39-26-6. Duties of the commission.

(i) Verifying the eligibility of renewable energy and zero-emission generators and the

production of energy from such generators, including requirements to notify the commission in the

event of a change in a generator’s eligibility status;

(ii) Standards for contracts and procurement plans for renewable energy and zero-emission

resources to achieve the purposes of this chapter;

(iii) Flexibility mechanisms for the purposes of easing compliance burdens; facilitating

bringing new renewable resources on-line; and avoiding and/or mitigating conflicts with state-level

source disclosure requirements and green marketing claims throughout the region; which flexibility

mechanisms shall allow obligated entities to: (A) Demonstrate compliance over a compliance year;

and (B) Bank excess compliance for new and existing renewable and zero-emissions resources for

two (2) subsequent compliance years, capped at thirty percent (30%) of the current year’s obligation

up to three (3) subsequent compliance years with no limitation on quantity ; and

(iv) Annual compliance filings to be made by all obligated entities within one month after

NE-GIS reports are available for the fourth (4th) quarter of each calendar year. All electric-utility-

distribution companies shall cooperate with the commission in providing data necessary to assess

the magnitude of obligation and verify the compliance of all obligated entities.

(2) Authorize rate recovery by electric-utility-distribution companies of all prudent

incremental costs arising from the implementation of this chapter, including, without limitation:

the purchase of NE-GIS certificates including certificates from zero-emission resources ; the

payment of alternative compliance payments; required payments to support the NE-GIS;

assessments made pursuant to § 39-26-7(c); and the incremental costs of complying with energy

source disclosure requirements.

(3) Certify eligible renewable energy and zero-emission resources by issuing statements of

qualification within ninety (90) days of application. The commission shall provide prospective

reviews for applicants seeking to determine whether a facility would be eligible.

12 (4) [Deleted by P.L. 2022, ch. 218, § 1 and P.L. 2022, ch. 226, § 1.]

(5) Establish sanctions for those obligated entities that, after investigation, have been found

to fail to reasonably comply with the commission’s regulations. No sanction or penalty shall relieve

or diminish an obligated entity from liability for fulfilling any shortfall in its compliance obligation;

provided, however, that no sanction shall be imposed if compliance is achieved through alternative

compliance payments. The commission may suspend or revoke the certification of generation units,

certified in accordance with subsection (a)(3) of this section, that are found to provide false

information or that fail to notify the commission in the event of a change in eligibility status or

otherwise comply with its rules. Financial penalties resulting from sanctions from obligated entities

shall not be recoverable in rates.

(6) Report, by February 15, 2006, and by February 15 each year thereafter, to the governor,

the speaker of the house, and the president of the senate on the status of the implementation of the

renewable energy standards in Rhode Island and other states, and which report shall include in

2009, and each year thereafter, the level of use of renewable energy certificates by eligible

renewable energy and zero-emission resources and the portion of renewable energy standards met

through alternative compliance payments, and the amount of rate increases authorized pursuant to

subsection (a)(2) of this section.

(b) Consistent with the public policy objective of developing renewable generation as an

option in Rhode Island, and subject to the review and approval of the commission, the electric

distribution company is authorized to propose and implement pilot programs to own and operate

no more than fifteen megawatts (15 MW) of renewable-generation demonstration projects in Rhode

Island and may include the costs and benefits in rates to distribution customers. At least two (2)

demonstration projects shall include renewable generation installed at, or in the vicinity of

nonprofit, affordable-housing projects where energy savings benefits are provided to reduce

electric bills of the customers at the nonprofit, affordable-housing projects. Any renewable-

generation proposals shall be subject to the review and approval of the commission. The

commission shall annually make an adjustment to the minimum amounts required under the

renewable energy standard under this chapter in an amount equal to the kilowatt hours generated

by such units owned by the electric distribution company. The electric and gas distribution

company shall also be authorized to propose and implement smart-metering and smart-grid

demonstration projects in Rhode Island, subject to the review and approval of the commission, in

order to determine the effectiveness of such new technologies for reducing and managing energy

consumption, and may include the costs of such demonstration projects in distribution rates to

electric customers to the extent the project pertains to electricity usage and in distribution rates to

gas customers to the extent the project pertains to gas usage.

SECTION 8. Chapter 39-26 of the General Laws entitled "Renewable Energy Standard" is

hereby amended by adding thereto the following section: