Last Update: July 3 @ 11:40 PM
Public Policy
House vote set on 3rd renewable-energy measure

By PBN Staff

PROVIDENCE – A package of legislation intended to encourage renewable-energy projects in Rhode Island moved closer to reality with the passage of all four bills by the Senate. The House, which had previously approved one of the measures, yesterday approved a second and is expected to vote on a third today.

“Today we took an important step toward encouraging the development of both large and small scale renewable-energy projects in Rhode Island,” House Majority Leader Gordon D. Fox, D-Providence, said in a statement after yesterday’s votes. “Not only will this help preserve one of our state’s greatest resources – our environment – it will make our state more attractive for new green economy jobs.”

The measures have gained broad support among General Assembly leaders, as well as local environmental groups.

The Senate versions all were sponsored by Senate President Joseph A. Montalbano, D-North Providence, Lincoln and Pawtucket, while the House bill slated for a vote today was sponsored by Fox. That measure aims to encourage private financing of large-scale renewable-energy projects by enabling National Grid to enter into long-term contracts for their output.

Once the measures have been approved, the House and Senate versions still must be reconciled. The four bills would:

• Coordinate the state’s policies, priorities and investments, to encourage the development of renewable energy. The Renewable Energy Investment Coordination Act ( 2008 S 2852aa), approved yesterday by the Senate. A similar bill, introduced by Rep. Amy G. Rice, D-Portsmouth, Middletown and Newport, (2008 H7806) already has been approved by the House.

• Require net metering, in which utilities offset the fees they charge to small energy producers by the amount of energy they produce. Both chambers’ versions ( 2008 S 2851A; and 2008 H 7809Aa , sponsored by Rep. David A. Segal, D-Providence and East Providence) were approved yesterday.

• Require that existing state buildings purchase a percentage of their energy from renewable sources. ( 2008 S 2850aa, sponsored by Montalbano)

• Promote private financing of large renewable-energy projects by establishing a process under which National Grid would make long-term commitments to purchase their energy output. ( 2008 S 2849Aaa, sponsored by Montalbano; and 2008 H 7916Aaa, sponsored by Fox).

Lawmakers said the process would work like this: National Grid would develop, with PUC approval, a process to seek proposals to purchase electricity for 5 percent of its load from renewable projects, for terms of at least 10 years. National Grid, with PUC approval, would select the proposed projects most feasible, credible and in the state’s interest. Entrepreneurial developers build the projects, using private investment, and sell the output to National Grid. National Grid resells the output on the market, with the net proceeds going to customers. As compensation for its obligation, National Grid would receive certain financial incentives.

Opponents have charged that the measure would increase local electric rates. But Montalbano yesterday countered that, “in this volatile era of energy prices, stabilizing the market will benefit consumers – and actively, aggressively facilitating the development and use of renewable energy will benefit the planet.”

“The bills we passed in the Senate today, along with the legislation coming over from the House, actively encourage the development of renewable energy in Rhode Island,” the Senate president said in a statement. “They will give us the triple benefit of cleaner air, stable utility prices and the surge in economic development associated with producing and using more renewable energy in our state.”

Additional news and information from the R.I. General Assembly is available at www.rilin.state.ri.us/News/.

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