Bill Text: HI HB1844 | 2020 | Regular Session | Amended
Bill Title: Relating To Clean Energy Financing.
Spectrum: Partisan Bill (Democrat 22-0)
Status: (Engrossed - Dead) 2020-06-24 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [HB1844 Detail]
Download: Hawaii-2020-HB1844-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1844 |
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THIRTIETH LEGISLATURE, 2020 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CLEAN ENERGY FINANCING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that significant investment in clean energy technology and infrastructure will be required to achieve the State's goals of energy self-sufficiency, energy security, and energy diversification. Investment is also needed to meet the renewable portfolio and energy efficiency portfolio standards in chapter 269, Hawaii Revised Statutes. The current aggregate level of green infrastructure investment is $12,800,000,000.
The legislature also finds that green
infrastructure investment supports Hawaii's evolving energy market and provides
affordable options for Hawaii's ratepayers. Due to the significant amount of capital
required for green infrastructure investment, the State must leverage private investment with
limited public funds. A growth in the
clean energy market will reduce the cost of clean energy for ratepayers, drive
job creation, and save billions of taxpayer dollars currently being spent on
importing petroleum oil.
The legislature has made various efforts to invest in green technology. Act 155, Session Laws of Hawaii 2009, established the building energy efficiency revolving loan fund to provide low cost financing to eligible public, private and nonprofit borrowers to make energy efficiency improvements to buildings. Act 211, Session Laws of Hawaii 2013, established the Hawaii green infrastructure authority to make cost-effective green infrastructure financing options accessible and affordable to customers under the green energy market securitization loan program.
The legislature further finds that a significant barrier to clean energy adoption has been the unavailability of flexible financing and low-cost capital. Building Hawaii's clean energy infrastructure at the lowest possible cost is vital to reach the State's goal of one hundred per cent clean energy by 2045. Public funds must be used in a sustainable manner to simultaneously spark customer demand for clean energy technology and attract private investment in green technology. It is the State's goal that each public dollar spent will have an investment multiplier effect throughout the green technology industry.
The legislature also finds that a variety of financing options must be available to support Hawaii's clean energy investment. Ratepayer-funded programs, such as energy efficiency rebates and the green energy market securitization loan program, have made progress but do not serve all ratepaying customers or the entire clean energy technology market. The green energy market securitization loan program has facilitated over $110,000,000 in solar photovoltaic and energy efficiency projects, but the program is not able to serve all ratepayers and focuses only on established technology. The green energy market securitization bond was an innovative use of a rate reduction bond, but due to the time lag between the issuance of the bond and expenditures for improvements, using this bond financing was inefficient compared to using revolving loan funds, which are expended annually and in a more expedient manner.
The purpose of this Act is to strengthen the Hawaii green infrastructure authority's ability to support investment in clean energy technology and infrastructure by:
(1) Creating a clean energy and energy efficiency revolving loan fund to finance a broad range of clean energy technologies;
(2) Repealing the building energy efficiency revolving loan fund; and
(3) Making an appropriation out of the clean energy and energy efficiency revolving loan fund to make clean energy investment loans or for other approved uses.
"§196- Clean energy and energy efficiency revolving
loan fund. (a) There is established in the state treasury
the clean energy and energy efficiency revolving loan fund, similar to a
revolving line of credit, which shall be administered by the authority, and
into which shall be deposited:
(1) The portion of the environmental
response, energy, and food security tax specified under section 243-3.5;
(2) Funds from federa1, state, county,
private, or other funding sources;
(3) Investments from public or private
investors;
(4) Moneys received as repayment of
loans and interest payments; provided that the repayment of loans and interest
payments under this paragraph shall not include repayment of loans and interest
collected as a result of funds advanced from proceeds of green energy market
securitization bonds; and
(5) Any fees collected by the authority
under this section.
(b) Moneys in the clean energy and energy
efficiency revolving loan fund shall be used to provide low-cost loans at
below-market rates or other authorized financial assistance to eligible public,
private, and nonprofit borrowers for clean energy investments or other
authorized uses, or both, on terms approved by the authority. Moneys from the fund may be used to cover
administrative and legal costs of fund management and management associated
with individual loans, to include personnel, services, technical assistance,
data collection and reporting, materials, equipment, and travel for the
purposes of this section.
(c) Appropriations or authorizations from the clean
energy and energy efficiency revolving loan fund shall be expended by the
authority. The authority may contract
with other public or private entities for the provision of all or a portion of
the services necessary for the administration and implementation of the loan
fund program. The authority may set fees
or charges for fund management and technical site assistance provided under
this section. The authority may adopt
rules pursuant to chapter 91 to carry out the purposes of this section.
(d) All interest earned on the loans, deposits,
or investments of the moneys in the fund shall become part of the fund.
(e) The authority may establish subaccounts
within the fund as necessary."
SECTION 3. Section 196-61, Hawaii Revised Statutes, is amended by adding ten new definitions to be appropriately inserted and to read as follows:
""Clean
energy investments" means the purchase or installation,
or both, of energy efficiency measures and renewable energy technology.
"Green
energy money saver on-bill program" means the tariff-based
on-bill repayment mechanism approved for the exclusive use of the authority by
the Hawaii public utilities commission.
"Green
infrastructure loan program", "green energy market
securitization loan program", or "GEMS loan program" means the
loan program established under part IV and capitalized by the issuance of the green
energy market securitization bonds.
"Limited
liability company", also known as "LLC", shall have the same
meaning as in section 428-101.
"Loan
fund program" means the clean energy and energy efficiency revolving loan
fund program.
"Qualified
security" shall have the same meaning as in section 227D-1.
"Renewable
energy" shall have the same meaning
as in section 269-91.
"Renewable
energy technology" means the equipment
and related accessories required to generate or produce renewable energy.
"Special
purpose entity", also known as "SPE",
means a legal entity created to fulfill narrow, specific, or temporary
objectives and typically used by companies to isolate the firm from financial
risk.
"Subaccount" means a fund that is established within but separate from another fund and is reserved for a specific purpose."
SECTION 4. Section 196-64, Hawaii Revised Statutes, is amended to read as follows:
"[[]§196-64[]] Functions, powers,
and duties of the authority. (a) In
the performance of, and with respect to the functions, powers, and duties
vested in the authority by this part, the authority, as directed by the
director and in accordance with a green infrastructure loan program order or
orders under section 269-171 or an annual plan submitted by the authority
pursuant to this section, as approved by the public utilities commission,
for the green energy market securitization loan program, may:
(1) Make loans and expend
funds to
finance the purchase or installation of green infrastructure equipment for
clean energy technology, demand response technology, and energy use reduction
and demand side management infrastructure, programs, and services;
(2) Hold and invest moneys
in the green infrastructure special fund in investments as permitted by law and
in accordance with approved investment guidelines established in one or more
orders issued by the public utilities commission pursuant to section 269-171;
(3) Hire
employees necessary to perform its duties, including an executive
director. The executive director shall
be appointed by the authority, and the employees' positions, including the
executive director's position, shall be exempt from chapter 76;
(4) Enter into contracts for
the service of consultants for rendering professional and technical assistance
and advice, and any other contracts that are necessary and proper for the
implementation of the loan program;
(5) Enter
into contracts for the administration of the loan program, without the
necessity of complying with chapter 103D;
(6) Establish loan program
guidelines to be approved in one or more orders issued by the public utilities
commission pursuant to section 269-171 to carry out the purposes of this part;
(7) Be audited at least annually by a firm of
independent certified public accountants selected by the authority, and provide
the results of this audit to the department and the public utilities
commission; and
(8) Perform all functions necessary to effectuate
the purposes of this part.
(b) The authority shall submit to the public utilities commission an annual plan for the green energy market securitization loan program for review and approval no later than ninety days prior to the start of each fiscal year. The annual plan submitted by the authority shall include the authority's projected operational budget for the succeeding fiscal year.
(c) In the performance of, and with respect to
the functions, powers, and duties vested in the authority by this part, the
authority shall administer the clean energy and energy efficiency revolving
loan fund pursuant to section 196- , and may:
(1) Make loans and
expend funds to finance the purchase or installation of clean energy technology
and services;
(2) Utilize all
repayment mechanisms, including the green energy money saver on-bill program,
financing tools, servicing and other arrangements, and sources of capital
available to the authority;
(3) Exercise powers
to organize and establish special purpose entities as limited liability
companies under the laws of the State;
(4) Acquire, hold, and
sell qualified securities;
(5) Utilize the
employees of the authority, including the executive director;
(6) Enter into
contracts for the service of consultants for rendering professional and
technical assistance and advice, and any other contracts that are necessary and
proper for the implementation of the loan fund program;
(7) Enter into
contracts for the administration of the loan fund program, without the
necessity of complying with chapter 103D;
(8) Establish loan
fund program guidelines;
(9) Be audited at
least annually by a firm of independent certified public accountants selected
by the authority, and provide the results of this audit to the department and
the legislature; and
(10) Perform all
functions necessary to effectuate the purposes of this part.
(d) The authority shall submit an annual report
for the clean energy and energy efficiency revolving loan fund to the
legislature no later than twenty days prior to the convening of each regular
session describing the projects funded and the projected energy impacts."
SECTION 5. Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) In addition to any other taxes provided by
law, subject to the exemptions set forth in section 243-7, there is hereby
imposed a state environmental response, energy, and food security tax on each
barrel or fractional part of a barrel of petroleum product sold by a
distributor to any retail dealer or end user of petroleum product, other than a
refiner. The tax shall be $1.05 on each
barrel or fractional part of a barrel of petroleum product that is not aviation
fuel; provided that of the tax collected pursuant to this subsection:
(1) 5 cents of the tax on each barrel shall be
deposited into the environmental response revolving fund established under
section 128D-2;
(2) 5 cents of the tax on each barrel shall be
deposited into the energy security special fund established under section
201-12.8;
(3) 10 cents of the tax on each barrel shall be
deposited into the energy systems development special fund established under
section 304A-2169.1; [and]
(4) 15 cents of the tax on each barrel shall be
deposited into the agricultural development and food security special fund
established under section 141-10[.]; and
(5) cents of the tax
on each barrel shall be deposited into the clean energy and energy efficiency
revolving loan fund established under section 196- .
The tax imposed by this subsection
shall be paid by the distributor of the petroleum product."
SECTION 6. Section 201-20, Hawaii Revised Statutes, is repealed.
["[§201-20] Building energy
efficiency revolving loan fund.
(a) There is established in the
state treasury the building energy efficiency revolving loan fund which shall
be administered by the department, and into which shall be deposited:
(1) Funds from
federal, state, county, private, or other funding sources;
(2) Moneys received
as repayment of loans and interest payments; and
(3) Any fees
collected by the department under this section.
(b) Moneys in the building energy efficiency
revolving loan fund shall be used to provide low or no interest loans or other
authorized financial assistance to eligible public, private, and nonprofit
borrowers to make energy efficiency improvements in buildings. Moneys from the fund may be used to cover
administrative and legal costs of fund management and management associated
with individual loans, to include personnel, services, technical assistance,
data collection and reporting, materials, equipment, and travel for the
purposes of this section.
(c) Appropriations or authorizations from the
fund shall be expended by the department.
The department may contract with other public or private entities for
the provision of all or a portion of the services necessary for the
administration and implementation of the loan fund program. The department may set fees or charges for
fund management and technical site assistance provided under this section. The department may adopt rules pursuant to
chapter 91 to carry out the purposes of this section.
(d) All interest earned on the deposit or
investment of the moneys in the fund shall become a part of the fund.
(e) The department may establish subaccounts
within the fund as necessary."]
SECTION 7. There is appropriated out of the clean energy and energy efficiency revolving loan fund the sum of $ or so much thereof as may be necessary for fiscal year 2020-2021 to provide loans or other financial assistance to eligible borrowers for clean energy investments or other authorized uses.
The sum appropriated shall be expended by the Hawaii green infrastructure authority for the purposes of this Act.
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on July 1, 2050.
Report Title:
Clean Energy and Energy Efficiency Revolving Loan Fund; Building Energy Efficiency Revolving Loan Fund; Hawaii Green Infrastructure Authority; Appropriation
Description:
Creates the clean energy and energy efficiency revolving loan fund under the administration of the Hawaii Green Infrastructure Authority. Repeals the building energy efficiency revolving loan fund. Allocates a portion of the barrel tax to the clean energy and energy efficiency revolving loan fund. Appropriates funds. Effective 7/1/2050. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
