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H8519
2026 -- H 8519
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LC006419
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY
STANDARD
Introduced By:
Representatives Carson, and Shekarchi
Date Introduced:
May 06, 2026
Referred To:
House Corporations
It is enacted by the General Assembly as follows:
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SECTION 1. Sections 39-26-1, 39-26-2, 39-26-4 and 39-26-6 of the General Laws in
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Chapter 39-26 entitled "Renewable Energy Standard" are hereby amended to read as follows:
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39-26-1. Legislative findings.
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The General Assembly finds that:
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(1) The people and energy users of Rhode Island have an interest in having electricity
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supplied in the state come from a diversity of energy sources including renewable
and other zero-
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emission
resources;
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(2) Increased use of renewable energy
and other zero-emission resources
may have the
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potential to lower and stabilize future energy costs;
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(3) Increased use of renewable energy
and other zero-emission resources
can reduce air
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pollutants, including carbon dioxide emissions, that adversely affect public health and contribute
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to global warming;
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(4) Massachusetts, Connecticut, and other states have established renewable energy
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standard programs to encourage the development of renewable energy sources;
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(5) It is in the interest of the people, in order to protect public health and the environment
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and to promote the general welfare, to establish a renewable energy standard program to increase
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levels of electrical energy supplied in the state from renewable
and other zero-emission
resources.
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39-26-2. Definitions.
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(a)
When used in this chapter:
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(1) “Alternative compliance payment” means a payment to the renewable energy
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development fund of fifty dollars ($50.00) per megawatt-hour of renewable energy obligation
, in
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2003 dollars, adjusted annually up or down by the consumer price index,
which may be made in
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lieu of standard means of compliance with this statute.
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(2) “Commission” means the Rhode Island public utilities commission.
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(3) “Compliance year” means a calendar year beginning January 1 and ending December
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31, for which an obligated entity must demonstrate that it has met the requirements of this statute.
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(4) “Customer-sited generation facility” means a generation unit that is interconnected on
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the end-use customer’s side of the retail electricity meter in such a manner that it displaces all or
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part of the metered consumption of the end-use customer.
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(5) “Electrical energy product” means an electrical energy offering, including, but not
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limited to, last-resort and standard-offer service, that can be distinguished by its generation
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attributes or other characteristics, and that is offered for sale by an obligated entity to end-use
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customers.
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(6) “Eligible biomass fuel” means fuel sources including brush, stumps, lumber ends and
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trimmings, wood pallets, bark, wood chips, shavings, slash, and other clean wood that is not mixed
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with other solid wastes; agricultural waste, food, and vegetative material; energy crops; landfill
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methane; biogas; or neat biodiesel and other neat liquid fuels that are derived from such fuel
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sources.
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(7) “Eligible renewable energy resource” means resources as defined in § 39-26-5.
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(8) “End-use customer” means a person or entity in Rhode Island that purchases electrical
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energy at retail from an obligated entity.
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(9) “Existing renewable energy resources” means generation units using eligible renewable
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energy resources and first going into commercial operation before December 31, 1997.
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(10) “Generation attributes” means the nonprice characteristics of the electrical energy
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output of a generation unit including, but not limited to, the unit’s fuel type, emissions, vintage,
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and policy eligibility.
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(11) “Generation unit” means a facility that converts a fuel or an energy resource into
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electrical energy.
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(12) “High-heat medical waste processing facility” means a facility that:
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(i) Generates electricity from the combustion, gasification, or pyrolysis of regulated
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medical waste;
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(ii) Generates electricity from the combustion of fuel derived from the gasification or
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pyrolysis of regulated medical waste; or
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(iii) Disposes of, processes, or treats regulated medical waste through combustion,
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gasification, pyrolysis, or any process that exposes waste to temperatures above four hundred
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degrees Fahrenheit (400ºF).
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(13) “NE-GIS” means the generation information system operated by NEPOOL, its
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designee or successor entity, that includes a generation information database and certificate system,
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and that accounts for the generation attributes of electrical energy consumed within NEPOOL.
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(14) “NE-GIS certificate” means an electronic record produced by the NE-GIS that
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identifies the relevant generation attributes of each megawatt-hour accounted for in the NE-GIS.
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(15) “NEPOOL” means the New England Power Pool or its successor.
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(16) “New renewable energy resources” means generation units using eligible renewable
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energy resources and first going into commercial operation after December 31, 1997; or the
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incremental output of generation units using eligible renewable energy resources that have
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demonstrably increased generation in excess of ten percent (10%) using eligible renewable energy
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resources through capital investments made after December 31, 1997; but in no case involve any
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new impoundment or diversion of water with an average salinity of twenty (20) parts per thousand
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or less.
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(17) “Obligated entity” means a person or entity who or that sells electrical energy to end-
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use customers in Rhode Island, including, but not limited to: nonregulated power producers and
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electric utility distribution companies, as defined in § 39-1-2, supplying standard-offer service, last-
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resort service, or any successor service to end-use customers, including Narragansett Electric, but
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not to include Block Island Power Company as described in § 39-26-7 or Pascoag Utility District.
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(18) “Off-grid generation facility” means a generation unit that is not connected to a utility
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transmission or distribution system.
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(19) “Renewable energy resource” means any one or more of the renewable energy
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resources described in § 39-26-5(a).
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(20) “Reserved certificate” means a NE-GIS certificate sold independent of a transaction
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involving electrical energy, pursuant to Rule 3.4 or a successor rule of the operating rules of the
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NE-GIS.
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(21) “Reserved certificate account” means a specially designated account established by
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an obligated entity, pursuant to Rule 3.4 or a successor rule of the operating rules of the NE-GIS,
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for transfer and retirement of reserved certificates from the NE-GIS.
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(22) “Self-generator” means an end-use customer in Rhode Island that displaces all or part
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of its retail electricity consumption, as metered by the distribution utility to which it interconnects,
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through the use of a customer-sited generation facility, and the ownership of any such facility shall
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not be considered an obligated entity as a result of any such ownership arrangement.
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(23) “Small hydro facility” means a facility employing one or more hydroelectric turbine
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generators and with an aggregate capacity not exceeding thirty megawatts (30 MW). For purposes
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of this definition, “facility” shall be defined in a manner consistent with Title 18 of the Code of
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Federal Regulations, section 292.204; provided, however, that the size of the facility is limited to
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thirty megawatts (30 MW), rather than eighty megawatts (80 MW).
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(24) Zero-emission resource means:
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(i) Nuclear energy resources, meaning electricity generated by a nuclear fission or nuclear
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fusion facility that is licensed by the United States Nuclear Regulatory Commission or its successor,
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and that produces no direct emissions of greenhouse gases or criteria air pollutants at the point of
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generation.
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(ii) Large-scale hydroelectric facilities, meaning hydroelectric generation units that are not
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“small hydro facilities” as defined in § 39-26-2, that generate electricity through the conversion of
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the energy of flowing or falling water and that produce no direct emissions of greenhouse gases or
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criteria air pollutants at the point of generation.
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(b) For the purposes of the regulations promulgated under this chapter, eligible zero-
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emission energy resources are generation units in the NEPOOL control area using zero-emission
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energy resources as defined in this section that may be used to meet a separate clean energy
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compliance requirement, but shall not count towards the renewable energy standard unless
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expressly authorized.
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(c) A generation unit located in an adjacent control area outside of the NEPOOL may
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qualify as an eligible zero-emission energy resource, but the associated generation attributes shall
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be applied to any zero-emission standard established under this chapter only to the extent that the
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energy produced by the generation unit is actually delivered into NEPOOL for consumption by
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New England customers. The delivery of the energy from the generation unit into NEPOOL must
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be demonstrated by:
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(1) A unit-specific bilateral contract for the sale and delivery of such energy into NEPOOL;
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(2) Confirmation from ISO-New England that the zero-emission energy was actually
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settled in the NEPOOL system; and
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(3) Confirmation through the North American Electric Reliability Corporation tagging
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system, or its successor, that the import of the energy into NEPOOL actually occurred; or
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(4) Any such other requirements as the commission deems appropriate.
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(d) NE-GIS certificates associated with energy production from off-grid generation and
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customer-sited generation facilities certified by the commission as eligible zero-emission energy
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resources may also be used to demonstrate compliance with any zero-emission standard.
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39-26-4. Renewable energy standard.
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(a) Starting in compliance year 2007, all obligated entities shall obtain at least three percent
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(3%) of the electricity they sell at retail to Rhode Island end-use customers, adjusted for electric
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line losses, from eligible renewable energy resources
,
and zero-emission resources
escalating,
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according to the following schedule:
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(1) At least three percent (3%) of retail electricity sales in compliance year 2007;
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(2) An additional one-half of one percent (0.5%) of retail electricity sales in each of the
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following compliance years 2008, 2009, 2010;
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(3) An additional one percent (1%) of retail electricity sales in each of the following
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compliance years 2011, 2012, 2013, 2014, provided that the commission has determined the
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adequacy, or potential adequacy, of renewable energy supplies to meet these percentage
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requirements;
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(4) An additional one and one-half percent (1.5%) of retail electricity sales in each of the
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following compliance years 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022;
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(5) [Deleted by P.L. 2016, ch. 144, § 1 and P.L. 2016, ch. 155, § 1.]
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(6) An additional four percent (4%) of retail electricity sales in 2023;
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(7) An additional five percent (5%) of retail electricity sales in 2024;
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(8) An additional six percent (6%) of retail electricity sales in 2025;
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(9) An additional seven percent (7%) of retail electricity sales in 2026 and 2027;
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(10) An additional seven and one-half percent (7.5%) of retail electricity sales in 2028;
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(11) An additional eight percent (8%) of retail electricity sales in 2029;
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(12) An additional eight and one-half percent (8.5%) of retail electricity sales in 2030;
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(13) An additional nine percent (9%) of retail electricity sales in 2031; and
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(14) An additional nine and one-half percent (9.5%) of retail electricity sales in 2032 and
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2033 to achieve the goal that one hundred percent (100%) of Rhode Island’s electricity demand is
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from renewable energy by 2033 and each year thereafter.
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(b) For each obligated entity and in each compliance year, the amount of retail electricity
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sales used to meet obligations under this statute that are derived from existing renewable energy
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resources shall not exceed two percent (2%) of total retail electricity sales.
Starting in compliance
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year 2027, for each obligated entity and in each compliance year following, eighty percent (80%)
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of the amount of retail electricity sales used to meet obligations under this statute shall be derived
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from new renewable energy resources and up to twenty percent (20%) may be derived from existing
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renewable energy resources and/or zero-emission resources.
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(c) The minimum renewable energy percentages set forth in subsection (a) shall be met for
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each electrical energy product offered to end-use customers, in a manner that ensures that the
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amount of renewable energy of end-use customers voluntarily purchasing renewable energy is not
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counted toward meeting such percentages. Notwithstanding the foregoing, municipalities engaged
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in aggregation pursuant to § 39-3-1.2 may include in their aggregation plan terms that would allow
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voluntary renewable energy products to be counted toward meeting such percentages. In 2024, the
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commission, with input from the office of energy resources, division of public utilities and carriers,
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obligated entities, other market participants, and the public, shall assess the impact of allowing
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voluntary renewable energy purchases to be counted toward meeting the annual percentages. The
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commission shall submit a report of its findings and recommendations to the governor, speaker of
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the house, and senate president no later than September 1, 2024.
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(d) To the extent consistent with the requirements of this chapter, compliance with the
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renewable energy standard may be demonstrated through procurement of NE-GIS certificates
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relating to generating units certified by the commission as using eligible renewable energy sources
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or zero-emission resources
, as evidenced by reports issued by the NE-GIS administrator.
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Procurement of NE-GIS certificates from off-grid and customer-sited generation facilities, verified
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by the commission as eligible renewable energy resources, may also be used to demonstrate
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compliance. With the exception of contracts for generation supply entered into prior to 2002, initial
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title to NE-GIS certificates from off-grid and customer-sited generation facilities and from all other
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eligible renewable energy resources, shall accrue to the owner of such a generation facility, unless
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such title has been explicitly deemed transferred pursuant to contract or regulatory order.
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(e) In lieu of providing NE-GIS certificates pursuant to subsection (d) of this section, an
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obligated entity may also discharge all or any portion of its compliance obligations by making an
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alternative compliance payment to the renewable energy development fund established pursuant to
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§ 39-26-7.
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(f) Retail electricity sales pursuant to a nonregulated power producer’s supply contract that
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was executed prior to July 1, 2022, shall be required to obtain an additional one and one-half percent
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(1.5%) of retail electricity sales each year and are exempted from the requirements of subsections
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(a)(6) through (a)(14) of this section until the end date of the term of the nonregulated power
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producer’s supply contract.
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(g) Nothing in this section shall be construed to reduce or delay the annual procurement of
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renewable energy resources required under this chapter. Provided, further, zero-emission resources
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shall supplement, but not supplant, renewable energy procurement necessary to meet the
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requirements of this chapter.
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39-26-6. Duties of the commission.
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(a) The commission shall:
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(1) Develop and adopt regulations on or before December 31, 2005, for implementing a
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renewable energy standard, which regulations shall include, but be limited to, provisions for:
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(i) Verifying the eligibility of renewable energy generators and the production of energy
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from such generators, including requirements to notify the commission in the event of a change in
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a generator’s eligibility status;
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(ii) Standards for contracts and procurement plans for renewable energy resources to
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achieve the purposes of this chapter;
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(iii) Flexibility mechanisms for the purposes of easing compliance burdens; facilitating
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bringing new renewable resources on-line; and avoiding and/or mitigating conflicts with state-level
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source disclosure requirements and green marketing claims throughout the region; which flexibility
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mechanisms shall allow obligated entities to: (A) Demonstrate compliance over a compliance year;
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and (B) Bank excess compliance for
two (2) subsequent compliance years, capped at thirty percent
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(30%) of
up to three (3) subsequent compliance years, without limitation on the percentage of
the
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current year’s obligation; and
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(iv) Annual compliance filings to be made by all obligated entities within one month after
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NE-GIS reports are available for the fourth (4th) quarter of each calendar year. All electric-utility-
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distribution companies shall cooperate with the commission in providing data necessary to assess
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the magnitude of obligation and verify the compliance of all obligated entities.
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(2) Authorize rate recovery by electric-utility-distribution companies of all prudent
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incremental costs arising from the implementation of this chapter, including, without limitation:
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the purchase of NE-GIS certificates;
including certificates from zero-emission resources;
the
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payment of alternative compliance payments; required payments to support the NE-GIS;
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assessments made pursuant to § 39-26-7(c); and the incremental costs of complying with energy
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source disclosure requirements.
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(3) Certify eligible renewable energy resources
and zero-emission resources
by issuing
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statements of qualification within ninety (90) days of application. The commission shall provide
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prospective reviews for applicants seeking to determine whether a facility would be eligible.
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(4) [Deleted by P.L. 2022, ch. 218, § 1 and P.L. 2022, ch. 226, § 1.]
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(5) Establish sanctions for those obligated entities that, after investigation, have been found
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to fail to reasonably comply with the commission’s regulations. No sanction or penalty shall relieve
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or diminish an obligated entity from liability for fulfilling any shortfall in its compliance obligation;
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provided, however, that no sanction shall be imposed if compliance is achieved through alternative
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compliance payments. The commission may suspend or revoke the certification of generation units,
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certified in accordance with subsection (a)(3) of this section, that are found to provide false
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information or that fail to notify the commission in the event of a change in eligibility status or
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otherwise comply with its rules. Financial penalties resulting from sanctions from obligated entities
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shall not be recoverable in rates.
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(6) Report, by February 15, 2006, and by February 15 each year thereafter, to the governor,
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the speaker of the house, and the president of the senate on the status of the implementation of the
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renewable energy standards in Rhode Island and other states, and which report shall include in
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2009, and each year thereafter, the level of use of renewable energy certificates by eligible
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renewable energy resources
and zero-emission resources,
and the portion of renewable energy
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standards met through alternative compliance payments, and the amount of rate increases
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authorized pursuant to subsection (a)(2) of this section.
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(b) Consistent with the public policy objective of developing renewable generation as an
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option in Rhode Island, and subject to the review and approval of the commission, the electric
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distribution company is authorized to propose and implement pilot programs to own and operate
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no more than fifteen megawatts (15 MW) of renewable-generation demonstration projects in Rhode
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Island and may include the costs and benefits in rates to distribution customers. At least two (2)
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demonstration projects shall include renewable generation installed at, or in the vicinity of
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nonprofit, affordable-housing projects where energy savings benefits are provided to reduce
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electric bills of the customers at the nonprofit, affordable-housing projects. Any renewable-
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generation proposals shall be subject to the review and approval of the commission. The
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commission shall annually make an adjustment to the minimum amounts required under the
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renewable energy standard under this chapter in an amount equal to the kilowatt hours generated
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by such units owned by the electric distribution company. The electric and gas distribution
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company shall also be authorized to propose and implement smart-metering and smart-grid
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demonstration projects in Rhode Island, subject to the review and approval of the commission, in
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order to determine the effectiveness of such new technologies for reducing and managing energy
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consumption, and may include the costs of such demonstration projects in distribution rates to
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electric customers to the extent the project pertains to electricity usage and in distribution rates to
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gas customers to the extent the project pertains to gas usage.
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SECTION 2. Chapter 39-26 of the General Laws entitled "Renewable Energy Standard" is
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hereby amended by adding thereto the following section:
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39-26-4.1. Legislative reporting.
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(a) On or before January 1, 2030, the Rhode Island office of energy resources and the public
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utilities commission shall conduct a comprehensive review of:
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(1) The status of the state’s progress toward meeting the renewable energy standard;
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(2) The status of the state’s progress toward meeting the greenhouse gas emissions
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reduction requirements; and
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(3) The extent to which renewable energy procurement and development within the state
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is sufficient to ensure long-term compliance with such requirements.
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(b) On or before December 31, 2030, the office of energy resources and the public utilities
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commission shall submit a report of their findings, and recommendation of actions required
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pursuant to this section, to the governor, the speaker of the house, the president of the senate, and
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the chairs of the house and senate committees on environment and natural resources, finance, and
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commerce. The report shall detail the following:
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(1) Renewable and other clean energy resources used for compliance;
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(2) Emissions impacts; and
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(3) Any statutory changes needed to reach the 2033 targets established pursuant to this
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chapter.
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SECTION 3. This act shall take effect on July 1, 2026.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY
STANDARD
***
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This act would freeze obligated entities’ annual requirements regarding percentages of
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retail sales of electricity obtained from renewable energy sources for the years 2027, 2028, and
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2029. This act would further permit the use of nuclear energy obtained outside the state for use
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within the state to achieve the state’s renewable energy standard.
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This act would take effect on July 1, 2026.
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