810 R.I. Code R. 810-RICR-40-05-2.8

Current through November 7, 2024

Section 810-RICR-40-05-2.8 - Demonstration of Compliance

A. NEPOOL GIS Certificates applied towards Rhode Island Renewable Energy Standard compliance may not be used towards compliance with state renewable energy obligations relating to an Obligated Entity's load in other states.

B. Compliance with the Renewable Energy Standard may be demonstrated through procurement of NEPOOL GIS Certificates relating to Generating Units certified by the Commission as using eligible renewable energy sources, as evidenced by reports issued by the NEPOOL GIS Administrator. Procurement of NEPOOL GIS Certificates from Off-grid and Customer-sited Generation Facilities, if verified by the Commission as Eligible Renewable Energy Resources, may also be used to demonstrate compliance.

C. In lieu of providing NEPOOL GIS Certificates, an Obligated Entity may also discharge all or any portion of its compliance obligations by making an Alternative Compliance Payment to the Renewable Energy Development Fund ("REDF"). An Obligated Entity shall include with its annual compliance filing copies of any receipt(s) for Alternative Compliance Payments made to the REDF during the Compliance Year. Where an Obligated Entity enters into a prospective agreement with the Rhode Island Commerce Corporation to accept Alternative Compliance Payments pursuant to R.I. Gen. Laws § 39-26-7(b) and the Rhode Island Commerce Corporation thereby purchases NEPOOL GIS Certificates, such NEPOOL GIS Certificates shall be credited against the Renewable Energy Standard for the Obligated Entity in the year of the certificate.

D. The following flexibility mechanisms are allowed for the purposes of easing compliance burdens, facilitating bringing New Renewable Energy Resources online, and avoiding and/or mitigating conflicts with state level source disclosure requirements and green marketing claims throughout the region:

1. Obligated Entities may demonstrate compliance over a full Compliance Year, rather than any fraction thereof;

2. Obligated Entities may bank excess compliance for up to two (2) subsequent Compliance Years, capped at thirty percent (30%) of the current year's obligation;

E. Compliance Procedures. Annual compliance filings to the Commission shall be made by all Obligated Entities within thirty (30) calendar days after NEPOOL GIS reports are available for the fourth (4th) quarter of each Compliance Year. Obligated Entities shall utilize such forms as provided by the Commission for the annual compliance filing. Obligated Entities shall provide, in the annual compliance filing, such NEPOOL GIS or other reports to demonstrate compliance to the satisfaction of the Commission. Obligated Entities may arrange with the ISO or electric distribution company to provide to the Commission final, reconciled values of the Load Obligations for each Load Asset in the New England Markets that represents the electricity sold by an Obligated Entity at retail to Rhode Island End-use Customers. Otherwise, such data will be provided to the Commission by the electric distribution company and communicated to Obligated Entities during the fourth (4th) quarter trading period of each Compliance Year. All electric utility distribution companies shall cooperate with the Commission in providing data necessary to assess the magnitude of obligation and verify the compliance of all Obligated Entities.

F. Standard Compliance. Each Obligated Entity shall be deemed to be in compliance with these regulations if the information provided in the Compliance Filing submitted pursuant to these regulations is true and accurate and demonstrates compliance with Rhode Island Renewable Energy Standard targets applicable to the applicable Compliance Year.

G. Repealed.

H. Banked Compliance: For meeting the required percentage from New Renewable Energy Resources in any Compliance Year, an Obligated Entity may use NEPOOL GIS Certificates associated with production during one Compliance Year for compliance in either or both of the two subsequent Compliance Years, subject to the limitations set forth herein and provided that the Obligated Entity is in compliance with the Renewable Energy Standard for all previous Compliance Years. In addition, the Obligated Entity shall demonstrate to the satisfaction of the Commission that:

1. Banked NEPOOL GIS Certificates were in excess of the New Renewable NEPOOL GIS Certificates needed for compliance in the Compliance Year in which they were generated, that such excess NEPOOL GIS Certificates have not previously been used for compliance with the Renewable Energy Standard, and were not otherwise sold pursuant to § 2.4(F) of this Part;

2. Banked NEPOOL GIS Certificates do not exceed thirty percent of the Attributes needed by the Obligated Entity for compliance in the year they were generated;

3. Banked NEPOOL GIS Certificates were produced by the generation of electrical energy sold to Rhode Island End-use Customers during the Compliance Year in which they were generated; and have not otherwise been, nor will be, sold, retired, claimed or represented as part of electrical energy output or sale, or used to satisfy obligations in jurisdictions other than Rhode Island. Obligated Entities shall make such demonstration by retiring banked NEPOOL GIS Certificates in the Compliance Year they were generated.

I. Alternative Compliance. An Obligated Entity shall receive Alternative Compliance Credits from the Commission, subject to the following:

1. The Alternative Compliance Payment rate shall be determined according to § 2.3(A)(2) of this Part. For each Compliance Year, the Commission will publish the Alternative Compliance Payment rate by January 31 of the Compliance Year;

2. The quantity of credits, specified in MWhs, that can be applied to its obligations under this regulation shall be determined by calculating the ratio of the total of payments to the REDF for the Compliance Year to the Alternative Compliance Payment rate for that Compliance Year; and

3. The Obligated Entity shall include with its Annual Compliance Filing copies of any Alternative Compliance Payment receipt(s) or document proof of payments made to the REDF applicable to the Compliance Year.

J. Annual Compliance Filing. For each Obligated Entity, the filing shall document compliance with the provisions of these regulations to the satisfaction of the Commission and shall include, but not be limited to, the following:

1. Total Retail Electrical Energy Sales. Documentation of the total MWhs of electrical energy sold to End-use Customers in the Compliance Year;

2. Retail Electricity Sales by Electrical Energy Product. Documentation of the total MWhs sold to End-use Customers in the Compliance Year, verified by an independent third party satisfactory to the Commission. The Commission will consider requests made pursuant to Commission Rules of Practice and Procedure § 1.3(H)(3) to keep product information confidential to the extent permitted by law;

a. For each Electric Energy Product offered during the Compliance Year, an indication of the generation attributes marketed to End-Use Customers, specifically including voluntary renewable energy claims, including, but not limited to, those described in § 2.4(E) of this Part.

3. NEPOOL GIS Certificates Allocated from the Compliance Year. Documentation of the total MWhs of each Electrical Energy Product sold to End-use Customers that was generated by New Renewable Energy Resources, and the total MWhs of each Electrical Energy Product sold to End-use Customers that was generated by Existing Renewable Energy Resources in the Compliance Year as follows:

a. For electrical energy transactions included in the ISO Market Settlement System, the Compliance Filings shall include documentation from the NEPOOL GIS Administrator of the Obligated Entity's ownership of NEPOOL GIS Certificates representing generation by New or Existing Renewable Energy Resources during the Compliance Year;

b. For electrical energy transactions not included in the ISO Market Settlement System, but for which the Obligated Entity has secured NEPOOL GIS Certificates, the Compliance Filings shall include documentation from the NEPOOL GIS Administrator of the Obligated Entity's ownership of Generation Attributes representing generation by New or Existing Renewable Energy Resources during the Compliance Year;

c. The identification of each Generation Unit from which New or Existing Renewable Generation Attributes were claimed by the Obligated Entity for its compliance in the Compliance Year;

d. The quantity of New or Existing Renewable NEPOOL GIS Certificates produced by each such Unit for each applicable month of the Compliance Year; and

e. Assurances satisfactory to the Commission that the New or Existing Renewable NEPOOL GIS Certificates have not otherwise been, nor will be, sold, retired, claimed or represented as part of electrical energy output or sales, or used to satisfy obligations in jurisdictions other than Rhode Island.

f. The quantity of NEPOOL GIS Certificates, whether from Eligible Renewable Energy Resources or not, retired to support generation attributes marketed to End-Use Customers for Electrical Energy Products sold during the Compliance Year.

(1) If such NEPOOL GIS Certificates are retired in an Obligated Entity's Reserved Certificate Account, they will be marked "RI VOLUNTARY" by the Obligated Entity followed by the Load Asset identification number associated with the Electrical Energy Product served. If the Load Asset identification number is associated with multiple Electrical Energy Products, the Certificates will also be marked with information suitable for identifying the specific Electrical Energy Product to which they apply.

4. Repealed.

5. Attributes Allocated from Banked Compliance. Allocation by Electrical Energy Product of any NEPOOL GIS Certificates banked from one or both of the two previous years pursuant to these regulations that are used to demonstrate compliance in the current Compliance Year;

6. Alternative Compliance Credits. Allocation by Electrical Energy Product of any Alternative Compliance Credits claimed pursuant to these regulations along with a copy of any Alternative Compliance Payment receipt(s) from the Renewable Energy Development Fund;

7. Attributes Banked for Future Compliance. Identification of any NEPOOL GIS Certificates that the Obligated Entity anticipates claiming for purposes of Banked Compliance in subsequent years.

K. Repealed.

810 R.I. Code R. 810-RICR-40-05-2.8

Amended effective 5/28/2024