply to the rate classification that would be applicable to such account in the absence of net metering, including customer and demand charges, and no other charges may be imposed to offset net- metering credits.
(b) The commission shall exempt electric distribution company customer accounts associated with an eligible net-metering system from back-up or standby rates commensurate with the size of the eligible net-metering system, provided that any revenue shortfall caused by any such exemption shall be fully recovered by the electric distribution company through rates. (c)(1) Any prudent and reasonable costs incurred by the electric distribution company pursuant to achieving compliance with subsection (a) and the annual amount of any renewable net- metering credits or excess renewable net-metering credits provided to accounts associated with eligible net-metering systems or community remote net-metering systems, shall be aggregated by the distribution company and billed to all distribution customers on an annual basis through a uniform, per-kilowatt-hour (KWh) surcharge embedded in the distribution component of the rates reflected on customer bills.
(2) Notwithstanding the provisions of subsection (c)(1) of this section, there shall be a moratorium on the uniform, per-kilowatt-hour (KWh) surcharge from July 1, 2026, until June 30, 2031.
(d) The billing process set out in this section shall be applicable to electric distribution companies thirty (30) days after the enactment of this chapter.
(e) The Rhode Island office of energy resources shall redesign the community solar remote net metering program to reflect the provisions of this chapter and to include a commercial or industrial anchor tenant up to but not to exceed fifty percent (50%) of the project. The remaining fifty percent (50%) must be allocated or subscribed to low- and moderate-income (LMI) residents and/or those living in areas defined as disadvantaged and environmental justice communities. The Rhode Island office of energy resources shall design the net metering credit rate and factor in federal energy funding and tax credits to develop the most cost-effective rate for community solar projects. It is expected that these projects will be operational for a twenty-year (20) period. The Rhode Island office of energy resources shall file a benefit and cost analysis with any program proposal filed to the Rhode Island public utilities commission. Once the Rhode Island office of energy resources files a program proposal to the Rhode Island public utilities commission, a docket shall be established, and the Rhode Island public utilities commission shall issue a ruling on the program no later than one hundred and fifty (150) days. If a program is approved, it will be subject to no greater than twenty megawatts (20 MW) per year for two years until the forty megawatts (40 MW) cap is met. Eligible net-metering systems shall be sited outside of core forests with the exception of development on preferred sites in the core forest.
SECTION 3. Section 39-26.6-6 of the General Laws in Chapter 39-26.6 entitled "The Renewable Energy Growth Program" is hereby amended to read as follows: 39-26.6-6. Permanence of tariff terms once set Tariff terms -- Moratorium.
(a) It is the intention of the general assembly in enacting this chapter that the developers, owners, investors, customers, and lenders of the distributed-generation projects receiving performance-based incentives under the tariffs be able to rely on the tariffs for the entire term of the applicable tariff for purposes of obtaining financing. Consistent with that intention and expectation, the terms under the tariffs for a given program year, once approved by the commission, shall not be altered in any way that would undermine such reliance on those tariffs during the applicable terms of the tariffs; and in no circumstance will the performance-based incentive rate paid to a renewable energy project developer or owner be reduced during the term of the tariff once a renewable energy project has qualified to receive a tariff under the terms of this chapter.
(b) Notwithstanding the provisions of subsection (a) of this section and any general law to the contrary, there shall be a moratorium on the tariffs subject to the provisions of subsection (a) of this section from July 1, 2026, until June 30, 2031.
SECTION 4. This act shall take effect upon passage.
