Bill Text: HI SB1087 | 2013 | Regular Session | Introduced
Bill Title: Green Infrastructure Loan Program; Public Benefits Fee; Appropriation ($)
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2013-07-02 - Act 211, 6/27/2013 (Gov. Msg. No. 1314). [SB1087 Detail]
Download: Hawaii-2013-SB1087-Introduced.html
|
THE SENATE |
S.B. NO. |
1087 |
|
TWENTY-SEVENTH LEGISLATURE, 2013 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO GREEN INFRASTRUCTURE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that building Hawaii's clean energy infrastructure at the lowest possible cost is vital to the State reaching its seventy per cent clean energy goal in 2030.
The legislature finds that significant investment in infrastructure installations is required to achieve the State's goals of energy self-sufficiency and greater energy security and diversification, and to support the achievement of the Renewable Portfolio Standards and Energy Efficiency Portfolio Standards, as established in chapter 269, Hawaii Revised Statutes. Further, these infrastructure installations will require significant amounts of capital, and it is in the public interest to minimize these costs. A key component to minimizing cost is reducing the cost of capital required to finance infrastructure installations.
The legislature further finds that up-front costs of green infrastructure equipment are a barrier preventing many electric utility customers from investing in these infrastructure installations. Existing programs and incentives do not serve the entire spectrum of the customer market, particularly those customers who lack access to capital or who cannot afford the large upfront costs required—thus creating an underserved market. It is in the public interest to make cost-effective green infrastructure equipment options accessible and affordable to customers in an equitable way.
A green infrastructure financing program administered by the State that capitalizes on existing ratepayer contributions for green infrastructure equipment can serve a critical role in ensuring all Hawaii electricity ratepayers receive the greatest opportunity to adopt clean energy. The legislature finds the State would be best served by a State-administered green infrastructure financing program that: (1) focuses on providing an alternative means of low-cost financing for green infrastructure equipment for Hawaii ratepayers, particularly those ratepayers not currently able to obtain such technology on reasonable financing terms; (2) utilizes excess loan program funds as a special fund to finance additional green infrastructure installations, subject to regulatory guidelines and approval; and (3) establishes clearly defined program procedures and targets that encourage effective coordination among state agencies, industry, investors, and other critical energy industry stakeholders in order to help the State achieve its clean energy policy mandates.
The purpose of this Act is to establish a regulatory financing structure that authorizes the public utilities commission and the department of business, economic development, and tourism to acquire and provide alternative low-cost financing, to be deployed through a financing program to enable installations of green infrastructure equipment, achieve measurable cost savings, and achieve Hawaii's clean energy goals.
SECTION 2. Chapter 196, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . GREEN INFRASTRUCTURE LOANS
§196-A Definitions. As used in this part:
"Authority" means the Hawaii green infrastructure authority as described in this section, provided that until the authority is duly constituted the director may exercise all powers reserved to the authority.
"Director" means the director of business, economic development, and tourism, or the director's designee.
"Green infrastructure bond" means any bond issued by the State under section 269-A.
"Green infrastructure charge" means the on-bill charges as authorized by the public utilities commission to be imposed on electric utility customers to repay green infrastructure loans made 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 using the proceeds of green infrastructure bonds.
"Green infrastructure costs" means costs incurred or to be incurred by the electric utility customers to pay for clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure including, without limitation, the purchase or installation of green infrastructure equipment, programs, and services authorized by the green infrastructure loan program.
"Green infrastructure equipment" means infrastructure improvements, equipment, and personal property to be installed to deploy clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure.
"Green infrastructure loan program" and "green infrastructure loans" means the program established by this section and loans made 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 as authorized by the public utilities commission using the proceeds of green infrastructure bonds or other proceeds. This loan program may include loans made to private entities, whether corporations, partnerships, limited liability companies or other persons, which entities may lease or provide green infrastructure equipment to electric utility customers, as well as direct loans to electric utility customers, on terms approved by the authority.
§196-B Hawaii green infrastructure loan program. There is created a Hawaii green infrastructure loan program, which shall be a loan program as defined under section 39-51. The green infrastructure loan program shall be administered by the authority in a manner consistent with section 39-51.
§196-C Hawaii green infrastructure authority. (a) There is created the Hawaii green infrastructure authority comprised of five members as an instrumentality of the State. Three members shall be the director, the director of finance, and the energy program administrator. The governor shall appoint the other two members, pursuant to section 26-34. The director shall be the chairperson of the authority. The authority shall be placed within the department of business, economic development, and tourism for administrative purposes, pursuant to section 26-35.
(b) The authority shall utilize the proceeds of green infrastructure bonds and other amounts in the green infrastructure special fund established pursuant to section 196-F for the purposes of making green infrastructure loans to finance green infrastructure costs, acquiring, owning, or administering green infrastructure property, or a combination of these purposes.
(c) The authority shall obtain an order from the public utilities commission requiring the electric utilities to serve as collection agents to collect the green infrastructure charges imposed to repay green infrastructure loans and transfer all green infrastructure charges collected to the authority to be applied to repay green infrastructure loans. Green infrastructure charges shall not be considered revenue of the electric utilities.
§196‑D Functions, powers, and duties of the authority. In the performance of, and with respect to the functions, powers, and duties vested in the authority by this chapter, the authority 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 the proceeds of the green infrastructure special fund in such investments as permitted by law and in accordance with approved investment guidelines established in one or more financing orders issued by the public utilities commission pursuant to part ____ of chapter 269;
(3) Hire employees necessary to perform its duties, including an executive director. The executive director shall be appointed by the authority, and the executive director's position shall be exempt from civil service;
(4) Enter into contracts for the service of consultants for rendering professional and technical assistance and advice, management of the green infrastructure loan program, and any other contracts that are necessary and proper for the implementation of the program, without the necessity of complying with chapter 103D;
(5) Adopt rules in accordance with loan program guidelines established in one or more financing orders issued by the public utilities commission pursuant to part ____ of chapter 269 to carry out this part, which rules shall:
(A) Prescribe the qualifications for eligibility of applicants for loans;
(B) Establish preferences and priorities in determining eligibility for loans; and
(C) Establish the terms and conditions for green infrastructure loans;
(6) 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 director; and
(7) Perform all functions necessary to effectuate the purposes of this chapter.
§196‑E Hawaii green infrastructure special fund. (a) There is established the Hawaii green infrastructure special fund. The Hawaii green infrastructure special fund shall not be subject to section 37-53.
(b) Moneys in the Hawaii green infrastructure special fund may be used for the purpose of making green infrastructure loans, paying the administrative costs of the green infrastructure loan program, or any other costs related to the green infrastructure loan program. The following shall be deposited into the Hawaii green infrastructure special fund:
(1) The proceeds of green infrastructure bonds net of issuance costs and reserves or overcollateralization amounts;
(2) Green infrastructure fees collected, pursuant to section 269-121;
(3) Green infrastructure charges received in repayment of loans;
(4) All other funds received by the director and the authority and legally available for the purposes of the special fund; and
(5) Interest earnings on all amounts in the special fund.
The director and the authority may invest funds held in the Hawaii green infrastructure special fund in such investments as permitted by law, and in accordance with approved investment guidelines established in one or more financing orders issued by the public utilities commission pursuant to chapter 269, part ____. All amounts in the Hawaii green infrastructure special fund shall not be considered state general funds, and shall be exempt from all taxes and similar surcharges imposed by the State. Nothing in this section shall prohibit the authority from using moneys in the Hawaii green infrastructure special fund to credit back to electric utility customers at the direction of the public utilities commission.
§196‑F Severability. If any provision of this part is held to be invalid or is superseded, replaced, repealed, or expires for any reason, that occurrence shall not affect any action allowed under this part that is taken prior to that occurrence by the public utilities commission, an electric utility, the director, or the authority. Any such action shall remain in full force and effect."
SECTION 3. Chapter 269, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . GREEN INFRASTRUCTURE BONDS
§269-A Definitions. As used in this part:
"Ancillary agreement" means any bond insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other related bond document or other similar agreement or arrangement entered into in connection with the issuance of green infrastructure bonds that is designed to promote the credit quality and marketability of the bonds or to mitigate the risk of an increase in interest rates.
"Authority" means the Hawaii green infrastructure authority established under chapter 196.
"Bond" or "green infrastructure bond" means any bond, note or other evidence of indebtedness that is issued by the State, acting through the department, under a financing order, the proceeds of which are used directly or indirectly to recover, finance, or refinance financing costs of clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure, programs, and services, and that are secured by or payable from green infrastructure property. Green infrastructure bonds are revenue bonds issued under article VII, section 12 of the State Constitution and are excluded from the calculation of the State's debt limit pursuant to article VII, section 13 of the State Constitution.
"Bondholder" means any holder or owner of a bond.
"Department" means the department of business, economic development, and tourism.
"Electric utilities" means all electric utilities subject to collecting and remitting the public benefit fee pursuant to section 269-121, at the time the financing order becomes final.
"Financing costs" means any of the following:
(1) Principal and interest payable on green infrastructure bonds;
(2) Any payment required under an ancillary agreement;
(3) Any amount required to fund or replenish a reserve account or another account established under any indenture, ancillary agreement, or other financing document relating to the issuance of green infrastructure bonds;
(4) Any redemption or call premium or cost of redeeming or refunding any existing debt of the department in connection with either the issuance of, or the use of proceeds from, green infrastructure bonds;
(5) Any costs incurred by the department to modify or amend any indenture, financing agreement, security agreement, or similar agreement or instrument securing any bond or any ancillary agreement;
(6) Any costs incurred by the department to obtain any consent, release, waiver, or approval from any holder of any bond or of any party to an ancillary agreement that are necessary to be incurred for the department to issue green infrastructure bonds;
(7) Any costs related to issuing or servicing green infrastructure bonds or related to obtaining a financing order, including servicing fees and expenses, trustee fees and expenses, legal, accounting, or other professional fees and expenses, administrative fees, placement fees, underwriting fees and discounts, capitalized interest and equity, and rating-agency fees; or
(8) Any other similar costs incident to the issuance, administration or servicing of the green infrastructure bonds that the department finds appropriate.
"Financing order" means an order issued at the request of the department by the public utilities commission under this part that has become final as provided by law, and that authorizes the issuance of green infrastructure bonds and the imposition, adjustment from time to time and the collection of green infrastructure fees. The financing order shall include, without limitation, a procedure to require the public utilities commission in accordance with a formula set out in the financing order and approved by the department to review and approve expeditiously periodic adjustments to green infrastructure fees to ensure the payment of the green infrastructure bonds and related financing costs on a timely basis.
"Financing party" means either of the following:
(1) Any trustee, collateral agent, or other person acting for the benefit of a bondholder;
(2) Any party to an ancillary agreement, the rights and obligations of which relate to or depend upon the existence of green infrastructure property and green infrastructure fees, the enforcement and priority of a security interest in green infrastructure property, the timely collection and payment of green infrastructure fees, or a combination of these factors.
"Green infrastructure fee" means the nonbypassable charges authorized by section 269-121 and in a financing order authorized under this part to be imposed and collected on all existing and future customers of electric utilities (or any successor). The green infrastructure fee may be a usage based surcharge, a flat user fee, or a charge based upon customer revenues as determined by the public utilities commission for each customer class in any financing order.
"Green infrastructure property" means the property, rights, and interests created by the public utilities commission under a financing order, including the right to impose, charge, and collect from electric utility customers the green infrastructure fee that shall be used to pay and secure the payment of green infrastructure bonds and financing costs, and the green infrastructure charge to repay green infrastructure loans, and including the right to obtain adjustments to those surcharges, fees or other charges, and any revenues, receipts, collections, rights to payment, payments, moneys, claims, or other proceeds arising from the rights and interests created by the public utilities commission under any financing order.
"Successor" means, with respect to any electric utility another electric utility, or other entity that succeeds voluntarily or by operation of law to the rights and obligations of the first electric utility, or other entity pursuant to any bankruptcy, reorganization, restructuring, or other insolvency proceedings, any merger, acquisition, or consolidation, or any sale or transfer of assets, regardless of how any of these actions occurred.
"Trustee" means any trustee appointed under an indenture or certificate of the director executed in connection with the issuance of green infrastructure bonds.
§269‑B Applications to issue green infrastructure bonds and authorize green infrastructure fee. (a) In connection with the issuance of green infrastructure bonds, the department may apply to the public utilities commission for one or more financing orders, each of which financing orders authorizes the following:
(1) The imposition, charging, and collection on behalf of the department of the green infrastructure fee and the adjustment of such green infrastructure fee on behalf of the department in accordance with an adjustment mechanism requested by the department under this part in amounts sufficient to pay the principal of and interest on green infrastructure bonds and all related financing costs on a timely basis;
(2) The creation of green infrastructure property under the financing order; and
(3) The contribution of the net proceeds of the green infrastructure bonds to provide funds for the financing of green infrastructure costs.
(b) The application shall include all of the following:
(1) The principal amount of the green infrastructure bonds proposed to be issued;
(2) An estimate of the date each series of green infrastructure bonds is expected to be issued;
(3) The expected term, not to exceed thirty years, during which term the green infrastructure fee associated with the issuance of each series of green infrastructure bonds is expected to be imposed and collected;
(4) An estimate of the financing costs associated with the issuance of each series of green infrastructure bonds;
(5) An estimate of the amount of green infrastructure fee necessary to pay principal and interest on the green infrastructure bonds and related financing costs as set forth in the application and the calculation for that estimate, which calculation shall take into account the estimated date or dates of issuance and the estimated principal amount of each series of green infrastructure bonds;
(6) A proposed methodology for allocating the green infrastructure fee among electric utilities and customer classes within each electric utility;
(7) A description of a proposed formulaic adjustment mechanism for the adjustment of the green infrastructure fee to assure the timely payment of principal and interest on the green infrastructure bonds and related financing costs; and
(8) Any other information required by the public utilities commission.
§269‑C Green infrastructure financing order. (a) The public utilities commission shall issue its financing order as final or in the event that the finding in clause (b) cannot be made, its denial of a financing order, as expeditiously as possible and in any event within ninety days from the date the completed application is submitted.
(b) The public utilities commission may issue a financing order if the public utilities commission finds that the imposition of the green infrastructure fee and the issuance of green infrastructure bonds authorized by the order will facilitate the provision of alternative low-cost financing, to be deployed through a financing program administered by the authority, to enable installations of clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure, and to help achieve Hawaii's clean energy goals.
(c) The public utilities commission shall include all of the following in a financing order:
(1) A determination of the maximum amount of green infrastructure bonds that may be issued under the financing order;
(2) A description of the green infrastructure property, the creation of which property is authorized by the financing order;
(3) A description of the financing costs that may be recovered through green infrastructure fees, including any reserves required by the department to secure payment of the green infrastructure bonds;
(4) A description of the methodology to be applied by the public utilities commission for calculating the green infrastructure fee, including the allocation of financing costs among electric utilities and customer classes;
(5) A description of the formulaic adjustment mechanism to be used by the public utilities commission to adjust the green infrastructure fee in order to ensure that the amount of green infrastructure fees projected to be collected shall be sufficient to pay the principal and interest on the green infrastructure bonds, and all related financing costs on a timely basis, including the funding or maintenance of any reserves required to be maintained by the department;
(6) The maximum term of the green infrastructure bonds, not to exceed thirty years;
(7) Any provisions necessary to issue from time to time refunding green infrastructure bonds in such principal amounts as the department may determine to be necessary to refund the green infrastructure bonds authorized in the financing order, to the extent permitted by the financing documents;
(8) A requirement that the electric utilities (including any successors) serve as collection agents to collect the green infrastructure fees and transfer those surcharges to the trustee or other financing party as required by the financing order and any agreements with the department;
(9) Terms satisfactory to the public utilities commission that the green infrastructure fee shall be nonbypassable and will be paid by all existing and future customers of an electric utility (or any successor); and
(10) Any other provision the public utilities commission considers appropriate to ensure the full and timely imposition, charging, collection, and adjustment, pursuant to an approved adjustment mechanism, of the green infrastructure fee described in this subsection.
(d) The public utilities commission may, in a financing order, afford the department flexibility in establishing the terms and conditions for the green infrastructure bonds to accommodate changes in market conditions, including repayment schedules, interest rates, financing costs, collateral requirements, required debt service and other reserves, and the ability of department, at its option, to effect a series of issuances of green infrastructure bonds and correlated assignments, sales, pledges, or other transfers of green infrastructure property. Any changes made under this section to terms and conditions for the green infrastructure bonds shall be in conformance with the financing order.
(e) At the request of the department, the public utilities commission shall determine, in accordance with the adjustment mechanism set forth in the financing order, the initial green infrastructure fee after the determination of the final terms of each series of green infrastructure bonds, so that the green infrastructure fee shall be final and effective upon issuance of the green infrastructure bonds.
(f) An appeal from a financing order issued by the public utilities commission shall be taken pursuant to section 269-15.5.
(g) Any adjustment to the green infrastructure fee made by the public utilities commission pursuant to the adjustment mechanism approved in the financing order shall be a ministerial act of the public utilities commission, and shall be not require any prior public notice or hearing.
§269‑D Green infrastructure property. (a) The green infrastructure property shall be created simultaneously with the issuance of the green infrastructure bonds and shall immediately vest in the department, which shall pledge such property to secure the payment of green infrastructure bonds, amounts payable to financing parties and bondholders, amounts payable under any ancillary agreement, and other financing costs as provided in the financing documents executed by the department.
(b) The electric utility shall have no ownership or beneficial interest in nor any claim or right to the green infrastructure fee, green infrastructure property, or green infrastructure charge other than the obligation to collect the green infrastructure fee and green infrastructure charge as agent for the department or any financing party and remit the same to the department or such financing party entitled to receive such surcharges in accordance with the financing order.
(c) The obligation of any customer to pay the green infrastructure fee or green infrastructure charge and the obligation of the electric utility to collect and remit the green infrastructure fee or green infrastructure charge shall not be subject to any setoff, counterclaim, surcharge, or defense by the electric utility or by any customer, or in connection with a bankruptcy of any electric utility or any customer.
§269‑E Green infrastructure bonds financing order. (a) A financing order shall remain in effect until the green infrastructure bonds issued under the financing order and all financing costs related to the bonds have been paid in full or defeased by their terms. A financing order shall remain in effect and unabated notwithstanding the bankruptcy, reorganization, or insolvency of any electric utility or any affiliate of the electric utility or the commencement of any judicial or nonjudicial proceeding on the financing order.
(b) Once a financing order has become final as provided by law, the financing order shall become irrevocable. The public utilities commission may not directly or indirectly reduce, impair, postpone, rescind, alter or terminate the green infrastructure fee authorized in the financing order or impair the green infrastructure property or the collection of the green infrastructure fee so long as any green infrastructure bonds are outstanding or any financing costs remain unpaid.
(c) Under a final financing order, the director shall retain sole discretion to cause green infrastructure bonds to be issued, including the right to defer or postpone such issuance, assignment, sale or transfer.
§269-F Green infrastructure fee nonbypassable. (a) So long as any green infrastructure bonds are outstanding and any financing costs have not been paid in full, the green infrastructure fees authorized under any financing order shall be nonbypassable. Subject to any exceptions provided in a financing order, the green infrastructure fee will be paid by all existing and future customers of an electric utility (or any successor).
(b) The green infrastructure fee shall be collected by the electric utilities or their successors, as collection agents for the department or the financing parties, in full through a surcharge, fee or charge that is separate and apart from the electric utilities' rates. The green infrastructure fee may be included with the public benefits fee as one line item on the electric utility bill when the bill contains a public benefits fee pursuant to section 269-121, but such inclusion shall not adversely affect the pledge of the green infrastructure fee or the right to adjust the green infrastructure fee as authorized by this section.
§269-G Electric utility successor requirements. Any successor to an electric utility subject to a financing order shall be bound by the requirements of this part. The successor shall perform and satisfy all obligations of the electric utility under the financing order, in the same manner and to the same extent as the electric utility, including the obligation to collect and pay the green infrastructure fee to the department or to any financing party as required by a financing order.
§269-H Green infrastructure security interest. (a) The creation, perfection, and enforcement of any security interest in the green infrastructure fee and green infrastructure property under a financing order to secure the payment of the principal and interest on green infrastructure bonds, amounts payable under any ancillary agreement, and other financing costs are governed by this section.
(b) Upon the issuance of any green infrastructure bonds by the department, there shall exist a statutory first priority lien and security interest as provided in this subsection on the green infrastructure fee and all green infrastructure property then existing or thereafter arising pursuant to the terms of the financing order to secure payment of the green infrastructure bonds, amounts payable under any ancillary agreement and other financing costs. This lien shall arise by operation of this subsection automatically without any action on the part of the department, the electric utilities or any other person. This lien shall secure all obligations, then existing or subsequently arising, to the bondholders, the trustee or representative for the bondholders, and any other financing party as authorized by the financing order.
(c) The persons for whose benefit this lien is established shall, upon the occurrence of any default specified in the financing order, have all rights and remedies of a secured party upon default pursuant to article 9 of chapter 490, and shall be entitled to foreclose or otherwise enforce this statutory lien in the green infrastructure property. This lien shall be valid, perfected, and enforceable against the department and all third-parties upon the effectiveness of the financing order without any further public notice; provided that any person may file a financing statement.
(d) A perfected statutory lien in the green infrastructure fee and green infrastructure property shall be a continuously perfected lien in all revenues and proceeds arising with respect to the green infrastructure fee and green infrastructure property, whether or not the revenues or proceeds have accrued. Conflicting liens shall rank according to priority in time of perfection. The green infrastructure fee and green infrastructure property shall constitute property for all purposes, including for contracts securing green infrastructure bonds, whether or not the revenues and proceeds arising with respect thereto have accrued.
(e) In addition, the public utilities commission may require, in the financing order creating the green infrastructure fee and green infrastructure property, that, in the event of a default by the electric utility in remittance of the green infrastructure fee arising with respect to green infrastructure property, the public utilities commission, upon the application by the beneficiaries of the statutory lien, and without limiting any other remedies available to the beneficiaries by reason of the default, shall order the sequestration and payment to the beneficiaries of the green infrastructure fee arising with respect to the green infrastructure property. Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the electric utility.
§269-I Treatment of green infrastructure property. (a) The ownership, transfer and pledge of the green infrastructure fee and green infrastructure property and the imposition, charging, collection, and receipt of the green infrastructure fee and green infrastructure charge are exempt from all taxes and similar surcharges imposed by the State.
(b) Green infrastructure bonds issued under a financing order shall not constitute a debt, a liability or a pledge of the faith and credit or taxing power of the state, any county, or of any instrumentality of the State. Bondholders shall have no right to have taxes levied by the State or the taxing authority any county, or any other instrumentality of the State for the payment of the principal of or interest on the bonds. The issuance of green infrastructure bonds does not, directly, indirectly, or contingently, obligate the State, any county, or any instrumentality of the State to levy any tax or make any appropriation for payment of the principal of or interest on the bonds.
(c) Green infrastructure bonds issued under a financing order shall not be an obligation of any electric utility.
§269-J Green infrastructure property non-impairment. (a) In furtherance of section 39-61, the State pledges to and agrees with the bondholders and any financing parties under a financing order that the State will not take or permit any action that impairs the value of green infrastructure property under the financing order, or reduce, alter, or impair green infrastructure fees that are imposed, charged, collected, or remitted for the benefit of the bondholders and any financing parties, until any principal, interest, and redemption premium in respect of green infrastructure bonds, all financing costs, and all amounts to be paid to a financing party under an ancillary agreement are paid or performed in full or unless adequate provision has been made by law for the protection of bondholders and other financing parties.
(b) The department in issuing the green infrastructure bonds is permitted to include the pledge specified in subsection (a) of this section in the green infrastructure bonds, ancillary agreements, and documentation related to the issuance and marketing of the green infrastructure bonds.
(c) The law governing the validity, enforceability, attachment, perfection, priority, and exercise of remedies with respect to the transfer of green infrastructure property under a financing order, or creation of a security interest in any such property, green infrastructure fee, green infrastructure charge or financing order shall be the laws of this State as set forth in this part.
(d) This section shall control in the event of a conflict in this part and any other law regarding the attachment, assignment, or perfection, the effect of perfection, or priority of any security interest in or transfer of green infrastructure property under a financing order.
§269‑K Compliance with revenue bond law. For purposes of assuring compliance with part III of chapter 39, it is determined as follows:
(1) For purposes of section 39-51, revenues shall include the green infrastructure fee and the proceeds of green infrastructure property, including the green infrastructure charge, and the loan program shall include the loan program authorized under section 196-___;
(2) In addition and supplemental to the powers conferred by section 39-60, any resolution, certificate or indenture approved by the department may have such additional or alternative covenants as may be consistent with this chapter, and the department may enter into a trust indenture, servicing agreement or other financing documents having terms and conditions consistent with the financing order issued under section 269-C;
(3) In addition and supplemental to the powers conferred by section 39-61, the green infrastructure fee shall be imposed, adjusted and collected as provided in section 269-F and the financing order issued pursuant thereto;
(4) In addition and supplemental to the powers conferred by section 39-62, the green infrastructure fee and green infrastructure charge shall be applied as provided in the financing order, the certificate issued by the department and any financing documents executed by the department in connection with the green infrastructure bonds; and
(5) In addition and supplemental to the powers conferred by section 39-63, the lien and security interest in the green infrastructure fee, green infrastructure property, and green infrastructure charge, and the perfection and priority thereof shall be governed by section 269-H.
§269-L Severability. If any provision of this part is held to be invalid or is superseded, replaced, repealed, or expires for any reason, that occurrence shall not affect any action allowed under this part that is taken prior to that occurrence by the public utilities commission, an electric utility, the department, a collection agent, a financing party, a bondholder, or a party to an ancillary agreement. Any such action shall remain in full force and effect.
§269-M Miscellaneous. Neither the department nor a financing party shall be considered an electric utility or person providing electric service by virtue of engaging in the transactions described in this part."
SECTION 4. Section 269-121, Hawaii Revised Statutes, is amended to read as follows:
"§269-121 Public benefits fee authorization. (a) The public utilities commission, by order or rule, may require that all or a portion of the moneys collected by Hawaii's electric utilities from its ratepayers through a demand-side management surcharge be transferred to a third-party administrator contracted by the public utilities commission. The moneys transferred shall be known as the public benefits fee.
(b)
The public benefits fee shall be used to support [energy efficiency] clean
energy technology, demand response technology, and energy use reduction and
demand-side management infrastructure, programs, and services,
subject to the review and approval of the public utilities commission. These
moneys shall not be available to meet any current or past general obligations
of the State; provided that the State may participate in any [energy
efficiency or] clean energy technology, demand response technology, or
energy use reduction and demand-side management infrastructure,
programs, and services on the same basis as any other electric consumer.
(c) The public utilities commission is further authorized to create, pursuant to a financing order approved pursuant to part , a utility-wide nonbypassable surcharge, referred to as the green infrastructure fee, which shall be deposited in the green infrastructure special fund and pledged and applied to the repayment of green infrastructure bonds and related financing costs as described in part . The green infrastructure fee shall not be considered revenue to any electric utility.
(d) The green infrastructure fee may be included with the public benefits fee as one line item on the electric utility bill when the bill contains a public benefits fee if so provided in the financing order authorized in part . The green infrastructure fee may be applied to reduce the public benefits fee to be transferred pursuant to subsection (a) if so provided in a financing order.
[(c)]
(e) Nothing in this section shall create or be construed to cause the
public benefits fee to be considered state or public moneys subject to
appropriation by the legislature or be required to be deposited into the state
treasury."
SECTION 5. Section 269-125, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a)
The public utilities
commission shall investigate an on-bill financing program that would allow an
electric utility company customer to purchase or otherwise acquire a [renewable
energy system or energy efficient] clean energy technology, demand
response technology, and energy use reduction and demand side management
device, as determined by the public utilities commission, by providing for
billing and payment of such a system or device through an assessment on the
electric utility company customer's electricity bill.”
2. By amending subsection (c) to read:
"(c)
If on-bill financing is determined by the public utilities commission to be
viable, the public utilities commission may implement an on-bill financing
program by decision and order or by rules pursuant to chapter 91[.];
provided that any on-bill financing program implemented by the public utilities
commission shall allow participating electric utility company customers to
purchase, finance for the installation or purchase of, or otherwise acquire
clean energy technology, demand response technology, or energy use reduction
and demand side management systems or devices by providing for billing and
payment of such systems or devices through an assessment on the electric
utility company customer's electricity bill. Any on-bill financing program
implemented by the public utilities commission may utilize funds administered
via the green infrastructure loan program authorized under section 196-A for
purposes established therein."
SECTION 6. (a) The legislature finds and declares that the issuance of revenue bonds under this Act is in the public interest and for the public health, safety, and general welfare.
(b) The department of business, economic development, and tourism is authorized to issue revenue bonds pursuant to part III of chapter 39, Hawaii Revised Statutes, in a principal amount not to exceed $200,000,000 to establish and administer a loan program.
(c) The department of business, economic development, and tourism is authorized to issue from time to time refunding green infrastructure bonds in such principal amounts as the department shall determine to be necessary to refund the green infrastructure bonds authorized under this Act, to the extent permitted by the financing documents.
(d) To the extent there is any conflict between this Act and part III of chapter 39, Hawaii Revised Statutes, this Act shall prevail.
SECTION 7. In codifying the new part added to chapter 196, Hawaii Revised Statutes, by section 2 of this Act and the new part added to chapter 269, Hawaii Revised Statutes, by section 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating and referring to the new sections in 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 upon its approval.
|
INTRODUCED BY: |
_____________________________ |
|
|
BY REQUEST |
Report Title:
Green Infrastructure Loan Program; Public Benefits Fee
Description:
Establishes a regulatory financing structure that authorizes the Public Utilities Commission and the Department of Business, Economic Development, and Tourism to provide low-cost loans for green infrastructure equipment to achieve measurable cost savings and achieve Hawaii's clean energy goals.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
