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(a) The proceeds from the auction or sale of the allowances shall be used for the benefit of
energy consumers through investment in the most cost-effective available projects that can reduce
long-term consumer energy demands and costs. Such proceeds may be used only for the following
purposes, in a proportion to be determined annually by the office in consultation with the council
and the board:
(1) Promotion of cost-effective energy efficiency and conservation in order to achieve the
13 purposes of § 39-1-27.7;
(2) Promotion of cost-effective renewable non-carbon emitting energy technologies in
Rhode Island as defined in § 39-26-5 and to achieve the purposes of chapter 26 of title 39 entitled
“Renewable Energy Standard”;
(3) Cost-effective direct rate relief for consumers;
(4) Direct rate relief for low-income consumers;
(5) Reasonable compensation to an entity selected to administer the auction or sale;
(6) Reasonable costs of the department of environmental management and office of energy
resources in administering this program, as well as other climate change, energy efficiency, and
renewable program efforts of the department of environmental management and office of energy
resources, which shall not in any year exceed three hundred thousand dollars ($300,000) or ten
percent (10%) of the proceeds from sale or auction of the allowances, whichever is greater.
Administrative funds not expended in any fiscal year shall remain in the administrative account to
be used as needed in subsequent years. The office of energy resources shall have the ability to apply
administrative funds not used in a fiscal year to achieve the purpose of this section. The funds
deposited into the administrative funds account shall be exempt from the indirect cost recovery
provisions of § 35-4-27;
(7) For fiscal year 2023 only, the office of energy resources shall transfer three million
dollars ($3,000,000) from unallocated auction proceeds to the executive climate change
coordinating council restricted receipt account to maintain funding for the existing electric vehicle
and electric bicycle incentive programs and to support other projects; and
(8) Provided however, effective for fiscal year 2024 and thereafter, sale of allowances
yielding in excess of four million five hundred thousand dollars ($4,500,000) per auction shall be
transferred to the Rhode Island office of energy resources, on behalf of the executive climate change
coordinating council, for climate change related initiatives. The executive climate change
coordinating council shall have exclusive authority to direct the use of these funds pursuant to §
42-6.2-3.1. The office of energy resources may act on behalf of the executive climate change
coordinating council to disburse these funds. Provided further, that any transfer of allowances in a
single fiscal year, pursuant to this section shall not exceed one million five hundred thousand
dollars ($1,500,000).
(b) Any interest earned on the funds so generated must be credited to the fund. Funds not
spent in any fiscal year shall remain in the fund to be used for future energy efficiency and carbon
reduction programs.
(c) Annually, the office, in consultation with the council and board, shall prepare a draft
proposal on how the proceeds from the allowances shall be allocated. The draft proposal shall be
designed to augment and coordinate with existing energy efficiency and renewable energy
programs, and shall not propose use of auction proceeds for projects already funded under other
programs. The proposal for allocation of proceeds in subsections (a)(1), (2), and (3) shall be one
that best achieves the purposes of the law, namely, lowering carbon emissions and minimizing costs
to consumers over the long term. The office shall hold a public hearing and accept public comment
on the draft proposal in accordance with chapter 35 of title 42 (the “Administrative Procedures
Act”). Once the proposal is final, the office shall authorize the disbursement of funds in accordance
with the final plan.
Effective for fiscal year 2027 and thereafter, as part of the allocation process, the office is
hereby authorized and directed to consult annually and coordinate with the Rhode Island public
transit authority in determining the total funding required to match federal funds to purchase zero-
emission buses with zero tailpipe emissions. Of the agreed-upon amount, fifty percent (50%) shall
be allocated from the auction proceeds, and the remaining fifty percent (50%) shall be from
authority sources.
(d) The office shall prepare, in consultation with the council and board, a report by April
15 of each year describing the implementation and operation of RGGI, the revenues collected and
the expenditures, including funds that were allocated to the energy efficiency and renewable energy
programs, and the individuals, businesses, and vendors that received funding, made under this
section, the statewide energy efficiency and carbon reduction programs, and any recommendations
for changes to law relating to the state’s energy conservation or carbon reduction efforts. The report
shall be made public and be posted electronically on the website of the office of energy resources
and shall also be submitted to the general assembly.
SECTION 2. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"
is hereby amended to read as follows: