The "Rhode Island Clean Heat Standard Act" aims to reduce greenhouse gas emissions in the thermal sector by requiring obligated parties to retire clean heat credits. The legislation emphasizes social equity, ensuring that low-income and moderate-income customers, as well as households with high energy burdens, are not adversely affected. The act establishes a framework for clean heat measures, which include technologies and fuels that reduce emissions, while explicitly excluding the switching of one fossil fuel to another. The Rhode Island Executive Climate Change Coordinating Council will implement and enforce the clean heat standard, including establishing a system for tradeable clean heat credits. Key provisions include the council's authority to set annual clean heat credit retirement requirements based on lifecycle CO2 emissions and the coordination with energy efficiency programs.

The bill mandates that any entity not previously registered must submit their registration form within thirty days after their first sale of heating fuel in the state. It also stipulates that clean heat requirements will transfer to any entities that acquire an obligated party. A significant focus is placed on equitable distribution, requiring that at least 20% of the clean heat credits retired by each obligated party come from low-income customers and another 20% from moderate-income customers. The council will create a registration system for tracking and transferring these credits, ensuring substantial sourcing from low- and moderate-income customers. The bill is set to take effect immediately upon passage, promoting clean heat initiatives while ensuring access for disadvantaged communities. No specific insertions or deletions from current law are mentioned, indicating the introduction of new provisions in Rhode Island legislation.