Bill Text: HI HB906 | 2022 | Regular Session | Introduced
Bill Title: Relating To Energy Assurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-12-10 - Carried over to 2022 Regular Session. [HB906 Detail]
Download: Hawaii-2022-HB906-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
906 |
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THIRTY-FIRST LEGISLATURE, 2021 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ENERGY ASSURANCE.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 125C, Hawaii Revised Statutes, is amended by adding to part I four new sections to be appropriately designated and to read as follows:
"§125C-A Information
and analysis required for state energy resiliency planning, energy assurance
planning, and energy supply risk assessment planning. (a) The energy office, with its own staff and
agents whom the chief energy officer designates as
authorized representatives, shall use the information, including confidential
information, received from all sources solely to effectuate the purposes of
this chapter, chapter 127A, and chapter 196.
(b) The chief energy
officer shall conduct systematic quantitative and qualitative analyses of
the State's energy resources that the chief energy
officer determines are necessary to:
(1) Assess and report on any actual or potential energy
supply disruption or shortage that threatens to impair the public health,
safety, and welfare and to preserve the lives and property of the people of the
State;
(2) Produce energy ecosystem assessments to determine
risks, vulnerabilities, criticalities, interdependencies, impacts,
consequences, and mitigation strategies related to any actual or potential emergency
or disaster impacting the State;
(3) Develop an understanding of causes and effects
of transitional issues and trends related to changes in the State's energy
resources, systems, and markets;
(4) Establish and maintain baseline data and
information on Hawaii's statewide energy resources, systems, and markets, and
their relationships to energy investment decisions and the economy in support
of measures to increase energy resiliency, reduce vulnerabilities, and preserve
Hawaii's energy security;
(5) Develop energy resiliency and emergency response
plans and measures, which in the event of an actual energy shortage or supply
disruption, are used to determine and recommend what, if any, emergency
government intervention may be necessary and appropriate, and to implement and
evaluate the effectiveness of such emergency intervention while promoting informed,
transparent, and defensible decision making; and
(6) Produce other relevant energy analyses that
the chief energy officer deems necessary to administer the energy resiliency planning,
energy emergency planning, energy assurance planning, and energy security
policies pursuant to this chapter, and other activities in support of the chief energy officer's role and responsibilities
pursuant to chapters 127A, 196, and other relevant laws.
§125C-B
Confidential information.
(a) Information provided to
the energy office for the purposes of this chapter shall be kept confidential
to the extent it falls under an exception to disclosure in section 92F-13.
(b)
Unless otherwise provided by law, with
respect to data that the public utilities commission or energy
office obtained or was provided pursuant to this chapter, neither the
public utilities commission or energy office nor any
employee of the commission or energy office may do any of the following:
(1) Use the information furnished or obtained for any
purpose other than the purposes for which it is supplied;
(2) Make any publication whereby the data
furnished by any person can be identified; or
(3) Permit any person other than the public
utilities commission, the department of taxation, the attorney general, the
consumer advocate, the energy office, and the
authorized representatives and employees of each to examine the individual
reports or statements provided.
§125C-C Confidential information
obtained by another state agency. Any confidential information pertinent to
the responsibilities of the energy office specified in this chapter that is
obtained by another state agency, including the department of taxation, the
attorney general, and the consumer advocate, shall be available only to the
attorney general, the attorney general's authorized representatives, the energy
office, and the public utilities commission and shall be treated in a
confidential manner.
§125C-D Definitions.
As used in this chapter, unless the
context otherwise requires:
Agent"
means a person who is designated by the chief
energy officer
as an authorized representative.
"Chief
energy officer" means the chief energy officer of the Hawaii state energy
office, pursuant to section 196-72, and the governor's authorized
representative for energy.
"Dealer" means any person
engaged in the retail sale of fuel in Hawaii.
"Distributor"
means any person who:
(1) Refines, manufactures, produces, or compounds
fuel in the State and sells it at wholesale or at retail;
(2) Imports or causes to be imported into the State,
or exports or causes to be exported from the State, any fuel;
(3) Acquires fuel through exchanges with another
distributor; or
(4) Purchases fuel for resale at wholesale or
retail from any person described in paragraph (1), (2), or (3);
provided that "distributor" shall not
include a marina, lessee dealer-operated station, owner-operated station, or
other retailer that retails fuel only to end users or the public.
"Electricity"
means all electrical energy produced by combustion of any fuel, or generated or
produced using wind, the sun, geothermal heat, ocean water, falling water,
currents, and waves, or any other source.
"Energy"
means work or heat that is, or may be, produced from any fuel or source
whatsoever.
"Energy
office" means the Hawaii state energy office.
"Energy
resources" means fuel, and also includes all electrical or thermal energy produced
by combustion of any fuel, or generated, produced, or stored using wind, the
sun, geothermal heat, ocean water, falling water, currents, and waves, or any
other source.
"Fuel"
means fuels, whether liquid, solid, or gaseous, commercially usable for energy
needs, power generation, and fuels manufacture, that may be manufactured,
grown, produced, or imported into the State or that may be exported therefrom,
including petroleum, petroleum products, and gases to include all fossil
fuel-based gases, coal tar, vegetable ferments, biomass, municipal solid waste,
biofuels, hydrogen, agricultural products used as fuels and as feedstock to
produce fuels, and all fuel alcohols.
"Major
energy marketer" means any person who sells energy resources in amounts
determined by the chief energy officer as having a
major effect on the supplies of, or demand for, energy resources.
"Major
energy producer" means any person who produces energy resources in amounts
determined by the chief energy officer as having a major effect on the supplies
of, or demand for, energy resources.
"Major
energy transporter" means any person who transports energy resources in
amounts determined by the chief energy officer as having a major effect on the
supplies of, or demand for, energy resources.
"Major
energy user" means any person who uses energy resources in the manufacture
of products or for the generation of electricity in amounts determined by the chief
energy officer as having a major effect on the supplies of, or demand for,
energy resources.
"Major
fuel storer" means any person who stores fuels in amounts determined by
the chief energy officer as having a major effect on
the supplies of, or demand for, energy resources."
SECTION 2. Chapter 125C, Hawaii Revised Statutes, is
amended by amending its title to read as follows:
"CHAPTER 125C
[PROCUREMENT, CONTROL, DISTRIBUTION AND
SALE OF PETROLEUM PRODUCTS] ENERGY
ASSURANCE AND FUEL SECURITY"
SECTION 3.
Section 125C-1, Hawaii Revised Statutes, is amended to read as follows:
"§125C-1 Findings and purpose. The legislature finds that adequate supplies
of [petroleum products] energy resources are essential to the
health, welfare, and safety of the people of Hawaii, and that any [severe disruption
in petroleum product supplies for use] actual or potential disruption or
shortage of energy resources within the State would cause grave hardship,
pose a threat to the economic well-being of the people of the State, and have
significant adverse effects upon public confidence and order and effective
conservation of [petroleum products.] energy resources. The purpose of this chapter is to grant to the
governor or the [governor's authorized representative] chief energy officer the clear authority, when
the governor by proclamation declares the existence of a state of emergency
in the State or when shortages of [petroleum products] energy
resources occur or are anticipated, to acquire and analyze information,
including confidential information, to conduct systematic quantitative and
qualitative analyses required for state energy planning, energy assurance
planning, energy emergency planning, and energy supply risk assessment and
resilience. This authority allows the
governor or chief energy officer to adequately plan and
prepare for, respond to, recover from, and mitigate against any actual or
potential energy supply disruption or shortage, and to preserve the State's energy
security. Another purpose of this
chapter is to control the distribution and sale of [petroleum] fuel
products in this State, to procure such products, and to impose rules that will
provide extraordinary measures for the conservation of [petroleum] energy
resources and the allocation of fuel products and for [their] the
distribution and sale of fuel in an orderly, efficient, and safe manner."
SECTION 4.
Section 125C-2, Hawaii Revised Statutes, is amended to read as follows:
"§125C-2 "Shortage" and "state of
emergency" defined. As used in this chapter, unless otherwise
indicated by the context, a "shortage" exists whenever the governor
determines that there is an increase in the demand for any [petroleum] fuel
product or there is a decrease in the available supply for the [petroleum]
fuel product in question, or both; and [such] the decrease
in the available supply of or increase in the demand for the [petroleum]
fuel product in question, or both, may cause a major adverse impact on
the economy, public order, or the health, welfare, or safety of the people of
Hawaii and may not be responsibly managed within the [free] prevailing
market distribution system. "State
of emergency" means an occurrence in any part of the State that requires
efforts by state government to protect property, public health, welfare, or
safety in the event of an emergency or disaster, or to reduce the threat of an
emergency or disaster, or to supplement the local efforts of the county. Further, the governor may, by proclamation
of a state of emergency in the State under section 127A-14, require [importers]
major energy producers, distributors, major energy marketers, major fuel
storers, major energy transporters, and major energy users of any [petroleum]
energy resource or fuel product [or other fuel] to monitor and
report to the [department of business, economic development, and tourism]
energy office relevant supply and demand data[.] and
information, including confidential information, on aspects of the State's energy resources, systems, and markets. The governor shall review the status of a shortage
within one hundred twenty days after the governor's initial determination of a
shortage as defined under this chapter; thenceforth, the governor shall conduct
a review of the shortage to make a new determination every thirty days until a
shortage no longer exists. Further,
the monitoring and reporting authorities pursuant to a declared state of
emergency in the State shall terminate under the provisions contained in section
127A-14(d)."
SECTION 5.
Section 125C-3, Hawaii Revised Statutes, is amended to read as follows:
"§125C-3 Powers in a shortage[.] or state of emergency.
When a shortage or a state of
emergency in the State as defined in section 125C-2 [exists,] has
been declared by the governor, the
governor or the [governor's authorized representative,] chief energy officer, to plan and
prepare for, respond to, recover from, and mitigate against any actual or
potential energy supply disruption or shortage, to preserve the State's
energy security, and to ensure that [petroleum]
fuel products and energy resources are made available to the
public in an orderly, efficient, and safe manner, may:
(1) Control the retail distribution and sale of [petroleum]
fuel products by adopting rules that may include, but are not limited
to, the following measures:
(A) Restricting
the sale of [petroleum] fuel products to specific days of the
week, hours of the day or night, odd- and even-numbered calendar days, and
vehicles having less than a specified amount of gasoline in their tanks, with
exceptions for certain designated geographical areas;
(B) Restricting
sales of [petroleum] fuel products by dealers to daily
allocations, which shall be determined by dividing the monthly allocation by
the number of selling days per month;
(C) Requiring dealers to post signs designating their hours of operation and the sell-out of daily allocation;
(D) Instituting
a statewide [rationing] shortage management plan; and
(E) Allowing
for special handling for essential commercial and emergency-user
vehicles[;].
(2) Require that a percentage of [petroleum]
fuel products, not to exceed five per cent, be set aside to alleviate
hardship; provided that aviation gasoline set aside shall not exceed ten per
cent;
(3) Purchase and resell or otherwise distribute [petroleum]
fuel products[, and purchase and resell or otherwise distribute
ethanol that is produced within the State and can be used as a substitute for
petroleum products];
(4) Temporarily suspend for the duration of a shortage or a state of emergency, standards that may affect or restrict the use of a substitute fuel to meet energy demand;
(5) Implement fuel shortage emergency response measures, including state government supply enhancement, supply management, regulatory waivers, and demand restraint measures, to assure fuel supplies for essential public service during a shortage or state of emergency;
(6) Acquire and analyze information, including confidential information, to conduct systematic quantitative and qualitative analyses required for state energy planning, energy assurance planning, energy emergency planning, and energy supply risk assessment and resilience;
[(4)] (7) Receive, expend, or use contributions or
grants in money or property, or special contributions thereof for special
purposes not inconsistent with this chapter;
[(5)] (8) Borrow and expend moneys needed to exercise
the powers granted under this section;
[(6)] (9) Contract in the name of the State for the
purpose of implementing this chapter or any part [thereof;] hereof;
and
[(7)] (10) Exercise the powers granted under this section
to the degree and extent deemed by the governor to be necessary, including the
temporary or indefinite suspension of all or part of the measures taken, as the
governor deems appropriate."
SECTION 6. Section 125C-4, Hawaii Revised Statutes, is amended to read as follows:
"§125C-4 Adopting, filing, and taking effect of rules.
The governor or the [governor's
authorized representative] chief energy officer shall adopt rules pursuant
to chapter 91, to [insure] ensure that [petroleum] fuel
products and energy resources are made available to the public in an
orderly, efficient, and safe manner, to become effective when a shortage, as
defined in section 125C-2, exists. If
additional and unforeseen measures are required to [insure] ensure
that [petroleum] fuel products are distributed in an orderly,
efficient, and safe manner, the governor or the [governor's authorized
representative] chief energy officer may proceed without prior notice
or hearing or upon such abbreviated notice and hearing as the governor finds
practicable to adopt additional rules authorized under this chapter with the
additional rules to be effective for a period of not longer than one hundred
twenty days without renewal. Any rule so
adopted may be amended or repealed by the [governor] chief energy
officer without prior notice or hearing or upon abbreviated notice and
hearing prior to the expiration of the one hundred twenty-day period; provided
that no amendment shall extend the rule beyond the original period of one
hundred [and] twenty days. To be
effective after the one hundred twenty-day period, the rules shall be adopted
pursuant to chapter 91. Each rule
adopted, amended, or repealed shall become effective as adopted, amended, or
repealed upon approval by the [governor] chief energy officer and
filing with the lieutenant governor. Each
rule in effect shall have the force and effect of law, but the effect of
each rule may be temporarily or indefinitely suspended by the [governor]
chief energy officer by written declaration filed with the lieutenant governor.
Each rule temporarily suspended shall
take effect again immediately upon expiration of the suspension period. Each rule indefinitely suspended shall take
effect immediately upon the filing with the lieutenant governor of the written
declaration by the [governor] chief energy officer terminating
the suspension."
SECTION 7.
Section 125C-5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§125C-5[]] Publication of rules and declarations. Within five days after the date of filing with
the lieutenant governor of each rule or declaration, the [governor]
chief energy officer shall make the rule or determination known to the persons
affected by it by publication at least once in a newspaper of general
circulation in the State and in a newspaper that is printed and issued at least
twice weekly in the county within which those affected persons reside."
SECTION 8.
Section 125C-6, Hawaii Revised Statutes, is amended to read as follows:
"[[]§125C-6[]]
Petition for adoption,
amendment, repeal, or suspension of rules. Any interested person may petition the
governor or the [governor's authorized representative] chief energy
officer requesting the adoption, amendment, repeal, or suspension of any
rule and stating reasons therefor. The
governor or the [governor's authorized representative] chief energy
officer shall prescribe the form for the petitions and the procedures for
their submission, consideration, and disposition[,] and, within
thirty days after submission of the petition, shall either deny the
petition in writing, stating the governor's or the [governor's authorized
representative's] chief energy officer's reasons for the denial, or grant the petition and adopt,
amend, repeal, or suspend the rule accordingly."
SECTION 9.
Section 125C-8, Hawaii Revised Statutes, is amended to read as follows:
"§125C-8
Personnel; delegation of powers. (a) The chief energy officer shall
fulfill and effectuate the purposes of this chapter.
(b)
The governor or chief
energy officer may appoint or employ temporary boards, agencies, officers,
employees, and other persons, or any of them, for the purpose of carrying out
the provisions of this chapter. All such
temporarily appointed or employed officers and employees, whether or not
employed by contract, shall be exempt from and not subject to nor entitled to
the benefits of the provisions of chapters 76 and 88, or any other law,
collective bargaining agreement, executive order, executive directive, or rule
that is inapplicable to temporary employees of the State."
SECTION 10.
Section 125C-9, Hawaii Revised Statutes, is amended to read as follows:
"[[]§125C-9[]] Investigations, information
collection, and surveys. The governor or the [governor's authorized
representative] chief energy officer may make investigations, collect
information, including confidential information, and conduct surveys
for the purpose of ascertaining facts to be used in administering this chapter,
and in making the investigations, collecting the information, and conducting
the surveys, may require the making, filing, or keeping of applications,
schedules, records, reports, or statements, under oath or otherwise, administer
oaths, take evidence under oath, subpoena witnesses, and require the production
of books, papers, and records. Witnesses
shall be allowed their fees and mileage as in cases in the circuit courts. The circuit court of any circuit or judge
thereof may enforce by proper proceedings the attendance and testimony of any
witness subpoenaed to appear within the circuit, or the production of books,
papers, and records."
SECTION 11.
Section 125C-10, Hawaii Revised Statutes, is amended to read as follows:
"[[]§125C-10[]] Fraud; [misdemeanor.] penalties. Any person required by the governor or the [governor's
authorized representative,] chief energy officer,
pursuant to [section 125C-9,] this chapter, to make, keep,
or file any application, schedule, record, report, or statement, whether or not
under oath, who intentionally makes, files, or keeps a false or fraudulent
application, schedule, report, or statement or intentionally conceals therein
any material fact, and any person who in any other manner intentionally
deceives or attempts to deceive the governor or the [governor's authorized
representative] chief energy officer with respect to any fact to be
used in administering this chapter, and any person who intentionally fails to
observe and comply with any rule [promulgated] adopted under this
chapter, shall be [guilty of a misdemeanor.] assessed a civil penalty
of not more than $10,000 per violation."
SECTION 12.
Chapter 125C, Hawaii Revised Statutes, is amended by amending the
title of part II to read as follows:
"PART II. HARDSHIP SET-ASIDE AND ALLOCATION OF [PETROLEUM]
FUEL PRODUCTS DURING A SHORTAGE OR STATE OF EMERGENCY"
SECTION 13.
Section 125C-21, Hawaii Revised Statutes, is amended to read as follows:
"§125C-21 Definitions. ["Petroleum] As used in this part, unless the context
otherwise requires:
"Fuel product" means any fuel subject to
the set-aside system described in this chapter, including heating oils, [light
and heavy diesel oil,] all classifications of diesel fuels, motor
gasoline[,] and all blends of motor gasoline with other fuel
products, propane, butane, residual fuel oils, kerosene, naphtha,
biodiesel, ethanol, suboctane motor fuel, and aviation fuels used for
emergency and essential intrastate air transport services, but excluding all other
aviation fuels.
"Prime supplier" means any individual, trustee,
agency, partnership, association, corporation, company, municipality, political
subdivision, or other legal entity [which] that makes the
first sale of any [liquid fossil] fuel product into the state distribution
system for consumption within the State."
SECTION 14.
Section 125C-22, Hawaii Revised Statutes, is amended to read as follows:
"§125C-22 When set-aside required. When a shortage or a state of emergency
as defined in section 125C-2 exists, should the governor or the chief energy
officer determine it necessary, all prime suppliers shall set aside
supplies of each [petroleum] fuel product for which there is a
shortage. The amount set aside shall be
in accordance with [the] any rules adopted by the chief energy
officer of the Hawaii State energy office."
SECTION 15.
Section 125C-23, Hawaii Revised Statutes, is amended to read as follows:
"§125C-23 Set-aside system.
The chief energy officer of the Hawaii
state energy office shall adopt rules establishing a [petroleum] fuel
products set-aside system. The purpose
of this system shall be:
(1) The protection of public health, safety, and welfare;
(2) The maintenance of public services, utilities, and transportation, including emergency and essential intrastate air and maritime transport services;
(3) The maintenance of critical agricultural
and aquaculture operations[, including farming, horticulture, dairy,
fishing,] and related services;
(4) The preservation of economically sound and
competitive industry, through the equitable acquisition and distribution of [petroleum]
fuel products; and
(5) The promotion of efficiency[,] and conservation,
with minimum economic disruptions, during a shortage of [petroleum] fuel
products.
The rules establishing the set-aside system shall be adopted in accordance with chapter 91."
SECTION 16. Section 125C-31, Hawaii Revised Statutes, is amended to read as follows:
"[[]§125C-31[] Biennial
state] State energy [emergency
preparedness] assurance plan.
(a) The [department of business, economic
development, and tourism] energy office shall
prepare a comprehensive and integrated [biennial] state energy [emergency
preparedness] assurance
plan to be implemented in the event of[,] a
state of emergency, or in anticipation of[,] a change in the State's
[petroleum] energy supply or demand situation that is judged by
the governor or chief energy officer to be unmanageable by the [free
market.] prevailing markets.
The [department of business, economic development, and tourism] energy office shall prepare a [biennial] state
energy [emergency preparedness] assurance plan [in every even-numbered year] in
accordance with the following:
[(1) The biennial state energy emergency
preparedness plan shall replace the energy emergency plan developed by the chief
energy officer of the Hawaii State energy office, who shall act as the governor's
authorized representative under this chapter;
(2)] (1)
In preparing the [biennial] state energy [emergency
preparedness] assurance
plan, the [department] energy office
shall:
(A) Solicit
input, comment, and review from [the governor's energy emergency
preparedness advisory committee composed of representatives of federal, state,
and county governments; private energy suppliers; consumer and other public
interest groups; and the public at-large;] stakeholders, including
public, private, and nonprofit sector organizations at the county, state, and
federal level; and
(B) Establish [other] task forces and advisory groups, as may be
deemed necessary, to assist in the preparation and review of the [biennial]
state energy [emergency preparedness] assurance plan;
[(3)] (2) The [biennial] state energy [emergency
preparedness] assurance
plan shall be comprehensive and encompassing, and shall integrate into its
analytic and planning framework the plans of electric and gas utilities and
other energy suppliers, relevant state agencies, [including the department
of transportation,] counties, and such other entities as deemed appropriate;
and
[(4)] (3) The [biennial] state energy [emergency
preparedness] assurance
plan shall include a review and update of the previous [biennial] state
energy [emergency preparedness] assurance plan and [a review of the energy emergency plans
prepared by the counties.] shall be prepared or updated as determined by
the chief energy officer to be necessary to comport with changes in federal or
state overall emergency management policies and plans that significantly affect
the State's energy assurance plan or as warranted by changes in Hawaii's energy
security.
(b) The [department]
energy office shall prepare an energy emergency communication plan,
which shall be [updated biennially] part of the state energy
assurance plan and shall be consistent with [the energy emergency
preparedness] any other energy emergency management plans prepared
by the counties[.] and the State. The energy emergency communication plan shall
be used by the [State and counties] energy office to communicate
and otherwise coordinate [state and county] actions taken in response to
implementing the [biennial] state energy [emergency preparedness]
assurance plan."
SECTION 17. Section 125C-32,
Hawaii Revised Statutes, is amended to read as follows:
"[[]§125C-32[]
Biennial county] County energy emergency preparedness plans. The mayor of each county, or the mayor's
authorized representative, shall [prepare a comprehensive] be
responsible for preparing a county energy emergency preparedness plan. The plan shall be prepared in coordination
with and be consistent with the [biennial] state energy [emergency
preparedness] assurance
plan[,] and shall be implemented in coordination with the state energy [emergency
preparedness] assurance
plan upon declaration of [an energy emergency by the governor.] [Not
later than September 30 of every even-numbered year, each county shall prepare
and transmit to the director of business, economic development, and tourism the
county's biennial county energy emergency preparedness plan.] a shortage
or a state of emergency."
SECTION
18. In codifying the new sections added
by section 1 of this Act, the revisor of statutes shall substitute appropriate
section numbers for the letters used in designating the new sections in this
Act.
SECTION 19. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 20. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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BY REQUEST |
Report Title:
Energy Resiliency; Energy Resources; Energy Shortage; State of Emergency
Description:
Addresses deficiencies in Hawaii's fuel shortage response and energy emergency statutes; provides policy guidance on energy resiliency and actual or potential energy supply disruptions or shortages to preserve the State's energy resiliency and security and to ensure that fuel products and energy resources are made available to emergency services and the public in an orderly, efficient, and safe manner.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
