AB 2088: Public Utilities: 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.