RI H7912

Establishes a tradeable clean heat credit system where obligated parties (natural gas utilities and heating fuel sellers) must retire credits annually to meet Rhode Island's thermal sector greenhouse gas emission reduction targets for 2030, 2040, and 2050

Department of Environmental Management must begin rulemaking by July 1, 2027, with obligated party compliance starting by July 1, 2028

Eligible clean heat measures include weatherization, air-source heat pumps, heat pump water heaters, ground-source heat pumps, electric stoves, and electric dryers; explicitly excludes switching between fossil fuels, renewable natural gas, and hydrogen

Requires at least 20% of clean heat credits be sourced from low-income customers and 20% from moderate-income customers to ensure equitable distribution of benefits

Noncompliance penalties are set at three times the standard per-credit cost, with penalty funds directed to the default delivery agent for providing clean heat measures to low-income customers