The invention provides a system for energy distribution that uses liquid carbon dioxide as a working fluid. Evaporation of the carbon dioxide provides cooling, and compression of the carbon dioxide gas back to the liquid state provides heat. The amount of heat transferred at both stages is sufficient to provide environmental heating and cooling. Waste thermal energy from a power plant, in the form of hot water, is fed into the system and used to drive the overall process. An underground thermal energy storage system is used to store energy flowing into the system that is in excess of the current demand.