Bill Text: HI HB1839 | 2018 | Regular Session | Introduced
Bill Title: Relating To The Public Utilities Commission.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-22 - Referred to EEP, CPC, FIN, referral sheet 4 [HB1839 Detail]
Download: Hawaii-2018-HB1839-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1839 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE PUBLIC UTILITIES COMMISSION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that part V of chapter 269, Hawaii Revised Statutes, requires electric utility companies in the State to establish renewable portfolio standards of one hundred per cent of their net electricity sales by December 31, 2045. However, the legislature recognizes that gas utility companies in the State are not held to any equivalent requirement. The legislature believes that requiring electric utilities, but not gas utilities, to increase their reliance on renewable energy creates an unfair playing field, and leaves Hawaii gas utility customers reliant on nonrenewable fossil fuels in the coming years. The legislature also believes that due to the impact that fossil fuels have on the global environment, gas utilities' use of fossil fuels should be reduced.
The purpose of this Act is to require the State's gas utility companies to establish renewable portfolio standards of one hundred per cent of their total gas sales by December 31, 2045.
SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to part V to be appropriately designated and to read as follows:
"§269- Renewable portfolio standards for gas utility companies. (a) Each gas utility company that sells gas for consumption in the State shall establish a renewable portfolio standard of:
(1) per cent of its total gas sales by December
31, 2020;
(2) per
cent of its total gas sales by December 31, 2030;
(3)
per cent of its total gas sales by December 31, 2040; and
(4) One hundred per cent of its total gas sales by December 31, 2045.
(b) The public utilities commission may establish standards for each gas utility company that prescribe what portion of the renewable portfolio standards shall be met by specific types of renewable energy resources.
(c) If the public utilities commission determines
that a gas utility company failed to meet the renewable portfolio standard,
after a hearing in accordance with chapter 91, the gas utility company shall be
subject to penalties to be established by the public utilities commission;
provided that if the commission determines that the gas utility company is
unable to meet the renewable portfolio standards due to reasons beyond the
reasonable control of the company, as set forth in subsection (d), the
commission, in its discretion, may waive in whole or in part any otherwise
applicable penalties.
(d) Events or circumstances that are outside of a
gas utility company's reasonable control may include, to the extent the event
or circumstance could not be reasonably foreseen and ameliorated:
(1) Weather-related damage;
(2) Natural disasters;
(3) Mechanical or resource failure;
(4) Failure of renewable gas producers or suppliers to meet contractual obligations to the gas utility company;
(5) Labor strikes or lockouts;
(6) Actions of governmental authorities that adversely affect the production, transmission, or distribution of renewable gas under contract to a gas utility company;
(7) Inability to obtain permits or land use approvals for renewable gas projects;
(8) Inability to acquire sufficient renewable gas to meet the renewable portfolio standard goals beyond 2040 in a manner that is cost-effective or beneficial to Hawaii's economy in relation to comparable fossil fuel resources;
(9) Substantial limitations, restrictions, or prohibitions on utility renewable gas projects; and
(10) Other events and circumstances of a similar nature."
SECTION 3. Section 196-41, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a) The department of land and natural resources
and department of business, economic development, and tourism shall facilitate
the private sector's development of renewable energy projects by supporting the
private sector's attainment of the renewable portfolio standards in [section]
sections 269-92[.] and 269-
. Both departments shall provide meaningful
support in areas relevant to the mission and functions of each department as
provided in this section, as well as in other areas the directors of each
department may deem appropriate.
(b) The department of land and natural resources shall:
(1) Develop and publish a catalog by December 31, 2006, and every five years thereafter, of potential sites for the development of renewable energy; and
(2) Work with electric and gas utility companies and with other renewable energy developers on all applicable planning and permitting processes to expedite the development of renewable energy resources."
SECTION 4. Section 269-91, Hawaii Revised Statutes, is amended as follows:
1. By adding two new definitions to be appropriately inserted and to read:
""Gas utility company" means a public utility as defined in section 269-1, for the production, conveyance, transmission, delivery, or furnishing of gas to end users through an underground system of pipes.
"Utility company" means an electric utility company or a gas utility company."
2. By amending the definition of "cost-effective" to read:
""Cost-effective"
means the ability to produce or purchase [electric] energy or firm
capacity, or both, as applicable, from renewable energy resources at or
below avoided costs or as the commission otherwise determines to be just and
reasonable consistent with the methodology set by the public utilities
commission in accordance with section 269-27.2."
3. By amending the definition of "renewable portfolio standard" to read:
""Renewable
portfolio standard" means, in the context of:
(1) An electric utility company, the
percentage of electrical energy sales that is represented by renewable electrical
energy[.]; or
(2) A gas utility company, the percentage of total gas sales that is represented by renewable gas energy."
SECTION 5. Section 269-92, Hawaii Revised Statutes, is amended as follows:
1. By amending its title to read:
"§269-92 Renewable portfolio standards[.] for
electric utility companies."
2. By amending subsections (b) and (c) to read:
"(b) The public utilities commission may establish standards for each electric utility company that prescribe what portion of the renewable portfolio standards shall be met by specific types of renewable energy resources; provided that:
(1) Prior to January 1, 2015, at least fifty per cent of the renewable portfolio standards shall be met by electrical energy generated using renewable energy as the source, and after December 31, 2014, the entire renewable portfolio standard shall be met by electrical generation from renewable energy sources;
(2) Beginning January 1, 2015, electrical energy savings shall not count toward renewable energy portfolio standards;
(3) Where electrical energy is generated or displaced by a combination of renewable and nonrenewable means, the proportion attributable to the renewable means shall be credited as renewable energy; and
(4) Where fossil and renewable fuels are co-fired in the same generating unit, the unit shall be considered to generate renewable electrical energy (electricity) in direct proportion to the percentage of the total heat input value represented by the heat input value of the renewable fuels.
(c) If the public utilities commission determines
that an electric utility company failed to meet the renewable portfolio
standard, after a hearing in accordance with chapter 91, the electric utility
company shall be subject to penalties to be established by the public
utilities commission; provided that if the commission determines that the
electric utility company is unable to meet the renewable portfolio standards
due to reasons beyond the reasonable control of [an electric utility,] the
company, as set forth in subsection (d), the commission, in its discretion,
may waive in whole or in part any otherwise applicable penalties."
SECTION 6. Section 269-93, Hawaii Revised Statutes, is amended to read as follows:
"§269-93
Achieving portfolio standard.
(a) [An electric] A
utility company and its [electric] utility affiliates may aggregate
their renewable portfolios to achieve the applicable renewable portfolio
standard[.] under this part.
(b)
If [an electric] a utility company and its [electric]
utility affiliates aggregate their renewable portfolios to achieve the applicable
renewable portfolio standard, the public utilities commission may distribute,
apportion, or allocate the costs and expenses of all or any portion of the
respective renewable portfolios among the [electric] utility company,
its [electric] utility affiliates, and their respective ratepayers, as
is reasonable under the circumstances.
(c)
[An electric] A utility company may recover, through an
automatic rate adjustment clause, the [electric] utility company's
revenue requirement resulting from the distribution, apportionment, or
allocation of the costs and expenses of the renewable portfolios of the [electric]
utility company and its [electric] utility affiliates.
(d)
To provide for timely recovery of the revenue requirement under
subsection (c), the commission may establish a separate automatic rate
adjustment clause, or approve the use of a previously approved automatic rate
adjustment clause, without a rate case filing.
The use of the automatic rate adjustment clause to recover the revenue
requirement shall be allowed to continue until the revenue requirement is
incorporated in rates in the respective [electric] utility company's
rate case."
SECTION 7. Section 269-94, Hawaii Revised Statutes, is amended to read as follows:
"[[]§269-94 Waivers, extensions, and incentives.[]] (a)
Any [electric] utility company not meeting [the] its
applicable renewable portfolio standard shall report to the public utilities
commission within ninety days following the goal dates established in section [[]269-92[],]
or section 269- , as applicable,
and provide an explanation for not meeting the applicable renewable
portfolio standard. The public utilities
commission shall have the option to either grant a waiver from the renewable
portfolio standard or an extension for meeting the prescribed standard.
(b) The public utilities commission may provide
incentives to encourage [electric] utility companies to exceed their
renewable portfolio standards or to meet their renewable portfolio standards
ahead of time, or both."
SECTION 8. Section 269-95, Hawaii Revised Statutes, is amended to read as follows:
"§269-95 Renewable portfolio standards study.
The public utilities commission shall:
(1) [By
December 31, 2007, develop] Develop and implement [a]:
(A) An electric utility ratemaking
structure[,] by December 31, 2007; and
(B) A gas utility ratemaking structure by December 31, ,
which may
include performance-based ratemaking, to provide incentives that encourage
Hawaii's [electric] utility companies to use cost-effective renewable
energy resources found in Hawaii to meet the renewable portfolio standards
established in section 269-92[,] or section 269- , as
applicable, while allowing for deviation from the standards in the event
that the standards cannot be met in a cost-effective manner or as a result of
events or circumstances, such as described in section 269-92(d)[,] or
section 269‑ (d), beyond the control of the [electric]
utility company that could not have been reasonably anticipated or ameliorated;
(2) Gather,
review, and analyze empirical data to:
(A) Determine the
extent to which any proposed utility ratemaking structure would impact [electric]
utility companies' profit margins; and
(B) Ensure that the [electric]
utility companies' opportunity to earn a fair rate of return is not diminished;
(3) Use
funds from the public utilities special fund to contract with the Hawaii
natural energy institute of the University of Hawaii to conduct independent
studies to be reviewed by a panel of experts from entities such as the United
States Department of Energy, National Renewable Energy Laboratory, Electric
Power Research Institute, Hawaii [electric] utility companies,
environmental groups, and other similar institutions with the required
expertise. These studies shall include
findings and recommendations regarding:
(A) The
capability of Hawaii's [electric] utility companies to achieve renewable
portfolio standards in a cost-effective manner and shall assess factors such
as:
(i) The impact on consumer rates;
(ii) Utility system reliability and stability;
(iii) Costs and availability of appropriate renewable energy resources
and technologies, including the impact of renewable portfolio standards, if
any, on the energy prices offered by renewable energy developers;
(iv) Permitting approvals;
(v) Effects on the economy;
(vi) Balance of trade, culture, community, environment, land, and water;
(vii) Climate change policies;
(viii) Demographics;
(ix) Cost of fossil fuel volatility; and
(x) Other factors deemed appropriate by the commission; and
(B) Projected
renewable portfolio standards to be set five and ten years beyond the then
current standards;
(4) Evaluate
the renewable portfolio standards every five years, beginning in 2013, and may
revise the standards based on the best information available at the time to
determine if the standards established by section 269‑92 and section
269- remain effective and achievable; and
(5) Report its findings and revisions to the renewable portfolio standards, based on its own studies and other information, to the legislature no later than twenty days before the convening of the regular session of 2014, and every five years thereafter."
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10.
This Act shall take effect on July 1, 2018.
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INTRODUCED BY: |
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Report Title:
Renewable Energy; Gas; Renewable Portfolio Standard
Description:
Requires gas utility companies to establish renewable energy portfolio standards for gas.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
