§ 23-82-6. Use of auction or sale proceeds.
(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 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 Standardâ€�;
(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.
(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.