810-RICR-40-05-2
810-RICR-40-05-2. Implementation of a Renewable Energy Standard (version Adoption, 01/01/2006 to 07/25/2007)
STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
PUBLIC UTILITIES COMMISSION
RULES AND REGULATIONS GOVERNING
THE IMPLEMENTATION OF A RENEWABLE ENERGY STANDARD
Date of Public Notice:
September 23, 2005
Date of Public Hearing:
October 12, 2005
Effective Date:
January 1, 2006
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Section:
1.0: Authority
2.0: Purpose of Regulations
3.0: Definitions
4.0: Renewable Energy Standard
5.0: Eligibility
6.0: Certification
7.0: Demonstration of Compliance
8.0: Contracting Standards and Procurement Plans
9.0: Sanction for Non-Compliance
1.0:
Authority
These regulations are promulgated pursuant to Title 39 Chapter 26 of the General Laws
of Rhode Island.
2.0:
Purpose of Regulations
The purpose of this chapter is to implement Rhode Island’s Renewable Energy Standard
law Section 39-26-1 et seq. of the General Laws of Rhode Island as enacted June 29,
2004, referred to hereafter as the “Renewable Energy Act.”
3.0:
Definitions
Except as otherwise expressly provided, terms with initial capitalization used in these
regulations and not defined herein shall have the meaning as defined in the NEPOOL
Rules.
3.1
Alternative Compliance Payment: means a payment to the Renewable Energy
Development Fund of fifty dollars ($50.00) per megawatt-hour of renewable energy
obligation, in 2003 dollars, adjusted annually by the annual change in the U.S. Bureau of
Labor Statistics Consumer Price Index, which may be made in lieu of standard means of
compliance with these regulations.
3.2
Commission: means the Rhode Island Public Utilities Commission.
3.3
Compliance Year: means a calendar year beginning January 1 and ending December 31,
for which an Obligated Entity must demonstrate that it has met the requirements of these
regulations.
3.4
Customer-sited Generation Facility: means a Generation Unit that is interconnected on
the End-use Customer’s side of the retail electricity meter in such a manner that it
displaces all or part of the metered consumption of the End-use Customer.
3.5
Electrical Energy Product: means an electrical energy offering, including but not limited
to last resort and standard offer service, or any successor service, that can be
distinguished by its Generation Attributes or other characteristics, and that is offered for
sale by an Obligated Entity to End-use Customers.
3.6
Eligible Biomass Fuel: means fuel sources including brush, stumps, lumber ends and
trimmings, wood pallets, bark, wood chips, shavings, slash, yard trimmings, site clearing
waste, wood packaging, and other clean wood that is not mixed with other unsorted solid
wastes; agricultural waste, food and vegetative material; energy crops; landfill methane
or biogas, provided that such gas is collected and conveyed directly to the Generation
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Unit without use of facilities used as common carriers of natural gas; or neat bio-diesel
and other neat liquid fuels that are derived from such fuel sources.
Generation Units using wood sources other than those listed above may make
application, as part of the required fuel source plan described in Section 6.9, for the
Commission to approve a particular wood source as “clean wood.” The burden will be
on the applicant to demonstrate that the wood source is at least as clean as those listed in
the legislation. Wood sources containing resins, glues, laminates, paints, preservatives, or
other treatments that would combust or off-gas, or mixed with any other material that
would burn, melt, or create other residue aside from wood ash, will not be approved as
clean wood.
3.7
Eligible Renewable Energy Resource: means a resource as defined in Section 5.0 of these
regulations.
3.8
End-use Customer: means a person or entity in Rhode Island that purchases electrical
energy at retail from an Obligated Entity except that a Generating Unit, taking station
service at wholesale from ISO or self-supplying from its other generating stations, shall
not be considered an End-use Customer.
3.9
Existing Renewable Energy Resources: means Generation Units using Eligible
Renewable Energy Resources and first entering commercial operation before
December 31, 1997.
3.10
FERC: means the Federal Energy Regulatory Commission, or its successor.
3.11
Generation Attributes: means the non-price characteristics of the electrical energy output
of a generation unit including, but not limited to, the unit’s location, fuel type, actual
emissions, vintage and policy eligibility. The Commission may modify this list as
appropriate.
3.12
Generation Unit: means a facility that converts a fuel or an energy resource into electrical
energy.
3.13 Historical Generation Baseline: means, for all Eligible Renewable Energy Resources
including Intermittent Resources, the average annual electrical production from the
Eligible Renewable Energy Resources, stated in megawatt-hours (MWhs), for the three
calendar years 1995 through 1997, or for the first 36 months after the Commercial
Operation Date if that date is after December 31, 1994 (the “Baseline Period”); provided
however, that the Historical Generation Baseline shall be measured regardless of whether
or not the average annual electrical production during the Baseline Period meets the
eligibility requirements of Section 5 of these regulations.
3.14
Intermittent Resource: means a Generation Unit utilizing wind, solar, or Small Hydro
energy resources.
3.15
ISO: means ISO New England Inc., authorized by the FERC to exercise for the New
England Control Area the functions required pursuant to FERC’s Order No. 2000 and the
FERC’s corresponding regulations, and any successor organization.
3.16 Load Asset: means the term as used in the New England Markets.
3.17
NEPOOL GIS: means the Generation Information System operated by NEPOOL, its
designee or successor entity, which includes a generation information database and
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certificate system, and that accounts for certain of the Generation Attributes of electrical
energy consumed within, imported into or exported from NEPOOL.
3.18
NEPOOL GIS Certificate: means an electronic record produced by the NEPOOL GIS
that identifies certain of the Generation Attributes of each megawatt-hour of electrical
energy accounted for in the NEPOOL GIS.
3.19 NEPOOL: means the New England Power Pool or its successor.
3.20
NEPOOL Rules: means all rules adopted by NEPOOL or the ISO, as such rules may be
amended, modified, supplemented or superseded and restated from time to time,
including but not limited to, the NEPOOL Agreement, the ISO Tariff, the ISO New
England Operating Documents, the Transmission Operating Agreement, the Participants
Agreement, the NEPOOL Manuals, and the NEPOOL Operating Procedures, as
amended, superseded or restated from time to time.
3.21 New England Markets: means the Markets or programs for the purchase of energy,
capacity, ancillary services, demand response services or other related products or
services (including Financial Transmission Rights) that are delivered through or useful to
the operation of the New England Transmission System and that are administered by the
ISO pursuant to rules, rates, or agreements on file from time to time with the FERC.
3.22
New Renewable Energy Resources: means:
(i)
at a new site, the entire output of a Generation Unit which uses Eligible
Renewable Energy Resources and first entered commercial operation after
December 31, 1997; or
(ii)
at the site of an Existing Renewable Energy Resource, the entire output of a new
Generation Unit which uses Eligible Renewable Energy Resources and first
entered commercial operation after December 31, 1997, provided that the Existing
Renewable Energy Resource has been retired and replaced with such new
Generation Unit; or
(iii)
the entire output of a Repowered Generation Unit which uses Eligible Renewable
Energy Resources and such Repowered Generation Unit first entered commercial
operation after December 31, 1997 at the site of an existing Generation Unit; or
(iv)
for a multi-fuel facility, pursuant to Section 5.5.1(vi), the renewable energy
fraction of output from a Generation Unit in which an Eligible Biomass Fuel is
first co-fired with fossil fuels after December 31, 1997; or
(v)
for an Existing Renewable Energy Resource other than an Intermittent Resource,
the incremental output in any Compliance Year over the Historical Generation
Baseline, provided that such Existing Renewable Energy Resource using Eligible
Renewable Energy Resources was certified by the Commission pursuant to
Section 6 to have demonstrably completed capital investments after December 31,
1997 attributable to the efficiency improvements or additions of capacity that
are sufficient to, were intended to, and can be demonstrated to increase annual
electricity output in excess of ten percent (10%). The determination of
incremental production for purposes of this paragraph shall not be based on any
operational changes at such facility not directly associated with the efficiency
improvements or additions of capacity; or
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(vi)
for an Existing Renewable Energy Resource that is an Intermittent Resource,
provided that such Existing Renewable Energy Resource using Eligible
Renewable Energy Resources was certified by the Commission pursuant to
Section 6 to have demonstrably completed capital investments after December 31,
1997 attributable to the efficiency improvements or additions of capacity that are
sufficient to, were intended to, and have demonstrated on a normalized basis to
increase annual electricity output in excess of ten percent (10%), the incremental
production in any Compliance Year shall be determined as a percentage of
production in each month. Such percentage shall be equal to the percentage of
average annual production at the Generation Unit following the improvements or
additions of capacity that are attributable to the efficiency improvements or
additions of capacity placed in service after December 31, 1997 as determined by
the Commission using the information consistent with that used to determine the
Historical Generation Baseline for such facility. Such percentage shall be certified
by the Commission. The determination of incremental production for purposes
of this paragraph shall not be based on any operational changes at such facility not
directly associated with the efficiency improvements or additions of capacity. In
no event shall any production that would have existed during the Historical
Generation Baseline period in the absence of the efficiency improvements or
additions to capacity be considered incremental production for purposes of this
paragraph.
3.23
Nonregulated Power Producers: shall be as defined in Section 39-1-2(19) of the General
Laws of Rhode Island.
3.24
Obligated Entity: means: (i) a person or entity that sells electrical energy to End-use
Customers in Rhode Island, including, but not limited to: Nonregulated Power Producers
and electric utility distribution companies, as defined in Section 39-1-2 of the General
Laws of Rhode Island, supplying standard offer service, last resort service, or any
successor service to End-use Customers; including Narragansett Electric, but not to
include Block Island Power Company or Pascoag Utility District; or (ii) to the extent not
otherwise required to register and act as a NPP, any customer buying electricity supply
directly from wholesale markets. In no event shall the ISO or NEPOOL be considered an
Obligated Entity.
3.25
Off-grid Generation Facility: means a Generation Unit that is not connected to a utility
transmission or distribution system.
3.26
Prime Mover: means
(i)
for a landfill gas facility, the entire internal combustion engine or combustion
turbine;
(ii)
for a biomass facility, the entire boiler;
(iii)
for a wind facility, the entire wind turbine, including the generator, gearbox (if
any), nacelle, and turbine;
(iv)
for a small hydro-electric facility, the entire turbine and structures supporting the
turbine;
(v)
for a geothermal facility, the entire steam turbine, including the turbine rotors,
shaft, stationary blades, and gear assemblies;
(vi)
for a digester gas facility, the entire digester unit and internal combustion engine
or combustion turbine as applicable; and
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(vii)
for a solar thermal facility, the entire steam turbine.
3.27
Real Time Load Obligation: means the energy obligation as defined and determined by
the ISO in the New England Markets.
3.28
Repowered Generation Unit: means:
(i)
an existing Generation Unit that completely replaces its Prime Mover with a new
one pursuant to Section 3.26; and
(ii)
the then existing Generation Unit must demonstrate to the satisfaction of the
Commission either (a) a material increase in its efficiency or (b) a material
decrease in its air emissions such as obtaining a new Title V air permit based
upon BACT (best alternative control technology) for that generation technology;
and
(iii)
the completed repowered Generation Unit must demonstrate that 80% of its
resulting tax basis of the entire Generation Unit’s plant and equipment (but not its
property and intangible assets) is derived from capital expenditures made after
December 31, 1997.
3.29
Reserved Certificate: means a NEPOOL GIS certificate sold independent of a transaction
involving electrical energy, pursuant to Rule 3.4 or a successor rule of the operating rules
of the NEPOOL GIS.
3.30
Reserved Certificate Account: means a specially designated account established by an
Obligated Entity, pursuant to Rule 3.4 or a successor rule of the operating rules of the
NEPOOL GIS, for transfer and retirement of Reserved Certificates from the NEPOOL
GIS.
3.31
Small Hydro Facility: means a facility employing one or more hydroelectric turbine
generators and with an aggregate capacity not exceeding thirty (30) megawatts. For
purposes of this definition, “facility” shall be defined in a manner consistent with Title 18
of the Code of Federal Regulations Section 292.204(a)(2)(i) and (ii) as of the date of
enactment of the Renewable Energy Act (June 29th, 2004); provided, however, that the
size of the facility is limited to no greater than thirty (30) megawatts, rather than eighty
(80) megawatts. For a Small Hydro Facility to be eligible as a New Renewable Energy
Resource it must in no case involve any new impoundment or diversion of water with an
average salinity of twenty (20) parts per thousand or less.
4.0:
Renewable Energy Standard
4.1
Starting in Compliance Year 2007, all Obligated Entities shall obtain, from Eligible
Renewable Energy Resources, a target percentage of at least three percent (3%) of
electricity sold by an Obligated Entity at retail to Rhode Island End-use Customers,
inclusive of losses. For the purposes of this section, electricity sold by an Obligated
Entity at retail to Rhode Island End-use Customers shall equal the sum of the Real Time
Load Obligations for each Load Asset in the New England Markets that represents the
electricity sold by an Obligated Entity at retail to Rhode Island End-use Customers. In
each subsequent Compliance Year through Compliance Year 2019, the target percentage
shall increase according to the table in Section 4.2 below, except as provided in Section
4.4.
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4.2
For each Obligated Entity and in each Compliance Year, the amount of retail electricity
sales used to meet this obligation that is derived from Existing Renewable Energy
Resources shall not exceed two percent (2%) of total retail electricity sales.
Compliance Year
Total Target
Percentage
Percentage from New
Renewable Energy
Resources
Percentage from
either New or
Existing Renewable
Energy Resources
2007
3.0%
1.0%
2.0%
2008
3.5%
1.5%
2.0%
2009
4.0%
2.0%
2.0%
2010
4.5%
2.5%
2.0%
2011[1]
5.5%
3.5%
2.0%
2012[1]
6.5%
4.5%
2.0%
2013[1]
7.5%
5.5%
2.0%
2014[1]
8.5%
6.5%
2.0%
2015[1]
10.0%
8.0%
2.0%
2016[1]
11.5%
9.5%
2.0%
2017[1]
13.0%
11.0%
2.0%
2018[1]
14.5%
12.5%
2.0%
2019[1]
16.0%
14.0%
2.0%
2020 and thereafter[2]
16.0%
14.0%
2.0%
[1] Increases in 2011 and thereafter subject to Commission determination pursuant to
Section 4.4.
[2] Duration of continuation subject to Commission determination pursuant to Section
4.5.
4.3
If an Obligated Entity represents to a customer that the Obligated Entity is selling to the
customer a portfolio of supply sources that includes more than the amount of Eligible
Renewable Energy Resources requested under these regulations, the Eligible Renewable
Energy Resources necessary to supply more than the minimum required under these
regulations of that customer’s load may not be applied to meet the aggregate
requirements of the Renewable Energy Standard.
4.4
On or about January 1, 2010, the Commission will open a docket to determine the
adequacy, or potential adequacy, of renewable energy supplies to meet the increase in the
percentage requirement of energy from renewable energy resources to go into effect in
2011. On or about January 1, 2014, the Commission may open a docket to determine the
adequacy, or potential adequacy, of renewable energy supplies to meet the increase in the
percentage requirement of energy from renewable energy resources to go into effect in
2015. Adequacy may be evaluated in terms of actual number of NEPOOL GIS
Certificates available and/or net cost of NEPOOL GIS Certificates. In making such
determination of NEPOOL GIS Certificate availability, the Commission will consider the
history of NEPOOL GIS Certificate availability relative to NEPOOL GIS Certificate
requirements and Alternative Compliance Payments for Rhode Island and other New
England state requirements. The Commission will also consider future NEPOOL GIS
Certificate availability based on the status of projects under development in the region
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and other states’ future NEPOOL GIS Certificate requirements, renewable and NEPOOL
GIS Certificate trends across the region, trends in renewable technology costs, the
benefits to Rhode Island and the region, and any such other information brought to the
attention of the Commission during the investigation. In the event that the Commission
determines an inadequacy or potential inadequacy of supplies for scheduled percentage
increases, the Commission may delay the implementation of the scheduled percentage
increase and all subsequent increases for a period of one year or recommend to the
general assembly a revised schedule of percentage increases, if any, to achieve the
purposes of this chapter.
4.5
In 2020 and each year thereafter the minimum Renewable Energy Standard established in
2019 or in such year that the ultimate target is reached shall be maintained indefinitely
unless the Commission determines that such maintenance is no longer necessary for
either amortization of investments in New Renewable Energy Resources or for
maintaining targets and objectives for renewable energy.
5.0:
Eligibility
5.1
Eligible Renewable Energy Resources are either:
(i) Generation Units in the NEPOOL Control Area using:
(a)
direct solar radiation;
(b)
the wind;
(c)
movement of or the latent heat of the ocean;
(d)
the heat of the earth;
(e)
Small Hydro Facilities;
(f)
biomass facilities using Eligible Biomass Fuels and maintaining
compliance with current air permits; Eligible Biomass Fuels may be co-
fired with fossil fuels, provided that only the renewable energy fraction of
production from multi-fuel facilities shall be considered eligible; or
(g)
fuel cells using the renewable resources referenced in this section.
(ii)
Generation Units located in a control area adjacent to NEPOOL, provided the
associated Generation Attributes shall be applied to the Renewable Energy
Standard only to the extent that the energy produced by the Generation Unit is
actually delivered into NEPOOL for consumption by New England customers.
The delivery of such energy from the Generation Unit into NEPOOL must be
verified by:
(a)
a unit-specific bilateral contract for the sale and delivery of such energy
into NEPOOL; and
(b)
confirmation from ISO that the renewable energy was actually settled in
the ISO Market Settlement System; and
(c)
(1) confirmation through the North American Reliability Council tagging
system that the import of the energy into NEPOOL actually occurred; or
(2) any such other requirements as the Commission deems appropriate.
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(iii)
Furthermore, any party using Generation Attributes from a Generation Unit
located in a control area adjacent to NEPOOL must provide documentation
satisfactory to the Commission that the Generation Attributes have not otherwise
been, nor will be, sold, retired, claimed or represented as part of electrical energy
output or sales, or used to satisfy obligations in jurisdictions other than Rhode
Island such as a report from a neighboring Generation Attribute accounting
system or an affidavit.
5.2
Waste-to-energy technologies or processes of any sort or manner, whether thermal or
non-thermal, whether aerobic or non-aerobic, shall in no instance be considered an
eligible fuel or resource. Waste-to-energy technologies or processes include, but are not
limited to, oxidation of waste, anaerobic treatments, and thermal treatments such as
pyrolysis, gasification or plasma processes or treatment of inorganic and/or organic
wastes with or without the recovery of the combustion heat generated. Eligible Biomass
Fuels removed from the waste stream are eligible only if used after being fully separated
from other waste. Gas resulting from the anaerobic digestion of sewage or manure is
considered to be a type of biogas, and therefore an Eligible Biomass Fuel that has been
fully separated from the waste stream. Landfill gas, which is an Eligible Biomass Fuel,
means only that gas recovered from inside a landfill and resulting from the natural
decomposition of waste, and that would otherwise be vented or flared as part of the
landfill's normal operation if not used as a fuel source.
5.3
NEPOOL GIS Certificates associated with energy production from Off-grid Generation
and Customer-sited Generation Facilities certified by the Commission as Eligible
Renewable Energy Resources may also be used to demonstrate compliance, provided that
the facilities are physically located in Rhode Island.
5.4
Initial title to tradable emission credits under existing programs from all Eligible
Renewable Energy generation facilities shall accrue to the owner of such a Generation
Unit, unless such title has been explicitly deemed transferred pursuant to contract or
regulatory order.
6.0:
Certification
6.1
The Commission will certify Eligible Renewable Energy Resources by issuing statements
of qualification within ninety (90) days of application.
(i)
Applicants for certification of Renewable Energy Resources and those requesting
a Declaratory Judgment under Section 6.2 of these regulations must use the
standardized application form for certification developed by the Commission for
such purpose entitled Renewable Energy Resources Eligibility Form posted on
the Commission’s web site. If a Generation Unit has been certified in another
state, then the applicant must attach that state’s order to its certification
application. Applicants proposing the use of a biomass fuel must include with the
application a biomass fuel source plan, as described in Section 6.9. All filings
must be in conformance with the Commission’s Rules of Practice and Procedure,
in particular Rule 1.5, or its successor regulation, entitled “Formal Requirements
as to Filings.”
(ii)
The Commission Clerk will keep a list of interested parties who wish to be
notified when an application for certification is filed or a Declaratory Judgment is
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requested under Section 6.2 of these rules. Such list will include the Division of
Public Utilities and Carriers. In addition to filing with the Commission applicants
are required to send, either electronically or in paper copy, a copy of the
completed application form to the interested parties including any attachments.
The Commission Clerk will post all completed Renewable Energy Resources
Eligibility forms, including all attachments to the Commission website.
(iii)
Any party in interest may comment on such filings to the Commission in writing
within 30 days. Following the 30-day comment period, the Commission will
consider an application for certification or request for Declaratory Judgment in an
open meeting. The Commission may approve the application or request at that
time, or set the matter for hearing following not less than 10-day notice.
(iv)
The Commission’s statement of qualification will include a unique certification
number for each Generation Unit, and will designate whether the facility is
qualified as a New Renewable Energy Resource, an Existing Renewable Energy
Resource, or a resource capable of producing as both a New and Existing
Renewable Energy Resource. For any Generation Unit qualified as capable of
producing as both a New and Existing Renewable Energy Resource, and therefore
able to produce “new” and “existing” NEPOOL GIS Certificates, the Commission
will issue two statements of qualification, one as a New Renewable Energy
Resource and one as an Existing Renewable Energy Resource. For such
Generation Units with both New and Existing Renewable Energy Resource
statements of qualification, each statement of qualification shall clearly delineate
all information necessary for the NEPOOL GIS administrator to properly allocate
the Generation Unit’s production among New and Existing Renewable Energy
Resources, consistent with Section 3.22 of these regulations.
6.2
The Commission will provide prospective reviews for applicants seeking a preliminary
determination as to whether a facility would be eligible prior to the formal certification
process described in Section 6.1 as follows:
(i)
Such applicants for prospective review should file a Request for Declaratory
Judgment under Rule 1.10(c) of the Commission’s Rules of Practice and
Procedure.
(ii)
Once a request for Declaratory Judgment is received by the Commission under
this section, the Commission will proceed under Section 6.1 (i) through (iii). The
Commission will act upon a request for Declaratory Judgment filed under this
section within 120 days from receipt of the materials required under Section
6.1(i).
6.3
The Commission will verify the on-going eligibility of renewable energy generators and
the production of energy from such Generation Units, as follows:
(i)
Renewable Energy Resources of the type that combust fuel to generate electricity
including but not limited to biomass facilities and dual fuel facilities must file
quarterly reports due 60 days after the end of each quarter on the fuel stream used
during the quarter. Such reports shall include the amounts, energy content, and
other details of all fuels used and energy generated, sufficient to allow the
Commission to determine the resource’s eligibility under the Renewable Energy
Act and, in the case of plants that co-fire an Eligible Biomass Fuel with a fossil
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fuel, to allow the Commission to determine or verify what amount of the
Renewable Energy Resource’s generation during that quarter is certified as being
eligible. Generation Units that fail to supply such reports shall be immediately
de-certified.
(ii)
Any other verification as required by the Commission in its certification order.
(iii) The Commission or persons acting at its behest may conduct audits or site visits
to assist in verification at any time at the Commission’s discretion.
6.4
To the extent consistent with the requirements of these regulations, the Commission will
rely upon the NEPOOL GIS for verification of production of energy from Generation
Units certified as eligible
6.5
Generators, once certified, shall notify the Commission in the event of a change in a
generator’s eligibility status. When and if, in the Commission’s opinion, after due
consideration, there is a material change in the characteristics of a Generation Unit or its
fuel stream that could alter its eligibility, such Generation Unit must be recertified.
Recertification of a Generation Unit will be conducted in the same manner as the
certification process outlined above. Applicants for recertification of a Generation Unit
must clearly state on the Renewable Energy Resources Eligibility Form that they are
applying for recertification.
6.6
Suspension or Revocation: The Commission may suspend or revoke the certification of
Generation Units, certified in accordance with Section 6.1, that are found, after notice
and an opportunity for hearing, to provide false information or that fail to notify the
Commission in the event of a change in eligibility status or otherwise comply with its
rules. Other sanctions are detailed in Section 9 of these regulations.
(i)
A Commission order suspending certification will include a fixed period of time
during which the Generation Unit shall not be eligible to provide NEPOOL GIS
Certificates under these regulations.
(ii)
A Commission order revoking certification of a generator under these rules may
include a specific time period which must elapse before the Generation Unit may
apply for recertification.
(iii) Time periods listed in Section 6.6 (i) and (ii) as well as other sanctions levied by
the Commission should reflect the seriousness and number of instances of non-
compliance by the Generation Unit.
6.7
With the exception of contracts for generation supply entered into prior to 2002, initial
title to NEPOOL GIS Certificates from Off-grid and Customer-sited Generation Facilities
and from all other Eligible Renewable Energy Resources shall accrue to the owner of
such a Generation Unit, unless such title has been explicitly deemed transferred pursuant
to contract or regulatory order.
6.8
Customer-sited and Off-grid Generation facility:
(i)
Customer-sited and Off-grid Generation Facilities may be certified as an eligible
resource if their NEPOOL GIS Certificates are created by way of an aggregation
of Generation Units using the same generation technology, and so long as the
aggregation is certified by the Commission. Such Generation Units that are
interconnected on the End-use Customer’s side of the retail electricity meter in
such a manner that it displaces all or part of the metered consumption of the End-
use Customer, or not connected to a utility transmission or distribution system,
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will be eligible only if the Generation Unit is physically located in the State of
Rhode Island.
An aggregation may consist of as few as one Generation Unit, and the aggregation
may be owned and/or operated by the same entities that own the Generation Units
in the aggregation. In applying for certification by the Commission, the owner of
the aggregation shall submit proposed procedures under which their particular
aggregation will operate (“Aggregation Agreement,” see Section 6.8(iii)). The
Commission may then certify the aggregation as an eligible Generation Unit,
stipulating that the aggregation follow the procedures specified in the Aggregation
Agreement. For the purposes of these Renewable Energy Standard regulations,
an aggregation so certified will be considered a single “Generation Unit.” Once
certified by the Commission, individual Generation Units may enter or leave the
aggregation without requiring approval of the Commission, so long as additions
or subtractions from the aggregation comply with the Aggregation Agreement.
Any changes to or deviations from the Aggregation Agreement will be considered
a change in generator status, and will require recertification by the Commission.
(ii)
NEPOOL GIS Certificates created by an aggregation shall be monitored and
verified by a party (“Verifier”) independent of the Generation Unit in the
aggregation, the owner of the aggregation, the operator of the aggregation, and
any other party that might create a conflict of interest in assuring accurate
NEPOOL GIS Certificate creation. Nothing in this language is meant to preclude
the electric distribution company from being retained as the Verifier, assuming all
qualifications contained in Section 6.8(ii) and 6.8(iii)(b),(c) and (e) are met.
(iii) In making application for certification of an aggregation as an eligible Generation
Unit, the owner of the aggregation shall provide the Commission a proposed
Aggregator Agreement, which shall contain the following information:
(a)
Name and contact information of the aggregator owner, to which these
regulations and stipulations of certification shall apply, and who shall be
the owner of any NEPOOL GIS Certificates so certified;
(b)
Name, contact information, and qualifications of the Verifier.
Qualifications shall include any information the applicant believes will
assist the Commission in determining that the Verifier will accurately and
efficiently carry out its duties. After receipt of the application, the
Commission may require additional evidence of qualifications;
(c)
A declaration of any and all business or financial relations between
aggregator owner and Verifier, which the Commission will use to evaluate
the independence of the Verifier. Reasons for ruling that a Verifier is not
sufficiently independent include, but are not limited to: i) If one entity
owns, directly or indirectly, or if a natural person so owns, 10% or more of
the voting stock or other equity interest in the other entity; ii) If 10% or
more of the voting stock or other equity interests in both entities are
owned, directly or indirectly, by the same entity or a natural person; or iii)
If one entity is a natural person, and such entity or a member of such
entity’s immediate family is an officer, director, partner, employee or
representative of the other entity. Further, the Aggregator Agreement
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shall include a statement indicating under what circumstances the Verifier
would not be considered sufficiently independent of the individual
Generation Unit, and that Generation Units not meeting this independence
test would not be allowed to participate in the aggregation;
(d)
Type of technology that will be included in the aggregation, and statement
that the aggregation will include only individual Generation Units that
meet all the requirements of these regulations, for example physical
location, vintage, etc.;
(e)
Proposed operating procedures for the aggregation, by which the Verifier
shall ensure that individual Generation Units in the aggregation comply
with all eligibility requirements and that the NEPOOL GIS Certificates
created accurately represent generation. At a minimum, these procedures
will: i) require a determination that the Generation Unit exists and is in
compliance with these Renewable Energy Standard regulations and the
Aggregation Agreement as approved by the Commission; ii) require a
meter reading procedure that allows the Verifier to verify these readings;
meter readings may be manual or remote and via the aggregators own
system or via an independent system, but in all cases shall comply with
NEPOOL GIS Operating Rules regarding metering; iii) specify how
generation data will be entered into NEPOOL GIS to create NEPOOL GIS
Certificates; iv) a procedure to verify independently that the NEPOOL
GIS Certificates created for the aggregation are consistent with the meter
readings; v) a procedure for the Verifier to report to the Commission on
the results of their verification process; vi) require that verification and
meter readings be done on a quarterly basis, except for units of two
hundred KW or less, which may be done on an annual basis; and vii)
procedures for correcting discrepancies in NEPOOL GIS Certificate
generation identified by the Verifier; and
(f)
Description of how the Verifier will be compensated for its services by
the aggregator. In no instances will an aggregation be certified in which
the Verifier is compensated in a manner linked to the number of NEPOOL
GIS Certificates created by the aggregation.
(iv)
In the event the Aggregation Agreement is not followed, the Commission may
impose penalties, up to and including decertifying the aggregation as an eligible
Generation Unit.
(v)
If the NEPOOL GIS Operating Rules are amended to require independent third-
party verification of Non-NEPOOL generation, the Commission may re-examine
the rules set forth herein to determine if any adjustments are required.
6.9
Eligible Biomass Fuel Generation Units
(i)
At the time of application for certification, Generation Units proposing to use an
Eligible Biomass Fuel are required to submit a fuel source plan, which shall
specify:
(a)
The type of Eligible Biomass Fuel to be used at the Generation Unit;
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(b)
If the proposed fuel is clean wood, any further substantiation the applicant
may wish to supply as to why the fuel source should be considered a clean
wood;
(c)
In the case of co-firing with a fossil fuel, a description of how such co-
firing will occur and how the relative amounts of Eligible Biomass Fuel
and fossil fuel will be measured, and how the eligible portion of
generation output will be calculated. Such calculations shall be based on
the energy content of the proposed fuels used;
(d)
A description of what measures the applicant will take to ensure that only
the Eligible Biomass Fuel are used, examples of which may include:
standard operating protocols or procedures that will be implemented at the
Generation Unit, contracts with fuel suppliers, testing or sampling
regimes;
(e)
That the fuels stored at or brought to the Generation Unit will only be
either Eligible Biomass Fuels or fossil fuels used for co-firing. Biomass
Fuels not deemed eligible will not be allowed at the premises of certified
Generation Units; and
(f)
If the proposed fuel includes recycled wood waste, documentation that
such fuel meets the definition of Eligible Biomass Fuel and also meets
material separation, storage, or handling standards acceptable to the
Commission and furthermore consistent with these regulations.
(ii)
In determining if an Eligible Biomass Generation Unit shall be certified, the
Commission will consider if the fuel source plan can reasonably be expected to
ensure that only Eligible Biomass Fuels will be used, and in the case of co-firing
ensure that only that proportion of generation attributable to an Eligible Biomass
Fuel be eligible. Certification will not be granted to those Generation Units with
fuel source plans the Commission deems inadequate for these purposes.
(iii)
Should the Commission have reason to believe that a Generation Unit is using a
non-eligible biomass fuel, or claiming eligibility for a portion of generation in
excess of that attributable to the Eligible Biomass Fuel, the Commission will
schedule within 30 days a hearing to determine if the Generation Unit is in
compliant with its certification, and provide written notice to the applicant of the
hearing date and reasons for the hearing. Should the applicant fail to appear at the
hearing, the Generation Unit will be immediately de-certified.
(iv)
Should the Commission determine that a Generation Unit is in fact non-
compliant, it will take the following actions depending on the Commission’s
determination of why such non-compliance occurred:
(a)
If the applicant, or Generation Unit owners or operators, willfully
attempted to circumvent, disregard, or disobey either these regulations, the
application for certification, or the fuel source plan, the Generation Unit
shall be immediately de-certified and the case referred to the Attorney
General’s office and subject to the sanctions provided in Section 9.0.
(b)
If the Commission determines that the fuel source plan was in fact being
followed, but the plan was inadequate to ensure compliance, the applicant
may submit a revised fuel source plan within 30 days of receiving such a
ruling from the Commission. Should the Commission approve the revised
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plan, certification of the Generation Unit will continue uninterrupted
without prejudice or penalty. Should the applicant fail to have a revised
fuel source plan approved by the Commission within 60 days of the
Commission’s determination that a revised plan is required, the
Generation Unit shall be de-certified.
(c)
If the Commission determines that the fuel source plan was not being
followed, but not for reasons of willful misconduct on the part of the
applicant or the Generation Unit owner or operator, the applicant shall
provide a written explanation of why or how the failure to comply
occurred, and describing what measures will be taken to prevent such
compliance failure from happening again. If the same Generation Unit is
later again found to be out of compliance, and the Commission finds the
measures proposed for preventing such non-compliance in a previous
instance were in fact not followed, the Generation Unit will be
immediately de-certified. If the measures were found to have been
followed but proved inadequate to ensure compliance, or the reason for
non-compliance did not relate to the measures previously implemented,
the applicant may again provide written explanation and description of
corrective measures to prevent future non-compliance. However, if a
Generation Unit is found to not be following its fuel source plan in three
instances in any ten-year period, it shall be immediately de-certified and
subject to the sanctions provided in Section 9.0.
7.0:
Demonstration of Compliance
7.1
NEPOOL GIS Certificates applied towards Rhode Island Renewable Energy Standard
compliance may not be used towards compliance with state renewable energy obligations
relating to an Obligated Entity’s load in other states.
7.2
Compliance with the Renewable Energy Standard may be demonstrated through
procurement of NEPOOL GIS Certificates relating to Generating Units certified by the
Commission as using eligible renewable energy sources, as evidenced by reports issued
by the NEPOOL GIS Administrator. Procurement of NEPOOL GIS Certificates from
Off-grid and Customer-sited Generation Facilities, if located in Rhode Island and verified
by the Commission as Eligible Renewable Energy Resources, may also be used to
demonstrate compliance.
7.3
In lieu of providing NEPOOL GIS Certificates, an Obligated Entity may also discharge
all or any portion of its compliance obligations by making an Alternative Compliance
Payment to the Renewable Energy Development Fund (“REDF”). An Obligated Entity
shall include with its annual compliance filing copies of any receipt(s) for Alternative
Compliance Payments made to the REDF during the Compliance Year. If the REDF uses
Alternative Compliance Payment to create NEPOOL GIS Certificates it must do so in a
way that avoids double counting. Where an Obligated Entity enters into a prospective
agreement with the Rhode Island Economic Development Corporation (“EDC”) to accept
Alternative Compliance Payments pursuant to Rhode Island General Laws Section 39-26-
7(b) and the EDC thereby purchases NEPOOL GIS Certificates, such NEPOOL GIS
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Certificates shall be credited against the Renewable Energy Standard for the Obligated
Entity in the year of the certificate.
7.4
The following flexibility mechanisms are allowed for the purposes of easing compliance
burdens, facilitating bringing New Renewable Energy Resources online, and avoiding
and/or mitigating conflicts with state level source disclosure requirements and green
marketing claims throughout the region:
(i)
Obligated Entities may demonstrate compliance over a full Compliance Year,
rather than any fraction thereof;
(ii)
Obligated Entities may bank excess compliance for up to two (2) subsequent
Compliance Years, capped at thirty percent (30%) of the current year’s obligation;
(iii)
Allow Renewable energy generated during calendar year 2006 to be banked by an
Obligated Entity as early compliance, usable towards meeting an Obligated
Entity’s Compliance Year 2007 requirement only. Generation used for early
compliance must result in the retirement of a NEPOOL GIS Certificate in a
Reserved Certificate Account designated for such purposes.
7.5
Compliance Procedures. Annual compliance filings to the Commission shall be made by
all Obligated Entities within thirty (30) calendar days after NEPOOL GIS reports are
available for the fourth (4th) quarter of each Compliance Year. Obligated Entities shall
utilize such forms as provided by the Commission for the annual compliance filing.
Obligated Entities shall provide, in the annual compliance filing, such NEPOOL GIS or
other reports to demonstrate compliance to the satisfaction of the Commission. Obligated
Entities shall arrange with the ISO Meter Reader to provide to the Commission final,
reconciled values of the Real Time Load Obligations for each Load Asset in the New
England Markets that represents the electricity sold by an Obligated Entity at retail to
Rhode Island End-use Customers. All electric utility distribution companies shall
cooperate with the Commission in providing data necessary to assess the magnitude of
obligation and verify the compliance of all Obligated Entities.
7.6
Standard Compliance. Each Obligated Entity shall be deemed to be in compliance with
these regulations if the information provided in the Compliance Filing submitted pursuant
to these regulations is true and accurate and demonstrates compliance with Rhode Island
Renewable Energy Standard targets applicable to the applicable Compliance Year.
7.7
Early Compliance. An Obligated Entity seeking to use NEPOOL GIS Certificates
associated with production during calendar year 2006 for compliance in Compliance
Year 2007, shall be subject to the following limitations.
(i)
The Obligated Entity shall demonstrate to the satisfaction of the Commission that
such NEPOOL GIS Certificates were retired in a Reserved Certificate Account
designated for such purposes in accordance with Section 7.4 (iii).
(ii)
The Obligated Entity must file an Early Compliance Filing pursuant to Section
7.11 of these regulations.
(iii)
The Obligated Entity shall demonstrate to the satisfaction of the Commission that
such Generation Attributes have not otherwise been, nor will be, sold, retired, claimed or
represented as part of electrical energy output or sale, or used to satisfy obligations in
jurisdictions other than Rhode Island.
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7.8
Banked Compliance: For meeting the required percentage from New Renewable Energy
Resources in any Compliance Year, an Obligated Entity may use NEPOOL GIS
Certificates associated with production during one Compliance Year for compliance in
either or both of the two subsequent Compliance Years, subject to the limitations set forth
herein and provided that the Obligated Entity is in compliance with the Renewable
Energy Standard for all previous Compliance Years. In addition, the Obligated Entity
shall demonstrate to the satisfaction of the Commission that:
(i)
Banked NEPOOL GIS Certificates were in excess of the New Renewable
NEPOOL GIS Certificates needed for compliance in the Compliance Year in
which they were generated, that such excess NEPOOL GIS Certificates have not
previously been used for compliance with the Renewable Energy Standard, and
were not otherwise sold pursuant to Section 4.3;
(ii)
Banked NEPOOL GIS Certificates do not exceed thirty percent of the Attributes
needed by the Obligated Entity for compliance in the year they were generated;
(iii)
Banked NEPOOL GIS Certificates were produced by the generation of electrical
energy sold to Rhode Island End-use Customers during the Compliance Year in
which they were generated; and have not otherwise been, nor will be, sold,
retired, claimed or represented as part of electrical energy output or sale, or used
to satisfy obligations in jurisdictions other than Rhode Island. Obligated Entities
shall make such demonstration by retiring banked NEPOOL GIS Certificates in
the Compliance Year they were generated.
7.9
Alternative Compliance. An Obligated Entity shall receive Alternative Compliance
Credits from the Commission, subject to the following:
(i)
The Alternative Compliance Payment rate shall be determined according to
Section 3.1 of these regulations. For each Compliance Year, the Commission will
publish the Alternative Compliance Payment rate by January 31 of the
Compliance Year;
(ii)
The quantity of credits, specified in MWhs, that can be applied to its obligations
under these regulation shall be determined by calculating the ratio of the total of
payments to the REDF for the Compliance Year to the Alternative Compliance
Payment rate for that Compliance Year; and
(iii)
The Obligated Entity shall include with its Annual Compliance Filing copies of
any Alternative Compliance Payment receipt(s) for payments made to the REDF
applicable to the Compliance Year.
7.10
Annual Compliance Filing. For each Obligated Entity, the filing shall document
compliance with the provisions of these regulations to the satisfaction of the Commission
and shall include, but not be limited to, the following:
(i)
Total Retail Electrical Energy Sales. Documentation of the total MWhs of
electrical energy sold to End-use Customers in the Compliance Year;
(ii)
Retail Electricity Sales by Product. Documentation of the total MWhs sold to
End-use Customers in the Compliance Year, verified by an independent third
party satisfactory to the Commission. The Commission will consider requests
made pursuant to Commission Rules of Practice and Procedure 1.2(g) to keep
product information confidential to the extent permitted by law;
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(iii)
NEPOOL GIS Certificates Allocated from the Compliance Year. Documentation
of the total MWhs of each Electrical Energy Product sold to End-use Customers
that was generated by New Renewable Energy Resources, and the total MWhs of
each Electrical Energy Product sold to End-use Customers that was generated by
Existing Renewable Energy Resources in the Compliance Year as follows:
(a)
For electrical energy transactions included in the ISO Market Settlement
System, the Compliance Filings shall include documentation from the NEPOOL
GIS Administrator of the Obligated Entity’s ownership of NEPOOL GIS
Certificates representing generation by New or Existing Renewable Energy
Resources during the Compliance Year;
(b)
For electrical energy transactions not included in the ISO Market
Settlement System, but for which the Obligated Entity has secured NEPOOL GIS
Certificates, the Compliance Filings shall include documentation from the
NEPOOL GIS Administrator of the Obligated Entity’s ownership of Generation
Attributes representing generation by New or Existing Renewable Energy
Resources during the Compliance Year;
(c)
The identification of each Generation Unit from which New or Existing
Renewable Generation Attributes were claimed by the Obligated Entity for its
compliance in the Compliance Year;
(d)
The quantity of New or Existing Renewable NEPOOL GIS Certificates
produced by each such Unit for each applicable month of the Compliance Year;
and
(e)
Assurances satisfactory to the Commission that the New or Existing
Renewable NEPOOL GIS Certificates have not otherwise been, nor will be, sold,
retired, claimed or represented as part of electrical energy output or sales, or used
to satisfy obligations in jurisdictions other than Rhode Island.
(iv)
Attributes Allocated from Early Compliance. Allocation by Electrical Energy
Product of any NEPOOL GIS Certificates claimed for Early Compliance pursuant
to these regulations;
(v)
Attributes Allocated from Banked Compliance. Allocation by Electrical Energy
Product of any NEPOOL GIS Certificates banked from one or both of the two
previous years pursuant to these regulations that are used to demonstrate
compliance in the current Compliance Year;
(vi)
Alternative Compliance Credits. Allocation by Electrical Energy Product of any
Alternative Compliance Credits claimed pursuant to these regulations along with
a copy of any Alternative Compliance Payment receipt(s) from the Renewable
Energy Development Fund;
(vii)
Attributes Banked for Future Compliance. Identification of any NEPOOL GIS
Certificates that the Obligated Entity anticipates claiming for purposes of Banked
Compliance in subsequent years.
7.11
Early Compliance Filing. An Obligated Entity that anticipates claiming 2006 New
Renewable NEPOOL GIS Certificates for purposes of compliance in 2007 under the
Early Compliance provisions of Section 7.7 shall submit to the Commission an Early
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Compliance filing no later than July 1, 2007. Such NEPOOL GIS Certificates shall be
reported in such filing pursuant to the documentation requirements of these regulations.
8.0:
Contracting Standards and Procurement Plans
8.1
Standards for Contracts:
Contracts for renewable energy certificate transactions by Obligated Entities to meet the
Renewable Energy Standard shall contain provisions and terms to address the features
and risks that are unique to the purchase of Eligible Renewable Energy Resources. Such
terms may include the following:
(i.) Definitions particular to renewable energy certificate transactions;
(ii.) Specialized financial instruments and warranties thereof;
(iii.) Purchase and sale of renewable energy certificates;
(iv.) Quantities;
(v.) Representations and warranties of the parties;
(vi.) Obligations of the parties;
(vii.) Relationship of the parties;
(viii.) Non-performance and Remedies;
(ix.) Default;
(x.) Term, termination and waiver;
(xi.) Binding milestones, if any;
(xii.) Credit and Collateral, if any; and
(xiii.) Additional agreements conforming to the nature of the transaction.
8.2
Procurement Plans
All obligated electric utility distribution companies (“Obligated Distribution
Companies”) must submit annual plans for procurement of NEPOOL GIS Certificates
from Eligible Renewable Energy Resources for compliance with these regulations to the
Commission (“Renewable Energy Procurement Plan”). Obligated Distribution
Companies shall demonstrate to the Commission that, in preparation of the Renewable
Energy Procurement Plan, such companies have:
(i) Determined their needs, including the demand for renewable energy
certificates from Eligible Renewable Energy Resources under the range of
anticipated future conditions;
(ii) Developed a schedule of planned purchases of NEPOOL GIS Certificates
from Eligible Renewable Energy Resources to supply the identified needs;
(iii) Developed key criteria to evaluate the providers and product options;
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(iv) Identified the major risk factors and how mitigated;
(v) Developed a process to implement the filed Renewable Energy
Procurement Plan; and
(vi) Provided the means of monitoring the procurement over time to make sure
it performs as planned, to hold counter parties accountable, and to identify
areas where improvement is needed;
8.3
The Renewable Energy Procurement Plan shall contain the Obligated Distribution
Company’s procedure for procuring its target percentage of Eligible Renewable Energy
Resources for each Electrical Energy Product offered to End-use Customers, including
long-term contracts which shall be made a part of the Obligated Distribution Company’s
portfolio for procuring its target percentage of Eligible Renewable Energy Resources for
each Electrical Energy Product offered to End-use Customers. The Renewable Energy
Procurement Plan shall provide for, at a minimum, separate Annual Request for
Proposals (each, an “Annual RFP”) to meet its requirement for purchases of NEPOOL
GIS Certificates from Eligible Renewable Energy Resources from existing and new
renewable energy sources and the conditions under which it may contract with Eligible
Renewable Energy Resources between Annual RFPs. The Renewable Energy
Procurement Plan shall be filed with the Commission annually. All the components of
the Renewable Energy Procurement Plan shall be subject to Commission review and
approval. Once a Renewable Energy Procurement Plan is approved by the Commission,
the Obligated Distribution Company shall be authorized to acquire NEPOOL GIS
Certificates from Eligible Renewable Energy Resources consistent with the approved
plan and recover its costs incurred from procuring NEPOOL GIS Certificates from
Eligible Renewable Energy Resources pursuant to the approved Renewable Energy
Procurement Plan. The Commission may periodically review the Renewable Energy
Procurement Plan to determine whether it should be prospectively modified due to
changed market or other conditions.
8.4
Subject to review by the Commission, Obligated Distribution Companies are entitled by
R.I. Gen. Laws Sec. 39-26-6(4)(b), to recovery of all prudent incremental costs arising
from the implementation of these regulations and its approval of a Renewable Energy
Procurement Plan, including, without limitation, the purchases of NEPOOL GIS
Certificates from Eligible Renewable Energy Resources, the payment of Alternative
Compliance Payments, and required payments to support the NEPOOL GIS; except for
those costs arising from sanctions for non-compliance.
8.5
Procurement During Standard Offer Period
During the period in which Standard Offer service is provided to customers, the Annual
RFP shall request bids for NEPOOL GIS Certificates from Eligible Renewable Energy
Resources for the following Periods: (I) the subsequent Standard Offer calendar year (and
to satisfy any outstanding Standard Offer renewable obligations in the current calendar
year), (II) the remaining Standard Offer period, and (III) the years 2010 and beyond. For
the period 2010 and beyond the Annual RFP will request proposals for NEPOOL GIS
Certificates that may also include bundled energy. Such bids will be solicited for periods
individually as well as for long term offers spanning Periods I, II and III.
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(i)
The Obligated Distribution Company shall share the bids received under the
Annual RFP for Periods II and III above, initially with the State Energy Office
(“SEO”) in its role as administrator of the Rhode Island Renewable Energy Fund
and the Economic Development Corporation (“EDC”) as administrator of the
REDF and the Division of Public Utilities and Carriers (the “Division”). The
SEO (and/or EDC) at their discretion and after executing a confidentiality
agreement, may collaborate with the electric distribution company throughout the
remainder of the procurement process, and implement complementary programs.;
(ii)
The Obligated Distribution Company may purchase NEPOOL GIS Certificates
from Eligible Renewable Energy Resources for Periods I and II above from the
bids provided in the annual RFPs if such bids meet the established criteria of the
Renewable Energy Procurement Plan. The Obligated Distribution Company may
purchase NEPOOL GIS Certificates from Eligible Renewable Energy Resources
for Periods I and II above from the bids provided in the Annual RFPs if such bids
do not meet the established criteria of the Renewable Energy Procurement Plan
provided such purchase is reviewed and approved by the Commission. The
Obligated Distribution Company shall file the results of its Annual Procurement
Plan with the Commission, and
(iii)
The Obligated Distribution Company will also request expressions of interest to
purchase NEPOOL GIS Certificates from Eligible Renewable Energy Resources
from any qualified interested party that executes a non-disclosure agreement with
the Obligated Distribution Company (“Participating Purchaser”). A Participating
Purchaser may purchase the remaining Eligible Renewable Energy Resources for
Periods II or III above from the bids provided in response to the Annual RFPs.
The Obligated Distribution Company shall share the bids with any Participating
Purchaser, and shall delineate the process by which it will initiate negotiations
between the bidders of Eligible Renewable Energy Resources and Participating
Purchasers whereby the Eligible Renewable Energy Resources may be procured
for Periods II and III, above. Both the Obligated Distribution Company and the
Participating Purchaser shall have the right to decline to enter into a purchase
commitment for any period or portion thereof.
9.0:
Sanctions for Non-Compliance
9.1
Obligated Entities that fail to comply with the Commission’s regulations related to the
Rhode Island Renewable Energy Standard will first receive a warning letter with a stated
date of compliance. If such Obligated Entity then fails to comply by the date indicated in
the warning letter its license will be suspended and it will not be allowed to enroll new
customers. If problem is still not corrected by the dates in the suspension notice, its
license will be revoked. Outstanding payments (e.g., to the Alternative Compliance
Payment) will include interest.
9.2
No sanction or penalty shall relieve or diminish an Obligated Entity from liability for
fulfilling any shortfall in its compliance obligation, provided, however, that no sanction
shall be imposed if compliance is achieved through Alternative Compliance Payments.
9.3
Financial penalties resulting from sanctions from Obligated Entities shall not be
recoverable in rates of electric distribution companies as defined in Rhode Island General
Laws section 39-1-2(12).
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9.4
Generation Units that fail to abide by the Commission’s regulations or which are found
by the Commission after notice and opportunity for hearing to have reported falsely to the
Commission are subject to the following sanctions:
(i)
Immediate revocation or suspension of the Generation Unit’s certification;
(ii)
The Commission may order the Generation Unit to make payments to the REDF
in the amount of the Alternative Compliance Payment multiplied by the number
of NEPOOL GIS Certificates involved in the false reporting;
(iii)
The Commission may also order Generation Units that have reported falsely to
secure substitute NEPOOL GIS Certificates in the number involved in the false
reporting and retire them);
(iv)
NEPOOL GIS Certificates purchased by Obligated Entities later found to be
tainted will not be deemed ineligible for compliance purposes unless it can be
demonstrated that the Obligated Entity was aware of the problem;
(v)
Once a Generation Unit has paid the penalties and brought the facility into
compliance it can be recertified by the Commission. Recertification will be
effected by the same process as outlined in Section 6 of these regulations; and
(vi)
Additionally, Generation Units and Obligated Entities reporting falsely to the
Commission are subject to laws against perjury.
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