Rhode Island
State Scorecard Rank
Rhode Island
The state devotes a portion of Regional Greenhouse Gas Initiative revenues to programs for energy efficiency upgrades. In addition, the state has an active PACE financing program. The state government leads by example by requiring efficient public buildings and fleets, benchmarking energy use, and encouraging energy savings performance contracts. Research focused on efficient efficiency is conducted through the Energy Fellows Program at the University of Rhode Island.
The state of Rhode Island offers the following financial incentives to encourage energy efficiency improvements:
- Agricultural Energy Program: The Rhode Island Office of Energy Resources (OER) manages the Agricultural Energy Grant Program that provides grants of up to $20,000.00 for eligible energy efficiency and renewable energy projects located on farms throughout Rhode Island.
- Efficient Buildings Fund: Administered by the Rhode Island Infrastructure Bank, this revolving loan fund finances energy efficiency and renewable energy projects for municipally owned buildings and school facilities, as well as quasi-governmental agency buildings.
- School Energy Equity Program: Funding and technical assistance provided to school districts in defined equity zones to support the installation of energy efficiency equipment such as LED Lighting, Heat Pump Hot Water Heaters, Building Management Systems, and HVAC upgrades
- Block Island Utility District EE Program
- LED Municipal Streetlight Program: $3.8 million in RGGI funding shall be allocated to assist state agencies and municipalities make cost-effective, energy saving investments in LED (light emitting diode) lighting and associated control technologies. This program will be jointly administered by the Rhode Island Department of Transportation and the Office of Energy Resources.
- National Electric Vehicle Infrastructure Program
- Pascoag Utility District Energy Efficiency Program
- Zero Energy for the Ocean State: This program offers up to $750,000 in grants to design and construct affordable, energy efficient housing to serve low- and moderate-income Rhode Islanders.
- DRIVE EV Rebate Program
- E-Bike Rebate Program
- Clean Heat RI
Further financial incentive information can be found in the Database of State Incentives for Renewables and Efficiency (DSIRE Rhode Island). In addition to these state-funded incentives, Rhode Island has enabled commercial Property Assessed Clean Energy (PACE) financing and has one active program. For additional information on PACE, visit PACENation. The Rhode Island Infrastructure Bank (RIIB) administers the state C-PACE program and Efficient Buildings Fund for the state.
Last Reviewed: November 2024
Cap-and-Trade
Rhode Island participates in the Regional Greenhouse Gas initiative, which is a cap-and-trade program, and uses the proceeds from RGGI auctions to fill market gaps, including energy efficiency programming to support Low Income and environmental Justice communities when possible.
Goals
In late 2022 the Office of Energy Resources hired a new Energy Justice Manager focused on improving energy equity and integrating the Biden Administration’s Justice 40 initiative into all of OER's workstreams. The Energy Justice Manager co-hosts a regular public workshop on Climate Justice with the Department of Environmental Management’s Climate Justice Manager. These accessible workshops are held at locations throughout the state in order to provide residents from underserved, environmental and energy justice communities with opportunities provide input and perspective on policy and programming, as well as to learn about important energy and environmental issues while fostering improved engagement with communities around the state. Recommendations made by the Energy Justice Program Manager that have been implemented by OER include: equity focused on public participation protocols and guidance, updated data demonstrating energy burden in communities across Rhode Island, and the beginning of an effort to map current deployment of clean energy assets and investments, as can be seen in this map of electric vehicle charging stations in the State.
Other state reports and utility-based programming in Rhode Island have included targeted funding and recommendations to increase investment in sectors or areas serving marginalized communities. Thanks to the efforts of this position, the State and the utilities are making a concentrated effort to track the success and efficacy of these efforts and develop additional metrics, with significant community input, to evaluate how local marginalized groups are impacted by energy policy and programming.
Rhode Island's State Energy Plan - Energy 2035 establishes a number of policies that direct support towards low-income and underserved customers. Specifically, it charges the Department of Human Services to oversee the WAP and LIHEAP programs, including the Henry Shelton Act which provides enhanced funding (~$6.5-$7.5million per year) from the State to the LIHEAP program. There is also a provision calling for the continued exploration of targeted energy efficiency programming for delivered fuels customers, which is an underserved population in Rhode Island. One outgrowth of this effort was that beginning in 2019, through the Utility run Energy Efficiency (EE) program, delivered fuels customers were able to receive enhanced incentives for Air Source Heat Pump installations. The recently released Heating Sector Transformation in Rhode Island Report also advocates for the equitable transition of the heating sector through its policy recommendations and encourages program designs that deliver appropriate incentives and financing opportunities for low-income customers that address first-cost barriers and energy burdens and tracks the success of those efforts. Lastly, the utility's annual energy efficiency plans dictate a certain amount of spending on the income-eligible (e.g. low-income) sector. In 2022's Annual Energy Efficiency Plan, (Docket 5189, National Grid sets funding levels of residential income eligible programs at $16,814.3 of implementation funding for electric programs and $9,317,600 of implementation funding for natural gas programs.
Community Engagement
As part of its 2023 Annual Energy Efficiency Program, RI Energy contracted with Green and Healthy Homes Initiative to reconvene its Equity Working Group, and which has continued into 2024 with participation from OER. The goal of this working group is to give impacted communities and the organizations that serve them an ongoing and structured opportunity to collaborate and provide input and feedback on the planning, design, and delivery of Rhode Island Energy’s energy efficiency programs, with a specific focus on equity. RIE presented its initial Equity metrics targets in December 2023, and the working group has continued to investigate additional metrics the utility might track.
The Office of Energy Resources strongly advocated for a definition of equity to be included within the state’s Least Cost Procurement Standards during a 2023 review of the standard and maintains equity as a focus in all regulatory engagement.
In addition, the Office of Energy Resources has developed public participation guidance to begin addressing the inherent inequities that exist in public participation processes. As part of this effort, the Office of Energy Resources is gathering data and information about who in our communities is attending public workshops. Following these workshops on clean energy initiatives (such as the state’s goal of meeting 100% of electricity demand with renewables by 2030), OER circulates a survey to workshop participants via email to collect anonymous demographic data. When collated, this information provides insight on which voices were in the room and which were underrepresented. In turn, that insight can be used to improve our participation processes and enhance diversity.
For Community Solar efforts, OER ran a White Glove Pilot Program to guide two electric distribution customers on the Income-Eligible rate (A-60 customers) through signing up and participating in Rhode Island’s Community Solar opportunities. The purpose of this pilot was for OER to better understand the needs and challenges of A-60 customers regarding participation in Community Solar opportunities as well as supporting a more equitable distribution of the benefits of Community Solar. OER also established a Low and Moderate Income (LMI) working group specific to Community Solar. This group discussed various barriers to participation that existed and attempts to address them through program changes.
Other efforts included partnering with trusted community organizations to establish foundational definitions pertaining to energy equity and using those to collaboratively develop equity metrics that can be used to track and monitor progress as part of Rhode Island’s 100% Renewable Electricity by 2030 Report. Additional agencies that OER worked to establish ongoing relationships with included Rhode Island Housing and the Rhode Island Office of Diversity, Equity & Opportunity. Community organizations that OER also partners with for these efforts include, but are not limited to, Direct Action for Rights and Equality (DARE), Groundwork RI, the Racial and Environmental Justice Committee, the George Wiley Center, People’s Port Authority, Youth in Action (YIA), and NeighborWorks. To better conduct and assist with these community outreach efforts, OER also hired a full-time Energy Justice Program Manager.
Workforce Development
Increasing the size and skill of the Rhode Island clean energy workforce has been a priority since the inception of the State Energy Plan in order to ensure all cost-effective energy efficiency opportunities can be pursued. A component of the Grid Modernization Working Group was focused on identifying barriers in the workforce supply chain and developing strategies for recruitment and training to mitigate those. That focus is echoed in the recently released Heating Sector Transformation Report, which identifies workforce growth - particularly in emerging technology areas like heat pumps - as a key strategy to deploy in order to meet Rhode Island's decarbonization goals. In order to implement these strategies, the State has often utilized the Utility run energy efficiency programs as a vehicle for enhancing the workforce through targeted training and recruitment opportunities (often with waived enrollment fees). This partnership has led to significant growth in the RI clean energy workforce over the years, with a 25% increase in jobs since 2015. Additional emphasis was placed on workforce development in the 2021-2023 Three-Year plan, with a focus on increased contractor training around heat-pump technology, enhanced recruitment and partnerships with colleges/universities/vocational schools to promote Energy Efficiency as a career, providing more training opportunities to existing workers looking to upskill or transition away from work in the delivered fuels sector, and promoting more participation in building operator certification trainings, to name a few. The Office of Energy Resources collaborates with the Rhode Island Commerce Department each year to conduct a clean energy jobs report in order to track the industry and find ways to support growth, which is in direct service of Gov. Raimondo's 20,000 clean energy jobs by 2020 goal.
Last Reviewed: November 2024
Rhode Island is a member of the Regional Greenhouse Gas Initiative (RGGI), a cap-and-trade program for reducing GHG emissions in North America that began its compliance period in 2009. Capping CO2 emissions from the power sector, the program aims to reduce emissions by 45% below 2005 levels by 2020 and additionally by 30% by 2030.
Rhode Island is also a participant in the Transportation and Climate Initiative’s effort to develop a cap-and-invest program for transportation emissions. This team is engaged in modeling, outreach, and program development efforts and released a draft MOU to the public for feedback in December of 2019. That MOU is expected to be finalized in the fall of 2020, with delays related to the COVID-19 pandemic. Rhode Island began conductions a Carbon Pricing Study at the end of 2019 that is researching potential policy options for State and Regional carbon pricing in order to inform state legislators, policymakers, and stakeholders about the available options and potential impacts.
Per state legislation S-0078A, Rhode Island does have a statewide emissions reduction goal in place, specifically to reduce emissions 100% by 2050 (baseline year 1990).
Last Reviewed: November 2024
There is no disclosure policy in place; however, a working group consisting of the Office of Energy Resources, Northeast Energy Efficiency Partnerships, the Energy Efficiency and Resource Management Council, National Grid, and the Rhode Island Realtors Association was formed in 2014. The group developed a work plan to begin taking steps toward eventual legislation mandating energy disclosure for the residential and commercial sectors. Recognizing that such a mandate could be controversial, the state is starting by developing relationships, building a knowledge base, and piloting a voluntary program.
A National Grid pilot program will provide 150 homes with home energy scores as part of their energy audits, with work beginning in 2018 and concluding in 2019. Working in partnership with Northeast Energy Efficiency Partnerships (NEEP), Rhode Island has been utilizing their HELIX system to get RI home energy rated buildings listed in that database. Rhode Island also offered training to assessors and real estate agents providing education about the value and benefits of green buildings and how to incorporate that information into valuations. Lastly, the National Grid and Portfolio Manager automation and integration work has been completed and is being promoted to customers.
Last Reviewed: July 2019
In December 2015, Governor Gina Raimondo signed Executive Order 15-17, establishing a Lead by Example program within the state's Office of Energy Resources (OER) to oversee and coordinate efforts at state agencies to reduce energy consumption and greenhouse gas emissions. In May 2023, Governor Daniel McKee expanded the LBE program with Executive Order 23-06 to cover state government, municipalities, school districts, and public colleges and universities. The Lead by Example Initiative achieved its initial 10% reduction in energy consumption in state agencies by 2019, and EO 23-06 sets new targets in alignment with the 2021 Act on Climate legislation for the State to meet through its Lead by Example Program. These targets include significant reductions from a 2014 baseline in emissions from fossil fuel use in vehicles and buildings; 25% of light-suty State fleet vehicles will be zero-emission vehicles by 2030; increasing reductions in energy use intensity (EUI) from the same 2014 baseline through 2050; expansion of the State electric vehicle charging network to 200 stations by 2030; and procurement of 100% of State electricity supply from renewable sources. OER has also begun using web-based centralized utility billing for state agencies for both electricity and natural gas, which has streamlined payment, reporting, and tracking capabilities for the State.
The state has several other energy benchmarking efforts underway, requiring governmental borrowers from the Efficient Buildings Fund to track energy for at least five years. State and Municipal entities are encouraged to do energy benchmarking using Portfolio Manager. To support that work, RI Energy developed a tool for automation and integration of utility usage with Portfolio Manager has now been completed and is being promoted to customers as a convenient and efficient way to track and manage building energy usage. Additionally, Rhode Island State Government, as part of the Lead by Example initiative, is using EnergyCAP to automate billing and to track and share state energy usage data for all of its buildings.
In January 2013, the State of Rhode Island signed onto the Better Buildings Challenge, which committed the State to reducing energy consumption in state facilities by 20% by 2020 below 2010 levels. In partnership with the University of Rhode Island, RI Office of Energy Resources (OER) developed an energy data inventory that includes of electricity and natural gas consumption for 100% of state building square footage.
The state previously established the Rhode Island Public Energy Partnership (RIPEP), which was a 3-year (2012-2015), U.S. Department of Energy-funded collaborative effort to achieve deep energy savings in state and municipal facilities and build a sustained, effective infrastructure for ongoing savings. Led by the Rhode Island Office of Energy Resources, RIPEP brought together the Office of Energy Resources, National Grid, URI Outreach Center, Narragansett Bay Commission, Energy Efficiency and Management Council, and other key public and private sector representatives. The project completed in 2015 and achieved the following results:
- Established energy data baseline inventories for all public facilities, including 546 municipal, 331 school and approximately 900 state facilities, for a total of about 1,777 facilities.
- Performed 39 energy audits covering over 1.8 million square feet.
- Implemented 123 energy efficiency projects for total energy savings of 28.6% or 4,748 MMBTU.
- Utilized over $5 million in rebates and on-bill repayment funds, including $2.5 million in RGGI funds, to support project implementation.
- Identified barriers to implementing energy efficiency in the public sector then addressed these barriers through master price agreements, expanded and enhancing financing and incentive options, and extensive technical assistance.
In addition to recent programs, the Green Buildings Act (November 9, 2010; updated June 2022) requires that all major facility projects of public agencies be designed and constructed to at least the LEED certified or an equivalent high performance green building standard. Under the Green Buildings Act, the Department of Administration is responsible for monitoring and documenting ongoing operating savings that result from this Act and annually publish a public report of findings and recommended changes in policy. Additionally, the Act required the Department of Administration to create a green buildings advisory committee composed of representatives from the design, construction, lumber and building materials industries involved in public works contracting, personnel from affected public agencies and school boards that oversee public works projects and others at the department's discretion to provide advice on implementing this section. The advisory committee makes recommendations regarding an education and training process and an ongoing evaluation or feedback process to help the department implement this section. The 2022 update to the stretch codes will be done in consultation with the Green Buildings Advisory Committee.
Last Reviewed: November 2024
Per the new Executive Order 15-17, the Division of Capital Asset Management and Maintenance ("DCAMM"), within the Department of Administration, in coordination with OER, is developing strategies for reducing fossil fuel use and greenhouse gas emissions from the State fleet, with the goal of ensuring that a minimum of 25 percent of new light-duty state fleet purchases and leases will be zero-emissions vehicles by 2025.
The Zero Emission Vehicle Action plan indicates that in 2013, the governors of eight states, including Rhode Island, signed a Memorandum of Understanding (MOU) with a goal to reduce greenhouse gas and smog-causing emissions and foster energy independence. Collectively, these states committed to have at least 3.3 million ZEVs operating on their roadways by 2025. In Rhode Island, that goal is roughly 43,000 vehicles.
Executive Order 05-13 (August 22, 2005) requires that state fleet purchases of motor vehicles comply with the Energy Policy Act of 1992 by ensuring that a minimum of 75% of new vehicles purchased are alternative fuel vehicles and the remaining 25% are hybrid-electric vehicles. All new light duty-trucks in the state fleet will achieve a minimum of 19 mpg city for the fleet and be certified as at least a low-emission vehicle. All new passenger vehicles will achieve a minimum of 23 mpg city for the state fleet. The order also discourages the purchase of sport utility vehicles, calling on all state agencies to purchase the most economical, fuel-efficient and low emission vehicles appropriate to the mission. All state agencies must also purchase low rolling resistance tires with superior tread life for state vehicles when possible; and must be maintained according to manufacturer specifications, including specified tire pressures and ratings.
The Lead by Example initiative has given Rhode Island state government an opportunity to lead by example by increasing the number of zero-emissions and partial-zero-emission vehicles (electric, hybrid electric) and compressed natural gas vehicles in the State Fleet. As of May 2020, 30 vehicles have been ordered. Increasing the number of zero-emissions vehicles is a critical part of the State's goal to reduce both transportation related air pollution and greenhouse gas emissions. Electric, hybrid electric and compressed natural gas vehicles can help increase energy security, improve fuel economy, lower fuel costs, and reduce emissions.
The Rhode Island Voluntary stretch code is an above-code program that is an accepted alternative compliance path for all public buildings to utilize in meeting Green Buildings standards. Public buildings can also comply with the above-code standards set through the Green Buildings Act. Executive order 15-17 required that OER coordinate with the EERMC and Green Building Advisory Committee to establish a voluntary aspirational or stretch building code based on the International Green Construction Code or equivalent by 2017, which they completed. The stretch codes are publicly available for use in all State construction and renovation projects as well as those in the rest of the public and private sectors.
Last Reviewed: June 2022
The Rhode Island Office of Energy Resources lists ESPCs as one of the main ways it promotes energy efficiency and cites funds used to engage energy service companies to use ESPCs. The state provides a model contract and a list of qualified ESCOs.
Last Reviewed: July 2020
The University of Rhode Island Cooperative Extension created the Energy Fellows Program to place students with various energy companies, agencies, and organizations throughout the state to get workforce training and learn about Rhode Island energy issues. Most of the 2018 participants conduct research and outreach on energy efficiency.
Last Reviewed: July 2019
Residential and commercial buildings are required to comply with the 2018 IECC and ASHRAE 90.1-2010 with state-specific weakening amendments. Rhode Island now has a voluntary stretch code for commercial and residential buildings. The 2024 IECC is anticipated to be adopted for both residential and commercial buildings. Rhode Island has completed a comprehensive set of activities to ensure code compliance.
- Gap Analysis/Strategic Compliance Plan: The baseline code compliance studies noted below included a comprehensive survey of all stakeholders in the building and code industry, with an emphasis on code officials. This survey offered a host of recommendations for strategic planning and subsequent improvement in code compliance and better building. These findings were integrated into the strategic planning for the Code Compliance Enhancement Initiative (CCEI) – only one piece of Rhode Island’s long-term plan on the advancement of codes. An online permitting system is being rolled out to streamline the process and increase accessibility of building data.
- Baseline & Updated Compliance Studies: Various evaluation studies related to building code compliance have been conducted by National Grid. The 2011 residential code compliance baseline study, the 2012 C&I code compliance baseline study, the 2013 CCEI savings and attribution logic evaluation study, the 2016 C&I code compliance study, the 2017 residential baseline study of single-family new construction, the 2017 energy impacts of commercial building code compliance, and the 2017 code compliance enhancement initiative attribution and savings study are the most recent studies. New studies on Residential Code Compliance and Commercial and Industrial New Construction Baselines are currently underway.
- Utility Involvement: Regulatory guidelines have been established enabling significant utility involvement in supporting building energy code compliance. Under the 3-year Energy Efficiency Plan filed with parties including the RI Division of Public Utilities and Carriers and RI Office of Energy Resources, and approved by the Energy Efficiency & Resource Management Council (EERMC), there is a multi-year commitment to the Code Compliance Enhancement Initiative. National Grid works and coordinates with the RI Building Code Commission to provide trainings and support aimed at improving code compliance with the energy code in the RI CCEI. National Grid is also actively involved in strategic planning and coordination with the RI Building Code Commission, OER, and other partners. National Grid is able to claim savings associated with the codes initiative as approved by the RI PUC and there are active discussions between National Grid and RI stakeholders about ways to enhance their involvement in the code development and compliance process for 2020 and beyond.
- Stakeholder Advisory Group: Since 2011, the RI Building Code Commission, Northeast Energy Efficiency Partnerships (NEEP), and National Grid have been working collaboratively on code advocacy, stretch code, and code compliance strategies. This collaborative approach led to the formalization of the Code Compliance Enhancement Initiative and will continue to monitor and oversee the implementation of the Initiative across the State in the coming years. Other active participants include the lead training vendor, the Green Buildings Advisory Committee, and the Energy Efficiency & Resource Management Council.
- Training/Outreach: National Grid has provided code compliance support since 2013. The CCEI aims to increase the ability and desire of the code enforcement system, design community (architects and engineers) and the construction community (contractors, builders and construction managers) to meet the locally mandated building energy code. National Grid works closely with the Rhode Island Building Code Commission to develop and deliver this initiative and has partnered with a number of stakeholders such as the Northeast Energy Efficiency Partnerships and the Energy Efficiency and Resource Management Council (EERMC). Efforts include classroom trainings, webinars, focus groups and on site demonstrations, as well as the development of an array of compliance documentation tools.
Last Reviewed: November 2024
The state offers incentives for CHP deployment and includes CHP as an eligible resource within its energy efficiency resource standard. No new CHP systems came online in Rhode Island in 2018.
In 2011, the Rhode Island General Assembly passed General Law 39-26.3 “Distribution Generation Interconnection,” with the stated finding that “expeditious completion of the application process for renewable distributed generation is in the public interest. In November 2011, the RI PUC adopted a tariff titled, “RIPUC #2078, Standards for Connected Distributed Generation,” for which CHP is eligible. The tariff is for renewable interconnecting customers as well as interconnecting customers, and, therefore, covers all forms of fuel. Additionally, the tariff applies to systems greater than 10 MW.
Under tariff #2078, National Grid offers a three-tiered (Simplified, Standard, and Expedited) interconnection processes for distributed generation, including CHP. A project's review path is determined by project characteristics including generation type, size, customer load, and the characteristics of the grid where the system is to be located. Maximum total review days depend on review type, ranging from 15 days for a Simplified Review to 120-150 for a Standard review (usually complex projects). These standards were cited as supportive policies in the 2015 Energy Efficiency Program Plan which was approved by the Rhode Island PUC.
Last Updated: August 2019
CHP in energy efficiency standards: Rhode Island established an Energy Efficiency Resource Standard in 2006 requiring regulated utilities to submit three-year energy efficiency resource plans, which explicitly include CHP as an eligible resource. Legislation passed in June 2012 (H.B. 8233) requires utilities to support the installation of efficient CHP systems; each utility must specify in its annual efficiency program and how it will do so.
CHP programs: In 2012, Rhode Island's Least Cost Procurement statute was amended to include a new CHP provision to encourage the consideration of its additional benefits. See R.I.G.L. § 39-1-27.7(c)(6)(ii) through (iv). Today, National Grid Electric implements a CHP Program that is designed to acquire cost-effective CHP energy resources (like other efficiency resources). All of Rhode Island is served by National Grid and the utility provides eligible CHP projects with a combination of energy efficiency, performance rebates, and advanced gas technology incentives. The total incentive package cannot exceed 70% of total project cost and is subject to budgetary limitations and caps.
Production goal: For 2018, National Grid is proposing a target of 1 MW of installed capacity that is expected to correspond to approximately 8,000 MWh of savings. Additionally, for 2018, National Grid has set a goal of three installations in Rhode Island and a commitment to initiate at least two additional projects in future years.
Revenue Streams: CHP systems have access to production incentives through National Grid's CHP Program. For any project greater than 1 new MW, a performance-based energy efficiency incentive, capped at $20/kW-year ($1.66/kW-month) for a period of up to ten years, is available.
Last Updated: August 2019
Incentives, grants, or financing: National Grid’s CHP Program provides capacity incentives ranging from $900/kW to $1250/kW, depending on two factors: (1) the efficiency of the CHP system design, and (2) the host customer’s commitment to implement other energy efficiency measures that reduce onsite energy consumption. The combined incentives awarded to a single project cannot exceed 70% of the project costs. For more information, see National Grid’s Guide to Submitting CHP Applications for Incentives in Rhode Island (Version May 2016).
CHP is also an eligible measure for nonwires alternatives. The Least-Cost Procurement Standards state that approaches for nonwires solutions may include strategic promotion of CHP, subject to screening criteria.
Net metering: Applicable only to renewable energy systems, Rhode Island’s net metering rules are capped at fairly small system capacity limits.
Last Updated: August 2019
Some additional supportive policies encourage CHP in Rhode Island. The Department of Environmental Management (DEM) has a policy intended to streamline air permitting for certain CHP systems. Air Pollution Control Regulation No. 43 creates an alternative permitting process (general permit) for certain emergency generators, CHP and other distributed generation projects. The general permit offers an administratively simpler process than the current minor source permitting process in APC Regulation No. 9. The application form is available here. The state has also codified the use of nonwires alternatives for promoting the state's policy goals of enhancing grid reliability and resilience. CHP is defined as an eligible measure for nonwires alternatives.
Technical assistance is also available, as outlined in its annual Energy Efficiency Program Plan. National Grid offers assistance by identifying and recruiting qualified CHP projects, conducting initial scoping studies, and providing up to 50% of the cost of independent engineering studies.
Additionally, National Grid has defined criteria and incentives for 'opportunity fuel' CHP systems, specifically waste-to-gas, in the 2018 Energy Efficiency Annual Plan.
Last Updated: August 2019
Rhode Island has consistently achieved high levels of energy savings through its energy efficiency programs and has some of the most aggressive energy savings targets in the country. One investor-owned utility, Narragansett Electric (a National Grid Company), administers and operates a portfolio of energy efficiency programs for its customers, which account for 99% of statewide sales of electricity. A public utility, Pascoag Utility District, also operates programs. The Rhode Island legislature unanimously passed sweeping legislation in 2006, which, among other things, established the state's energy efficiency resource standard (EERS). The Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006 requires utilities to acquire all cost-effective energy efficiency. The act also establishes requirements for strategic long-term planning and purchasing of least-cost supply and demand resources and three-year energy saving targets. Enacted in 2010, House Bill 8082 authorizes revenue decoupling for electric and natural gas utilities and requires utilities to submit proposals to implement these policies.
The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.
Energy efficiency programs are offered by Rhode Island's regulated distribution utilities. The major investor-owned utility operating in the state, Narragansett Electric, is a National Grid Company and offers a comprehensive slate of programs that parallel National Grid's offerings in Massachusetts. Hearings are held once a year before the Rhode Island Public Utilities Commission to review program plans. A collaborative of stakeholders reviews these plans and makes recommendations to the RI PUC on the programs. Program costs are trued up annually each May.
The Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006 greatly increased the role and requirements for acquisition of demand-side resources, requiring utilities to acquire all cost-effective energy efficiency. The act also created a statewide natural gas conservation program.
Utility programs are funded by a "conservation and load adjustment factor"—a rider assessed on all customer rates established as part of Rhode Island's restructuring legislation. There is a minimum floor on this surcharge of 2 mills per kilowatt-hour for energy efficiency paid by customers of regulated distribution utilities as a non-bypassable public benefits fee specifically for energy efficiency programs. The Rhode Island Public Utilities Commission annually reviews and authorizes utility demand-side management program plans, including budget amounts. The fee to support energy efficiency is a floor; actual spending amounts have exceeded this minimum requirement.
The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.
Last reviewed: July 2019
Rhode Island has a legislative requirement enacted in 2007 for electric and gas utilities to acquire all cost-effective energy efficiency that costs less than new energy supply as the first priority resource, placing it first in a utility’s resource “loading order” and greatly increasing the role of energy efficiency in long-term planning. The Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006 also establishes new requirements for strategic long-term planning and purchasing of least-cost supply and demand resources. Utilities in Rhode Island file plans that include specific energy savings goals. These plans are reviewed by the Public Utilities Commission.
Last reviewed: July 2019
Summary: Electric: 1.7% in 2012 ramping up to 2.6% by 2017. Current 2018-2020 targets average 2.5% of retail sales. Natural Gas: ~0.4% of sales in 2011 ramping up to 1.1% in 2017. Current 2018-2020 targets average 0.97% of retail sales.
The Rhode Island legislature unanimously passed the Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006 in June 2006. This act establishes a Least Cost Procurement mandate, requiring utilities to acquire all cost-effective energy efficiency with input and review from the Energy Efficiency and Resource Management Council (EERMC). Under the Least Cost Procurement mandate, National Grid is required to participate in strategic long-term planning and invest in all energy efficiency that is cost-effective and cheaper than supply on behalf of its customers.
The act also established requirements for strategic long-term planning and purchasing of least-cost supply and demand resources. Utilities must submit 3-year and annual energy efficiency procurement plans, which offer program details, as well as spending and savings goals. Hearings are held once a year before the Rhode Island Public Utilities Commission to review program plans. Yearly incremental savings goals for electricity during the 2012-2014 period began at 1.7%, increasing to 2.5% in 2014 (Docket 4284, 4295). Targets for 2015-2017 ranged from 2.5% to 2.6%; 2.5% for 2018-2021 (Docket 4443).
Rhode Island’s EERS policy also includes natural gas targets. Savings goals for the 2012-2014 period ranged from 0.6% in 2012 to 1.0% in 2014 (Docket 4284, 4295). Targets for 2015-2017 ranged from 1% to 1.1%; ~0.97% for 2018-2020 (Docket 4443).
Last reviewed: July 2019
Enacted in 2010, House Bill 8082 requires revenue decoupling for electric and natural gas utilities and requires utilities to submit proposals to implement these policies. In 2011, National Grid proposed a revenue decoupling mechanism that was approved by the Public Utilities Commission (Docket No. 4206).
Rhode Island has had a shareholder incentive for electric and gas since 2005 and 2007, respectively. The Narragansett Electric Company, d/b/a National Grid or NG, can earn incentives for both electric (kWh) and gas (MMBtu) savings. There is a target base incentive rate of 5% for both electric and gas in 2010 applied to the eligible spending budget for 2010. The threshold performance level for energy savings by sector is set at 75% of the annual energy and demand savings goal for the sector (Docket 4366). Further, in 2015, the Commission approved 30% of the target electric program incentive to be based on demand savings, while the remaining 70% will be based on energy savings (Docket 4527).
Last reviewed: July 2019
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Primary cost-effectiveness test(s) used: State-specific test
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Secondary cost-effectiveness test(s) used: none
Evaluations are mainly administered by the utilities. Rhode Island has formal requirements for evaluation. Statewide evaluations are conducted. Deemed savings are used by the utility in evaluating cost-effectiveness of energy efficiency programs. Evaluation of ratepayer-funded energy efficiency programs relies on regulatory orders and the Least Cost Procurement Standards. National Grid also provides a Technical Reference Manual and has offered the PUC access to an online Technical Reference Library, both of which show savings and costs on a measure level.
According to the Database of State Efficiency Screening Practices (DSESP), Rhode Island relies on its own state-specific test as its primary cost-effectiveness test, which was developed using principles consistent with the National Standard Practice Manual. It is applied primarily at the portfolio level, but Rhode Island also uses it at the program and measure level. Rhode Island’s test accounts for avoided costs of compliance with emissions regulations, participant health benefits and environmental benefits from reduced emissions. Rhode Island’s test accounts for non-energy costs and benefits associated with economic well-being, comfort, health and safety, other fuels, water savings, the social cost of carbon not embedded in energy market prices, economic development, and energy security from reduced use of fuel oil.
Further information on cost-effectiveness screening practices for Rhode Island is available in the Database of State Efficiency Screening Practices (DSESP), a resource of the National Efficiency Screening Project (NESP). Further information on health and environmental benefits is available in ACEEE’s Overview of State Approaches to Account for Health and Environmental Benefits of Energy Efficiency.
Last Updated: January 2019
Requirements for State and Utility Support of Low-Income Energy Efficiency Programs
The Comprehensive Energy Conservation, Efficiency and Affordability Act of 2006 requires utilities to acquire all cost-effective energy efficiency and establishes requirements for strategic long-term planning and purchasing of least-cost supply and demand resources, as well as three-year energy saving targets. In Docket No. 4580, National Grid’s Energy Efficiency Program Plan for 2016, funding for residential income eligible programs is set at 13.2% of total implementation funding for the electric programs and 20% for natural gas customers. These levels were adjusted to 13% and 21%, respectively, for 2017 in Docket No. 4654.
Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs
Docket No. 4443 outlines incremental electricity savings goals for 2015-2017 and notes that the Energy Efficiency Resource Management Council recommended including resource impacts and non-energy benefits in the TRC test analysis, but only to specific programs or technologies such as income-eligible programs or combined heat and power. Although Rhode Island General Laws require the consideration of non-energy benefits (NEBs) in the development of combined heat and power, there does not appear to be a similar provision in the General Laws for income-eligible programs. In the absence of non-energy impact evaluations of Rhode Island programs, the state has relied on Massachusetts’ benefit valuation work, as they have similar program types.
Coordination of Ratepayer-Funded Low-Income Programs with WAP Services
The Rhode Island Department of Human Services (DHS), Division of Community Services is responsible for administration of the state’s WAP and LIHEAP programs. CLEAResult, which since 2013 has operated as the lead vendor for National Grid’s Income Eligible Services (IES) program, works collaboratively with DHS to deliver weatherization services to eligible Rhode Islanders. Although DOE funds and utility funds are not directly blended on DOE weatherization jobs, the relationship is beneficial to both parties by enabling sharing of energy efficiency knowledge and program expertise.
As an example, CLEAResult and DHS have formed a Weatherization Technical Committee (WTC), which meets on alternating months and is comprised of a technical representative from each CAP agency (i.e. an experienced energy auditor), the CLEAResult QA Manager, and the three state monitors to discuss best practices and develop policy on weatherization matters of a technical nature. DHS and CLEAResult have also worked collaboratively on the development of a RI WAP/IES Operations Manual, which will incorporate all applicable elements of WPN 15-4.
Last updated: July 2018
There are no self-direct or opt-out programs in Rhode Island.
Rhode Island has no policy in place that requires utilities to release energy use data to customers or third parties.
Last Updated: July 2018
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Rhode Island Public Utilities Commission and Division of Public Utilities and Carriers
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Rhode Island Energy Efficiency and Resource Management Council
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LIHEAP Clearinghouse. State PBF/USF History, Legislation, Implementation. Rhode Island
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Rhode Island Department of Human Services. Weatherization Assistance Program
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Rhode Island Department of Human Services. 2016 Weatherization Assistance Program Plan
The state integrates transportation and land use planning, has adopted California's clean vehicle regulations, and EV incentives.
In May 2023, Governor Dan McKee and Rhode Island officials announced the start of work toward adoption of the Advanced Clean Cars II (ACCII) and Advanced Clean Trucks (ACT) standards to significantly reduce greenhouse gas emissions from the transportation sector, which accounts for 40% of the state's emissions. The standards were formally adopted in December 2023 to align with Rhode Island's Act on Climate goal of achieving net-zero emissions by 2050. By 2035, all new vehicles sold in Rhode Island must be zero-emission vehicles (ZEVs). This policy follows similar actions by neighboring states and aims to improve air quality, particularly in high-traffic and environmental justice communities, while ensuring the availability of ZEVs for consumers.
Last Reviewed: November 2024
Transportation and Land Use integration: In 1988, Rhode Island passed the Comprehensive Planning and Land Use Regulation Act, making comprehensive planning mandatory for municipalities. In 2000, an Impact Fee Act was passed to ensure that new growth did not financially burden existing tax payers and that adequate facilities were built to support new or rapidly growing development. The state also revised its State Land Use Plan in 2006, incorporating a number of recommendations and policies to discourage urban sprawl. Chapter 31-18-21 of state code directs the department of transportation to provide for the accommodation of bicycle and pedestrian traffic in the planning, design, construction and reconstruction of state highways and roads.
The State's Land Use 2025 Plan provides guidance for the integration of transportation into land use planning across the State, with recommendations for creating accessible public transportation hubs and ensuring maintenance of exisiting transit corridors and infrastructure. This emphasis on smart transportation growth, maintenance and repair of exisiting infrastructure, and focus on accessibility and equity is also included in the State's Transportation Improvement Plan.
Rhode Island legislation, 2023-H 6084B and 2023-S 1052A, creates a pilot program to fund the construction of dense, mixed-use developments around transit hubs, such as train stations and bus hubs. The legislation works in conjunction with the state’s Transit Forward 2040 master plan, which aims to build a modern, efficient public transportation system by 2040. The plan includes development around regional transit hubs and frequent transit stops to reduce car dependency, improve air quality, and meet carbon emission targets. The state budget allocates $4 million to these projects, with additional funding potential from the Secretary of Housing's new program.
VMT Targets: Although not a direct VMT target, the Rhode Island Division of Planning's State Guide Plan (SGP) includes Land Use 2025 and Transportation 2035, which guide state development and transportation investments. These plans aim to reduce vehicle miles traveled (VMT) through alternative travel modes, ridesharing, and integrating bicycle and pedestrian facilities. Targets include increasing transit mode share from 2.5% in 2000 to 3.2% by 2030. Existing programs through RIPTA, MBTA, and RIDOT promote transit ridership. Additionally, Rhode Island General Laws §36-6-21.1 sets VMT reduction goals for state employees.
FAST Freight Plans and Goals: Rhode Island’s 2022 freight plan has the following policy action for clean freight: Incentivize the use of cleaner truck technology through state and federal grant programs and new initiatives for electric vehicle/truck funding under IIJA.
Last updated: November 2024
We could not find state-level funding for transit.
However, Rhode Island has some dedicated transit funding through federal programs: Congressman David Cicilline advocated to protect funding for the Rhode Island Public Transportation Authority (RIPTA) through the 5340 High Density States program. Cicilline successfully urged negotiators to remove language that would have threatened $12 million in annual funding that supports quality, affordable public transportation in Rhode Island. As a result, the bill passed protects critical funding for RIPTA.
Under the bipartisan Fixing America’s Surface Transportation (FAST) Act, roughly $48 billion would be authorized for transit, and the remaining funds would be dedicated to National Highway Traffic Safety Administration programs. It is estimated that Rhode Island will receive an average of $39 million per year for mass transit programs. Under current law, the state receives about $36.3 million for transit.
The state of RI's Zero-Emission vehicles program has allocated $14.4 million of the state's Volkswagen settlement funds towards the acquisition of electric busses for the RI Public Transit Authority (RIPTA) to improve air quality in Rhode Island.
Last updated: November 2024
On July 7, 2022, OER launched the DRIVE EV rebate program
Driving Rhode Island to Vehicle Electrification (DRIVEEV), will support adoption of EVs by Rhode Island residents, small-businesses, non-profits, and public sector entities. Residential applicants may qualify to receive rebates of up to $1500.00 for the purchase or lease of new battery electric vehicles and fuel-cell electric vehicles and up to $1,000.00 for new plug-in hybrid electric vehicles.
The project also offers rebates of up to $1,000.00 for the purchase or lease of used battery electric vehicles and fuel-cell electric vehicle and up to $750.00 for used plug-in hybrid electric vehicles. Additionally, there's an additional rebate available for income-qualified applicants.
From the launch date to May 19, 2024, Rhode Island has issued 1,558 rebates across the different tiers of our DRIVE project, totaling $3,162,250 awarded rebates. (https://drive.ri.gov/project-statistics)
Additionally, OER launched an electric bicycle (e-bike) rebate program in October 2022, called the Erika Niedwoski Memorial Electric Bicycle rebate program. This rebate helps increase access to zero emission ebikes, making them more affordable and accessible to Rhode Islanders. The standard rebate provides up to $350, or 30% (whichever is less) of the final purchase of an e-bike, or e-cargo bike. Limit of 2 rebates per household. The Income-Qualified Rebate provides up to $750, or 75% (whichever is less) on the total purchase of an e-bike, or e-cargo bike. Limit of 2 rebates per household.
Last updated: November 2024
Rhode Island has programs in place to incentivize the creation of low-income housing near transit facilities. The McKee Administration recently announced a package of budget proposals aimed at spurring housing development and creating housing opportunities, which includes a $29 million investment from State Fiscal Recovery Funds (SFRF). Specifically, $4.9 million of this investment is allocated for grants to support transit-oriented development. These grants are intended to fund housing developments near transit options and to help municipalities study and implement zoning changes that increase housing density in areas close to transit.
Rhode Island considers the proximity of transit facilities when distributing federal Low-Income Housing Tax Credits to qualifying property owners. Page 37 of the 2024 Qualified Allocation Plan for Low Income Tax Credit Program describes transit and connectivity points of up to 2 points for various sub categories.
Last updated: November 2024
Policy: R.I. Gen. Laws § 39-27-1, et seq., Energy and Consumer Savings Act of 2005
Description: In 2005 the Energy and Consumer Savings Act established minimum energy efficiency standards for twelve commercial and residential products, nine of which were immediately preempted by the federal Energy Policy Act later that year, the last three preempted by federal standards effective January 1, 2010. In 2006, amendments were made to the 2005 legislation to create standards for an additional eight products, of which all but two have been preempted by the Energy Independence and Security Act of 2007: bottle-type water dispensers and commercial hot-food holding cabinets. The Office of Energy Resources is the state agency responsible for the adoption and certification of efficiency standards in Rhode Island.
In 2017, the State Energy Office testified in support of a proposed bill to expand appliance standards in the State in 2017: http://webserver.rilin.state.ri.us/BillText17/HouseText17/H6077.pdf
In 2021, Rhode Island adopted appliance standards for 15 products via SB 339. In 2023, the state adopted a clean lighting policy via H.5550.
Last Reviewed: November 2024