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<title>July 2004: Rhode Island Passes Renewable Energy Legislation</title>
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    <p align="left"><strong><small><font face="Arial">About The Author:</font></small></strong></p>
    <p align="left"><font face="Arial" style="font-size: 9pt">Robert A. Olson is a partner in the law firm of
    Brown, Olson &amp; Gould, P.C. which maintains a nationwide practice in energy law,
    public utility law and related commercial transactions.</font></p>
    <p><small><font face="Arial"><font style="font-size: 9pt">He can be reached at:</font><br>
    <br>
    <b><font color="#0000FF">Brown, Olson & Gould, PC</font></b><br>
2 Delta Drive<br>
    Suite 301<br>
Concord, NH 03301<br>
&nbsp;<a href="mailto:[email protected]">[email protected]</a><br>
    (603) 225-9716<br>
<a href="mailto:[email protected]"></a></font></small></p>
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    &nbsp;</u></b></p>
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    <p ALIGN="left"><u><b>July&nbsp;2004</b></u><font size="6"><b><br>
    Rhode Island Passes 
    Renewable Energy Legislation<br>
    </b></font><strong>by Robert Olson&nbsp; -- &nbsp; Brown, Olson and Wilson, P.C.<br>
    </strong><font face="Arial" size="2">(<em>originally published by PMA OnLine Magazine:
200</em>4/</font><font size="2">07/30)</font><font size="6"><b><br>
&nbsp;</b></font></p><center>
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    <p align="justify">On June 29, 2004 Rhode Island&#8217;s Governor Donald Carcieri 
    signed into law legislation establishing a renewable energy standard. (House 
    Bill 7375, sub A as amended).<br>
    <br>
    <b>Renewable Energy Requirements<br>
    </b>Under the new law, eligible renewable energy resources must make up at least 
    3% of each supplier&#8217;s retail energy sales to end-use customers in Rhode 
    Island by year 2007. The required amount of renewable energy resources 
    increases by .5% each year until 2010; by an additional 1% through 2014; and 
    by an additional 1.5% to 2020. Existing renewable resources may not exceed 
    2% of the new renewable energy requirement. Alternatively, a supplier may 
    choose to pay $50.00 per megawatt-hour of the renewable energy obligation to 
    the newly created Renewable Energy Development Fund.<br>
    <br>
    <b>Eligible Resources</b><br>
    Eligible resources must be located within the New England Power Pool (NEPOOL) 
    region or receive confirmation from ISO-New England and the North American 
    Reliability Council that the renewable energy was actually delivered into 
    NEPOOL for consumption by New England customers. Allowable renewable 
    resources include the following: direct solar radiation; wind power; 
    movement of latent heat of the ocean; heat of the earth; small hydro 
    facilities; biomass facilities; and certain fuel cells and waste to energy 
    units using eligible biomass fuels.<br>
    <br>
    <b>Rhode Island Public Utilities Commission</b><br>
    The program will be overseen by the Rhode Island Public Utilities Commission 
    (Commission). The Commission is authorized to approve rate recovery for the 
    incremental costs of compliance, including alternative compliance payments, 
    the cost of maintaining a system of identifying generation attributes and 
    compliance certificates (NE-GIS) and the purchase of such NE-GIS 
    certificates. The Commission must also find that there are potentially 
    adequate renewable resources to meet the specified targets for year 2011 and 
    out, before those target amounts are imposed on suppliers.<br>
    <br>
    The Commission may sanction suppliers for compliance failures. Such 
    sanctions may include revocation of a generator&#8217;s certification as a 
    renewable energy supplier. To aid in monitoring compliance, the Commission 
    is required to establish and enforce energy source disclosure regulations.<br>
    <br>
    <b>Effective Date</b><br>
    The act is effective immediately upon passage, though the first compliance 
    year is 2007.</p>
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    <hr color="#FFFF00">
    <blockquote>
      <p align="left"><font face="Arial">
      <small>Robert A. Olson is a partner in the law firm of Brown, Olson &amp; 
		Gould P.C.
      which maintains a nationwide practice in energy law, public utility law and related
      commercial transactions. He can be reached at:</small></font><p align="center">
      <font face="Arial"><small><font color="#0000FF"><b>Brown, Olson & Gould, PC</b></font><br>
2 Delta Drive, Suite 301<br>
Concord, NH 03301 <br>
      <br>
      <a href="mailto:[email protected]">[email protected]</a> | (603) 225-9716<a href="mailto:[email protected]"></a></small></font>
    
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