Bill Text: HI HB2460 | 2018 | Regular Session | Amended
Bill Title: Relating To Microgrids.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2018-03-23 - Report adopted; Passed Second Reading and referred to WAM. [HB2460 Detail]
Download: Hawaii-2018-HB2460-Amended.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2460 |
TWENTY-NINTH LEGISLATURE, 2018 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO MICROGRIDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the development of renewable microgrids can aid Hawaii's transition to a clean energy economy. In this context, a microgrid is a small energy network, interconnected with an electric utility grid, or utilizing an electric utility grid, which is powered by renewable energy, and which may be islanded from the electric utility grid if needed.
The legislature also finds that lessons learned from the recent disaster in Puerto Rico and the subsequent loss of electrical grid infrastructure and months without electricity, as well as lessons learned from Fukushima, Japan, and the loss of critical infrastructure in tsunami and flood-prone areas, must be considered in Hawaii. Further, recent reports have identified increasing vulnerability in Hawaii's coastal areas to sea level rise, flooding, erosion, storm surge, and tsunamis.
The legislature further finds that microgrids have the potential to be a testing ground for greater integration of renewable energy, distributed generation, storage, and demand response technology. Microgrid demonstration projects will enable the State to learn how to reduce costs, increase grid reliability and resiliency, reduce pollution and greenhouse gas emissions, reduce the cost of infrastructure, and increase the efficiency of transmission and distribution.
The purpose of this Act is to designate and establish requirements for a microgrid demonstration project at the natural energy laboratory of Hawaii authority that can assist in understanding, developing, and refining microgrid technologies and policies in the State.
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- Microgrid
demonstration project; natural energy laboratory of Hawaii authority. (a)
The natural energy laboratory of Hawaii authority is recognized as
having the potential to operate a microgrid and is endorsed by the legislature. The property controlled by the natural energy
laboratory of Hawaii authority, established pursuant to chapter 227D, is
designated as a microgrid demonstration project. The natural energy laboratory of Hawaii authority is authorized to
plan and design a microgrid on its property.
(b) The microgrid demonstration project
designated by this section:
(1) Shall be
authorized by the public utilities commission;
(2) May cross
property boundaries, easements, public thoroughfares, transportation
rights-of-way, and utility rights-of-way solely within the natural energy
laboratory of Hawaii authority property;
(3) May provide,
sell, or transmit renewable energy to tenants or other users of the natural
energy laboratory of Hawaii authority other than the person who owns, controls,
operates, or manages the natural energy laboratory of Hawaii authority
microgrid demonstration project;
(4) May use
portions of an electric public utility's transmission or distribution lines to
provide, sell, or transmit electricity to participants in the natural energy
laboratory of Hawaii authority microgrid demonstration project;
(5) Shall use
electricity generation, located on the natural energy laboratory of Hawaii
authority microgrid demonstration project, with a total generating capacity of
five megawatts or less;
(6) Shall use only
renewable energy, as defined in section 269-91, to generate electricity, except
in cases of emergency; and
(7) May
be islanded from the electric public utility grid from time to time.
(c) Notwithstanding any other provisions in this
chapter, the natural energy laboratory of Hawaii authority microgrid
demonstration project shall be exempt from the requirements of this chapter,
except as may be needed to facilitate safe interconnection of the natural
energy laboratory of Hawaii authority microgrid demonstration project to an
electric public utility grid. Any person
who owns, controls, operates, manages, or otherwise participates in the natural
energy laboratory of Hawaii authority microgrid demonstration project shall not
be considered a public utility for the purpose of participating in the natural
energy laboratory of Hawaii authority microgrid demonstration project.
(d)
The public utilities commission shall open a docket and conduct an
expedited proceeding specific to the natural energy laboratory of Hawaii
authority to determine how the natural energy laboratory of
Hawaii authority microgrid demonstration project can operate on an ongoing
basis as a microgrid test facility in which new technology can be incorporated
and demonstrated as the technology evolves.
(e) The public utilities commission shall take
any steps the commission deems necessary to enable and compel electric public
utilities to allow the development of the natural energy laboratory of Hawaii
authority microgrid demonstration project by non-utilities. These steps may include issuing related
orders, amending or adopting related rules, working with permitting agencies or
other authorities to grant exemptions, or other steps necessary to enable the
development of the natural energy laboratory of Hawaii authority microgrid
demonstration project.
(f) The natural energy laboratory of Hawaii
authority microgrid demonstration project shall be exempt from any wheeling
restrictions when the wheeling is conducted within the designated boundaries of
the project.
(g) Any power that is sold by the natural energy
laboratory of Hawaii authority microgrid demonstration project shall be at a
price equal to or less than the electric utility rates established by the
public utilities commission.
(h) No later than twenty days prior to the
convening of the regular session of 2019, the natural energy laboratory of
Hawaii authority microgrid demonstration project designated pursuant to
subsection (a) shall submit a report to the legislature of its findings and
recommendations on the natural energy laboratory of Hawaii authority microgrid
demonstration project. At a minimum, the
report shall contain information on:
(1) The
fairness of the natural energy laboratory of Hawaii authority microgrid
demonstration project to all customers given the increased options for
obtaining electrical power;
(2) Any
safety issues when operating the integrated energy district;
(3) Reliability
of the overall electrical system in relation to the natural energy laboratory
of Hawaii authority microgrid demonstration project; and
(4) Any
cost shifting issues realized as a result of electrical energy being provided
by the natural energy laboratory of Hawaii authority microgrid demonstration
project.
(i) For the purposes of this section, the "natural
energy laboratory of Hawaii authority microgrid demonstration project"
means a group of interconnected loads and distributed energy resources within
clearly defined electrical boundaries that acts as a single controllable entity
with respect to the utility's electrical grid and can connect to a public
utility's electrical grid to operate in grid-connected mode and can disconnect
from the grid to operate in island mode, and generates and produces energy,
that is solely located on property owned by the natural energy laboratory of
Hawaii authority."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2018.
Report Title:
Renewable Energy; Microgrid Demonstration Project
Description:
Authorizes the establishment of a Natural Energy Laboratory of Hawaii Authority (NELHA) microgrid demonstration project for the generation, storage, and distribution of renewable energy on property controlled by NELHA. (HB2460 HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.