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Reminder – Renewable Energy Signed Into Law
Renewable Energy HB7127 was signed into law by Gov. McKee on June 12, 2026.
This is Rhode Island’s FY26 appropriations bill, which includes a number of energy-related provisions in Article 11.
7127 SUB A as amended includes provisions directing that RIE file by 8/15/26, and RIPUC approve by 12/1/26, an optional, 25-year term tariff implementing a fixed net-metering (NM) charge available to eligible community remote NM systems and certain other non-residential NM owners. The fixed credit rate will be $0.19/kWh increasing 2.75% annually, beginning 1/1/28. Owners of eligible systems must make a one-time, irrevocable choice to elect the plan by the later of 90 days after tariff approval or 60 days after execution of an interconnection agreement.
The bill amends the Renewable Energy Standard (RES) program, including:
- extending the program to allow obligations to be satisfied by generation attributes from “zero-emission resources” (ZERs), large-scale hydroelectric and fission or fusion nuclear generation, where eligible ZERs are: (i) units that are located in the NEPOOL control area; and (ii) units located in an adjacent control area to the extent that the energy produced by the generation unit is demonstrated to have been delivered into NEPOOL;
- amending the alternative compliance payment, beginning 2026: (i) New Renewable and Zero-Emission Resources – $40/MWh; and (ii) Existing Renewable and Zero-Emission Resources – $11.00/MWh;
- removing 1.5% increase in the RES minimum obligation for 2015;
- amending the portion of RES obligations that may be met from existing resources: (i) to 14% for 2027; and (ii) increasing 1% annually until reaching 20% for 2033; and
- allowing banking of unlimited excess compliance for up to three compliance years, rather than 30% for two compliance years.
Additional energy provisions include:
- requiring transmission facility owners to be members of ISO New England;
- eliminating financial remuneration and incentives for utilities entering long-term contracts for newly developed renewable resources;
- directing Rhode Island PUC to conduct a comprehensive review of, among other things, the RES program, greenhouse gas emissions reduction requirements, and carbon reduction goals and to submit a report on its findings to the legislature by 12/31/27; and
- implementing an energy benchmarking and performance standards program for state facilities and public buildings.
