Plain English Breakdown
The bill mentions exceptions for cost recovery ('except as specified') without detailing what those specific exceptions are in this summary text.
AB-2088: Rules for Thermal Energy Networks
This law allows public utilities to build and run thermal energy networks as a substitute for gas service, while setting rules for costs, worker training, safety standards, and technical requirements.
What This Bill Does
- Authorizes regulated utilities to own and operate thermal energy services through new network systems.
- Requires the Public Utilities Commission (PUC) to ensure that replacing gas service with thermal energy offers an adequate substitute for customer needs.
- Stops utilities from charging customers for old gas pipes in areas where a thermal energy network is approved, except as specified by law.
- Mandates that the PUC and gas corporations prioritize existing gas utility workers when transitioning to new thermal energy projects.
- Requires all contractors and subcontractors on these projects to use skilled and trained workers.
Who It Names or Affects
- Public utilities regulated by the Public Utilities Commission, including gas corporations.
- The State Energy Resources Conservation and Development Commission (Energy Commission).
- Contractors and subcontractors who build thermal energy network projects.
- Customers in areas where a utility switches from gas service to a thermal energy network.
Terms To Know
- Thermal Energy Network
- A system defined by the bill that delivers heat or cooling through pipes instead of using individual gas lines for each building.
- Public Utilities Commission (PUC)
- The state agency with regulatory authority over public utilities, including gas corporations and heat corporations.
Limits and Unknowns
- The Energy Commission must finish writing technical standards by December 31, 2027, before the PUC can start its rule-making process.
- The law does not specify exactly which areas will be approved for thermal energy networks first.