Olympia, WA. (April 9, 2024) — In a landmark move for Washington state, the unanimous passage of House Bill 2131 has set the stage for a significant shift towards cleaner heating and cooling solutions. Spearheaded by Representative Alex Ramel, the new legislation empowers electric and gas utilities to operate and sell thermal energy through innovative thermal energy networks (TENs). This development promises to offer Washingtonians environmentally friendly heating and cooling options, marking a significant step in the state’s journey toward decarbonization.

A New Era of Clean Energy

The bill, distinct from geothermal energy initiatives under Senate Bill 6039, aims to leverage the existing infrastructure and expertise of gas utilities to deploy TENs. These networks will utilize ground-source heat pumps to distribute thermal energy for heating, cooling, and domestic hot water, drawing on various local non-emitting energy sources. With the potential to start as small as a two-building system and scale to community or regional sizes, TENs offer a flexible solution for clean energy distribution.

Benefits Across the Board

The introduction of thermal energy networks is anticipated to bring numerous advantages, including reduced electric grid demand, job security for gas pipeline workers, and equitable access to clean energy for communities. Notably, a US Department of Energy study highlighted ground-source heat pumps used in TENs as the most effective strategy for minimizing electric grid demand, showcasing the technology’s efficiency and its low impact on electric grid expansion requirements.

Supporting Workforce Transition and Community Access

The legislation not only opens new avenues for gas utilities in the clean energy sector but also provides a lifeline for gas workers, enabling them to transition their skills to the burgeoning field of thermal energy without significant retraining. Additionally, by making clean thermal energy accessible to all, including renters and lower-income households, TENs ensure that the benefits of decarbonization are shared widely across communities.

Facilitating Pilot Projects and Grants

House Bill 2131 includes provisions for a $25 million grant program administered by the Department of Commerce to kickstart the adoption of TENs. The program prioritizes projects in highly polluted areas and those enabling the decommissioning of gas pipelines. This funding aims to stimulate pilot projects demonstrating the feasibility and benefits of thermal energy networks, setting a precedent for future deployments across the state.

Looking Forward

As Washington state embarks on this ambitious path to decarbonize its building energy systems, the successful implementation of TENs could serve as a model for other states and territories. With utilities now poised to develop business plans for their transition into thermal energy providers, the future looks promising for the widespread adoption of clean, efficient, and equitable heating and cooling solutions in Washington and beyond.

The enactment of House Bill 2131 heralds a new chapter in Washington’s commitment to a sustainable and clean energy future. It aligns with broader efforts to mitigate climate change impacts and enhance the resilience of energy systems across the state.