Although state leaders announced with much fanfare the passage of legislation earlier this month to encourage alternative energy projects, the package will have little effect on Block Island.

Hailed in a statement by House Majority Leader Gordon Fox as “an important step toward encouraging the development of both large- and small-scale renewable energy projects in Rhode Island,” the legislation requires National Grid to enter into “commercially reasonable” contracts with renewable energy producers and outlines the state’s renewable energy goals and a system to promote financing. The package also clarifies and expands how power companies award credits to users that produce and send energy back into the grid.

The General Assembly is currently seeking to reconcile House and Senate versions of the bills before sending them to Republican Gov. Donald Carcieri. The governor’s spokesman did not return calls for comment and the governor’s stance is unclear.

How helpful the package will be to Block Island is also unclear. The law requiring electricity distributors to enter into long-term contracts with renewable energy providers specifically exempts the Block Island Power Co. (BIPCo).

Jerry Elmer, a staff attorney for the Conservation Law Foundation, which lobbied for the package, said BIPCo was excluded because it didn’t make sense in the marketplace. A potential renewable energy venture would want access to thousands of customers, not a small island.

“It will affect 99.9 percent of electricity users in the state — but not you folks on Block Island,” Elmer said.

Rep. Donna Walsh (D-Dist. 36, Charlestown, New Shoreham, South Kingstown, Westerly) said she asked David Segal, one of the bill’s sponsors, why Block Island was exempted. He directed her to State House staffers, who provided her with an explanation similar to Elmer’s.

“It seemed like there wasn’t a way to actually do it, so it didn’t go any place,” Walsh said. “I wasn’t going to vote against the bill because it was a good bill. But it just doesn’t address Block Island.”

Elmer said there might be hidden incentives for a renewable energy project to connect to the island. If the project can sell the island electricity for a rate higher than that on the mainland, but still lower than islanders are used to paying, the company could come out ahead.

The legislation also keeps the exemption that allows BIPCo to use a different formula to award credits to those that generate renewable energy. Walsh said she did not notice the exemption and could not speculate why it was included.

BIPCo gives the three customers that put energy back into the grid credits, though it uses a different formula than specified in the bills, according to BIPCo Chief Operating Officer Cliff McGinnes Sr. The BIPCo formula generally awards a lower credit than that spelled out in the bill by excluding transmission and distribution charges from the credit.

State Sen. Susan Sosnowski (D-Dist. 37, New Shoreham, South Kingston), who sponsored the bill, did not return a call seeking comment.

Andrew Dzykewicz, commissioner of the Rhode Island Office of Energy Resources, said Monday he had not studied the legislation carefully and could not comment on what, if any, affect the package would have on Block Island.

And it’s unclear if any large-scale renewable energy project would tie into BIPCo, although the state’s request for proposals for an off-shore wind farm did encourage it.

A five-member panel appointed by the governor is reviewing proposals from seven companies that include plans to build the farm off Block Island.

The panel includes Dzykewicz, David Farmer, dean of the Graduate School of Oceanography at the University of Rhode Island, Thomas F. Ahern, administrator of the Division of Public Utilities and Carriers, Saul Kaplan, executive director of the Rhode Island Economic Development Corporation, and Christopher Long, a policy analyst in the governor’s office.

The statement said the members would review bids on the basis of total cost to Rhode Island ratepayers, the qualification and experience of the bidder in constructing wind projects, and the number of jobs and the amount of tax dollars to be created. The team is expected to choose the “best bidder” by the end of the summer.

“The members of this team will represent and evaluate a broad array of concerns,” Carcieri said in a statement. “Tom Ahern will represent the interests of Rhode Island ratepayers, while Saul Kaplan will work to ensure that this project fits with the state’s economic development plans. And with the inclusion of Dr. Farmer from the URI Graduate School of Oceanography, we can be sure that we are taking into consideration all the elements that will be important for selecting the best project.”

The winning proposal is expected to generate 1.3 million megawatt-hours, or 15 percent of the state’s electricity. The winning bidder would not receive any direct funding from the state. Instead, the state would help shepherd the winner through the regulatory process.