Bill Summary – FastDemocracy

BILL AS INTRODUCED                                                        S.252
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                                      S.252
 Introduced by Senators Bray, Hardy, McCormack, Watson and White
 Referred to Committee on
 Date:
 Subject: Public service; energy; thermal energy
 Statement of purpose of bill as introduced: This bill proposes to give the
 Public Utility Commission jurisdiction over the construction and operation of
 utility model thermal energy networks. It would require the Commission to
 adopt rules on the permitting process for such operations.
    An act relating to thermal energy networks
 It is hereby enacted by the General Assembly of the State of Vermont:
 Sec. 1. SHORT TITLE
    This act shall be known and may be cited as the “Thermal Energy Network
 Act.”
 Sec. 2. 30 V.S.A. § 201 is amended to read:
 § 201. DEFINITIONS
 As used in this chapter:
                                      ***
         (7) “Thermal energy exchange” means the transfer of noncombustible
 heat produced from a noncombustion source piped into and out of buildings for VT LEG #365616 v.3
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 the purpose of eliminating any resultant on-site greenhouse gas emissions of all
 types of heating and cooling processes, including comfort heating and cooling,
 domestic hot water, refrigeration, and noncombustible flow that has been
 heated or cooled geothermally.
       (8) “Thermal energy network” means all real estate, fixtures, and
 personal property operated, owned, used, or to be used for or in connection
 with or to facilitate a utility model distribution infrastructure project that
 supplies thermal energy exchanges to members of the public.
 Sec. 3. 30 V.S.A. § 203 is amended to read:
 § 203. JURISDICTION OF CERTAIN PUBLIC UTILITIES
    The Public Utility Commission and the Department of Public Service shall
 have jurisdiction over the following described companies within the State, their
 directors, receivers, trustees, lessees, or other persons or companies owning or
 operating such companies and of all plants, lines, exchanges, and equipment of
 such companies used in or about the business carried on by them in this State
 as covered and included herein. Such jurisdiction shall be exercised by the
 Commission and the Department so far as may be necessary to enable them to
 perform the duties and exercise the powers conferred upon them by law. The
 Commission and the Department may, when they deem the public good
 requires, examine the plants, equipment, lines, exchanges, stations, and
 property of the companies subject to their jurisdiction under this chapter.
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     BILL AS INTRODUCED                                                           S.252
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       (1) A company engaged in the manufacture, transmission, distribution,
 storage, or sale of gas or, electricity, or thermal energy networks directly to the
 public or to be used ultimately by the public for lighting, heating, cooling, or
 power and so far as relates to their use or occupancy of the public highways.
                                        ***
 Sec. 4. 30 V.S.A. § 248 is amended to read:
 § 248. NEW GAS, THERMAL ENERGY, AND ELECTRIC PURCHASES,
        INVESTMENTS, AND FACILITIES; CERTIFICATE OF PUBLIC
        GOOD
    (a)(1) No company, as defined in section 201 of this title, may:
                                        ***
       (8) No person or company, as defined in section 201 of this title, may
 operate as a thermal energy network provider and construct a thermal energy
 network for the provision of thermal energy service to more than 20 members
 of the public unless the Public Utility Commission first finds that the same will
 promote the general good of the State and issues a certificate to that effect.
          (A) Subsequent to issuance of a certificate, the Commission shall
 approve all rates for a thermal energy network provider, except that a
 municipality does not need to obtain approval of its rates.
          (B) The certificate granted shall include the authority to lay
 conductors, pipes, conduits, ducts, and other fixtures on privately owned or
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     BILL AS INTRODUCED                                                           S.252
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 publicly owned land and in streets, highways, and public places to the same
 extent and subject to the same limitations as that of an electric utility under this
 chapter.
            (C) Any right previously obtained by eminent domain, or by deed, to
 lay, construct, operate, or maintain buried lines or pipes for transmission of
 electricity or natural gas may also be used for transmission of thermal energy
 fluids and may be used without additional approval, amended deed, or
 additional compensation if the change does not significantly increase the
 burden or significantly alter the environmental impact of the use.
            (D) A municipality shall have the authority to construct, operate, set
 rates for, finance, and use eminent domain for a thermal energy network utility
 without a certificate of public good or approval by the Commission, in the
 same manner and to the same extent as its charter or the supply water or sewer
 service laws authorize the municipality to construct, operate, set rates for,
 finance, and use eminent domain.
                                        ***
 Sec. 5. 30 V.S.A. § 256 is added to read:
 § 256. THERMAL ENERGY NETWORK DEVELOPMENT
    (a) On or before October 1, 2024, the Public Utility Commission shall
 initiate a proceeding to support the development of thermal energy networks
 and the permitting of thermal energy network providers.
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     BILL AS INTRODUCED                                                             S.252
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    (b) The Commission shall adopt the rules pursuant to 3 V.S.A. chapter 25
 governing all aspects of the permitting, construction, operation, and rates as
 reasonably necessary. The Commission’s rules shall facilitate and prioritize
 establishment of thermal energy networks to serve customers with low income
 and moderate income, which may include reduced rates if necessary.
    (c) The rules shall ensure that:
       (1) permitting is simple, economic, and expeditious;
       (2) permitting, construction, and operation are not limited, legally or by
 regulatory burden, to existing utilities; and
       (3) facts and data submitted to the Commission by permit applicants and
 permittees are available to the public and to other utilities or potential utilities
 unless a compelling need for confidentiality is demonstrated.
    (d) The Commission shall issue an order for an interim process, which may
 include authorizing pilot projects, and then shall adopt final rules not later than
 July 1, 2025.
 Sec. 6. EFFECTIVE DATE
    This act shall take effect on July 1, 2024.
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Statutes affected: 
As Introduced: 30-201, 30-203, 30-248