Bill > SF4503

This bill establishes requirements for thermal energy network plans and designates thermal energy networks (TENs) as public improvements and waterworks, allowing public utilities to offer TEN service and recover associated costs. A TEN is a system that distributes thermal energy, such as heat or cooling, to multiple buildings. The bill also amends existing laws to include TENs within the definition of "waterworks" and "improvements" that municipalities can undertake, and it ensures that the provision of TEN service by municipal, cooperative, or public utilities is subject to the same consumer protections and regulatory oversight as natural gas service. Additionally, the bill requires utilities to prioritize siting TENs in areas where residents have expressed interest, where similar successful projects have been completed, or in areas designated for development. It also mandates that public utilities consider the ability to pay when setting rates for low-income residential customers using natural gas or TENs for heating, and establishes a framework for affordability programs to ensure continuous and affordable service for these customers. Finally, the bill appropriates $40,000 to the Public Utilities Commission for fiscal year 2027 to support TEN services.