The bill introduces the "Rhode Island Clean Heat Standard Act," which aims to reduce greenhouse gas emissions in the state's thermal sector by implementing a system of tradeable clean heat credits. These credits are earned through the delivery of clean heat measures that align with the state's emission reduction goals as outlined in the "Act on Climate." The Act emphasizes social equity, ensuring that clean heat measures are accessible to all customers, and defines key terms such as "clean heat credit," "clean heat measure," and "obligated party." It also mandates the Rhode Island executive climate change coordinating council to establish rules for the clean heat credit system, set annual credit retirement requirements, and maintain a public list of registered obligated parties.

The bill specifies that a significant portion of the clean heat credits must come from measures delivered to low-income and moderate-income customers, with penalties for noncompliance. It outlines the council's authority to designate a default delivery agent and adopt the cost per clean heat credit. Funds from noncompliance payments are to be used to provide clean heat measures to low-income customers. The bill also requires the council to establish a schedule of lifecycle emission rates for heating fuels and measures, create a registration system for clean heat credits, and allows for legislative changes to ensure credits come from weatherization projects. It includes a severability clause and mandates the council to commence proceedings within 90 days of enactment, with the act taking effect upon passage. There are no specific insertions or deletions from current law mentioned, indicating that this bill may be adding a new chapter to Rhode Island's legislation on environmental standards.