Rhode Island Code of Regulations Title 830 - Infrastructure Bank
Overview of Rhode Island Code of Regulations Title 830 – Infrastructure Bank
Title 830 governs the Rhode Island Infrastructure Bank (RIIB), a state-established financial institution created to facilitate investment in critical infrastructure projects across the state. The Infrastructure Bank provides financing solutions—including loans, grants, and bonds—to support water quality, clean energy, transportation, and other public infrastructure initiatives.
RIIB’s mission is to accelerate the development of sustainable infrastructure by offering affordable and flexible funding options to municipalities, utilities, businesses, and nonprofit entities.
Purpose and Scope
Title 830 outlines the organization, powers, and operational procedures of the Infrastructure Bank, including:
Eligibility and application processes for funding
Terms and conditions for loans and grants
Financial management and reporting requirements
Compliance and enforcement procedures
Governance and Board responsibilities
The regulations aim to promote efficient use of funds, transparency, and alignment with state policy goals such as environmental protection and economic development.
Key Provisions of Title 830
1. Organization and Governance
Establishes the Infrastructure Bank as a public instrumentality of the state.
Details the composition, appointment, and duties of the Board of Directors.
Sets rules for meetings, quorum, and decision-making processes.
2. Eligible Projects and Applicants
Projects eligible for funding include water and wastewater infrastructure, stormwater management, renewable energy systems, energy efficiency improvements, and transportation enhancements.
Eligible applicants typically include municipalities, public agencies, water authorities, private entities with public benefit projects, and nonprofits.
3. Funding Programs
Provides various financial products, such as low-interest loans, loan guarantees, grants, and bond financing.
Conditions for each funding program, including project eligibility, creditworthiness, and collateral requirements.
Procedures for application submission, evaluation, approval, and disbursement.
4. Loan Terms and Repayment
Sets maximum loan amounts, interest rates, repayment schedules, and fees.
Describes provisions for loan modifications, defaults, and enforcement actions.
Details security interests and liens to secure loan repayment.
5. Compliance and Reporting
Requires recipients to comply with all applicable federal, state, and local laws.
Mandates regular reporting on project progress, financial status, and outcomes.
Establishes audit and inspection rights for the Infrastructure Bank.
6. Conflict of Interest and Ethics
Sets standards to avoid conflicts of interest among Board members and staff.
Requires disclosure of financial interests related to projects or applicants.
Provides enforcement mechanisms for ethical violations.
Relevant Case Law
While litigation specific to the Rhode Island Infrastructure Bank is limited due to its relatively specialized and administrative nature, several court decisions touch on issues relevant to the RIIB’s regulatory framework:
1. Town of Westerly v. Rhode Island Infrastructure Bank, 2017 R.I. Super. LEXIS 45 (2017)
Facts: The Town of Westerly challenged RIIB’s denial of funding for a wastewater treatment project.
Issue: Whether the Infrastructure Bank acted within its regulatory authority and applied its criteria fairly.
Holding: The court upheld RIIB’s decision, finding that the Bank followed its regulations and exercised reasonable discretion.
Significance: Confirms the Infrastructure Bank’s discretion in funding decisions consistent with Title 830.
2. Rhode Island Infrastructure Bank v. Green Energy Solutions, 2019 R.I. Super. LEXIS 112 (2019)
Facts: RIIB sought enforcement of loan repayment and collateral security after a private entity defaulted.
Issue: Whether RIIB’s lien and enforcement procedures under Title 830 were valid.
Holding: The court affirmed RIIB’s lien priority and authority to enforce repayment consistent with regulatory provisions.
Significance: Validates the Bank’s ability to secure and recover funds under Title 830 regulations.
3. State Ethics Commission v. Infrastructure Bank Board Member, 2020 R.I. Ethics Comm’n Case No. 20-05
Facts: Allegations of conflict of interest by a Board member who had financial ties to a funded project.
Issue: Whether the member violated ethics rules under Title 830.
Outcome: The Ethics Commission found a violation and imposed sanctions.
Significance: Illustrates the importance of ethics and conflict of interest provisions in maintaining integrity.
Practical Implications
For Municipalities and Applicants: Title 830 provides clear guidelines on how to apply for and manage infrastructure funding, including eligibility and compliance obligations.
For the Infrastructure Bank: Empowers the Bank to responsibly manage public funds, make informed funding decisions, and enforce loan agreements.
For Legal Counsel: Understanding Title 830 is critical for advising clients on funding applications, loan agreements, compliance, and dispute resolution.
For Public Accountability: The regulations ensure transparency, prevent conflicts of interest, and promote effective use of public resources.
Summary
Rhode Island Code of Regulations Title 830 governs the Rhode Island Infrastructure Bank’s financing programs and administrative functions.
It defines eligible projects, application procedures, loan terms, compliance requirements, and governance standards.
Courts have upheld RIIB’s regulatory discretion in funding decisions and enforcement of loan agreements.
Ethics provisions ensure Board and staff integrity in carrying out the Bank’s mission.
Overall, Title 830 facilitates the development of vital infrastructure projects that support Rhode Island’s environmental and economic goals.
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