Bill Text: HI HB953 | 2020 | Regular Session | Amended
Bill Title: Relating To Energy Assurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-02-14 - Report adopted. referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Holt, Takayama excused (2). [HB953 Detail]
Download: Hawaii-2020-HB953-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
953 |
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H.D. 2 |
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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 four new sections to part I to be appropriately designated and to read as follows:
"§125C-A Information and analysis required for state energy planning, energy assurance planning, and energy supply risk assessment and resilience 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
assurance and emergency response plans and measures, which in the event of an
actual energy shortage or supply disruption, are used to determine and
recommend if emergency government intervention may be necessary and
appropriate, and 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 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 and 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, department of taxation,
attorney general, consumer advocate, energy office, and 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, attorney general, and consumer advocate, shall be available only to
the attorney general, attorney general's authorized representatives, energy
office, and 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, established
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 the State.
"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 or produced 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] fuel products 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. As used in this
chapter, unless otherwise indicated by the context, a "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]
fuel 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 or 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 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 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 terminating the suspension."
SECTION 7. 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 8. 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 9. 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 10. 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 11. 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"
SECTION 12. Section 125C-21, Hawaii Revised Statutes, is amended to read as follows:
"§125C-21 Definitions.
["Petroleum] As used in this part:
"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 13. 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, 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
[state energy resources coordinator.] chief energy officer."
SECTION 14. Section 125C-23, Hawaii Revised Statutes, is amended to read as follows:
"§125C-23 Set-aside system. The [state energy resources coordinator]
chief energy officer 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 15. 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 energy resources coordinator, 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;]
key stakeholders, including public, private, and non-profit sector
organizations at the county, state, and federal levels; 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 16. 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 17. 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 18. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 19. This Act shall take effect on July 1, 2100.
Report Title:
Hawaii State Energy Office; Chief Energy Officer; Energy Resources; Energy Emergency Preparedness; Shortage
Description:
Requires the Hawaii state energy office to conduct analyses in relation to the State's energy production and distribution. Clarifies the confidentiality in information received by the Hawaii state energy office and PUC. Clarifies the governor's and Chief energy officer's powers and procedures during a shortage. Effective 7/1/2100. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
