The proposed bill establishes the "Decarbonization Demonstration Initiative Act of 2026," which aims to facilitate the transition of large multi-unit residential buildings to geothermal heat pump systems as a means to reduce greenhouse gas emissions. The initiative recognizes that emissions from existing buildings are a significant contributor to statewide greenhouse gas emissions and identifies the high costs and financial risks associated with obtaining feasibility proposals as a major barrier to adopting these systems.

To address this, the bill introduces a multi-unit residential geothermal feasibility loan program, which will provide no-interest loans to eligible applicants for the purpose of obtaining detailed feasibility proposals from qualified contractors.

Under the new chapter added to Title 42, the bill outlines eligibility criteria for applicants, which include owning or controlling a multi-unit residential dwelling with a gross floor area greater than 65,000 square feet and submitting an initial feasibility screening prepared by a qualified contractor. The loan amounts shall not exceed $50,000 per building, with a potential increase to $75,000 for buildings over 100,000 square feet.

The bill includes provisions for loan forgiveness if geothermal conversion is deemed infeasible or if the applicant cannot proceed due to factors beyond their control. The program will be administered by the Rhode Island office of energy resources in coordination with the Rhode Island infrastructure bank, and it will include annual reporting requirements to track the program's effectiveness and outcomes.

Additionally, the bill provides for the appropriation of funds to support the initiative, ensuring that any unspent funds can be carried over to subsequent fiscal years for continued program support.