AN ACT CONCERNING DISTRICT HEATING SYSTEM INCENTIVES.

HB 5337 requires gas companies to create incentive programs for customers connecting to district heating systems that capture and distribute waste heat (minimum 30 million BTUs annually). These incentives, based on projected natural gas demand reductions using historical usage data, pay end-use customers for switching to district heating systems. The program must operate by March 2016 through June 2027, with the state Commissioner of Energy establishing a replacement program by July 2027. Funding is capped at $9 million total, collected through utility rates from gas customers in the system's service area, with payments limited to equivalent savings from existing conservation programs. This directly affects gas companies, district heating operators, and residential/commercial end-users who connect to qualifying systems.