Bill Text: HI SB2510 | 2022 | Regular Session | Introduced
Bill Title: Relating To Renewable Energy.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Enrolled - Dead) 2022-06-27 - Notice of intent to veto (Gov. Msg. No. 1216) [SB2510 Detail]
Download: Hawaii-2022-SB2510-Introduced.html
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THE SENATE |
S.B. NO. |
2510 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to renewable energy.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to:
(1) Require the office of planning and sustainable development to update the state energy plan;
(2) Ensure grid reliability by diversifying the State's renewable energy portfolio to include firm and intermittent renewable energy;
(3) Establish a state energy policy that requires at least sixty per cent of renewable energy to be generated by firm renewable energy and for renewable energy to replace fossil fuel energy and achieve one hundred per cent renewable energy generation;
(4) Establish a state energy policy that requires the State to maintain a diversified renewable energy portfolio; and
(5) Amend other statutory provisions to achieve at least fifty-five per cent firm renewable energy generation for each island.
SECTION 2. Section 226-18, Hawaii Revised Statutes, is amended to read as follows:
"§226-18 Objectives and policies for facility systems--energy. (a) Planning for the State's facility systems with regard to energy shall be directed toward the achievement of the following objectives, giving due consideration to all:
(1) Dependable, efficient, and economical statewide energy systems capable of supporting the needs of the people;
(2) Increased energy security and self-sufficiency through the reduction and ultimate elimination of Hawaii's dependence on imported fuels for electrical generation and ground transportation;
(3) Greater diversification of energy generation in the face of threats to Hawaii's energy supplies and systems;
(4) Reduction,
avoidance, or sequestration of greenhouse gas emissions from energy supply and
use; [and]
(5) Utility models
that make the social and financial interests of Hawaii's utility customers a
priority[.];
(6) Greater diversification
of renewable energy generation to include intermittent and firm renewable generation
to improve reliability and achieve one hundred per cent renewable energy objectives;
(7) Reliable replacement
of fossil fuel generation with firm renewable generation;
(8) Firm renewable generation
shall be a minimum of fifty-five per cent of renewable energy generation for each
island. Notwithstanding any law to the contrary,
this percentage may be updated by the legislature pursuant to the following:
(A) By
adoption of a concurrent resolution based on data from a study by the Hawaii natural
energy institute, as described in section 7 of Act ,
Session Laws of Hawaii 2022; and
(B) The
office of planning and sustainable development shall submit for introduction to
the legislature a concurrent resolution for review of the proposed firm renewable
energy generation minimum percentage;
(9) Limit the percentage
of any one type of renewable energy source to forty-five per cent of all generation
for each island. Notwithstanding any law to the contrary, this percentage may be
updated pursuant to paragraph (a)(8) of this section; and
(10) Fossil fuel generation
shall be prohibited after December 31, 2045. Notwithstanding any law to the contrary, the legislature
may extend this deadline by three years pursuant to the following:
(A) By
adoption of a concurrent resolution;
(B) The
office of planning and sustainable development shall submit for introduction to
the legislature a concurrent resolution for review of the proposed extension of
fossil fuel generation; and
(C) The
legislature may grant three consecutive three-year extensions to this deadline.
(b) To achieve the energy objectives, it shall be the policy of this State to ensure the short- and long-term provision of adequate, reasonably priced, reliable, and dependable energy services to accommodate demand.
(c) To further achieve the energy objectives, it shall be the policy of this State to:
(1) Support research and development as well as promote the use of a diversified portfolio of renewable energy sources;
(2) Ensure that the combination of energy supplies and energy-saving systems is sufficient to support the demands of growth;
(3) Base decisions of
least-cost supply-side and demand-side energy resource options on a comparison
of their total costs and benefits when a least-cost is determined by a reasonably
comprehensive, quantitative, and qualitative accounting of their long-term,
direct and indirect economic, environmental, social, cultural, and public
health costs and benefits[;], that may offset monetary costs;
(4) Promote all cost-effective conservation of power and fuel supplies through measures, including:
(A) Development of cost-effective demand-side management programs;
(B) Education;
(C) Adoption of energy-efficient practices and technologies; and
(D) Increasing energy efficiency
and decreasing energy use in public infrastructure;
(5) Ensure, to the
extent that new supply-side resources are needed, that the development or
expansion of energy systems uses the least-cost energy supply option and
maximizes efficient technologies[;] subject to the consideration of long-term,
direct and indirect economic, environmental, social, cultural, and public health
costs and benefits, that may offset monetary costs;
(6) Support research, development, demonstration, and use of energy efficiency, load management, and other demand-side management programs, practices, and technologies;
(7) Promote alternate fuels and transportation energy efficiency;
(8) Support actions that reduce, avoid, or sequester greenhouse gases in utility, transportation, and industrial sector applications;
(9) Support actions that reduce, avoid, or sequester Hawaii's greenhouse gas emissions through agriculture and forestry initiatives;
(10) Provide priority handling and processing for all state and county permits required for renewable energy projects;
(11) Ensure that
liquefied natural gas is used only as a cost-effective transitional,
limited-term replacement of petroleum for electricity generation and does not
impede the development and use of other cost-effective renewable energy
sources; [and]
(12) Promote the
development of indigenous geothermal energy resources that are located on
public trust land as an affordable and reliable source of firm power for Hawaii[.];
(13) Ensure that the
development or expansion of energy systems recognizes and emphasizes the need to
increase the proportion of firm renewable energy generation to a minimum of fifty-five
per cent of renewable energy for each island, to reliably replace fossil fuel generation;
and
(14) Ensure that the
development or expansion of energy systems recognizes and emphasizes the need to
ensure grid reliability by limiting the proportion of any one type of renewable
energy source as defined in section 269-91, to a maximum of forty-five per cent
of energy generation on each island.
(d) As used in this section:
"Firm renewable energy"
means renewable energy that is always available and capable of being continuously
produced twenty-four hours per day, three hundred sixty-five days per year, at its
contracted capacity, subject only to routine maintenance and emergency repairs.
"Intermittent renewable energy" means renewable energy that does not qualify as firm renewable energy."
SECTION 3. Section 226-10, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) To achieve the potential growth and innovative activity objective, it shall be the policy of this State to:
(1) Facilitate investment and employment growth in economic activities that have the potential to expand and diversify Hawaii's economy, including but not limited to diversified agriculture, aquaculture, renewable energy development, creative media, health care, and science and technology-based sectors;
(2) Facilitate investment in innovative activity that may pose risks or be less labor-intensive than other traditional business activity, but if successful, will generate revenue in Hawaii through the export of services or products or substitution of imported services or products;
(3) Encourage entrepreneurship in innovative activity by academic researchers and instructors who may not have the background, skill, or initial inclination to commercially exploit their discoveries or achievements;
(4) Recognize that innovative activity is not exclusively dependent upon individuals with advanced formal education, but that many self-taught, motivated individuals are able, willing, sufficiently knowledgeable, and equipped with the attitude necessary to undertake innovative activity;
(5) Increase the opportunities for investors in innovative activity and talent engaged in innovative activity to personally meet and interact at cultural, art, entertainment, culinary, athletic, or visitor-oriented events without a business focus;
(6) Expand Hawaii's capacity to attract and service international programs, technologies, and activities that generate employment for Hawaii's people;
(7) Enhance and promote Hawaii's role as a center for international relations, trade, finance, services, technology, education, demonstration projects for innovations in sustainability, renewable energy innovation and intellectual property, culture, and the arts;
(8) Accelerate
research and development of new energy-related industries based on wind, solar,
ocean, underground resources, [and] solid waste, and firm renewable energy;
(9) Promote Hawaii's geographic, environmental, social, and technological advantages to attract new or innovative economic activities into the State;
(10) Provide public incentives and encourage private initiative to attract new or innovative industries that best support Hawaii's social, economic, physical, and environmental objectives;
(11) Increase research and the development of ocean-related economic activities such as mining, food production, energy production, and scientific research;
(12) Develop, promote, and support research and educational and training programs that will enhance Hawaii's ability to attract and develop economic activities of benefit to Hawaii;
(13) Foster a broader public recognition and understanding of the potential benefits of new or innovative growth-oriented industry in Hawaii;
(14) Encourage the development and implementation of joint federal and state initiatives to attract federal programs and projects that will support Hawaii's social, economic, physical, and environmental objectives;
(15) Increase research and development of businesses and services in the telecommunications and information industries;
(16) Foster the research and development of nonfossil fuel and energy efficient modes of transportation; and
(17) Recognize and promote health care and health care information technology as growth industries."
SECTION 4. Section 226-103, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Priority guidelines to stimulate economic growth and encourage business expansion and development to provide needed jobs for Hawaii's people and achieve a stable and diversified economy:
(1) Seek a variety of means to increase the availability of investment capital for new and expanding enterprises.
(A) Encourage investments which:
(i) Reflect long-term commitments to the State;
(ii) Rely on economic linkages within the local economy;
(iii) Diversify the economy;
(iv) Reinvest in the local economy;
(v) Are sensitive to community needs and priorities; and
(vi) Demonstrate a commitment to provide management opportunities to Hawaii residents; and
(B) Encourage investments in innovative activities that have a nexus to the State, such as:
(i) Present or former residents acting as entrepreneurs or principals;
(ii) Academic support from an institution of higher education in Hawaii;
(iii) Investment interest from Hawaii residents;
(iv) Resources unique to Hawaii that are required for innovative activity; and
(v) Complementary or supportive industries or government programs or projects.
(2) Encourage the expansion of technological research to assist industry development and support the development and commercialization of technological advancements.
(3) Improve the quality, accessibility, and range of services provided by government to business, including data and reference services and assistance in complying with governmental regulations.
(4) Seek to ensure that state business tax and labor laws and administrative policies are equitable, rational, and predictable.
(5) Streamline the processes for building and development permit and review and telecommunication infrastructure installation approval and eliminate or consolidate other burdensome or duplicative governmental requirements imposed on business, where scientific evidence indicates that public health, safety, and welfare would not be adversely affected.
(6) Encourage the formation of cooperatives and other favorable marketing or distribution arrangements at the regional or local level to assist Hawaii's small-scale producers, manufacturers, and distributors.
(7) Continue to seek legislation to protect Hawaii from transportation interruptions between Hawaii and the continental United States.
(8) Provide public incentives and encourage private initiative to develop and attract industries which promise long-term growth potentials and which have the following characteristics:
(A) An industry that can take advantage of Hawaii's unique location and available physical and human resources.
(B) A clean industry that would have minimal adverse effects on Hawaii's environment.
(C) An industry that is willing to hire and train Hawaii's people to meet the industry's labor needs at all levels of employment.
(D) An industry that would provide reasonable income and steady employment.
(9) Support and encourage, through educational and technical assistance programs and other means, expanded opportunities for employee ownership and participation in Hawaii business.
(10) Enhance the quality of Hawaii's labor force and develop and maintain career opportunities for Hawaii's people through the following actions:
(A) Expand vocational training in diversified agriculture, aquaculture, information industry, renewable energy and related industries, and other areas where growth is desired and feasible.
(B) Encourage more effective career counseling and guidance in high schools and post-secondary institutions to inform students of present and future career opportunities.
(C) Allocate educational resources to career areas where high employment is expected and where growth of new industries is desired.
(D) Promote career opportunities in all industries for Hawaii's people by encouraging firms doing business in the State to hire residents.
(E) Promote greater public and private sector cooperation in determining industrial training needs and in developing relevant curricula and on- the-job training opportunities.
(F) Provide retraining programs and other support services to assist entry of displaced workers into alternative employment."
SECTION 5. Section 226-103, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:
"(f) Priority guidelines for energy use and development:
(1) Encourage the development, demonstration, and commercialization of renewable energy sources.
(2) Initiate, maintain, and improve energy conservation programs aimed at reducing energy waste and increasing public awareness of the need to conserve energy.
(3) Provide incentives to encourage the use of energy conserving technology in residential, industrial, and other buildings.
(4) Encourage the development and use of energy conserving and cost-efficient transportation systems.
(5) Provide incentives to encourage the development of firm renewable energy to replace fossil fuel generation."
SECTION 6. Section 226-55, Hawaii Revised Statutes, is amended to read as follows:
"§226-55 Functional plans; preparation; update. (a) The state agency head primarily responsible for a given functional area shall prepare and periodically update the functional plan for the area. In the preparation or update of the functional plan, the state agency head shall work in close cooperation with the advisory committee, respective officials, and people of each county. In the formulation of the initial or updated functional plan, the preparing agency shall solicit public views and concerns. The formulation and revision of a state functional plan shall conform to the provisions of this chapter and shall take into consideration the county general plans. Functional plans and any revisions thereto shall be accepted by the governor to serve as guidelines for funding requests and implementation by state and county agencies.
(b) The functional plan shall identify priority issues in the functional area and shall contain objectives, policies, and implementing actions to address those priority issues. Actions may include organizational or management initiatives, facility or physical infrastructure development initiatives, initiatives for programs and services, or legislative proposals.
(c) For each functional plan, the lead state agency, with the concurrence of the governor, shall establish an advisory committee, where an advisory body which meets the criteria set out hereunder is not already in existence, whose membership shall be composed of at least one public official from each county; members of the public; experts in the field for which a functional plan is being prepared; and state officials. The advisory committee shall advise the lead state agency in preparing, implementing, monitoring, and updating the functional plan to be in conformance with the overall theme, goals, objectives, policies, and priority guidelines contained within this chapter. The draft functional plan shall be submitted to relevant federal, state, and county agencies for review and input. The advisory committee shall serve as a temporary advisory body to the state agency responsible for preparing each respective functional plan. The terms of members from the public and experts in the field for which a functional plan is prepared shall be for four years. Each term shall commence on July 1 and expire on June 30. No member from the public or expert in the field shall be appointed consecutively to more than two terms. These appointments shall not be subject to senate confirmation, and shall be exempt from sections 26-34(a) and 78-4(a) regarding the appointment to boards and commissions.
(d) The office of planning and sustainable development
shall update the energy state functional plan to include a diversified
renewable energy portfolio and firm renewable energy for electricity generation
to enhance the State's energy security, resilience, and sustainability. The updated energy state functional plan shall
be integrated into any future updated functional plans. The updated energy state functional plan
shall be submitted to the legislature no later than twenty days prior to the
convening of the 2023 legislative session.
The office of planning and sustainable development shall submit an
annual report to the legislature regarding progress to the energy state functional
plan. The energy state functional plan
shall be updated every five years.
(e) The office of planning
and sustainable development shall receive up to $
once every five years to update the energy state functional plan, as described
in subsection (d).
(f) Any agency that
does not comply with this plan shall gain approval by the office of planning and
sustainable development. Any disputes shall
be appealed to the governor.
(g) The office of planning and sustainable development shall submit a report to the legislature no later than twenty days prior to the convening of each regular session. This report shall contain detailed information regarding the status of the plan and related policies."
SECTION 7. The Hawaii natural energy institute shall conduct a study by December 31, 2022, to update the minimum percentage of firm renewable generation for each island and the maximum proportion of any one renewable energy source on each island. This study may be updated every five years. The Hawaii natural energy institute shall submit to the legislature a report on the study twenty days prior to the convening of the regular session of 2023.
SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for the Hawaii natural energy institute to conduct the study as required by this Act.
The sum appropriated shall be expended by the University of Hawaii for the purposes of this Act.
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall take effect on July 1, 2022.
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INTRODUCED BY: |
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Report Title:
Office of Planning and Sustainable Development; State Energy Plan; Renewable Energy
Description:
Establishes firm renewable energy generation policy in the Hawaii State Planning Act to ensure the reliable one hundred per cent replacement of fossil fuel electricity generation to increase the sustainability and energy self-sufficiency of the State to improve the quality of life for residents and visitors. Includes policy of incentives to facilitate and encourage fuel-producing crops and energy-producing crops and bioenergy and standards for achieving renewable portfolio standards.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
