The "Rhode Island Clean Heat Standard Act" aims to reduce greenhouse gas emissions in the thermal sector by mandating that obligated parties retire clean heat credits. The act prioritizes social equity, ensuring that low-income and moderate-income customers, as well as households with high energy burdens, can access and benefit from clean heat measures. Key definitions such as "clean heat credit," "clean heat measure," and "obligated party" are established, and the Rhode Island executive climate change coordinating council is tasked with creating a system of tradeable clean heat credits. These credits can be earned through eligible clean heat measures, and obligated parties, including natural gas utilities and heating fuel sellers, must meet annual retirement requirements based on their emissions contributions.

The bill introduces provisions that require a significant portion of clean heat credits to be sourced from measures delivered to low-income and moderate-income customers, specifically mandating that at least 20% of the required credits come from each of these categories. It designates a default delivery agent responsible for providing clean heat measures and outlines the process for determining the cost of clean heat credits. Additionally, the act establishes a registration system for tracking and transferring tradeable clean heat credits, which will be time-stamped and earned in proportion to actual emission reductions. While the bill does not specify any deletions from current law, it introduces new legal language to implement the clean heat standards program, which is set to take effect immediately upon passage.