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SB 3272

AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- RENEWABLE ENERGY STANDARD

2026 Regular Session Introduced by Lou DiPalma

Expands funding and rules to accelerate Rhode Island’s renewable energy deployment by boosting financing, extending long-term contracts, and reforming net-metering for equity and c

05/12/2026 Committee heard
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Bill Summary · SB 3272

Overview

SB 3272, introduced in the Rhode Island 2026 session, seeks to expand and refinine Rhode Island’s renewable energy portfolio requirements and net-metering framework. The bill would create and fund additional renewable energy development activities, extend long-term contracts for new renewable resources, and reshape net-metering and community solar programs with specific pricing, capacity, and equity provisions. It aims to bolster the availability of NE-GIS (New England–Greenhouse Gas Initiative) certificates and direct support for renewable projects, while adjusting credit structures and caps for net-metered systems.

Primary purpose and intent

  • Increase the supply and liquidity of NE-GIS certificates to help obligated entities meet the Renewable Energy Standard (RES).
  • Expand financing, technical assistance, and guarantees to accelerate renewable energy development, including residential, commercial, municipal, and community solar projects.
  • Reform net-metering policies to emphasize equity (including a strong emphasis on low- and moderate-income communities) and to adjust credit structures and economics for system owners.

Key provisions and changes

  • Renewable Energy Development Fund (Section 1)

    • Establishes a dedicated fund within the Rhode Island Commerce Corporation.
    • Purpose: increase NE-GIS certificates available for compliance; fund administration coordinated with the Office of Energy Resources and the RI Infrastructure Bank.
    • Accepts alternative compliance payments (ACP) as trust funds for fund uses.
    • Uses include: multiyear NE-GIS certificate agreements, residential and commercial/municipal programs, interconnection feasibility, property-assessed clean energy (PACE) programs, guarantees/assurances for RE development, and fund administration (administrative costs capped at 10% of fund income).
    • Applications for fund use reviewed by RI Commerce Corporation with OER and Infrastructure Bank.
    • NE-GIS certificates acquired via the fund may be conveyed to obligated entities or credited against RES, with cost adjustments for ACPs.

  • Long-Term Contracting Standard (Section 2)

    • Reinforces requirements for electric distribution companies (EDCs) to solicit and enter into long-term contracts (up to 15 years, with potential longer terms subject to commission approval) for newly developed renewables.
    • Establishes a phased ramp-up for minimum long-term contract capacity (25% by 2010, 50% by 2011, 75% by 2012, 100% by 2013).
    • Contracts require commission review and approval; annual reporting of solicitations.
    • Pricing discipline: contracts must be commercially reasonable and priced below forecasted market energy and RECs.
    • Annual solicitations required to reach 100% of minimum capacity; allows optional acquisitions above minimum if pricing remains favorable.
    • Cap on long-term contracts for certain renewables (with exceptions) and a prohibition on tying long-term contracts to more than 3-year power-purchase terms for some requirements.

  • Net Metering Revisions (Sections 3–4)

    • Redefines numerous net-metering terms, including eligible net-metering resources, systems, and sites.
    • Introduces a 1 MW+ tier with guaranteed 30-year net-metering credit contracts for system owners, with a 0.19$/kWh credit escalator at 2.75% annually, stepping down after 25 years and then to wholesale rate.
    • Sets new caps: national cap for remote and ground-mounted net-metering; ground-mounted cap reductions from 275 MWac to 225 MWac effective July 1, 2026 (with interim milestones and eligibility conditions tied to interconnection applications and construction timelines).
    • Encourages siting outside core forests (with defined “preferred sites” within core forests allowed) and limits forest removal.
    • Establishes community solar/remote net-metering provisions prioritizing LMI and disadvantaged communities; requires a commercial/industrial anchor tenant component while ensuring substantial LMI participation.
    • Requires periodic interconnection studies, filing requirements, and a cost-recovery mechanism for distribution companies through a statewide surcharge.
    • Creates an execution fee to fund the Renewable Energy Development Fund and details contract terms, termination windows, and renewable energy certificates ownership.

Who is affected

  • Electric distribution companies (EDCs) must adopt and file long-term contracting plans and solicitations.
  • Renewable energy developers and project owners (including residential, commercial, municipal, and community solar developers).
  • Public entities, educational institutions, hospitals, nonprofits, and multi-municipal collaboratives that participate in net-metering financing arrangements.
  • Net-metering customers and credit recipients, including low- and moderate-income housing residents and other eligible accounts.
  • Rhode Island Commerce Corporation, Office of Energy Resources, and Rhode Island Infrastructure Bank (fund administration and program oversight).
  • The public and ratepayers, who would bear a portion of administration and financing costs via a statewide surcharge.

Procedural and timeline notes

  • Effective date: immediately upon passage.
  • Annual solicitations for long-term contracts begin per schedule, with milestones through 2013 for minimum capacity attainment.
  • Net-metering program reforms include staged capacity caps with specific dates (notably July 1, 2026 for the revised ground-mounted net-metering cap).
  • Public utility commission involvement includes hearings, timely orders (within 60 days of filing), and potential revisions within 90 days for rejected contracts.
  • Execution and fee provisions tie directly to the RI Commerce Corporation’s revenue and funding for the Renewable Energy Development Fund.

Summary

SB 3272 aims to bolster Rhode Island’s renewable energy market by funding development, refining long-term contracting, and reshaping net-metering policies to promote equitable access and cost-effectiveness. It creates a dedicated fund, expands programmatic support for diverse project types, mandates structured contracting with regulatory oversight, and implements revised net-metering credits, caps, and contracts designed to accelerate the deployment of renewable energy across the state.

Compiled from official sources — confirm details with the bill’s official record.

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