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SB 3080

AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- THERMAL ENERGY NETWORK AND JOBS ACT

2026 Regular Session Introduced by Jake Bissaillon and 2 co-sponsors

Rhode Island moves to study, pilot, and potentially deploy thermal energy networks with strong environmental justice, workforce transition, and regulated, cost-conscious oversight.

06/24/2026 Effective without Governor's signature
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Bill Summary · SB 3080

Summary of SB 3080 (Rhode Island, 2026) — Thermal Energy Network and Jobs Act

Purpose and intent

  • Establishes a framework to study and pilot thermal energy networks in Rhode Island.
  • Aims to determine whether thermal energy networks can help meet greenhouse gas reduction, climate justice, and just-transition goals while offering potential long-term cost savings.
  • Creates a pathway for possible state-supported deployment, with a emphasis on environmental justice and workforce transition.

Key provisions

  • New chapter added to Title 39 (Public Utilities and Carriers): Chapter 36 — Thermal Energy Network and Jobs Act.

  • Definitions (39-36-3):

    • Environmental justice focus area: defined using multiple criteria (income, minority population, English proficiency, etc.).
    • Public-private partnerships: long-term contracts involving private partners and state assets.
    • Public right-of-way, public utility, PUС (Public Utilities Commission).
    • Thermal energy: non-combustible fluids for heating/cooling, hot water, refrigeration.
    • Thermal energy network: assets used for distributing thermal energy.
  • Feasibility studies and cost recovery (39-36-4):

    • Utilities must identify 2–12 feasible locations for studies within 12 months; begin at least two feasibility studies within 18 months.
    • At least one site must benefit an environmental justice focus area.
    • Evaluation criteria include: GHG reductions, cost-effectiveness, engineering/operational requirements, ownership, and EJ benefits.
    • Initial study locations should cover diverse geographies and building types (listed areas include Port of Providence, hospitals, URIs campuses, Aquidneck Island, etc.).
    • All reasonable study-related costs are recoverable from ratepayers, with a preference for securing non-ratepayer funding (federal/state grants, subsidized loans, tax credits). Funding offsets apply if such sources are obtained.
    • PUC may authorize recovery of planning/feasibility costs, conditioned on pursuing non-ratepayer funding and ensuring rates are just and reasonable.
    • PUC may authorize use of existing Demand Side Management (DSM) charges for planning/design/construction.
    • Utilities may tap state programs (OER, RI Infrastructure Bank) and federal technical assistance; OER Lead-by-Example funds may support feasibility/engineering studies.
  • Thermal energy network pilot project (39-36-5):

    • Following feasibility, utilities may propose a pilot aligned with study results.
    • PUC must approve cost recovery if the pilot provides net benefits to ratepayers, considering: GHG reductions, cost-effectiveness, external funding, EJ benefits, and evidence that non-ratepayer funds were explored.
    • Pilot projects are not mandatory unless approved by the PUC and full cost recovery (excluding eligible state/grant funding) is approved.
    • Gas distribution utilities may own/operate thermal energy networks for selling/deriving revenue from them, but project-specific approvals required; does not limit other entities from developing networks independently.
  • Regulation and implementation (39-36-6 to 39-36-8):

    • The Legislature recognizes thermal energy networks as essential infrastructure to meet climate goals and just transition.
    • PUC to promulgate rules within 18 months, including:
    • Fair market access for utility-owned networks that aligns with climate/just-transition goals and avoids increasing emissions.
    • Cost-effectiveness criteria, rate structures, worker training/transition, and equitable cost-recovery rules.
    • Advisory opinion from the Thermal Energy Network Taskforce must be considered in rulemaking.
  • Thermal Energy Network Taskforce (39-36-7):

    • A 12-member advisory body appointed by the PUC; includes state energy/officer representatives, labor, environmental justice advocates, utility representatives, and five members chosen by the PUC to ensure diverse expertise (workforce, environmental justice, engineering/economics/regulation, state planning).
    • Meets at least quarterly; provides status updates on feasibility studies and pilots.
    • Responsibilities:
    • Identify funding mechanisms (federal, state, rate-based, private).
    • Recommend intergovernmental coordination among utilities, municipalities, developers.
    • Advise on workforce standards and transition.
    • Recommend pilot locations/models and guidance for statewide expansion and EJ prioritization.
    • Requires a written report within 18 months after complete feasibility results, with actionable recommendations on access rules, cost-effectiveness criteria, rate structures, workforce transitions, and cost-recovery rules.
    • Taskforce expires 6 months after delivering its report unless extended by the General Assembly.
  • Severability (39-36-9): Provisions are severable.

  • Effective date: Takes effect upon passage.

Who and what would be affected

  • Public utilities (electric and natural gas) and the Rhode Island Public Utilities Commission (PUC) are central to implementation, planning, cost recovery, and regulation.
  • Environmental justice communities: emphasis on including EJ-focused locations and ensuring benefits reach communities with disproportionate burdens.
  • Workers and trades: explicit focus on workforce transition and training for fossil-fuel industry workers; potential job opportunities in new networks.
  • Municipalities, state agencies (OER, DEM, RIIB, etc.), and public-private partners: collaboration and funding coordination for feasibility studies and pilots.
  • Ratepayers: potential changes in cost recovery supporting feasibility and pilot projects, with safeguards to keep rates just and reasonable and offset costs with non-ratepayer funding where available.

Procedural and timeline highlights

  • Feasibility study locations identified within 12 months; at least two studies started within 18 months.
  • PUC to adopt regulations within 18 months of passage.
  • Taskforce to report within 18 months after feasibility results; expires 6 months after issuing the report unless extended.
  • Pilot project approvals contingent on PUC findings of net benefit and full cost recovery (excluding state/grants).
  • Ongoing cost-recovery considerations with emphasis on non-ratepayer funding and just, reasonable rate design.

Bottom line

SB 3080 creates a structured, state-assisted process to explore, test, and possibly deploy thermal energy networks in Rhode Island, with strong emphasis on environmental justice, worker transition, and careful regulatory oversight to ensure cost-effectiveness and ratepayer protection. It sets up a dedicated task force and a regulatory roadmap for feasibility studies, pilots, and eventual broader deployment.

Compiled from official sources — confirm details with the bill’s official record.

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