H 7917Energy Efficiency

State Affairs and Government - Executive Climate Change Coordinating Council - Mandatory Act on Climate Compliance in State Budgeting and Planning

State agencies must prove their budgets and construction projects align with climate goals to receive funding approval.

Held for study

Population
Affected

Introduced Feb 27, 2026Committee House Environment and Natural Resources

Plain-English Summary

This legislation requires all Rhode Island state departments and quasi-public agencies to align their budgets and construction plans with the state's official climate change strategy. Starting with the 2027 budget cycle, these agencies must calculate the greenhouse gas emissions for their proposed projects and prove that their spending plans help meet the state's emission reduction targets. If an agency fails to provide this environmental assessment or if their plan conflicts with climate goals, the Office of Management and Budget has the authority to reject their budget requests or stop capital projects from moving forward.

For younger readers

Rhode Island has a plan to keep the air clean and stop the earth from getting too hot. This new rule says that the government groups that spend money on big projects, like building new offices, have to follow that plan. Before they can spend money, they have to check if their project will make the air dirty or clean. If it makes the air dirty, they might not get the money to build it. This law makes sure the government uses its money to help fix the planet instead of hurting it.

Who & Where It Applies

Impacted groups

State AgenciesQuasi-Public AgenciesConstruction ContractorsEnvironmental ConsultantsTaxpayers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Ensures that taxpayer money is used to advance environmental sustainability by legally preventing state funds from subsidizing projects that worsen the climate crisis.
Creates a strong enforcement mechanism that holds government agencies and quasi-public corporations accountable for their carbon footprint, moving beyond voluntary promises to mandatory compliance.
Increases transparency in government by requiring that emissions impact assessments be published online, allowing the community to see the environmental true cost of state projects.
Could create bureaucratic delays for urgent social infrastructure projects, such as affordable housing, due to the time and resources needed to conduct complex emissions assessments.
May divert limited agency funds away from direct services for the poor and disadvantaged to pay for technical consultants and administrative compliance.
The "limited exception process" could potentially be exploited by politically connected agencies to bypass environmental standards, undermining the bill's intent.

For Conservatives

Increases oversight and accountability for quasi-public agencies, which often operate with less scrutiny than standard state departments.
Promotes fiscal discipline by forcing agencies to engage in long-term planning and evaluate the future viability of capital investments before spending money.
Enhances transparency by requiring agencies to publicly document the rationale and impact of their capital projects and budget requests.
Expands government bureaucracy by adding significant red tape to the budgeting process, likely increasing administrative costs borne by taxpayers.
Centralizes power in unelected administrative bodies like the Executive Climate Change Coordinating Council, giving them authority to block funding for essential infrastructure.
Could stifle economic development and construction by imposing strict environmental mandates that make necessary capital projects too expensive or difficult to approve.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 68 additions

SECTION 1. Legislative findings and purpose.

(a) The General Assembly finds that:

(1) The act on climate, chapter 42-6.2 of the general laws, establishes legally binding greenhouse gas emissions reduction targets for the State of Rhode Island.

(2) The executive climate change coordinating council (EC4), pursuant to the act on climate, finalized the act on climate strategy report in December 2025, identifying sector-specific actions necessary to meet those statutory targets.

(3) Failure to integrate the act on climate strategy report into state budgeting and planning undermines compliance with state law and jeopardizes achievement of mandated emissions reductions.

(b) It is therefore the purpose of this act to require mandatory, enforceable integration of the act on climate strategy report into state and quasi-public agency budgeting, capital planning, and policy development, supported by quantified emissions impact analysis and enforceable review standards.

SECTION 2. Chapter 42-6.2 of the General Laws entitled "2021 Act on Climate" is hereby amended by adding thereto the following section: 42-6.2-8.1. Mandatory act on climate compliance in budgeting, planning, and capital investment.

(a) Applicability. This section shall apply to:

(1) All state administrative departments, agencies, boards, offices, councils, and commissions; and

(2) All quasi-public agencies, public corporations, and authorities that:

(i) Receive state appropriations;

(ii) Submit capital plans or capital budget requests; or

(iii) Issue debt or bonds subject to state approval or backing.

(b) Mandatory integration into budgets and plans. Beginning with the fiscal year 2027 budget cycle, and for each fiscal year thereafter, each entity subject to this section shall integrate and implement the applicable recommendations contained in the act on climate strategy report finalized by the EC4 in December 2025, as amended or updated pursuant to law, in:

(1) Annual operating budget requests;

(2) Capital budget submissions and capital improvement plans;

(3) Strategic plans, performance plans, and policy planning documents; and

(4) Any additional planning or investment documents required by the executive office of administration or the office of management and budget.

(1) Each submission under subsection (b) of this section shall include a quantified emissions impact assessment that:

(i) Estimates the anticipated greenhouse gas emissions impact of the proposed budget, program, or capital project using methodologies approved by the EC4 and the office of energy resources;

(ii) Identifies whether the proposal:

(A) Reduces greenhouse gas emissions;

(B) Is emissions-neutral; or

(iii) Demonstrates consistency with the emissions reduction targets established under § 42- 6.2-2; and

(iv) Identifies mitigation measures required to offset any projected emissions increases.

(2) Narrative descriptions alone shall not satisfy the requirements of this section.

(d) Act on climate certification — condition of submission. No budget request, capital project, or planning document subject to this section shall be deemed complete unless it includes an act on climate compliance certification, signed by the agency head or chief executive officer, affirming that:

(1) The submission is consistent with the act on climate strategy report;

(2) The quantified emissions impact assessment is accurate to the best of the signer’s knowledge; and

(3) The submission advances, and does not materially impede, achievement of the state’s statutory emissions reduction targets.

(e) Enforcement -- budget and capital gatekeeping authority.

(1) The office of management and budget, in consultation with the executive office of administration and the EC4, shall reject or return any budget or capital submission that fails to comply with this section.

(2) No capital project subject to this section shall advance to authorization, bonding, or appropriation without a determination of compliance.

(3) For quasi-public agencies, failure to comply with this section may result in:

(i) Denial or reduction of state appropriations;

(ii) Suspension or denial of bond approval; or

(iii) Deferral of capital project authorization.

(f) Limited exception process. An entity may request a temporary exception from specific recommendations of the act on climate strategy report only if it:

(1) Demonstrates that compliance is infeasible due to legal, safety, or emergency conditions;

(2) Identifies alternative actions that achieve equivalent or greater emissions reductions; and

(3) Receives written approval from the EC4 and the executive office of administration. Exceptions shall be narrowly construed and time limited.

(g) Public reporting and legislative oversight.

(1) All act on climate compliance certifications and quantified emissions impact assessments shall be posted on the submitting entity’s public website.

(2) The EC4 shall compile an annual compliance report and submit it to the speaker of the house, the president of the senate, and the governor no later than July 1 of each year.

(3) The house committee on environment and natural resources and the house committee on finance may jointly request testimony from any non-compliant entity.

(h) Severability. If any provision of this section or the application thereof is held invalid, such invalidity shall not affect the remaining provisions.

SECTION 3. This act shall take effect upon passage.