The proposed bill establishes the "Rhode Island Clean Heat Standard Act," which aims to reduce greenhouse gas emissions in the thermal sector by implementing a system of tradeable clean heat credits. The act includes legislative findings and defines key terms such as "clean heat credit," "clean heat measure," and "obligated party."

The Rhode Island Executive Climate Change Coordinating Council is tasked with promulgating and enforcing rules to establish the clean heat credit system, including setting annual credit retirement requirements for obligated parties. The council will prioritize energy efficiency and weatherization before implementing other clean heat measures. A substantial portion of the clean heat credits retired by each obligated party must come from measures delivered to low-income and moderate-income customers, with at least 20% from each group.

The council will designate a default delivery agent to provide clean heat measures and will maintain a registration system to facilitate tracking and compliance with clean heat credits. The act also outlines the process for obtaining clean heat credits, compliance requirements, and the authority granted to the council to implement the provisions of the act. The act is set to take effect upon passage.