in Rhode Island

Fiscal Budgets Rhode Island state budget and finances Tax policy in Rhode Island Finance Financial regulation in Rhode Island Pensions Public pensions in Rhode Island Pension health in Rhode Island Civil liberties Affirmative action in Rhode Island Campaign finance requirements in Rhode Island Campaign finance requirements for Rhode Island ballot measures Nonprofit regulation in Rhode Island Education Charter schools in Rhode Island Higher education in Rhode Island Public education in Rhode Island School choice in Rhode Island Elections Ballot access Ballot access requirements for political candidates in Rhode Island Ballot access requirements for political parties in Rhode Island Political parties in Rhode Island Ballot access requirements for presidential candidates in Rhode Island Redistricting in Rhode Island Voting in Rhode Island Energy and Environment Energy policy in Rhode Island Fracking in Rhode Island Oil and gas extraction on federal land in Rhode Island Endangered species in Rhode Island Environmental policy in Rhode Island Healthcare Healthcare policy in Rhode Island Medicaid spending in Rhode Island Effect of the Affordable Care Act in Rhode Island Immigration Immigration in Rhode Island

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Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Energy policy involves governmental actions affecting the production, distribution, and consumption of energy in a state. Energy policies are enacted and enforced at the local, state, and federal levels and may change over time. These policies include legislation, regulation, taxes, incentives for energy production or use, standards for energy efficiency, and more. Stakeholders include citizens, politicians, environmental groups, industry groups, and think tanks. A variety of factors can affect the feasibility of federal and state-level energy policies, such as available natural resources, geography, and consumer needs.

This article outlines state-level oil and gas regulations, renewable energy programs, oil and gas production, energy usage, energy and electricity prices, fuel taxes, and utilities in Rhode Island.

See the tabs below for further information:

1. Policy: This tab provides information about state regulations on energy production and policies related to oil and gas production, fracking, renewable energy generation, energy efficiency, and net metering.
2. Production: This tab provides information about total energy production by energy source in Rhode Island.
3. Usage: This tab presents information about electricity consumption by energy source.
4. Prices and taxes: This tab presents information about average energy and electricity prices, per capita spending on energy, and fuel taxes.
5. Utilities: This tab presents information about public and private utilities, electricity markets, the types of utilities in Rhode Island, and the electric reliability organizations in Rhode Island.
6. Background: This tab provides information about the types of nonrenewable and renewable energy sources produced and used in the United States, an energy profile of Rhode Island, a state profile of Rhode Island from the Almanac of American Politics (2016), and economic indicators in the state, such as median income.

Policy

State regulations

As of 2015, Rhode Island did not have proven crude oil or natural gas reserves, according to the U.S. Energy Information Administration. As such, the state did not have rules and regulations governing oil and gas production in Rhode Island.^[1]

Renewable energy policies

States have implemented funding and financial incentive programs to subsidize or otherwise increase investment in renewable energy resources such as wind, solar, and hydroelectric power. These programs include renewable portfolio standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and more. The aim of the policies generally involves reducing the cost of renewable energy production for consumers, reducing regulatory compliance costs, reducing investment risks involving renewable energy, and/or increasing the adoption of renewable energy sources by individuals and businesses.^[2]

Renewable Portfolio Standard

See also: Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount of renewable energy production and use. Under these standards, a utility company can be required by a state to have a certain percentage of its electricity come from certain renewable energy resources. In addition, states may give tax credits to utility companies to fulfill these requirements.^[3][4]

As of February 2017, Rhode Island was one of 30 states with a Renewable Portfolio Standard, which was first established in 2004. The standard requires all retail electricity providers, including non-regulated electric producers and electric distribution companies, to generate 38.5 percent of their retail electricity sales from renewable energy sources by the year 2035. In 2016, the Rhode Island State Legislature extended the standard to the year 2035; the standard was previously set to expire in 2019. Eligible renewable sources include solar energy, wind energy, energy produced from the ocean (such as tidal and wave power), geothermal energy, hydroelectric power facilities with up to 30 megawatts (MW) in capacity, and biomass facilities that comply with state-issued air quality permits.^[5][6]

Grant programs

States, nonprofit organizations, and/or private utilities may operate grant programs for renewable energy. These programs may include state or private funding for energy installation costs, research and development, infrastructure and business development, system testing, and renewable energy feasibility studies (studies that look into the potential for renewable energy use in specific areas). Grants can be provided with or without requiring a recipient to match the grant. Additional incentives, such as lower interest loans, may be included with a grant.^[2]

As of March 2015, Rhode Island was one of 24 states with a state-run program for renewable energy. The Rhode Island Commerce Corporation provides grants for commercial-scale renewable energy projects to generate electricity for on-site use. Legal business entities, municipalities, nonprofit organizations, and public housing units are eligible for grants. Grants may be distributed for renewable systems that generate more than 10 kilowatts (kW). Eligible renewable energy sources include solar energy, wind energy, wave and tidal energy, smaller hydroelectric power facilities, biomass, and fuel cells. Projects that are directly owned by the applicant have grants capped at $200,000 per project. Projects owned by third parties have grants capped at $100,000 per project. Project owners must conduct an energy audit before they submit applications.^[7]

The Rhode Island Renewable Energy Fund provides state funding for grants for solar energy, including small-scale photovoltaic solar energy systems and domestic solar water heating systems. All residential buildings, businesses, public housing units, nonprofit organizations, state facilities, and municipalities located in Rhode Island are eligible for solar energy grants. Grants are provided for solar photovoltaic systems up to 10 kilowatts (kW) in capacity.^[8]

See the map below for grant programs by state.^[2]

States with grant programs for renewable energy as of March 2015 (Source: Environmental Protection Agency)

Loan programs

Loan programs may be used to offer lower interest loans or other financing options to individuals and businesses to reduce the upfront costs of purchasing and installing renewable energy technologies. Loan programs may include programs that use payments from earlier borrowers to provide loans for new borrowers, programs in which building owners reduce their energy consumption to pay their upfront costs for renewable energy technologies, and programs that allow individuals with a higher debt-to-income ratio to purchase homes that use less energy, among others.^[2]

As of March 2015, Rhode Island was one of 36 states with a state-run loan program for renewable energy technologies. The Rhode Island Energy Revolving Loan Fund provides loans for Rhode Island businesses. The program is partially funded by the federal American Recovery and Reinvestment Act. Loans can be used to install eligible renewable energy projects, as well as energy efficiency measures. Loan terms and interest rates depend on the project. Businesses must show that they can repay the loan or show that the project will generate savings or earnings and must provide personal or business collateral equivalent to the requested loan amount. Eligible renewable projects include photovoltaic solar energy, wind energy, solar space and water heating, combined heat and power systems, and biomass.^[2][9]

A complete list of state, local, and private incentive, loan, grant, and assistance programs for renewable energy and energy efficiency in Rhode Island can be found here.

See the map below for renewable energy loan programs by state.

States with loan programs for renewable energy as of March 2015 (Source: Environmental Protection Agency (EPA)

Energy efficiency regulations

As of February 2017, Rhode Island required all new residential and commercial buildings to meet energy efficiency standards. All residential buildings must meet energy efficiency standards for heating, ventilating, air conditioning, water heating, and lighting found in the 2012 International Energy Conservation Code. All commercial buildings must meet similar standards under the ASHRAE 90.1-2010 Standard or the 2012 International Energy Conservation Code.^[10]

Net metering

Net metering is a billing system in which customers who generate their own electricity, usually using renewable sources (such as solar panels) are able to sell their excess electricity back to the electric grid, which is an interconnected network that is used to deliver electricity. This requires electricity to be able to flow both to and from a consumer.^[11][12][13]

As of October 2016, Rhode Island was one of 41 states with a statewide net metering policy. The state allows net metering for customers that have energy systems of up to 10 megawatts (MW) in capacity. In addition, the energy systems must generate up to 100 percent of their electricity for home or otherwise on-site use. Eligible renewable energy sources include solar energy, wind energy, geothermal energy, hydroelectric power facilities, biogas, and fuel cells that generate electricity from any of the above sources. All customers of electric distribution companies, including publicly owned companies, are eligible for net metering. For a complete list of net metering programs by state, click here.^[5][14][15]

Recent legislation

The following is a list of recent energy policy bills that have been introduced in or passed by the Rhode Island State Legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Ballot measures

Energy policy ballot measures

See also: Energy on the ballot and List of Rhode Island ballot measures

Ballotpedia has not covered any ballot measures relating to state and local energy policy in Rhode Island.

Utility policy ballot measures

See also: Local utility tax and fees on the ballot

Ballotpedia has not covered any ballot measures relating to local utility tax and fees in Rhode Island.

Production

The sections below include statistics on total energy production in Rhode Island, oil and natural gas production in Rhode Island, oil and gas production in Rhode Island over time (2004-2014), and oil and gas production on federal land, including the amount of federal land leased in Rhode Island for production.

Total energy production

The table below provides information regarding energy production in Rhode Island in British thermal units (Btu). A British thermal unit is used to measure the heat contained in different fuels. The U.S. Department of Energy defines a Btu as "the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are discussed in terms of Btu to compare fuels with different energy content and prices. For example, one gallon of gasoline equals 120,524 Btu.^[16]

Nonrenewable energy production

The table below provides information regarding nonrenewable energy production in Rhode Island. For coal data, the phrase productive capacity refers to the maximum amount of coal that could be expected to be produced in 2014. The natural gas and crude oil production data refer to the amounts of natural gas and crude oil produced in December 2014 and April 2016, respectively.^[1][17]

Oil and gas production (2004-2014)

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here.

According to the U.S. Energy Information Administration, Rhode Island has no proven crude oil, coal, or natural gas reserves and thus no production.^[1]

Energy usage

The section below includes statistics on electricity consumption in the state by energy type (in 2014).

Consumption

The table below provides information about energy consumption by source in Rhode Island in 2014. Information from select surrounding states is provided for comparison.^[1]

Prices and taxes

The sections below include information on energy prices and spending in Rhode Island, fuel taxes and state taxes in Rhode Island and in neighboring states, and an overview of the federal tax on gasoline.

Energy prices

The price of electricity is affected by supply and demand. The supply of electricity is affected by fuel prices, environmental and energy regulations, power plant capacity, weather, and other factors. Demand for electricity also affects the price. Because electricity cannot be stored for long periods of time, it must be produced and used when it is needed. As demand for electricity increases, the price also generally increases.^[18][19]

The table below provides information about energy prices in Rhode Island as of April 2016. Information from select surrounding states is provided for comparison.^[1]

Electricity prices can vary depending on the type of consumer; consumer categories include residential, commercial, industrial, and in some cases, transportation. The rate-making process is both political and economic. The table below presents information about electricity prices by consumer type in Rhode Island in April 2016. Information from select surrounding states is provided for comparison.

Energy spending

The table below provides information about energy spending in Rhode Island as of 2014. Information from select surrounding states is provided for comparison.

Fuel taxes

Click to enlarge.

Revenue collected by federal, state, and local governments from fuel taxes is usually used to fund transportation infrastructure such as roads and bridges. Some states may charge an excise tax based on how much gas or diesel is purchased. Some states may charge retail tax based on the average price of gas over a certain period. Additionally, some states may charge an environmental tax to be used for environmental projects. The Tax Foundation, which created the map to the right, used data from the American Petroleum Institute, which converted each state's different tax structure into cents per gallon to compare each state's gas taxes. In 2016, gas taxes accounted for 23 percent of the price of gasoline. Crude oil accounted for 40 percent of the price of gasoline, refining accounted for 24 percent of the price, and distribution and marketing accounted for 13 percent of the remainder.^[20][21]

The table below provides information about state fuel taxes by type (excluding the federal gas taxes) in Rhode Island as of January 2016. As of January 2016, Rhode Island levied a 34 cent state gasoline tax and a 34 cent state diesel tax. Rhode Island ranked 10th highest in total gasoline taxes (federal and state) and 11th highest in total diesel fuel taxes as of January 2016.^[22][23]

Federal tax

The first federal tax on gasoline was proposed by Secretary of the Treasury Ogden L. Mills under President Herbert Hoover (R) as a revenue generating measure to balance the budget during the Great Depression. A 1-cent tax per gallon of imported gasoline and fuel oil was passed as part of the Revenue Act of 1932 and signed by President Franklin D. Roosevelt (D). The 1-cent tax continued until 1951 when the tax was increased to 2 cents in part to raise revenue during the Korean War. In 1956, the tax was raised to 3 cents to fund the Interstate Highway System. During this time, the Highway Trust Fund was created as a means to fund highway construction. Since 1956, there have been increases to the tax. As of April 2016, the gas tax was last raised by President Bill Clinton (D) in 1993 to 18.4 cents per gallon.^[24]

Utilities

The sections below include general information on utilities, an overview of utilities and electricity markets, information on the types of utilities in Rhode Island, an overview of electricity reliability organizations (EROs), and the EROs that oversee electricity in Rhode Island.

Background

Utilities are firms that own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or water to the public. Electric utilities are commercial entities that own and operate facilities to generate, transmit, and distribute electricity to the public and/or the industrial sector. State and local regulators oversee transmission and distribution charges. Local utilities read electric meters and bill individuals or businesses, generally on a monthly basis.^[25][26]

Utilities are defined differently in each state and in federal legislation. Two general types of utilities are private and public utilities. Private utilities, commonly known as investor-owned utilities, provide stocks to investors and sell bonds. These utilities are regulated by state regulatory agencies. State agencies are also responsible for setting retail rates charged by investor-owned utilities, overseeing utility infrastructure, and ensuring that investor-owned utilities respond to customer service demands. Public utilities include government or municipally owned utilities. Another type of utility is an electric cooperative. Cooperatives are nonprofit businesses voluntarily owned and managed by the individuals and businesses that use their services. They are commonly used in rural areas that do not have access to a larger state or region-wide electric grid.^[26]

Electricity markets

Electricity markets in each state are defined as regulated or deregulated. A regulated market includes utilities that own and manage the power plants that generate the electricity, the electricity transmission lines, and the distribution equipment (such as wires and electric poles). In addition, the utilities rates are approved and regulated by local and state agencies. A deregulated market requires utilities to divest ownership in the generation and transmission of electricity. In this market, utilities oversee the interconnection from a meter at a household or business to the power grid and is responsible for billing ratepayers.^[27][28]

Depending on the state and/or area, public utilities may provide most or all energy services to homes and businesses, or a state may allow other private electricity providers to transmit and distribute electricity in addition to other utilities. For example, one type of private provider is a retail energy provider, which sells electricity in areas with retail competition. The provider purchases wholesale electricity and the delivery services (such as transmission lines) and can price electricity to particular consumers.^[27][28]

As of February 2017, Rhode Island was one of 10 states with a deregulated electricity market. The Rhode Island Public Utilities Commission regulates the rates of all public electric utilities in the state. However, customers can purchase electricity from non-regulated electric producers or suppliers, which must be licensed by the commission. A list of all non-regulated electric suppliers and producers can be accessed here.^[29][30]

Electric reliability organizations

The Energy Policy Act of 2005 required the Federal Energy Regulatory Commission (FERC) to designate an electric reliability organization (ERO) for the United States. An ERO oversees the reliability of a nation's electric grid. In 2006, FERC granted authority to the North American Electric Reliability Corporation (NERC) to develop and enforce grid reliability standards for the United States. NERC, a self-regulated nonprofit corporation, is authorized to enforce grid reliability standards for all users, owners, and operators of the U.S. electrical system.^[31]

NERC works with eight regional reliability organizations to oversee the U.S. electrical system. These organizations, known as regional entities, are composed of officials from investor-owned utilities, federal power agencies, electric cooperatives, and state and municipal utilities. Regional entities enforce NERC and regional reliability standards. Further, they forecast electricity demand and coordinate operations with other regional entities.^[32]

Rhode Island EROs

As of February 2017, the Northeast Power Coordinating Council (NPCC) was the NERC-affiliated nonprofit corporation that oversees the bulk power system in northeastern North America, including Rhode Island. The NPCC is responsible for developing regional reliability standards, assessing compliance, and enforcing continent-wide and regional reliability standards.^[33]

Background

The sections below include an overview of the types of renewable and nonrenewable energy produced and consumed in the United States, an energy profile of Rhode Island (from the U.S. Energy Information Administration), a general profile of Rhode Island (from the 2016 edition of the Almanac of American Politics), and various economic indicators in Rhode Island.

Background on energy resources

Nonrenewable energy sources, such as coal, oil, and natural gas (sometimes known as fossil fuels), and renewable sources, such as hydropower, wind, biofuels, and solar energy, are produced in each state, though at different levels depending on a state's geography, energy consumption, and the raw materials available in a particular state. For example, several states do not have coal, oil, and/or natural gas resources. States that lack these resources import these fuels.^[34]

According to the U.S. Department of Energy, oil, coal, and natural gas comprise the majority of the resources used to generate power in the United States. In 2014, the top five energy-producing states were the top five fossil fuel-producing states—Texas, Wyoming, Pennsylvania, Louisiana, and West Virginia. These states' fossil fuel production accounted for approximately 42 percent of U.S. energy production in 2014. States with fewer coal, oil, and natural gas resources generally consume less energy. In 2014, the bottom five energy-producing states—Rhode Island, Delaware, Hawaii, Nevada, and New Hampshire—produced 0.2 percent of U.S. energy and consumed approximately 2 percent of total U.S. energy.^[34]

The production of biofuels (liquid fuels created from plant or plant-derived materials) is generally concentrated in the Midwest—states such as Illinois, Iowa, Nebraska, and South Dakota) given the region's agricultural production of crops such as corn, which is used to make ethanol, a biofuel that can be blended with gasoline and used as a transportation fuel.^[34]

Other renewable sources are used to generate power in the states include hydroelectric power, which accounted for about half of all renewable energy production in the United States in 2014.^[34]

Rhode Island energy profile

According to the U.S. Energy Information Administration, Rhode Island has no crude oil, coal, or natural gas reserves and thus has no production. Though Rhode Island does not produce or refine petroleum, the Port of Providence receives petroleum products for use in the state. The majority of petroleum used in Rhode Island as of 2014 was consumed in the form of fuel oil and motor vehicle gasoline. Most natural gas is delivered to Rhode Island by pipelines from New York and Connecticut, though some natural gas is delivered to the state from Massachusetts. As of February 2016, around 95 percent of the state's net electricity generation came from natural gas. The remainder came from biomass resources. Around 4 percent of the state's electricity generation came from all renewable energy sources, and most of the electricity from renewable sources came from landfill gas.^[1]

State profile

Presidential voting pattern

See also: Presidential voting trends in Rhode Island

Rhode Island voted for the Democratic candidate in all six presidential elections between 2000 and 2020.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, one is located in Rhode Island, accounting for 0.5 percent of the total pivot counties.^[35]

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Rhode Island had one Boomerang Pivot County, 4.00 percent of all Boomerang Pivot Counties.

More Rhode Island coverage on Ballotpedia

• Elections in Rhode Island
• United States congressional delegations from Rhode Island
• Public policy in Rhode Island
• Influencers in Rhode Island
• Rhode Island fact checks
• More...

Economic indicators

See also: Economic indicators by state

Rhode Island's GDP increased by 1.2 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[36][37][38]

Between 2011 and 2013, the median annual household income in Rhode Island was $55,158, lowest among its neighboring states but higher than the national average. Most residents in Rhode Island earned incomes above 400 percent of the federal poverty level. In September 2014, Rhode Island had the highest unemployment rate of its neighboring states, 7.6 percent.^{[39][40][41][42]}

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

See also

• Energy policy in the U.S.
• Fracking in Rhode Island
• Net metering
• Renewable Portfolio Standard
• Environmental policy in Rhode Island

Recent news

The link below is to the most recent stories in a Google news search for the terms Rhode Island energy policy. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Footnotes

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