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U.S. Department of Energy
Office of Scientific and Technical Information

State laws and regulations affecting development and renovation of district heating and cooling systems

Technical Report ·
OSTI ID:5558017

This study of how state legislation affects development and renovation of district heating and cooling (DHC) systems has two focal points: for investor-owned systems, it examines public utility regulation, while for publicly owned systems, it looks at local government law. Statutes and case law were studied, and officials of several DHC systems were contacted, to identify problems imposed by the legal and regulatory framework and to learn how these problems can be resolved through changes in either the DHC systems or the statutes. Many private developers of DHC systems prefer to avoid regulation of their systems as public utilities and might be deterred by uncertainty as to whether they provide a regulated commodity and service to the public. Further, public-entity participation in DHC systems might be deterred in some states by lack of express statutory authority and by limitations on borrowing and on duration and types of contracts the systems can enter into. The study revealed 50 recent pieces of legislation that encourage or facilitate DHC systems (and that indicate problems and potential solutions). The content of this legislation was then used to construct drafts of two model statutes. The first - related to public utility regulation - adopts the limited-regulation approach of three western states in eliminating the most burdensome aspects of such regulation, including traditional rate regulation, while protecting customers. The second model statute - related to local government law - allows joint formation of DHC authorities by local government. 33 refs., 12 tabs.

Research Organization:
Argonne National Lab., IL (USA)
DOE Contract Number:
W-31109-ENG-38
OSTI ID:
5558017
Report Number(s):
ANL/CNSV-63; ON: DE88005895
Country of Publication:
United States
Language:
English