General Assembly backs renewable-energy bills

Legislation approved by lawmakers and designed to promote the development of renewable-energy sources could see Rhode Island take the lead in breaking dependence on fossil fuels in New England, even though new projects would not have to be located within the state.
“We’re less concerned with where a pole is in the ground than with the benefits the state will receive,” said Matt Auten, advocate with Environment Rhode Island. “This legislative package is going to put Rhode Island at the forefront of the “green” economy movement in New England and in the development of renewable-energy sources.”
The General Assembly last week approved by wide margins a package of bills, the centerpiece of which requires National Grid, the utility that distributes electricity to most of the state, to enter into long-term contracts with developers for creation of renewable-energy sources to serve Rhode Island. A key project that could be implemented under the legislation is the $1.9 billion wind farm Gov. Donald L. Carcieri has proposed off Block Island.
It also is possible that the state could reap benefits from the Cape Wind proposal off Nantucket in Massachusetts because the legislation does not restrict projects to Rhode Island. Auten said one plan for Cape Wind could see preliminary staging work done at Quonset Point.
The R.I. Public Utilities Commission will play a key role in implementation of the new law. All long-term contracts must be approved by the commission before they are signed, the law says. The PUC is empowered, in the event of a dispute between a developer and National Grid, to decide if a long-term contract is “commercially reasonable” for both parties.
The state utilities commission also is charged with preparing regulations by April 1, 2009, to ensure that all approved long-term contracts bring direct economic benefits to Rhode Island in the form of, for example, new jobs or increased property tax revenue. Although the law does not require the projects to be located within Rhode Island, Auten stressed that it does “guarantee” benefits to the state.
Stipulating Rhode Island-based projects only, Auten said, would be in violation of federal commerce laws and, he noted, the best sites for wind farms off the coast of Rhode Island are in federal waters.
Auten’s group has worked about five years, he said, on preparation of a legislative package to encourage investments in renewable energy projects, but it was only this year that major stakeholders such as National Grid supported the measures. The utility came on board after legislators worked out a compromise that will see National Grid earn an incentive of 3 percent of the contract price once projects begin producing electricity.
Long-term contracts are essential to the development of large-scale renewable-energy projects like wind and solar farms because developers would be guaranteed a steady stream of income, reducing the cost associated with financing construction.
The bills require National Grid to procure at least 90 megawatts of electricity, about 7 percent of the amount it provides to Rhode Island, from long-term renewable energy contracts of 10 years or more. The utility would have four years to reach the 90 megawatts mark, and at least 5 percent of that amount must come from solar energy. Ninety megawatts generates enough electricity for 130,000 Rhode Island homes. The state has adopted a renewable-energy standard that mandates 16 percent of its electricity come from green power sources like wind and solar by 2020.
Regarding cities and towns, Auten explained that a net-metering provision in the package approved by lawmakers will allow a municipality to undertake small renewable-energy projects like wind turbines and apply the credit for any excess energy created to its own electric bills.
“National Grid and Rhode Island’s General Assembly are to be complimented for the constructive approach they have adopted on renewable energy,” said Jerry Elmer, a Providence lawyer for the Conservation Law Foundation, a New England environmental group. Elmer said the legislation “will spark a new generation of renewable energy projects that will play a significant role in reducing greenhouse gas emissions in our region.”
In a related development, seven developers have submitted bids to the state for construction and operation of a wind farm off Block Island. Bidders are: Allco Renewable Energy Group Limited LLC, New York, N.Y.; Bluewater Wind LLC, Providence; Deep Water Wind Rhode Island LLC, Hoboken, N.J.; DKRW Wind LLC, Houston, Texas; Fishermen’s Energy of Rhode Island, Bristol; Great Eastern Wind LLC, Providence; and WindPowerpro.us, Woodbridge, N.J. A team of state officials is currently reviewing the bid proposals and is expected to issue a recommendation on a contract award to the governor’s office by the end of the summer. &#8226