The proposed "Utility Thermal Energy Network and Jobs Act" aims to establish and regulate thermal energy networks within the state, mandating public utility companies that provide electric and natural gas distribution to maximize cost-effective investments in these networks to support climate goals. The Public Utilities Commission (PUC) will oversee the implementation of this chapter, initiating proceedings to develop thermal energy networks within one year of enactment.

The bill requires public utility companies to submit plans for infrastructure development every three years, ensuring that at least 40% of investments benefit environmental justice communities. It emphasizes labor peace agreements and sets standards for contractor compliance with wage and apprenticeship requirements, facilitating a just transition for utility workers affected by the shift towards thermal energy networks.

Key provisions include the requirement for contractors to ensure that at least 15% of labor hours on covered projects are performed by registered apprentices and establishing criteria for contractor eligibility based on their compliance history. The bill expands the definition of public utilities to include thermal energy networks and introduces new provisions regarding utility base rates, prohibiting the inclusion of advertising expenses while allowing for educational and safety-related advertising. Additionally, it allocates funds from demand-side management gas funds for the construction and maintenance of thermal energy networks, effective January 1, 2026.

The act is set to take effect upon passage, highlighting the importance of maximizing investments in thermal energy networks when deemed in the public interest by the Public Utilities Commission.

Statutes affected:
5576: 39-2-1.2