The bill requires each gas distribution utility to file a clean heat plan with the public utilities commission (PUC). These plans must demonstrate how the utility will use clean heat resources to meet the following targets: a 4% reduction below 2015 GHG emission levels by 2025 and 22 % below 2015 GHG emission levels by 2030.
The PUC will initiate a rule-making proceeding by October 1, 2021, to update demand-side management rules. The PUC will establish a cost cap for each utility’s compliance with its plan, amounting to 2.5% of annual gas bills for all of a utility’s full-service customers.