Bill Text: HI HB1574 | 2018 | Regular Session | Amended

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Bill Title: Relating To Energy Rates.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Introduced - Dead) 2017-11-30 - Carried over to 2018 Regular Session. [HB1574 Detail]

Download: Hawaii-2018-HB1574-Amended.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	1574
TWENTY-NINTH LEGISLATURE, 2017		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO ENERGY RATES.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that Hawaii residents pay the highest electricity rates in the United States, which greatly increases the cost of living and disproportionately impacts vulnerable customers who need affordable access to basic electricity usage.  The legislature further finds that the energy market is rapidly evolving, with innovative renewable technologies displacing older fossil fuel generation.  While Hawaii has made progress in lowering overall costs, saving over a quarter-billion dollars for consumers by becoming more efficient and shifting to renewable energy that is cleaner, cheaper, and less price volatile, more action is necessary to ensure all Hawaii residents can benefit through this energy market transformation, and to ensure lower income residents will not be left behind.

     The legislature finds that by offering ratepayers tiered rates that encourage energy savings and energy efficiency, ratepayers can be given an incentive to reduce the overall load on the electric grid, lowering costs for all ratepayers by avoiding the need to burn additional fuel or build additional grid upgrades that the utility will pass on to ratepayers.  However, while tiered rate schedules currently exist, they are not structured to meaningfully assist ratepayers and are not apparent on ratepayer utility bills and must be restructured to achieve these goals.

     The legislature further finds that low-income households, some multi-family households, as well as others who may require powered medical equipment, may endure special hardship that warrants lower rates.  Those customers must be able to obtain electricity at an affordable cost while still encouraging energy conservation.

     The legislature further finds that the current public benefits fee of up to 2.5 per cent on all electric bills has been used to fund energy efficiency programs in households and businesses around the State.  The investments made since the program's inception are projected to save over $1,000,000,000 for consumers in Hawaii over the lifetime of the investments.  However, the public benefits fee is a regressive mechanism, as the assessment of the fee on low-income households can be a significantly greater share of overall income for these households compared to high-income households consuming the same amount of power.

     The legislature further finds that ratepayers and taxpayers are currently exposed to additional unanticipated costs as swift changes in the energy market can mean equally swift changes and disruption for thousands of workers in the energy industry around the State.  Hundreds of workers could be displaced by the replacement of a single power plant, creating economic chaos and uncertainty that utilities have not appropriately planned for.  The legislature finds that preparing for and assisting workers through this transition can avoid the need for millions of dollars in future emergency appropriations born by ratepayers and taxpayers to address sudden layoffs.

     The purpose of this Act is to:

     (1)  Establish a tiered rate structure to meaningfully encourage overall energy savings;

     (2)  Lift the burden on low-income households and others who need the most help;

     (3)  Reform the public benefits fee to lift the burden on those who can least afford it;

     (4)  Direct the public benefits fund to prioritize the needs of disadvantaged and vulnerable customers in its programs; and

     (5)  Prepare to assist utility workers when a disruptive transition in energy technology occurs.

     SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§269-    Tiered energy savings rates for electric utilities.  (a)  Notwithstanding section 269-16 or any other law to the contrary, the public utilities commission shall incorporate into electricity rate schedules tiered rates based upon consumption that meaningfully encourages energy savings and energy efficiency with a goal of reducing overall costs for middle- and low-income ratepayers.

     (b)  The public utilities commission shall allow a discounted rate for electric utilities that shall apply to low-income ratepayers or for any other hardship as determined by the commission.

     (c)  The public utilities commission shall ensure that utility bills contain the appropriate information and clearly inform ratepayers of their consumption relative to the tiered rate schedule pursuant to the goals of subsection (a).

     (d)  Nothing in this section shall prevent the utility from earning a fair return as determined by the public utilities commission.

     (e)  The public utilities commission may adopt rules pursuant to chapter 91 to effectuate the purposes of this section; provided that such rules shall contain the procedures by which the department of taxation verifies income pursuant to subsection(b)."

     SECTION 3.  Section 231-18, Hawaii Revised Statutes, is amended to read as follows:

     "§231-18  Tax and other officials permitted to inspect returns; reciprocal provisions.  Notwithstanding the provisions of any law making it unlawful for any person, officer, or employee of the State to make known information imparted by any tax return or permit any tax return to be seen or examined by any person, it shall be lawful to:

     (1)  Permit a duly accredited tax official of the United States, any state or territory, any county of this State, or the Multistate Tax Commission to inspect any tax return of any taxpayer;

     (2)  Furnish to an official, commission, or the authorized representative thereof an abstract of the return or supply the official, commission, or the authorized representative thereof with information concerning any item contained in the return or disclosed by the report of any investigation of the return or of the subject matter of the return for tax purposes only; [or]

     (3)  Provide tax return information to the auditor pursuant to section 23-5(a)[.]; or

     (4)  Provide tax return information to the public utilities commission pursuant to section 269-  .

The Multistate Tax Commission may make the information available to a duly accredited tax official of the United States, any state or territory, or the authorized representative thereof, for tax purposes only."

     SECTION 4.  Section 235-116, Hawaii Revised Statutes, is amended to read as follows:

     "§235-116  Disclosure of returns unlawful; penalty.  All tax returns and return information required to be filed under this chapter shall be confidential, including any copy of any portion of a federal return that may be attached to a state tax return, or any information reflected in the copy of the federal return.  It shall be unlawful for any person, or any officer or employee of the State, including:

     (1)  [the] The auditor or the auditor's agent with regard to tax return information obtained pursuant to section 23-5(a)[,]; and

     (2)  The public utilities commission or the public utilities commission's agent with regard to tax return information obtained pursuant to section 269-  ,

to make known intentionally information imparted by any income tax return or estimate made under sections 235-92, 235-94, 235-95, and 235-97 or wilfully to permit any income tax return or estimate so made or copy thereof to be seen or examined by any person other than the taxpayer or the taxpayer's authorized agent, persons duly authorized by the State in connection with their official duties, the Multistate Tax Commission or the authorized representative thereof, except as otherwise provided by law.  Any offense against the foregoing provisions shall be punishable as a class C felony."

     SECTION 5.  Section 269-121, Hawaii Revised Statutes, is amended to read as follows:

     "§269-121  Public benefits fee authorization.  (a)  The public utilities commission, by order or rule, may require that all or a portion of the moneys collected by Hawaii's electric utilities from its ratepayers through a demand-side management surcharge be transferred to a third-party administrator contracted by the public utilities commission.  The moneys transferred shall be known as the public benefits fee.

     (b)  The public benefits fee shall be assessed in a manner that reflects the intent of section 269-  . 

     [(b)]  (c)  The public benefits fee shall be used [to support clean energy technology, demand response technology, and energy use reduction, and demand-side management infrastructure, programs, and services, subject to the review and approval of the public utilities commission.] for the following purposes, subject to review and approval by the public utilities commission:

     (1)  For energy efficiency advancement, with a priority given to middle- and low-income ratepayers;

     (2)  For the advancement and adoption of clean energy technologies such as distributed energy resources and energy storage contributing to demand response and other programs that can help lower overall costs on the electric grid, with a priority given to middle- and low-income ratepayers; and

     (3)  For emergency energy workforce retraining and transition programs; provided that the public utilities commission may require any utility to contribute to those programs; provided further that this shall not interfere with or count toward negotiated benefits or programs between any employee or union subject to this section and their employer.

These moneys shall not be available to meet any current or past general obligations of the State; provided that the State may participate in any clean energy technology, demand response technology, or energy use reduction, and demand-side management infrastructure, programs, and services on the same basis as any other electric consumer.

     For the purpose of this subsection, "clean energy technology" means any commercially available technology that enables the State to meet the renewable portfolio standards, established pursuant to section 269-92, or the energy-efficiency portfolio standards, established pursuant to section 269-96, and approved by the public utilities commission by rule or order.

     [(c)] (d)  Nothing in this section shall create or be construed to cause the public benefits fee to be considered state or public moneys subject to appropriation by the legislature or be required to be deposited into the state treasury."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2017.

 

Report Title:

Energy Rates; Public Utilities; Public Benefits Fee

 

Description:

Requires the Public Utilities Commission to establish a tiered energy savings rate structure for customers of electric utilities.  Allows the Commission to establish discounted rates for low-income customers of electric utilities.  Reforms the public benefits fee.  Allows the fee to be used to benefit energy efficiency advancement for low- and middle-income ratepayers and for emergency energy workforce retraining and transition programs.  Authorizes the department of taxation to disclose tax return information to the public utilities commission in accordance with the purposes of this Act and applies penalties for intentional disclosure of the tax return information.  (HB1574 HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.