Rhode Island’s 2026 Legislative Session Recap
Rhode Island’s 2026 Legislative Session: Energy Costs Front and Center
The 2026 legislative session of the Rhode Island General Assembly came to a close late on June 11. From when the Governor released his budget in January rolling back clean energy goals to the utility’s bid to own power generation in the final week of the session, energy costs were front and center. Legislators and other leaders were eager to take action and deliver relief to everyday Rhode Islanders, and energy affordability framed almost every conversation, public statement, and piece of testimony by Acadia Center.
At the start of the session and the new year, Acadia Center categorized its priorities under three pillars: (1) reduce dependence on volatile gas supply through increased adoption of energy efficiency and renewables, (2) rein in transmission and distribution costs, and (3) funding the transition. Our organization anticipated defending against rollbacks to energy efficiency and the Renewable Energy Standard, and this defense played out in the development of the state budget. By the end of the session, Acadia Center had presented on energy cost drivers for a Senate Commission, the general public, and members of the House.
Acadia Center’s presentation on energy costs to members of the House of Representatives, in May 2026
Energy Cost Drivers Presentation
Recording: https://capitoltvri.cablecast.tv/show/12165
Clean Energy on the Chopping Block in the State Budget
In mid-January, Governor McKee released his proposed Fiscal Year 2027 budget for the State of Rhode Island, which included a sweeping set of rollbacks to foundational clean energy and climate policies. Acadia Center promptly released a response to these rollbacks, demystifying the three core energy provisions for policymakers, fellow advocates, and the media. Shortly thereafter, Acadia Center partnered with fellow clean energy advocates to host the Clean Energy is Affordable Energy press event, and our organization stood beside advocates, as well as developers and labor, to oppose Governor McKee’s FY 2027 budget proposal. The energy proposals in the Governor’s budget and Acadia Center’s response was featured in the Boston Globe, Rhode Island Current, and ecoRI News.
Due diligence for Rhode Island’s state budget involved hearings in the House and Senate Finance Committees, where Acadia Center and others had the opportunity to offer written and verbal testimony to the committees. Subsequent budget amendments from the Governor also received hearings in May. Acadia Center submitted written testimony and delivered verbal testimony at each of these hearings, expressing strong opposition to arbitrarily capping energy efficiency, and delaying and weakening Rhode Island’s Renewable Energy Standard.
The punitive “grid access fee” in the Governor’s initial proposal was eliminated following firm pushback from solar developers, unions, as well as clean energy advocates. The administration then convened a closed-door working group on virtual net metering with many of those developers and labor leaders, which yielded an alternative proposal to lower compensation rates for large solar projects. At the direction of House leadership, Representative Carson brokered a compromise on the Renewable Energy Standard (H8519, S2764A), which offered some expansion of and adjustments to the RES without fundamentally undermining the integrity and ambition of the law. While this legislative proposal was not adopted verbatim, the House’s released budget mirrored this approach.
Though there was limited dialogue about the capping of energy efficiency programs, Acadia Center remained adamant in its opposition to this proposal and encouraged communication between the legislature and the state’s Energy Efficiency Council. Ultimately, the state’s enacted budget (1) maintained the timeframe for 100% zero emission resources by 2033, and (2) did not limit energy efficiency programs – both significant positive outcomes. The successful defense of clean energy in Rhode Island’s budget process was also covered by national news outlets, Politico and Canary Media. In addition, the enacted budget directed the Public Utilities Commission (PUC) to explore the creation of an Intervenor Compensation program, a top legislative priority of Acadia Center.
Promoting Intervenor Support in Rhode Island
More Efficiency and Renewables
In New England, overreliance on gas is a key culprit of higher electric rates. To mitigate our exposure to volatile gas supply, Rhode Island must reduce how much energy is needed with energy efficiency and increase clean and affordable supply with renewables. With more cheap energy and less total energy needed, the region and Rhode Island will be less beholden to volatile gas supply and other fossil-based energy. Acadia Center supported a wide range of bills to not only defend but also to promote more energy efficiency and renewable energy.
After multiple years of advocacy, the Building Benchmarking Act (H7183, S2260) passed both the House and Senate chambers; unfortunately, Governor McKee vetoed the bill. The effort to track energy usage of large buildings has continually emerged as a top legislative priority for the environmental community, as a critical first step towards reducing emissions in the building sector. Benchmarking is a no-brainer for tackling energy waste and prompting energy efficiency by the state’s largest energy users.
Acadia Center Continues to Highlight the Importance of Benchmarking and Performance Standards
Legislation to streamline solar permitting and inspections (H7726, S2801, Solar Cost Reduction Act) and enable balcony solar (H7269, S2359) had robust hearings in both chambers, and passed the House, but fell short in the Senate. Both are examples of proactive action to offset energy costs with increased access to renewables. The successful effort to pilot (or at least require feasibility studies of) thermal energy networks also reflects a critical transition away from gas.
Rein in Transmission and Distribution (T&D) Costs
Transmission spending is growing at a concerning rate with limited oversight. Distribution continues to be the largest source of utility capital spending. On both levels of the electric system, investor-owned utilities earn their profit based on capital infrastructure and are thus financially incentivized to spend more.
Transmission oversight and the deployment of Grid Enhancing Technologies (GETs) remain a top priority of Acadia Center. And in Rhode Island, Acadia Center continued to promote legislation (H7068, S2655A) that would enable state siting boards to add scrutiny and suggest cost-saving measures of transmission upgrades and construction.
The PUC has oversight of distribution spending and Acadia Center believes the expansion of stakeholder participation in regulatory proceedings would improve outcomes for ratepayers. H7890, S2655 would provide intervenor compensation so organizations or impacted individuals can hire experts and challenge Rhode Island Energy’s (RI Energy) assumptions. Two topics proposed for consideration at RI Energy’s rate case also saw aligned legislative resolutions –to eliminate subsidized gas line extensions([1]) and to implement heat pump rates.
While a range of bills aimed to limit the spending of the investor-owned utility, Acadia Center specifically supported legislation to prohibit certain utility spending and limit the growth of annual Infrastructure, Safety, and Reliability (ISR) Plans (H7881, S2779). Acadia Center also contributed to dialogue around the appropriate guardrails the state should consider to protect ratepayers from the potential costs of large data center users.
Acadia Center Explains: Data Centers and Their Energy Impact
Though these efforts to rein in T&D costs did not become law, each legislative effort presented an opportunity to demonstrate with data the true drivers of energy costs and to redirect attention to a portion of bills that is rapidly growing.
Late Session Defense
Acadia Center also played a key role activating legislators to oppose late session nominations that would replace engaged members of the Energy Efficiency Council, rather than fill long-vacant seats with welcome new capacity. In an extremely rare occurrence, the Senate delayed voting on two of three nominations after Acadia Center questioned the removals and noted the disregard for the recommendations, technical expertise, and public process facilitated by the Energy Efficiency Council. The nominations were ultimately not considered by the Senate.
In the final week of the session, an expansive bill to allow utility ownership of power generation unexpectedly advanced out of committee to the Senate floor. Acadia Center led the rapid response, providing context on the past 30 years of separating energy generation from utility ownership and illustrating the wide range of concerns and consequences associated with such a significant shift. This bill would have a stark impact on private clean energy developers and burden ratepayers with undue risk and increased costs. The bill was ultimately pulled by the sponsor and not considered by the Senate. Acadia Center looks forward to working with interested lawmakers to pursue alternative avenues to the goals of affordability, reliability, and clean energy – as well as with members of the labor community who lent support to the bill after it was amended to include important labor standard provisions.
Conclusion
Acadia Center played a valuable and constructive role in Rhode Island’s 2026 legislative session, having defended against rollbacks to clean energy and raised awareness about the true drivers of energy costs. Significant opportunity and immediate priorities remain – to improve access to solar, tackle energy waste in large buildings, and cut back rising utility costs. The challenge of funding the transition, and serious consideration of a Clean Heat Standard, Climate Superfund Act, or other solution, remain unaddressed. Now, next session, and beyond, the work to advance a clean energy future continues.
[1] Senate resolution to eliminate subsidized gas line extensions did pass the Senate.