Burrillville Town Council denounces power plant legislation

A RENDERING of the proposed natural gas-powered electrical plant in Burrillville.  / COURTESY INVENERGY LLC
A RENDERING of the proposed natural gas-powered electrical plant in Burrillville. / COURTESY INVENERGY LLC

BURRILLVILLE – The Burrillville Town Council has publicly denounced legislation that would require local approval for any tax agreement negotiated between local lawmakers and developers of a proposed power plant in the town.
The legislation, sponsored by state Rep. Cale P. Keable, D-Burrillville, stems directly from a 1,000-megawatt, natural-gas-fueled power plant proposed to be built in town by Chicago-based Invenergy Thermal Development LLC.
The power plant has sparked contentious debate, which was the impetus for the legislation, according to a House press release.
“The legislation … was introduced in response to the frustration expressed by residents and elected officials of Burrillville,” according to the release.
But clearly elected local officials disagree with their state counterparts. Within hours of the R.I. House of Representatives passing the legislation with a 64-7 vote on Tuesday, the Town Council issued its own release calling the proposed law “ill-conceived,” adding that it jeopardizes up to $180 million in negotiated tax relief for the town.
“The Town Council is not the decision maker on approval for the power plant proposal. … [But] the town does have leverage to demand a tax treaty that protects its residents,” according to the release. “The town has negotiated such a treaty. While it is not finalized, the agreement does guarantee between $92 million and $180 million in tax payments to the town. It demands financial protection for residents who live near the proposed power plant and locks in place a long-term decommissioning plan to protect the town’s interest well into the future.”
The $700-million power plant in question, known formally as the Clear River Energy Center, is currently under consideration by the state’s three-member Energy Facility Siting Board, which is expected to come to a decision sometime this fall.
The legislation, which has garnered support of the majority of Keable’s colleagues in the House, has been criticized as “not in my backyard,” or NIMBY, legislation. But Keable disagrees and points out that Burrillville is already home to one power plant, a gas pipeline and a natural gas compressor station.
“We’re not NIMBYs. Our backyard is already doing a tremendous amount to serve New England’s energy needs,” Keable said. “If we’re going to be made to give more, we should at least get some voice in whether the tax revenue is sufficient to become Rhode Island’s fossil fuel capital.”
The legislation would likely adversely affect Invenergy’s proposed project, as power plants – like most large-scale development – typically seek local tax-stabilization agreements. In its release, the Town Council revealed details of such an agreement, and argue that Keable’s legislation would do little to stop the proposed power plant from coming into the town, but could prevent a financial windfall for the town and end up costing more in the long run.
“Should the EFSB (Energy Facility Siting Board) approve the power plant the town will have lost its negotiating leverage,” according to the Town Council. “If the power plant was forced onto the tax rolls it would create endless and very expensive litigation that could last for years and cost the taxpayers many millions of dollars.”
Sen. Paul W. Fogarty, D-Glocester, who also represents Burrillville on Smith Hill, has introduced a similar bill in the R.I. Senate, which is scheduled for a hearing in the Judiciary Committee on Wednesday. If Keable’s legislation is enacted, it would also expand the EFSB from three members to seven members for any projects proposed after June 1, but not affect the Burrillville power plant.
Last week, Invenergy called the legislation a “thinly veiled attack,” that gives Burrillville unprecedented power unavailable to other Rhode Island municipalities.
“It could also set a dangerous precedent that would dissuade other companies from investing in or growing in Rhode Island,” according to the company. “This bill would send the message that Rhode Island is closed for business.”

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