Local Dam Management Districts
Volume I
Chapter 3. Hydropower Rhode Island Renewable Energy Siting Partnership
incentives foster distributed generation, net metering, interconnection, and tax incentives. These incentives apply to multiple forms of renewable energy, including hydropower, and are discussed
in detail in Chapter 1, Section 5 of this report. In addition, Rhode Island offers a tax credit to hydroelectric power developers to help
offset the costs of hydropower equipment installation R.I. Gen. Laws § 44-30-20. Small hydroelectric power production facilities defined as facilities with 15,000 kW of installed
capacity constructed on existing dams defined as dams built before May 20, 1981 not requiring construction or enlargement of the impoundment in order to generate hydroelectric energy are
eligible for the credit. The tax credit is calculated according to the installation costs associated with the project. The credit may equal no more than 10 percent of the installation costs
associated with the facility, or 500,000 in expenditures, for a maximum income tax credit of 50,000 dollars.
4.3 Rhode Island Municipal Ordinances S
ECTION
S
UMMARY
Municipalities may establish dam management districts DMDs to manage the services provided by dams and the possible risks posed by dams that no longer
serve a purpose. Two DMDs have been established in Rhode Island: the Boone Lake DMD in Exeter and the Pascoag ReservoirEcho Lake DMD in Burrillville
and Glocester. Hydropower projects proposed within a DMD should consult with these entities.
Rhode Island’s Soil Erosion and Sediment Control law includes a model
ordinance that may be adopted by municipalities to control erosion. South Kingstown, Providence, Cranston and Cumberland have passed soil erosion and
sediment control ordinances. Hydropower construction activities in these locations must comply with the requirements of these ordinances if they are
expected to result in erosion.