Diane Papan

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 utility regulated by the PUC to own and operate thermal energy service through thermal energy networks, as defined, and would require the PUC to ensure that the substitution of thermal energy service for gas service offers an adequate substitute for the thermal end-use energy needs of 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 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. The bill would require a utility to ensure that all contractors and subcontractors performing work on a thermal energy network project use a skilled and trained workforce. The bill would require 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 or other public utilities, as provided.

This bill would require the State Energy Resources Conservation and Development Commission (Energy Commission) , in consultation with the PUC, on or before December 31, 2027, to develop technical standards for thermal energy networks, as provided. The bill would require the Energy Commission to complete the development of the technical standards before the PUC initiates the proceeding described above.

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.