§ 23-82-5 - Sale of allowances.
SECTION 23-82-5
§ 23-82-5 Sale of allowances. – (a) The department shall provide in its regulations that one hundred percent(100%) of all allowances issued under the program in the state of Rhode Islandshall be sold. A de minimus portion of allowances may be set aside to supportthe voluntary renewable energy provisions of the regional greenhouse gasinitiative model rule.
(b) The department's regulations shall specify the mechanismfor sale of allowances, including authorizing the state to make use of anyvoluntary regional organizations, structures or mechanisms available to statesimplementing a program of this type, provided that any sale of allowances mustbe public, competitive and open to all who wish to participate.
(c) The department may engage an independent contractor,consumer trustee or other entity experienced in sale or auction design andmanagement, including a regional entity engaged by multiple states to conductregional sales or auctions, who is determined by the department, inconsultation with the office, to be qualified to conduct auctions or sales in amanner that assures the efficiency of the auctions or sales. The selection ofany independent contractor, consumer trustee or other entity shall be done inaccordance with applicable procedures of the division of purchases.
(d) The department shall annually convey one hundred percent(100%) of all carbon allowances established pursuant to this section to theselected independent contractor, consumer trustee or other entity who shall beauthorized to receive, hold and sell allowances for the long-term benefit ofconsumers. The selected independent contractor, consumer trustee or otherentity shall conduct the auction or sale, collect the auction proceeds andshall upon receipt, transfer to the office the proceeds of the auction or saleto be distributed in accordance with § 23-82-6, under the oversight of thedepartment.
(e) The department shall require an annual report from theindependent contractor, consumer trustee or other entity conducting the auctionor sale describing the auction or sale and its results. The report shall bemade public and shall also be submitted to the general assembly.
(f) All proceeds collected from the auction or sale ofallowances pursuant to this section shall be deposited as restricted receipts.