AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY STANDARD (Expands RI’s Renewable Energy Standard to include nuclear and hydroelectric power as eligible zero-emission resources and sets rules for how they qualify.)

S2764

2026 -- S 2764
========
LC005662
========

STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY
STANDARD

Introduced By:
Senators Tikoian, Burke, Raptakis, Ciccone, Patalano, Famiglietti, Gallo,
Thompson, Dimitri, and Appollonio

Date Introduced:
March 04, 2026

Referred To:
Senate Commerce
It is enacted by the General Assembly as follows:
1
SECTION 1. Chapter 39-26 of the General Laws entitled "Renewable Energy Standard" is
2
hereby amended by adding thereto the following section:
3

39-26-5.1. Zero-emission resources.

4

(a) Zero-emission resources are:
5

(1) Nuclear energy resources, meaning electricity generated by a nuclear fission or nuclear
6
fusion facility that is licensed by the United States Regulatory Commission or its successor, and
7
that produces no direct emissions of greenhouse gases or criteria air pollutants at the point of
8
generation.
9

(2) Large-scale hydroelectric facilities, meaning hydroelectric generation units that are not
10
“small hydro facilities” as defined in § 39-26-2, that generate electricity through the conversion of
11
the energy of flowing or falling water and that produce no direct emissions of greenhouse gases or
12
criteria air pollutants at the point of generation.
13

(b) For the purposes of the regulations promulgated under this chapter, eligible zero-
14
emission energy resources are generation units in the NEPOOL control area using zero-emission
15
energy resources as defined in this section.
16

(c) A generation unit located in an adjacent control area outside of the NEPOOL may
17
qualify as an eligible zero-emission energy resource, but the associated generation attributes shall
18
be applied to any zero-emission standard established under this chapter only to the extent that the

1
energy produced by the generation unit is actually delivered into NEPOOL for consumption by
2
New England customers. The delivery of the energy from the generation unit into NEPOOL shall
3
be demonstrated by:
4

(1) A unit-specific bilateral contract for the sale and delivery of such energy into NEPOOL;
5

(2) Confirmation from ISO-New England that the zero-emission energy was actually
6
settled in the NEPOOL system; and
7

(3) Confirmation through the North American Electric Reliability Corporation tagging
8
system, or its successor, that the import of the energy into NEPOOL actually occurred; or
9

(4) Any such other requirements as the commission deems appropriate.
10

(d) NE-GIS certificates associated with the energy production from off-grid generation and
11
customer-sited generation facilities certified by the commission as eligible zero-emission energy
12
resources may also be used to demonstrate compliance with any zero-emission standard.
13
SECTION 2. Sections 39-26-1, 39-26-2, 39-26-4, 39-26-6 and 39-26-7 of the General
14
Laws in Chapter 39-26 entitled "Renewable Energy Standard" are hereby amended to read as
15
follows:
16

39-26-1. Legislative findings.
17
The General Assembly finds that:
18
(1) The people and energy users of Rhode Island have an interest in having electricity
19
supplied in the state come from a diversity of energy sources including renewable
and zero-
20
emission
resources;
21
(2) Increased use of renewable
and zero-emission
energy may have the potential to lower
22
and stabilize future energy costs
and protect ratepayers from the volatility of regional energy
23
markets
;
24
(3) Increased use of renewable
and zero-emission
energy can reduce air pollutants,
25
including carbon dioxide emissions, that adversely affect public health and contribute to global
26
warming;
27
(4) Massachusetts, Connecticut, and other states have established renewable energy
28
standard programs to encourage the development of renewable energy sources;
29
(5) It is in the interest of the people, in order to protect public health and the environment
30
and to promote the general welfare
and to ensure affordability and reliability
, to establish a
31
renewable
and zero-emission
energy standard program to increase levels of electrical energy
32
supplied in the state from renewable resources
in a manner that prioritizes efficiency and cost-
33
effectiveness
.
34

39-26-2. Definitions.

LC005662 - Page 2 of 11
1
When used in this chapter:
2

(1) “Alternative compliance payment” means a payment to the renewable energy
3
development fund of fifty dollars ($50.00) per megawatt-hour of renewable energy obligation, in
4
2003 dollars, adjusted annually up or down by the consumer price index, which may be made in
5
lieu of standard means of compliance with this statute.
6

(1) “Alternative compliance payment” means a payment made in lieu of standard means of
7
compliance with this statute, as follows:
8

(i) For new renewable energy and zero-emission resources, an alternative compliance
9
payment of forty dollars ($40.00) per megawatt-hour of renewable energy obligation;
10

(ii) For existing renewable energy and zero-emission resources, an alternative compliance
11
payment of eleven dollars ($11.00) per megawatt-hour of renewable energy obligation;
12

(iii) All such payments shall be deposited into the renewable energy development fund and
13
distributed in accordance with § 39-26-7.
14
(2) “Commission” means the Rhode Island public utilities commission.
15
(3) “Compliance year” means a calendar year beginning January 1 and ending December
16
31, for which an obligated entity must demonstrate that it has met the requirements of this statute.
17
(4) “Customer-sited generation facility” means a generation unit that is interconnected on
18
the end-use customer’s side of the retail electricity meter in such a manner that it displaces all or
19
part of the metered consumption of the end-use customer.
20
(5) “Electrical energy product” means an electrical energy offering, including, but not
21
limited to, last-resort and standard-offer service, that can be distinguished by its generation
22
attributes or other characteristics, and that is offered for sale by an obligated entity to end-use
23
customers.
24
(6) “Eligible biomass fuel” means fuel sources including brush, stumps, lumber ends and
25
trimmings, wood pallets, bark, wood chips, shavings, slash, and other clean wood that is not mixed
26
with other solid wastes; agricultural waste, food, and vegetative material; energy crops; landfill
27
methane; biogas; or neat biodiesel and other neat liquid fuels that are derived from such fuel
28
sources.
29
(7) “Eligible renewable
and zero-emission
energy resource” means resources as defined in
30
§

§§
39-26-5
and 39-26-5.1
.
31
(8) “End-use customer” means a person or entity in Rhode Island that purchases electrical
32
energy at retail from an obligated entity.
33
(9) “Existing renewable
and zero-emission
energy resources” means generation units using
34
eligible renewable energy resources
and zero-emission resources
and first going into commercial

LC005662 - Page 3 of 11
1
operation before December 31, 1997.
2
(10) “Generation attributes” means the nonprice characteristics of the electrical energy
3
output of a generation unit including, but not limited to, the unit’s fuel type, emissions, vintage,
4
and policy eligibility.
5
(11) “Generation unit” means a facility that converts a fuel or an energy resource into
6
electrical energy.
7
(12) “High-heat medical waste processing facility” means a facility that:
8
(i) Generates electricity from the combustion, gasification, or pyrolysis of regulated
9
medical waste;
10
(ii) Generates electricity from the combustion of fuel derived from the gasification or
11
pyrolysis of regulated medical waste; or
12
(iii) Disposes of, processes, or treats regulated medical waste through combustion,
13
gasification, pyrolysis, or any process that exposes waste to temperatures above four hundred
14
degrees Fahrenheit (400ºF).
15
(13) “NE-GIS” means the generation information system operated by NEPOOL, its
16
designee or successor entity, that includes a generation information database and certificate system,
17
and that accounts for the generation attributes of electrical energy consumed within NEPOOL.
18
(14) “NE-GIS certificate” means an electronic record produced by the NE-GIS that
19
identifies the relevant generation attributes of each megawatt-hour accounted for in the NE-GIS.
20
(15) “NEPOOL” means the New England Power Pool or its successor.
21
(16) “New renewable energy
and zero-emission
resources” means generation units using
22
eligible renewable energy
and zero-emission
resources and first going into commercial operation
23
after December 31, 1997; or the incremental output of generation units using eligible renewable
24
energy
and zero-emission
resources that have demonstrably increased generation in excess of ten
25
percent (10%) using eligible renewable energy
and zero-emission
resources through capital
26
investments made after December 31, 1997; but in no case involve any new impoundment or
27
diversion of water with an average salinity of twenty (20) parts per thousand or less.
28
(17) “Obligated entity” means a person or entity who or that sells electrical energy to end-
29
use customers in Rhode Island, including, but not limited to: nonregulated power producers and
30
electric utility distribution companies, as defined in § 39-1-2, supplying standard-offer service, last-
31
resort service, or any successor service to end-use customers, including Narragansett Electric, but
32
not to include Block Island Power Company as described in § 39-26-7 or Pascoag Utility District.
33
(18) “Off-grid generation facility” means a generation unit that is not connected to a utility
34
transmission or distribution system.

LC005662 - Page 4 of 11
1
(19) “Renewable energy
and zero-emission
resource” means any one or more of the
2
renewable energy
and zero-emission
resources described in
§

§§
39-26-5(a)
and 39-26-5.1
.
3
(20) “Reserved certificate” means a NE-GIS certificate sold independent of a transaction
4
involving electrical energy, pursuant to Rule 3.4 or a successor rule of the operating rules of the
5
NE-GIS.
6
(21) “Reserved certificate account” means a specially designated account established by
7
an obligated entity, pursuant to Rule 3.4 or a successor rule of the operating rules of the NE-GIS,
8
for transfer and retirement of reserved certificates from the NE-GIS.
9
(22) “Self-generator” means an end-use customer in Rhode Island that displaces all or part
10
of its retail electricity consumption, as metered by the distribution utility to which it interconnects,
11
through the use of a customer-sited generation facility, and the ownership of any such facility shall
12
not be considered an obligated entity as a result of any such ownership arrangement.
13
(23) “Small hydro facility” means a facility employing one or more hydroelectric turbine
14
generators and with an aggregate capacity not exceeding thirty megawatts (30 MW). For purposes
15
of this definition, “facility” shall be defined in a manner consistent with Title 18 of the Code of
16
Federal Regulations, section 292.204; provided, however, that the size of the facility is limited to
17
thirty megawatts (30 MW), rather than eighty megawatts (80 MW).
18

39-26-4. Renewable energy standard.
19
(a) Starting in compliance year 2007, all obligated entities shall obtain at least three percent
20
(3%) of the electricity they sell at retail to Rhode Island end-use customers, adjusted for electric
21
line losses, from eligible renewable energy resources
and zero-emission resources
, escalating,
22
according to the following schedule:
23
(1) At least three percent (3%) of retail electricity sales in compliance year 2007;
24
(2) An additional one-half of one percent (0.5%) of retail electricity sales in each of the
25
following compliance years 2008, 2009, 2010;
26
(3) An additional one percent (1%) of retail electricity sales in each of the following
27
compliance years 2011, 2012, 2013, 2014, provided that the commission has determined the
28
adequacy, or potential adequacy, of renewable energy
and zero-emission
supplies to meet these
29
percentage requirements;
30

(4) There shall be no increase to the renewable energy standard for compliance year 2015,
31
and the incremental increases shall resume in the subsequent compliance years as provided in
32
subsections (a)(5) through (a)(12) of this section.
33

(4)
(5)
An additional one and one-half percent (1.5%) of retail electricity sales in each of
34
the following compliance years
2015,
2016, 2017, 2018, 2019, 2020, 2021, and 2022;

LC005662 - Page 5 of 11
1

(5)
(6)
[Deleted by P.L. 2016, ch. 144, § 1 and P.L. 2016, ch. 155, § 1.]
2

(6)
(7)
An additional four percent (4%) of retail electricity sales in 2023;
3

(7)
(8)
An additional five percent (5%) of retail electricity sales in 2024;
4

(8)
(9)
An additional six percent (6%) of retail electricity sales in 2025;
5

(9)
(10)
An additional seven percent (7%) of retail electricity sales in 2026
and 2027
;
6

(10)
(11)
An additional
seven and one-half percent (7.5%) of retail electricity sales in 2028

7
three percent (3%) of retail electricity sales in 2027, 2028, 2029, and 2030
;
8

(11)
(12)
An additional
eight percent (8%) of retail electricity sales in 2029

four percent
9
(4%) of retail electricity sales in 2031, 2032, and 2033
;
and
10

(13) An additional five percent (5%) of retail electricity sales in 2034, 2035, 2036, 2037,
11
2038, 2039, and 2040
12

(12) An additional eight and one-half percent (8.5%) of retail electricity sales in 2030 ;
13

(13) An additional nine percent (9%) of retail electricity sales in 2031; and
14

(14) An additional nine and one-half percent (9.5%) of retail electricity sales in 2032 and
15
2033
to achieve the goal that one hundred percent (100%) of Rhode Island’s
retail
electricity
16
demand

sales
is from renewable energy and
zero-emission resources
by
2033

2040
and each year
17
thereafter.
18
(b) For each obligated entity and in each compliance year, the amount of retail electricity
19
sales used to meet obligations under this statute that are derived from existing renewable energy
20
resources shall not exceed two percent (2%) of total retail electricity sales
for compliance year
21
2026, and twenty-five percent (25%) for each compliance year thereafter
.
22
(c) The minimum renewable energy percentages set forth in subsection (a) shall be met for
23
each electrical energy product offered to end-use customers, in a manner that ensures that the
24
amount of renewable energy of end-use customers voluntarily purchasing renewable energy is not
25
counted toward meeting such percentages. Notwithstanding the foregoing, municipalities engaged
26
in aggregation pursuant to § 39-3-1.2 may include in their aggregation plan terms that would allow
27
voluntary renewable energy products to be counted toward meeting such percentages.
In 2024, the
28
commission, with input from the office of energy resources, division of public utilities and carriers,
29
obligated entities, other market participants, and the public, shall assess the impact of allowing
30
voluntary renewable energy purchases to be counted toward meeting the annual percentages. The
31
commission shall submit a report of its findings and recommendations to the governor, speaker of
32
the house, and senate president no later than September 1, 2024.
33
(d) To the extent consistent with the requirements of this chapter, compliance with the
34
renewable energy standard may be demonstrated through procurement of NE-GIS certificates

LC005662 - Page 6 of 11
1
relating to generating units certified by the commission as using eligible renewable energy sources
2
and zero-emission resources
, as evidenced by reports issued by the NE-GIS administrator.
3
Procurement of NE-GIS certificates from off-grid and customer-sited generation facilities, verified
4
by the commission as eligible renewable energy resources
and zero-emission resources
, may also
5
be used to demonstrate compliance. With the exception of contracts for generation supply entered
6
into prior to 2002, initial title to NE-GIS certificates from off-grid and customer-sited generation
7
facilities and from all other eligible renewable energy
and zero-emission
resources, shall accrue to
8
the owner of such a generation facility, unless such title has been explicitly deemed transferred
9
pursuant to contract or regulatory order.
10
(e) In lieu of providing NE-GIS certificates pursuant to subsection (d) of this section, an
11
obligated entity may also discharge all or any portion of its compliance obligations by making an
12
alternative compliance payment to the renewable energy development fund established pursuant to
13
§ 39-26-7.
14
(f) Retail electricity sales pursuant to a nonregulated power producer’s supply contract that
15
was executed prior to July 1, 2022, shall be required to obtain an additional one and one-half percent
16
(1.5%) of retail electricity sales each year and are exempted from the requirements of subsections
17
(a)(6) through (a)(14) of this section until the end date of the term of the nonregulated power
18
producer’s supply contract.
19

39-26-6. Duties of the commission.
20
(a) The commission shall:
21
(1) Develop and adopt regulations on or before December 31, 2005, for implementing a
22
renewable energy standard, which regulations shall include, but be limited to, provisions for:
23
(i) Verifying the eligibility of renewable energy
and zero-emission
generators and the
24
production of energy from such generators, including requirements to notify the commission in the
25
event of a change in a generator’s eligibility status;
26
(ii) Standards for contracts and procurement plans for renewable energy
and zero-emission
27
resources to achieve the purposes of this chapter;
28
(iii) Flexibility mechanisms for the purposes of easing compliance burdens; facilitating
29
bringing new renewable
and zero-emission
resources on-line; and avoiding and/or mitigating
30
conflicts with state-level source disclosure requirements and green marketing claims throughout
31
the region; which flexibility mechanisms shall allow obligated entities to: (A) Demonstrate
32
compliance over a compliance year; and (B) Bank excess compliance for
two (2) subsequent
33
compliance years, capped at thirty percent (30%) of the current year’s obligation

up to three (3)
34
subsequent compliance years with no limitation on quantity
; and

LC005662 - Page 7 of 11
1
(iv) Annual compliance filings to be made by all obligated entities within one month after
2
NE-GIS reports are available for the fourth (4th) quarter of each calendar year. All electric-utility-
3
distribution companies shall cooperate with the commission in providing data necessary to assess
4
the magnitude of obligation and verify the compliance of all obligated entities.
5
(2) Authorize rate recovery by electric-utility-distribution companies of all prudent
6
incremental costs arising from the implementation of this chapter, including, without limitation:
7
the purchase of NE-GIS certificates
including certificates from zero-emission resources
; the
8
payment of alternative compliance payments; required payments to support the NE-GIS;
9
assessments made pursuant to § 39-26-7(c); and the incremental costs of complying with energy
10
source disclosure requirements.
11
(3) Certify eligible renewable energy
and zero-emission
resources by issuing statements of
12
qualification within ninety (90) days of application. The commission shall provide prospective
13
reviews for applicants seeking to determine whether a facility would be eligible.
14
(4) [Deleted by P.L. 2022, ch. 218, § 1 and P.L. 2022, ch. 226, § 1.]
15
(5) Establish sanctions for those obligated entities that, after investigation, have been found
16
to fail to reasonably comply with the commission’s regulations. No sanction or penalty shall relieve
17
or diminish an obligated entity from liability for fulfilling any shortfall in its compliance obligation;
18
provided, however, that no sanction shall be imposed if compliance is achieved through alternative
19
compliance payments. The commission may suspend or revoke the certification of generation units,
20
certified in accordance with subsection (a)(3) of this section, that are found to provide false
21
information or that fail to notify the commission in the event of a change in eligibility status or
22
otherwise comply with its rules. Financial penalties resulting from sanctions from obligated entities
23
shall not be recoverable in rates.
24
(6) Report, by February 15, 2006, and by February 15 each year thereafter, to the governor,
25
the speaker of the house, and the president of the senate on the status of the implementation of the
26
renewable energy standards in Rhode Island and other states, and which report shall include in
27
2009, and each year thereafter, the level of use of renewable energy certificates by eligible
28
renewable energy
and zero-emission
resources and the portion of renewable energy standards met
29
through alternative compliance payments, and the amount of rate increases authorized pursuant to
30
subsection (a)(2) of this section.
31
(b) Consistent with the public policy objective of developing renewable
and zero-emission

32
generation as an option in Rhode Island, and subject to the review and approval of the commission,
33
the electric distribution company is authorized to propose and implement pilot programs to own
34
and operate no more than fifteen megawatts (15 MW) of renewable-generation
and zero-emission

LC005662 - Page 8 of 11
1
demonstration projects in Rhode Island and may include the costs and benefits in rates to
2
distribution customers. At least two (2) demonstration projects shall include renewable generation
3
installed at, or in the vicinity of nonprofit, affordable-housing projects where energy savings
4
benefits are provided to reduce electric bills of the customers at the nonprofit, affordable-housing
5
projects. Any renewable-
and zero-emission
generation proposals shall be subject to the review and
6
approval of the commission. The commission shall annually make an adjustment to the minimum
7
amounts required under the renewable energy standard under this chapter in an amount equal to the
8
kilowatt hours generated by such units owned by the electric distribution company. The electric
9
and gas distribution company shall also be authorized to propose and implement smart-metering
10
and smart-grid demonstration projects in Rhode Island, subject to the review and approval of the
11
commission, in order to determine the effectiveness of such new technologies for reducing and
12
managing energy consumption, and may include the costs of such demonstration projects in
13
distribution rates to electric customers to the extent the project pertains to electricity usage and in
14
distribution rates to gas customers to the extent the project pertains to gas usage.
15

39-26-7. Renewable energy development fund.
16
(a) There is hereby authorized and created within the Rhode Island commerce corporation
17
a renewable energy development fund for the purpose of increasing the supply of NE-GIS
18
certificates available for compliance in future years by obligated entities with renewable energy
19
standard requirements, as established in this chapter. The fund shall be located at the Rhode Island
20
commerce corporation. The Rhode Island commerce corporation shall administer the fund and
21
adopt plans and guidelines for the management and use of the fund in coordination with the office
22
of energy resources and the Rhode Island infrastructure bank.
23
(b) The Rhode Island commerce corporation shall enter into agreements with obligated
24
entities to accept alternative compliance payments, consistent with rules of the commission and the
25
purposes set forth in this section; and alternative compliance payments received pursuant to this
26
section shall be trust funds to be held and applied solely for the purposes set forth in this section.
27
(c) The uses of the fund shall include but not be limited to:
28
(1) Stimulating investment in renewable energy development by entering into agreements,
29
including multiyear agreements, for renewable energy certificates;
30
(2) Establishing and maintaining a residential renewable energy program using eligible
31
technologies in accordance with § 39-26-5;
32
(3) Providing technical and financial assistance to municipalities for interconnection and
33
feasibility studies, and/or the installation of renewable energy projects;
34
(4) Implementing and supporting commercial and residential property assessed clean-

LC005662 - Page 9 of 11
1
energy projects;
2
(5) Issuing assurances and/or guarantees to support the acquisition of renewable energy
3
certificates and/or the development of new renewable energy sources for Rhode Island;
4
(6) Establishing escrows, reserves, and/or acquiring insurance for the obligations of the
5
fund;
6
(7) Paying administrative costs of the fund incurred by the Rhode Island commerce
7
corporation, the Rhode Island infrastructure bank, and the office of energy resources, not to exceed
8
ten percent (10%) of the income of the fund, including, but not limited to, alternative compliance
9
payments. All funds transferred from the Rhode Island commerce corporation to support the office
10
of energy resources’ administrative costs shall be deposited as restricted receipts.
11
(d) All applications received for the use of the fund shall be reviewed by the Rhode Island
12
commerce corporation in consultation with the office of energy resources and the Rhode Island
13
infrastructure bank.
14
(e) NE-GIS certificates acquired through the fund may be conveyed to obligated entities or
15
may be credited against the renewable energy standard for the year of the certificate provided that
16
the commission assesses the cost of the certificates to the obligated entity, or entities, benefiting
17
from the credit against the renewable energy standard, which assessment shall be reduced by
18
previously made alternative compliance payments and shall be paid to the fund.
19

(f) Notwithstanding any other provision of this section, effective January 1, 2027, fifty
20
percent (50%) of all alternative compliance payment revenues shall be transferred to the electric
21
distribution company for the purpose of providing direct rate relief, to be applied as bill credits to
22
all ratepayer accounts. The electric distribution company shall file a proposed direct rate relief plan
23
with the public utilities commission for review and approval no later than ninety (90) days after
24
receipt of such funds.
25
SECTION 3. This act shall take effect upon passage.
========
LC005662
========

LC005662 - Page 10 of 11
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY
STANDARD
***
1
This act would expand Rhode Island’s Renewable Energy Standard to include nuclear and
2
large-scale hydroelectric power as eligible zero-emission resources and set rules and regulations
3
for how they would qualify. Additionally, this act would update compliance payments and
4
procurement rules and regulations and also require that one hundred percent (100%) of Rhode
5
Island retail electricity sales come from renewable and zero-emission resources by 2040.
6
This act would take effect upon passage.
========
LC005662
========

LC005662 - Page 11 of 11