March 14, 2025
Public hearing – March 19
Thermal energy networks (TENs) connect commercial and residential buildings through pipes that circulate fluids, typically water. Most commonly, the pipes are placed below ground, where the temperature is roughly 55 degrees Fahrenheit year-round. On hot days, the circulating water transfers heat from above ground to below ground, helping to cool the buildings. On cold days, the transfer of heat is in the opposite direction. This simple technology saves on energy costs and
reduces greenhouse gas emissions, especially for buildings that are heated by natural gas. It also helps reduce demand for electricity, helping the grid operate more affordability and with greater resilience.
This bill directs Oregon’s Public Utilities Commission (OPUC) to establish a pilot program for natural gas companies. Under the program, these companies would develop utility-scale pilot projects to install TENs for their customers. It is hoped that the pilot program will demonstrate the use and effectiveness of TENs. Simultaneously, the companies would gain experience with this technology while OPUC would learn how to integrate the projects into their regulatory processes.
Under this bill, OPUC must ask each natural gas company either to (i) file a proposal within two years for how it plans to develop and operate a TEN (including measures of its effectiveness), or (ii) explain why it chooses not to submit such a proposal.
OPUC will evaluate proposals for TENs according to a list of 13 criteria. These include: the types of buildings and communities served by the TENs, the workforce for building the TENs, whether the proposed projects effectively explore technical, operational and financial aspects of TENs, and whether the project effectively leverages local and federal funding sources. Some specific environmental criteria include evaluations of TEN projects’ impacts on air quality, water conservation, energy usage, energy costs and reduction of greenhouse gas emissions.