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SB 2356

AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

2026 Regular Session Introduced by John Burke and 4 co-sponsors

Transfer Big River Reservoir administration to RIDEM with expanded powers, plus updated energy benchmarking and sunsets for tax incentives.

04/28/2026 Committee recommended measure be held for further study
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Bill Summary · SB 2356

Summary of Bill SB 2356 (Rhode Island, 2026 Session)

Overview

  • Title: AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
  • Introduced: January 30, 2026
  • Referred to: Senate Finance
  • Primary focus: Reassigning administration of the Big River Reservoir lands to the Rhode Island Department of Environmental Management (RIDEM), expanding RIDEM's powers, and adjusting several state tax incentive and energy-related provisions with sunset updates.

1) Main Purpose and Intent

  • Transfer administration of lands acquired for the Big River Reservoir (and related activities) from current authorities to RIDEM, effective July 1, 2026.
  • Clarify RIDEM's authority and responsibilities over land use planning, regulatory rules, and enforcement for the Big River Reservoir, while preserving the Water Resources Board’s authority over certain freshwater resources.
  • Update and expand RIDEM’s powers and duties, including enforcement, permitting, land trust oversight, environmental and water quality regulation, and customer-service improvements.
  • Amend various Rhode Island tax incentive programs to refine sunset dates and eligibility, and introduce new or amended energy-related reporting and benchmarking requirements.
  • Add a new energy benchmarking and performance standards program for state facilities, and introduce reporting requirements for both state and voluntary public-building benchmarking.
  • Streamline and refine processes for energy resources, including alignment with the Commerce Corporation and Department of Labor and Training on prevailing wage requirements.

2) Key Provisions and Changes

A. Big River Reservoir Administration (Sections 1 & 14)

  • RIDEM will administer lands acquired for the Big River Reservoir as established under the 1964 Public Laws. RIDEM staff and authorized agents will manage lands and natural resources, with RIDEM enforcement authority over these lands, subject to existing powers of the Water Resources Board (WRB) for certain freshwater resource management.
  • Effective July 1, 2026, RIDEM will assume responsibility for all land use planning and for promulgating rules/regulations regarding Big River Reservoir administration, consistent with § 37-20-1.
  • Transitional: RIDEM rules under 490-RICR-00-00-5 remain in force until properly transferred to RIDEM regulations.
  • WRB retains authority over freshwater resource management outside the scope of RIDEM’s transfer.

B. RIDEM Powers and Duties (Section 2)

  • Section 42-17.1-2 updated to consolidate and enumerate RIDEM powers, including:
    • Protection, development, planning, and utilization of natural resources.
    • Functions previously vested in the Departments of Agriculture and Conservation, Health, Public Works divisions, and related laws (subject to cross-references and transitional provisions).
    • Cooperation with multiple agencies (Commerce Corporation, Water Resources Board, Solid Waste Management Corporation, conservation commissions, and coastal resources management council).
    • Authority to enforce and administer standards for air, water, and waste disposal; issue notices, hearings, and licenses; conduct inspections with defined warrant protocols (administrative warrants allowed under specific conditions); penalties for noncompliance.
    • Authority to manage dredged material disposal, waterway maintenance, and shellfish/marine life area designations.
    • Regulation of underground storage tanks, hazardous waste, and related environmental programs.
    • Management of lands held by land trusts (public and private) and required record-keeping; oversight functions to ensure lands are properly recorded and maintained.
    • Customer-service enhancements: dedicated unit for technical assistance, training, streamlined permit submissions, and “single permit” approaches where feasible.
    • Dredging and coastal projects, premium on performance-based regulations as alternatives to pre-approval processes.
    • Authority to enter into agreements related to Big River/Wood River Reservoirs and related lands.

C. Tax Credits and Sunset Provisions (Sections 3–10)

  • Rebuild RI Tax Credits (Ch. 42-64.20) sunset dates updated:
    • Sunset of credits reserved after December 31, 2028 (previously 2026); no credits reserved after 12/31/2028.
  • Related Sunset Provisions: Several other programs (Tax Increment Financing, First Wave Closing Fund, I-195 redevelopment, Stay Invested in RI Wavemaker, Main Street Streetscape, Innovation Initiative, etc.) are set to sunset after December 31, 2028 (instead of earlier dates of 2026).
  • Acknowledges a phased approach to sunset across multiple incentive programs, signaling a narrower window for new credits and incentives.

D. Energy Benchmarking and Efficiency (Sections 11–12)

  • New energy benchmarking framework for state facilities:
    • State facilities energy benchmarking and performance standards program requires measuring and reporting monthly energy usage by source for state-owned/state-occupied facilities (minimum 25,000 GSF).
    • Annual reporting to the Office of Energy Resources by March 31 for the prior year; publish facility-level energy data within 180 days after March 31.
    • Development of performance standards by March 31, 2031, including: annual emissions standards, a compliance schedule terminating in 2050, and cost-benefit analyses to justify standards.
    • Some facilities may be exempt if deemed economically infeasible or operationally unique; exemptions must be published.
    • Voluntary energy benchmarking program for municipalities with buildings over 25,000 GSF; Office provides assistance and will report progress annually (beginning 2029).
  • The energy office activities align with broader state energy planning and conversion goals.

E. Energy Resources and Administration (Section 12)

  • Amendments to Rhode Island Energy Resources Act to formalize broader department coordination on energy planning, weatherization programs, low-income energy assistance, and coordination with Commerce Corporation on renewable energy investment funds.
  • Administer and implement state energy bond referendums and related programs.

3) Who/What Is Affected

  • Lands and resources associated with the Big River Reservoir (transferred to RIDEM, with WRB retaining specific powers for water resources).
  • RIDEM as the primary state agency for environmental management, land-use planning, rulemaking, enforcement, and regulatory administration related to environmental matters.
  • State agencies and officials interacting with RIDEM (e.g., Water Resources Board, Commerce Corporation, Department of Labor and Training, Office of Energy Resources, Division of Taxation).
  • Taxpayers and developers involved in rebuild RI tax credits and related incentive programs (with sunset revisions).
  • State facilities and municipal buildings subject to energy benchmarking requirements (public and voluntary programs).

4) Procedural and Timeline Highlights

  • Big River Reservoir administration transfer: Effective July 1, 2026.
  • RIDEM rule transfers: Ongoing until regulations are properly transferred to RIDEM code; current RIDEM enforcement authorities generally apply instructionally.
  • Energy benchmarking program: Data reporting begins with 2030 annual energy use data; benchmarking standards due by 2031; voluntary municipal benchmarking begins later with annual progress reporting starting in 2029.
  • Sunset dates: Several incentive programs sunset on December 31, 2028 (extension from earlier dates), with further phased or conditional adjustments for individual programs.

5) Notable Considerations

  • The bill enhances RIDEM’s role and consolidates environmental-management authorities, potentially reducing interagency friction in the Big River Reservoir context.
  • The transitional provisions preserve existing regulations until formally transferred, ensuring continuity.
  • The energy and climate provisions reflect a structured pathway toward emissions reductions and energy efficiency across state facilities, with both mandatory and voluntary components.
  • Fiscal and regulatory implications will depend on subsequent rulemakings by RIDEM, the Office of Energy Resources, and the Commerce Corporation, as well as funding appropriations by the General Assembly.

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

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