The bill seeks to enhance the development of thermal energy networks in Washington State by amending existing laws and introducing new provisions. It permits gas and electrical companies to implement thermal energy networks within their service areas, requiring them to submit project proposals for cost validation to regulatory bodies. The bill defines "thermal energy" and "thermal energy network," clarifying that these networks should not utilize combustion for energy generation, except in emergencies. It also establishes a pilot project program prioritizing gas companies, with specific criteria for project approval that includes customer demographics, workforce transition, and environmental benefits.

Additionally, the bill mandates the Department of Commerce to provide grants for pilot projects related to thermal energy networks, specifically for gas companies, to help offset construction and operational costs. The grant amount is limited to the difference between the gas company's lowest reasonable cost resources and the costs of the thermal energy network. The bill includes provisions to ensure alignment with climate justice and emissions reduction goals, requires public comment periods during project reviews, and establishes a framework for evaluating pilot projects. New requirements for investor-owned gas companies to issue requests for proposals and compare costs with alternative heating resources are also introduced, along with provisions for merging gas and thermal energy rate bases and granting public utility districts the authority to operate thermal energy networks.

Statutes affected:
Original Bill: 80.04.010, 80.28.110
Substitute Bill: 80.04.010, 80.28.110
Engrossed Substitute: 80.04.010, 80.28.110
Bill as Passed Legislature: 80.04.010, 80.28.110
Session Law: 80.04.010, 80.28.110