Rhode Island utilities study shared heating networks before pilots

Utilities identify possible study locations and begin at least two feasibility studies. The locations must represent varied geographies and building types, and the list must consider the areas named in the law. At least one location must be in or directly benefit an environmental justice focus area. Utilities must consider emissions, costs, engineering, building ownership, and community burdens when choosing locations. Utilities must identify locations within 12 months of the chapter’s effective date and begin at least two studies within 18 months.

The PUC reviews proposed pilot projects and decides whether their costs may be recovered. A pilot proposal follows a utility feasibility study; the PUC considers emissions, costs, outside funding, and community benefits when reviewing it. A utility may propose a pilot only after a feasibility study finds the project feasible, and the pilot must fit that study’s subject and results. The PUC must find a net benefit to ratepayers and approve full cost recovery before the utility must proceed; direct state support and grants reduce costs eligible for recovery. Utilities must pursue available funding beyond ratepayers, and the PUC may allow use of an existing demand-side charge for network planning, design, or construction. A utility may submit a pilot proposal after completing the related feasibility study.

Natural gas utilities may own, build, or operate thermal energy networks and charge customers for service. This authority applies to public utilities engaged in natural gas distribution. The PUC must approve the utility’s network. State, municipal, cooperative, and nonprofit entities may still develop networks in partnership with a public utility.

Utilities and their contractors follow wage, apprentice, and labor agreement rules for covered construction projects. The rules apply to work under agreements with public entities for network projects that enter or cross a public right-of-way. The apprentice-hour rule applies to crafts with approved apprenticeship programs; if apprentices are unavailable for specified reasons, a contractor may submit evidence of its efforts instead. This section excludes work already covered by a collective bargaining agreement and work by people ineligible to bargain under federal law. Existing agreements control for covered work. The wage rule applies to construction projects costing $1,000 or more; the apprentice rule applies to projects costing $1 million or more.

The PUC forms an advisory task force to review study and pilot results and report recommendations. The task force includes state officials, utility and labor representatives, and a public member. The task force advises the PUC and utilities on funding, coordination, worker transition, project locations, and statewide planning. The General Assembly may extend the task force beyond its scheduled expiration. The task force must report within 18 months after receiving complete study results and expires six months after submitting its report unless the General Assembly extends it.