HB 23-1252 Summary

• Establishes a pilot program requiring large gas utilities (serving over 500,000 customers) to submit thermal energy network proposals to the Public Utilities Commission by September 1, 2024, with at least one pilot project serving residential customers in disproportionately impacted communities, mountain communities, or capacity-constrained areas.

• Defines "thermal energy" as piped, noncombustible fluids for building heating, cooling, and hot water that must not cause incremental greenhouse gas emissions and cannot rely on long-term combustion of fossil fuels.

• Creates labor standards requiring thermal energy projects by government agencies or higher education institutions to comply with apprenticeship requirements for contracts over $1 million and prevailing wage requirements for contracts over $500,000, with licensed workers performing plumbing and electrical work.

• Requires the Public Utilities Commission to initiate a rulemaking proceeding by January 1, 2025, to determine appropriate utility ownership models, rate structures, and cost recovery mechanisms for thermal energy networks while considering workforce impacts and customer bill stability.

• Exempts local governments and campus-owned thermal energy systems that serve only their own buildings from Public Utilities Commission regulation, and amends geothermal energy grant programs to include retrofitting existing buildings in addition to new construction.