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East Bay Energy Consortium: What Happened and What is Next

Although the EBEC bill did not pass the House last week, its leaders would like to see it reintroduced this winter.

 


In 2009, the East Bay Energy Consortium (EBEC) was founded in order to explore the feasibility of combining resources across the nine East Bay municipal lines to invest in renewable energy sources. A bill to establish the group as a non-profit governmental entity, passed the Senate, but last week it was held before it got to the House.

The House Environment and Natural Resources Committee determined it should be "held for further study," which essentially, killed the bill.

“It was a bit of a disappointment that it didn’t come out of the committee to be heard on the floor,” said Jeanne-Marie Napolitano, chairwoman of the EBEC Board. Napolitano also serves as a City Council member for Newport.

The Board will meet within a month to determine next steps and Napolitano said she would like to see the board decide to reintroduce the bill. She said although there were originally valid concerns, several revisions addressed the major issues.

“We all had concerns,” said state Senator Louis DiPalma, who introduced the bill in the Senate. He said if the EBEC approved, he would also like to reintroduce the bill.

DiPalma said the majority of the concerns arose after the recent news that 38 Studios defaulted on a $75 million loan to the EDC. The bill initially proposed the Consortium would be a subsidiary of the EDC, which raised concerns that if they defaulted on their loans, Rhode Island taxpayers would be held liable once again.  

DiPalma said the language was changed so that the consortium would be a stand-alone entity and would be responsible for its own debts.  

The new language was modeled almost word for word after the Rhode Island Interlocal Trust (“The Trust”), which is an intergovernmental insurance risk-sharing pool.

“Think of it as a blueprint,” said the senator. “It is a two page bill.". 

Napolitano said since the concerns had been addressed, it was important to educate Representatives, so they would understand Rhode Island taxpayers were no longer liable. She said only a handful of legislators attended an informative breakfast that was held to explain the changes.

Another educational opportunity was lost when they were not allowed to testify at the last hearing; a decision that she attributed to what she called a “mystery letter” from Gov. Lincoln Chafee. She said a board member found the letter on the packets prepared for the legislators.

The governor's letter read, “There is language in the legislation that I cannot support, including creating EBEC as a subsidiary of the Economic Development Corporation and the potential financial exposure the State would be Subject to regarding the bond financing of this project.”

DiPalma said the letter was probably a “contributing factor” in the decision to remove the EBEC’s testimony that day.

“It was very obvious he had not seen the new legislation,” said Napolitano. “It’s very unusual to come in and try to kill something like that.” She said after waiting two and a half hours, they were taken “right off” the agenda.

Four days later, the governor’s office wrote Napolitano an email saying Chafee  supported the bill now that it was modeled after the Rhode Island Interlocal Trust.

“I always felt that he was a governor who believed in renewable energy,” said Napolitano. 

DiPalma said one rumor he had heard was that resident's electricity bills would become more expensive. He said that and other rumors are not accurate, because the bill did go into detail of the types of technologies or particular by-laws. It established the group as a legal governmental entity, similar to how a new business would incorporate, he explained.

The intent of the group is to not only invest in renewable energy, but also save cities and towns money, said DiPalma. 

"My goal is to interact with the group and bring it back in January, in some way, shape or form," he said.

Related Topics: East Bay Energy Consortium and Renewable Energy

Bear401

3:07 pm on Monday, June 18, 2012

Would this become another useless wasteful state/quasi state department which will be nothing more than a vehicle to hand out high paying jobs to another bunch of inept, incompetent, politically connected cronies & nothing to show for it at the end of the day? Sure sounds like it.

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Bristol County Anonymous

4:01 pm on Monday, June 18, 2012

EBEC siphoned off money to pay Lawyer / lobbyists, a project manager, and “consultants”, and there is no legitimate “project”.

That’s “what happened”.

And, here’s what should be “next”…

1) EBEC needs to give the money back, and be dissolved.

2) Investigation of EDC and EBEC.

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Jack Baillargeron

7:26 pm on Monday, June 18, 2012

This EBEC needs a full accounting of where the money went, how much each town was kicking in as well as the EDC over $500,000 with $67,000 or more in lawyer fees. We have every right to a full accounting of the expenditures in black & white.

It now needs to be in the hands of the people are every single communication, emails, memo's, minutes and anything else concerning the meeting with EBEC and its representatives had with public and private individuals etc.

This has to all be done before the legislature comes back in session so the actual facts of this are to be presented to them, should this rear its ugly head again. We know that will happen, as people like those on the EBEC, want their free money and will try again and again. I think we should start e-mail the Governor and have this added to the investigation of Studio 38, as the EDC was responsible for funding this EBEC scam as well. We would not have this problem if it was done by private donations, which I understand it also was given. But taxpayer funds to create the use of more taxpayers funds, by hiring lobbyist, lawyer and studies, seems very shady and smells to high heaven in my opinion.

Why are so many of those involved supporting this in the Statehouse not from the Eastbay? Why did so many towns now pull out of this, with Newport voting after the final draft, unanimously to pull out of supporting it. Because the people, over 350 fought to defeat this scam on the taxpayers, thats why.

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Jack Baillargeron

7:27 pm on Monday, June 18, 2012

“DiPalma said one rumor he had heard was that resident's electricity bills would become more expensive.”

When the President of the U.S. The head of your political party said these energy projects will raise electric bills enormously and every other economist in the country, they are all liars and you are correct!

The EBEC has not shown any plan with empirical financial data, and long term cost. There is liability. All contracts and entities can be contested in Court, even revenue bonds. This was in the debates on this bill. When a 3rd party, such as the EDC who the EBEC wants to be under, funds them which they all ready have to the tune of almost $500,000 dollar spent on lobbying, Studies, lawyers, wine and dine and who knows what else, can be sued. The EDC is liable as a 3rd party! Because they are taxpayer funded taxpayers are liable.

Mr. Dipalma, your own political flyer says and I quote “act with integrity, transparency, persistence, and focus on results by looking at facts rather than relying on perception”

Well nothing in the last 3 years of this EBEC has been transparent, just the perception of them being an advisory committee. Their own minutes and public statements show the goal has been to become a Utility, competing with the private sector. There is not a single government entity to date that has succeeded in that. It always cost the taxpayers in the end. So follow your own flyer and please stop this scam on the taxpayers.

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Bear401

8:06 pm on Monday, June 18, 2012

I highly doubt that this seriously corrupt state can legitimately investigate itself because if it did a new penitentiary would have to be built. Most everyone in the state house & who sit on most town/city councils as well as many of the vendors who do business & are under contract with both will be changing their addresses to it.

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DownTown

9:22 pm on Monday, June 18, 2012

They plan to save the towns money by billing people an offensively high rate for their electricity.

This is just another tax.

We pay 6 cents/kwh for electricity right now with another 6 cents for distribution. So in order to save the towns money they would have to co locate the turbines on sites which would use all the power at less than 12 cents/kwh OR build a wind farm somewhere and sell the power at 5 cents or less per kwh.

The best way to end around this is to support legislation that would require any state or local based electric generator sell electricity at market rates or less. That closes the door on this pipe dream.

BTW where did the $500k get spent so far? That's another law that needs to be enacted. Full accountability for every tax dollar.

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Bear401

6:28 am on Tuesday, June 19, 2012

The old Nike site would be the perfect spot to put a few turbines. It's out of the way & it's height would put those turbines into the slightest of winds. But I'm guessing that some developer has his eyes on that spot to plant another condo complex or housing devlopment. None of which will do any good.

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dave

7:32 am on Tuesday, June 19, 2012

Anyone talk to Safeway lately? That so-called turbine hasn't moved in weeks and is pointing in a useless north-east direction. But keep the subsidies and maintenence contracts coming.

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Gary Morse

10:22 am on Tuesday, June 19, 2012

Jeanne-Marie Napolitano, chairwoman of the EBEC Board, failed at her due diligence as a board chairwoman.

FIRST - why in October 2011, did she bring a vote before the EBEC board to have only two board members, being herself and the Treasurer, granted with full authority to approve all expenditures regardless of the amount. Then she turned around and started to approve payments to EDC cronies right after that approval. And what was that $7000 expense for "compost" in 2011?

Then, why was the 2010 Phase II study not updated since 2010? The Phase II study was little more than contrived financial assumptions with no basis in reality.

Finally, why does she support an artificially contrived increase on everyone's electric bill (the Renewable Energy Charge payable to EDC) to be the primary funding mechanism for EBEC? It is a regressive tax on the poor.

Ms Napolitano is not a friend to the poorest in our state who would be funding this EBEC boondoggle via their proceeds to the EDC.

Come clean Mayor, you knew EBEC was financially contrived and pitched it anyway as a money making venture for the towns. That $200K in profit came in one door and out the other with EDC cronies shaving off their take each month.

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marina peterson

10:46 am on Tuesday, June 19, 2012

Let us all try and change the complexion of the General Assembly this November so that we don't have to deal with schemes like this!!

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Jack Baillargeron

11:16 am on Tuesday, June 19, 2012

Good explaination of why the EBEC shouyld never raise its head again on the Eastbay paper. Second paragraph.

Violet: ‘Rookie’ mistakes continue to cost R.I. a fortune

http://www.bristolri.com/news/2012/jun/19/violet-rookie-mistakes-continue-cost-ri-fortune/

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Jack Baillargeron

11:25 am on Tuesday, June 19, 2012

Another one worth comment on By an obviously brainwashed EBEC supporter.

Unfortunate demise of East Bay Energy effort;

Dennis August Almeida, Little Compton

.

http://www.eastbayri.com/news/2012/jun/18/unfortunate-demise-east-bay-energy-effort/

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Govstench

11:48 am on Tuesday, June 19, 2012

You can bet a wad of franklins that DiPalma WILL be back in January (if he survives re-election) to run this legislation again. This is perfect campaign fodder to use against him. Do an investigation of the campaign finances of this guy to see if he was receiving any paybacks! Do the homework and the investigating of the candidates who supported this bill as well. Was there any money exchanged? You know Moses was the lobbyist pushing this thing. They should all be held accountable in November. This was only the first battle, the war has not been won against these malcontents who are our public officials.

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Brian Bishop

12:07 pm on Tuesday, June 19, 2012

"DiPalma said one rumor he had heard was that resident's electricity bills would become more expensive. He said that and other rumors are not accurate . . . "

The only pro forma on a project ever produced by EBEC would have vastly increased net metering in the state and thus would have increased rates.

Trying to incorporate or instantiate the organization that proposed increasing rates that way and say the institutionalization of the organization doesn't itself increase rates is disingenous. The only way to protect ratepayers would be in the EBEC legislation said specifically it wouldn' use net metering and would only compete competitively for long term contracts that grid is required to enter. If the legislation said that, I don't know that I would support it, but you could then say that it didn't threaten a rate increase. No such legislation was ever submitted. In testimony, EBEC-o-philes insisted they weren't going to use net metering, but only relative to the Tiverton project discussion, and even though they made those representations, every version of the legislation except the very last one explicitly gave them access to netmetering. The last one was generic by they have telegraphed through their earlier proposals what we should be worried about and we should be worried about it unless it is EXPRESSLY FORBIDDEN in the legislation.

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Jack Baillargeron

12:24 pm on Tuesday, June 19, 2012

Disagree, Brian, as we know in this State or the Federal Government, "EXPRESSLY FORBIDDEN" is only as good a the next amendment. This EBEC or anything like it should not be allowed. If anything a Bill must be formed to put the Quasi-Government agency's out of business and the State Constitutin changed to forbid the Legislature or exectutive Office from creating them period. That is the only way to stop this from happening anymore, and then the 21 in existence in this State should be phased out over a 2 year period and returned wholely to the private sector with no Subsidies to any of them.

Jack Baillargeron

12:14 pm on Tuesday, June 19, 2012

Govstench; in my opinion “malcontent” is incorrect and way to kind to these type of people. It is time to educate these people on exactly what they advocate and want, whether they are aware of it or not.

Merriam/Webster

I think this is more appropriate of the belief system of these supporter and Politicians trying to drive this down our throat. The sad thing is; they seem to not even have a clue that it is exactly by definition what they are doing. (a & 2.b especially should be noted), People get upset when the word is used to define them, but when the shoe fits; they are the ones wearing it.

Perhaps they should read a dictionary and a book on the history of communism, to include the “communist manifesto”; maybe just maybe they will see the error of their ways.

com•mu•nism
noun \ˈkäm-yə-ˌni-zəm, -yü-\
Definition of COMMUNISM
1
a : a theory advocating elimination of private property b : a system in which goods are owned in common and are available to all as needed

2
capitalized

a : a doctrine based on revolutionary Marxian socialism and Marxism-Leninism that was the official ideology of the Union of Soviet Socialist Republics

b : a totalitarian system of government in which a single authoritarian party controls state-owned means of production

c : a final stage of society in Marxist theory in which the state has withered away and economic goods are distributed equitably

d : communist systems collectively

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Bristol County Anonymous

12:47 pm on Wednesday, June 20, 2012

DiPalma received “contribution” money from a RI wind turbine developer.

https://secure.ricampaignfinance.com/ExportDocs/5802-RICF2-112395-94da5844-eea1-49aa-a170-acec430b090c.pdf

DePalma pushed hard for legislation that would have converted EBEC into an entity with the ability to issue bonds so that EBEC could pay millions of dollars to…

…wind turbine developers.

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William F Horan

11:19 pm on Monday, July 23, 2012

Bunko scam fraud and a looting of the electrical rate payer and tax payer while destroying our public utilities structure. SOP for the RI General Assembly and its EDC. So called renewable green energy is based on voodoo math, excessive subsidies and inflated electrical rates. We need a viable energy policy and companion conversion and distribution of electrical power that remains affordable, predictable and reliable. This EDC SOLAR and Wind turbines do not meet the requirements. Solution increase the size of natural gas transmission lines to RI and increase the size of the Johnston RI facilities, Look toward R&D disruptive technologies for the future, Global warming and peak oil are both junk science & frauds. e mist shut down and kill the ill advised and dangerous RI GA EDC EBEC before it squanders even more tax payer and rate payer monies. Both Government and Academia have over stepped their roles responsibilities and enumerated limited powers. Public Utilities and the RI PuC must be allowed to assume their charters by law roles and responsibilities. We are very shocked re the EBEC agenda and specifically exhibited behaviors attributed to elected officials. Yes,the intellectual dishonesty, ignorance & incompetence demonstrated by several political figures and elected officials!? This does not pass the smell test, business & technical models etc. Hopefully the Federal Government will shortly sunset the between 20 and 30 years support of this failed agenda.

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no regr allia b

6:19 pm on Monday, November 26, 2012

Frankly I hope someone goes to jail for this scam. I suspect there will be a lot of political fallout at the least from this investigation.

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marina peterson

12:00 pm on Tuesday, November 27, 2012

Nope.... It's factual! You can't really "make up" a complaint being investigated by the AG's office.

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