Rhode Island utilities study shared heating and cooling networks

Utilities identify possible study locations and begin feasibility studies. The duties apply to the public utility covered by this chapter, which serves more than 25,000 ratepayers. At least one location must be in or directly benefit an environmental justice focus area, as determined by the state environment department. Utilities must identify locations within 12 months and begin at least two studies within 18 months after this section takes effect.

A utility may propose a pilot, and the PUC decides whether to approve it and its costs. A utility may propose a pilot only after a feasibility study finds the project feasible, and the proposal must match the study and its results. The PUC must find a net benefit to the utility's customers and approve full cost recovery before the utility is required to proceed. Direct state support and grants reduce the costs eligible for recovery. A utility may submit a pilot proposal after completing the related feasibility study.

Utilities, contractors, and subcontractors follow wage and apprenticeship rules on covered construction projects. These rules apply to construction of a thermal energy network that enters or crosses a public right-of-way under an agreement with a public entity. For projects costing $1,000 or more, covered workers must receive at least the prevailing wages and benefits, and reporting rules apply. For projects costing $1 million or more, registered apprentices must perform at least 15% of labor hours in crafts or trades with approved apprenticeship programs. If qualified apprentices are unavailable, a party may use the stated exception by providing evidence of its efforts. The rules exclude work already covered by a collective bargaining agreement and work by people who cannot bargain collectively under federal law.

The PUC forms an advisory task force to review studies and pilots and make recommendations. The task force advises the PUC and utilities on thermal energy networks across Rhode Island. The PUC appoints 11 members, including utility, labor, state, and public representatives. The task force reports within 18 months after receiving complete study results and ends six months after submitting its report unless the General Assembly extends it.

A natural gas utility may own, build, or operate thermal energy networks and charge customers for the service, subject to PUC approval. This provision applies to a public utility engaged in natural gas distribution. State and local governments, cooperatives, and nonprofit groups may still develop networks in partnership with a public utility.