810-RICR-40-05-2
810-RICR-40-05-2. Implementation of a Renewable Energy Standard (version Technical Revision, 07/25/2007 to 01/04/2022)
2.1 Authority
These regulations are
promulgated pursuant to R.I. Gen Laws § 39-26, et seq .
2.2 Purpose
The purpose of this chapter
is to implement Rhode Island’s Renewable Energy Standard law, R.I.
Gen Laws § 39-26-1 et seq ., as enacted June 29, 2004,
referred to hereafter as the “Renewable Energy Act.”
2.3 Definitions
A. 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.
1. "Aggregation owner"
means a person or entity that owns or controls a single
Customer-sited or Off-grid Generation Facility, or a collection of
such facilities, along with any associated NEPOOL GIS Certificates,
and who applies for and receives certification of an aggregation from
the commission pursuant to § 2.6(H) of this Part. An Aggregation
Owner may be the same entity that owns the generation unit(s) in the
aggregation.
2. "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. "Commission"
means the Rhode Island Public Utilities Commission.
4. "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.
5. "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.
6. "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.
7. "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 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.
a. Generation Units using
wood sources other than those listed above may make application, as
part of the required fuel source plan described in § 2.7 of this
Part, 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.
8. "Eligible renewable
energy resource" means a resource as defined in § 2.5 of this
Part.
9. "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.
10. "Existing renewable
energy resources" means Generation Units using Eligible
Renewable Energy Resources and first entering commercial operation
before December 31, 1997.
11. "FERC" means the
Federal Energy Regulatory Commission, or its successor.
12. "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.
13. "Generation unit"
means a facility that converts a fuel or an energy resource into
electrical energy.
14. "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 § 2.5 of this Part.
15. "Intermittent
resource" means a Generation Unit utilizing wind, solar, or
Small Hydro energy resources.
16. "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.
17. "Load asset"
means the term as used in the New England Markets.
18. "NEPOOL GIS"
means the Generation Information System operated by NEPOOL, its
designee or successor entity, which includes a generation information
database and certificate system, and that accounts for certain of the
Generation Attributes of electrical energy consumed within, imported
into or exported from NEPOOL.
19. "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.
20. "NEPOOL" means
the New England Power Pool or its successor.
21. "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.
22. "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.
23. "New renewable energy
resources" means:
a. 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
b. 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
c. 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
d. for a multi-fuel facility,
pursuant to § 2.5(A)(1)(f) of this Part, 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
e. 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 § 2.6 of this Part 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
f. 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 § 2.6 of this
Part 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.
24. "Nonregulated power
producers" mean the same as defined in R.I. Gen. Laws §
39-1-2(19).
25. "Obligated entity"
means:
a. 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 R.I. Gen. Laws
§ 39-1-2, 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
b. 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.
26. "Off-grid generation
facility" means a Generation Unit that is not connected to a
utility transmission or distribution system.
27. "Prime mover"
means
a. for a landfill gas
facility, the entire internal combustion engine or combustion
turbine;
b. for a biomass facility,
the entire boiler;
c. for a wind facility, the
entire wind turbine, including the generator, gearbox (if any),
nacelle, and turbine;
d. for a small hydro-electric
facility, the entire turbine and structures supporting the turbine;
e. for a geothermal facility,
the entire steam turbine, including the turbine rotors, shaft,
stationary blades, and gear assemblies;
f. for a digester gas
facility, the entire digester unit and internal combustion engine or
combustion turbine as applicable; and
g. for a solar thermal
facility, the entire steam turbine.
28. "Real time load
obligation" means the energy obligation as defined and
determined by the ISO in the New England Markets.
29. "Repowered generation
unit" means:
a. an existing Generation
Unit that completely replaces its Prime Mover with a new one pursuant
to § 2.3(A)(27) of this Part; and
b. the then existing
Generation Unit must demonstrate to the satisfaction of the
Commission either:
(1) a material increase in its
efficiency or
(2) 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
c. 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.
30. "Reserved
certificate" means a NEPOOL GIS certificate sold independent of
a transaction involving electrical energy, pursuant to “Rule 3.5
Reserved Certificates” or a successor rule of the NEPOOL
GIS Operating Rules .
31. "Reserved certificate
account" means a specially designated account established by an
Obligated Entity, pursuant to “Rule 3.5 Reserved Certificates” or
a successor rule of the operating rules of the NEPOOL
GIS Operating Rules , for transfer and retirement of Reserved
Certificates from the NEPOOL GIS.
32. "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 18 C.F.R. §§
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.
33. "Verifier" means
a person or entity, independent of a Generation Unit in an
aggregation, an Aggregation Owner, the operator of an aggregation, or
any other party that might create a conflict of interest in assuring
accurate NEPOOL GIS Certificate creation, who:
a. is responsible for
monitoring, verifying and entering into the NEPOOL GIS the quantity
of eligible energy produced by Generation Units in an aggregation, a
Customer-Sited Generation Facility, or an Off-grid Generation
Facility whose energy production data (or any part thereof) is not
automatically included in the ISO Market Settlement System; and
b. meets the requirements of a
Verifier under § 2.6(H) of this Part. A Verifier may be the local
electric distribution company, provided all qualifications contained
in § 2.6(H)(3) of this Part and §§ 2.6(H)(4)(b), (c), (f), and (g)
of this Part are met.
2.4 Renewable Energy Standard
A. 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 § 2.4(C) of this Part below, except as
provided in § 2.4(G) of this Part.
B. 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.
C. Target Table
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 § 2.4(E) of this Part. See Commission
Docket No. 4404
[2]
Duration of continuation subject to Commission determination
pursuant to § 2.4(F) of this Part.
D. 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.
E. 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 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.
F. 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.
2.5 Eligibility
A. Eligible Renewable Energy
Resources are either:
1. 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.
B. 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:
1. a unit-specific bilateral
contract for the sale and delivery of such energy into NEPOOL; and
2. confirmation from ISO that
the renewable energy was actually settled in the ISO Market
Settlement System; and
a. confirmation through the
North American Reliability Council tagging system that the import of
the energy into NEPOOL actually occurred; or
b. any such other
requirements as the Commission deems appropriate.
C. 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.
D. 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.
E. 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.
F. 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.
2.6 Certification
A. The Commission will
certify Eligible Renewable Energy Resources by issuing statements of
qualification within ninety (90) days of application.
1. Applicants for
certification of Renewable Energy Resources and those requesting a
Declaratory Judgment under § 2.6(B) of this Part 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 § 2.7 of this Part. All filings must be in conformance with the
Commission’s Rules of Practice and Procedure, in particular § 1.6
of this Subchapter, or its successor regulation, entitled “Formal
Requirements as to Filings.”
2. 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
requested under § 2.6(B) of this Part. 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.
3. 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.
4. 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 § 2.3(A)(23) of
this Part.
B. 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 §§ 2.6(A)(1) through (4)
of this Part as follows:
1. Such applicants for
prospective review should file a Request for Declaratory Judgment
under § 00-00-1.11(C) of this Title, the Commission’s Rules of
Practice and Procedure.
2. Once a request for
Declaratory Judgment is received by the Commission under this
section, the Commission will proceed under §§ 2.6(A)(1) through (4)
of this Part. The Commission will act upon a request for Declaratory
Judgment filed under this section within 120 days from receipt of the
materials required under § 2.6(A)(1) of this Part.
C. The Commission will verify
the on-going eligibility of renewable energy generators and the
production of energy from such Generation Units, as follows:
1. 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
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.
2. Any other verification as
required by the Commission in its certification order.
3. 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.
D. 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
E. 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.
F. Suspension or Revocation:
The Commission may suspend or revoke the certification of Generation
Units, certified in accordance with § 2.6 of this Part, 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 § 2.10 of this Part.
1. 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.
2. 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.
3. Time periods listed in §§
2.6(F)(1) and (2) of this Part as well as other sanctions levied by
the Commission should reflect the seriousness and number of instances
of non-compliance by the Generation Unit.
G. 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.
H. Customer-sited and
Off-grid Generation facility:
1. 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 vintage (e.g. New versus Existing), 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, will be
eligible only if the Generation Unit is physically located in the
State of Rhode Island.
2. 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
Aggregation Owner shall submit proposed procedures under which their
particular aggregation will operate (“Aggregation Agreement,” see
§ 2.6(H)(4) of this Part). 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.
3. NEPOOL GIS Certificates
created by an aggregation shall be monitored and verified by a
“Verifier”. A Verifier may seek certification from the
Commission. A request for certification by a Verifier must
demonstrate the Verifier’s independence, and describe procedures
and qualifications by which the Verifier would fulfill each of the
obligations placed upon the Verifier under § 2.6(H)(3) of this Part
and §§ 2.6(H)(4)(b), (c)(1) through (3), (f)(1) through (3), (g),
and (h) of this Part. Nothing in this language is meant to preclude
the electric distribution company from being retained as the
Verifier, assuming all qualifications contained in § 2.6(H)(3) of
this Part and §§ 2.6(H)(4)(b), (c)(1) through (3), (f)(1) through
(3), (g), and (h) of this Part are met.
4. In making application for
certification of an aggregation as an eligible Generation Unit, the
Aggregation Owner shall provide the Commission a proposed Aggregator
Agreement, which shall contain the following information:
a. Name and contact
information of the Aggregation 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 Aggregation 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:
(1) 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;
(2) 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
(3) 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.
d. Further, the Aggregator
Agreement 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;
e. 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.;
f. Proposed operating
procedures for the aggregation, by which the Aggregation Owner 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:
(1) require a determination
by the Aggregation Owner that the Generation Unit is in compliance
with these Renewable Energy Standard regulations and that the
Aggregation Agreement is approved by the Commission and an
independent determination by the Verifier that the Generation Unit
exists;
(2) require a meter reading
procedure that allows the Verifier to read meters on the Generation
Units; 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;
(3) require confirmation that
Verifier will be entering NEPOOL GIS Certificates in to the NEPOOL
GIS system, as described in §§ 2.6(H)(4)(h) and (I) of this Part,
include a procedure for the Verifier to report to the Commission on
the results of their verification process.
g. 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.
h. No less frequently than
quarterly, the Verifier shall directly enter into the NEPOOL GIS the
quantity of energy production in the applicable time period from each
Generation Unit in the aggregation. Such generation data shall not
include any generation data from previous time periods, except as
provided for in this section. The entry of generation data by the
Verifier will be through an interface designated for this purpose by
the NEPOOL GIS and in accordance with NEPOOL GIS Operating Rules
applicable to Third-Party Meter Readers, and to which the Aggregation
Owner shall not have access. Output of less than one MWh by any
single Generation Unit within the aggregation may be applied to the
entire aggregation’s generation, and generation of the aggregation
less than one full MWh may be applied to the subsequent quarter in
accordance with NEPOOL GIS Operation rules.
i. 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.
2.7 Eligible Biomass Fuel
Generation Units
A. 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:
1. The type of Eligible
Biomass Fuel to be used at the Generation Unit;
2. 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;
3. 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;
4. 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;
5. 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
6. 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.
B. 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.
C. 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.
D. 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:
1. 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 § 2.10 of this Part.
2. 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
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.
3. 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 §
2.10 of this Part.
2.8 Demonstration of Compliance
A. 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.
B. 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.
C. 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 Commerce
Corporation to accept Alternative Compliance Payments pursuant to
R.I. Gen. Laws § 39-26-7(b) and the EDC thereby purchases NEPOOL GIS
Certificates, such NEPOOL GIS Certificates shall be credited against
the Renewable Energy Standard for the Obligated Entity in the year of
the certificate.
D. 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:
1. Obligated Entities may
demonstrate compliance over a full Compliance Year, rather than any
fraction thereof;
2. 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;
3. 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.
E. 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.
F. 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.
G. 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.
1. 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 § 2.8(D)(3) of this
Part.
2. The Obligated Entity must
file an Early Compliance Filing pursuant to § 2.8(K) of this Part.
3. 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.
H. 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:
1. 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 § 2.4(F) of this
Part;
2. 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;
3. 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.
I. Alternative Compliance. An
Obligated Entity shall receive Alternative Compliance Credits from
the Commission, subject to the following:
1. The Alternative Compliance
Payment rate shall be determined according to § 2.3(A)(2) of this
Part. For each Compliance Year, the Commission will publish the
Alternative Compliance Payment rate by January 31 of the Compliance
Year;
2. 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
3. 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.
J. 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:
1. Total Retail Electrical
Energy Sales. Documentation of the total MWhs of electrical energy
sold to End-use Customers in the Compliance Year;
2. 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 § 2.4(H)
to keep product information confidential to the extent permitted by
law;
3. 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.
4. Attributes Allocated from
Early Compliance. Allocation by Electrical Energy Product of any
NEPOOL GIS Certificates claimed for Early Compliance pursuant to
these regulations;
5. 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;
6. 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;
7. 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.
K. 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 § 2.8(G) of this Part shall submit to the
Commission an Early 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.
2.9 Contracting Standards and
Procurement Plans
A. 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:
1. Definitions particular to
renewable energy certificate transactions;
2. Specialized financial
instruments and warranties thereof;
3. Purchase and sale of
renewable energy certificates;
4. Quantities;
5. Representations and
warranties of the parties;
6. Obligations of the
parties;
7. Relationship of the
parties;
8. Non-performance and
Remedies;
9. Default;
10. Term, termination and
waiver;
11. Binding milestones, if
any;
12. Credit and Collateral, if
any; and
13. Additional agreements
conforming to the nature of the transaction.
B. 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:
1. Determined their needs,
including the demand for renewable energy certificates from Eligible
Renewable Energy Resources under the range of anticipated future
conditions;
2. Developed a schedule of
planned purchases of NEPOOL GIS Certificates from Eligible Renewable
Energy Resources to supply the identified needs;
3. Developed key criteria to
evaluate the providers and product options;
4. Identified the major risk
factors and how mitigated;
5. Developed a process to
implement the filed Renewable Energy Procurement Plan; and
6. 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;
C. 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.
D. Subject to review by the
Commission, Obligated Distribution Companies are entitled by R.I.
Gen. Laws § 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.
E. Procurement During
Standard Offer Period
1. 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.
2. The Obligated Distribution
Company shall share the bids received under the Annual RFP for
Periods II and III above, initially with the Office of Energy
Resources (“OER”) in its role as administrator of the Rhode
Island Renewable Energy Fund and the Commerce Corporation as
administrator of the REDF and the Division of Public Utilities and
Carriers (the “Division”). The OER (and/or Commerce Corporation)
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.
3. 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
4. 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.
2.10
Sanctions for Non-Compliance
A. 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.
B. 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.
C. Financial penalties
resulting from sanctions from Obligated Entities shall not be
recoverable in rates of electric distribution companies as defined in
R.I. Gen. Laws § 39-1-2(12).
D. 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:
1. Immediate revocation or
suspension of the Generation Unit’s certification;
2. 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;
3. 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);
4. 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;
5. 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 § 2.6 of this Part; and
6. Additionally, Generation
Units and Obligated Entities reporting falsely to the Commission are
subject to laws against perjury.