Public Utilities: thermal energy networks.

Plain English Breakdown

The bill summary does not provide specific details about potential costs or challenges for transitioning existing gas utility workers, so this claim was removed.

Public Utilities: Thermal Energy Networks

AB-2088 allows gas corporations to use thermal energy networks as an alternative to providing natural gas service, if the Public Utilities Commission (PUC) determines it is adequate and reliable.

What This Bill Does

• Allows gas companies to provide thermal energy through networks instead of natural gas, if approved by the PUC.
• Requires the PUC to ensure that thermal energy networks are a good substitute for natural gas service.
• Prohibits gas utilities from recovering costs related to gas infrastructure in areas served by thermal energy networks.
• Requires the State Energy Resources Conservation and Development Commission to develop technical standards for thermal energy networks with help from the PUC.

Who It Names or Affects

• Gas corporations regulated by the Public Utilities Commission (PUC).
• Customers of gas utilities who may receive thermal energy service instead of natural gas.
• Contractors and subcontractors working on thermal energy network projects.

Terms To Know

Public Utilities Commission (PUC)

A government agency that regulates public utility companies to ensure they provide safe, adequate, just, and reasonable services.

Thermal Energy Network

A system for distributing thermal energy (heat or cold) to buildings as an alternative to natural gas service.

Limits and Unknowns

• The bill does not specify how much it will cost to implement thermal energy networks.
• It is unclear what the exact technical standards for thermal energy networks will be until they are developed by the State Energy Resources Conservation and Development Commission.

Official Summary Text

AB 2088, as amended, Papan.
Public Utilities:
gas corporations: duty to serve:
thermal energy networks.
Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including gas corporations and heat corporations. Existing law requires every public utility to furnish and maintain adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities, as are necessary to promote the safety, health, comfort, and convenience of its customers, its employees, and the public. Existing law authorizes a gas corporation to cease providing service if a certain pilot program has been implemented and the PUC determines that adequate substitute energy service is reasonably available for the energy end uses of affected gas corporation customers.
This bill would authorize a
gas corporation to satisfy its obligation
utility regulated by the PUC
to
provide gas
own and operate thermal energy
service
by providing thermal energy
through
a
thermal energy
network,
networks,
as defined,
if the PUC determines that the network
and would require the PUC to ensure that the substitution of
thermal energy service for gas service
offers an adequate
and reliable
substitute for the thermal end-use energy needs of
its customers.
customers, as provided. The bill would prohibit a utility regulated by the PUC from recovering costs for gas infrastructure in areas approved to be served by a thermal energy network, except as specified.
The bill would
specify that a project for the construction, maintenance, or repair of a thermal energy network is a public work
require the commission and gas corporations to prioritize the use of the existing gas utility workforce for the transition to thermal energy network operations, as specified,
and would require a gas corporation
undertaking the project
to ensure that all contractors and subcontractors performing work on
the
a thermal energy network
project use a skilled and trained workforce. The bill would require
to PUC
the PUC, on or before December 31, 2027,
to initiate a proceeding to establish a regulatory framework for the provision of
cost-effective
thermal energy service by gas
corporations,
corporations or other public utilities,
as provided.
This bill would require the State Energy Resources Conservation and Development Commission, in consultation with the
PUC, to develop technical standards for thermal energy networks, as provided.
Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because the labor requirements for a thermal energy network project would be part of the act and a violation of a PUC action implementing those requirements would be a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF