Bill Text: HI SB2513 | 2022 | Regular Session | Amended
Bill Title: Relating To Renewable Energy.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2022-02-22 - The committee on WAM deferred the measure. [SB2513 Detail]
Download: Hawaii-2022-SB2513-Amended.html
|
THE SENATE |
S.B. NO. |
2513 |
|
THIRTY-FIRST LEGISLATURE, 2022 |
S.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO RENEWABLE ENERGY.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that on February 11, 2021, the public utilities commission opened docket number 2021‑0024 to review Hawaiian Electric Company's interconnection process and transition plans for retirement of fossil fuel plants. On November 17, 2021, Hawaiian Electric Company stated that allowing for competition and consideration of multiple projects through a request for proposals process for renewable firm generation will help to ensure that the best solutions are chosen.
The legislature notes that Hawaiian Electric Company also provided the following objectives of a firm request for proposals:
(1) Allow only firm renewable generation technologies to compete in a quick request for proposals;
(2) Increase competition and therefore potentially lower customer prices;
(3) Increase the diversity of renewable energy sources;
(4) Improve reliability and resilience of the Oahu generation system;
(5) Acquire firm renewable capacity to potentially retire or deactivate fossil fuel generation;
(6) Add mechanical inertia and short‑circuit current with new synchronous generation to the system to provide greater stability of the electric system and ensure reliability and resilience when fossil-fuel generators are taken offline; and
(7) Increase the ability to add variable generation, including wind and solar, in the future if more flexible firm renewable generation is procured.
The legislature is confident that a firm request for proposals will simplify the evaluation process and allow for a more straightforward comparison of projects with similar attributes as opposed to projects that provide differing services and levels of these services. The legislature also believes that a firm renewable request for proposals is integral to the retirement of fossil fuel generation. However, firm generation must be capable of delivering power when needed and for as long as needed. This means that the resource must not be energy‑limited or weather‑dependent and must be a generating resource.
The legislature also notes that on October
26, 2020, the public utilities commission held a virtual joint status conference
for docket numbers 2015-0389 and 2017-0352. At this status conference, Hawaiian Electric Company
explained that the company's request for proposals team had inadvertently disclosed
to the company's self-build team certain information for phase 2 of the community-based
renewable energy program. Further, on November
9, 2020, the public utilities commission received a report from the community-based
renewable energy observer indicating that individuals working for Hawaiian Electric
Company's community-based renewable energy self-build team had continued to e-mail
individual members of the company's request for proposals teams directly instead
of routing these queries to the request for proposals team's e-mail address as specified
by the code of conduct. The legislature recognizes
that the public utilities commission is also aware of multiple instances in which
Hawaiian Electric Company's request for proposals teams had emailed to each member
of the community-based renewable energy self-build team a reminder to only communicate
through the request for proposals team's e-mail address and copy the e-mails to
the independent observer. The legislature
acknowledges that these breaches of the code of conduct are unacceptable and severely
undermine the integrity of both the competitive bidding process for the community-based
renewable energy program and all requests for proposals that Hawaiian Electric Company
issues or is able to bid into via a self-build option or affiliate-build option.
The legislature further finds that Hawaiian
Electric Company's assertion "that no breach occurred and that the communications
were not intended to be covered by the Code," is dubious. It is essential that Hawaiian Electric Company
avoid the appearance of impropriety in all of the company's requests for proposals,
including community-based renewable energy, Hawaii Electric Light Company request
for proposals number 3, and all future requests for proposals. The legislature also believes that these breaches
will hinder the State's efforts to achieve a one hundred per cent renewable portfolio
standard.
Considering the foregoing, the legislature believes that Hawaiian Electric Company's repeated breaches of the code of conduct, whether actual or perceived, show that Hawaiian Electric Company cannot reliably participate in the company's own requests for proposals. The legislature further believes that because it is essential that renewable energy development is achieved in a fair and impartial manner, it is inappropriate for utilities to have a self-build or affiliate-build option. Utilities' self-build and affiliate-build options inherently cause the public to lose faith in the integrity of the competitive bidding process.
The legislature understands that it is necessary to ensure that the integrity of the competitive bidding process is increased, protected, and maintained and that the public regain trust in the competitive bidding process.
Accordingly, the purpose of this Act is to:
(1) Require the public utilities commission to have electric utilities issue requests for proposals for firm renewable energy generation and requests for proposals for intermittent renewable energy generation;
(2) Prohibit the public utilities commission from approving any new or renewed utility-owned generation project by a public utility or any new or renewed power purchase agreement for an electricity generation project that has affiliated interests with a public utility; and
(3) Appropriate moneys for the Hawaii state energy
office to conduct a study of the available firm and intermittent renewable energy
resources available on each island of the State.
SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:
"§269- Requests
for proposals. (a) The
public utilities commission shall require each electric utility to issue requests
for proposals for firm renewable energy generation and requests for proposals for
intermittent renewable energy generation. Each request for proposals for intermittent
renewable energy generation shall include the capability of the renewable
energy system to be offline for a period of up to ninety-six hours due to
weather but still be able to deliver, while offline, renewable energy in an
amount equal to the average kilowatt hours that was delivered in the
ninety-six-hour period before the system went offline. Responses to intermittent renewable energy
requests for proposals that do not demonstrate the capability to meet or exceed
this requirement shall not be approved by the public utilities commission.
(b) The public utilities commission shall have the
discretion to determine what type of request for proposals best meets the needs
that give rise to future requests for proposals.
(c) As
used in this section:
"Firm renewable energy" means renewable
energy that is constantly available and capable of being inexhaustibly produced
at its contracted capacity twenty-four hours per day, three hundred sixty-five days
per year, subject only to routine maintenance and emergency repairs; provided that
burning trees and other wood products shall not be considered an acceptable generation
source.
"Intermittent renewable energy" means
renewable energy that does not meet the definition of "firm renewable energy";
provided that burning trees and other wood products shall not be considered an acceptable
generation source.
§269- Utility-owned generation projects; power purchase
agreements for electricity generation; prohibited. (a)
Notwithstanding any law to the contrary,
the public utilities commission shall not approve the following:
(1) Any new or renewed
utility-owned generation project by a public utility; or
(2) Any new or renewed
power purchase agreement for electricity generation with affiliated interests with
a public utility.
(b) As
used in this section, "affiliated interest" has the same meaning as in
section 269-19.5."
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $100,000 or so much thereof as may be necessary for fiscal year 2022-2023 for the Hawaii state energy office to conduct a study of the available firm and intermittent renewable energy resources available on each island of the State. The Hawaii state energy office shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the 2023 regular session.
The sum appropriated shall be expended by the Hawaii state energy office for the purposes of this Act.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 31, 2050.
Report Title:
PUC; Hawaii State Energy Office; Firm Renewable Requests for Proposals; Intermittent Renewable Requests for Proposals; Affiliate Prohibition; Study; Appropriation
Description:
Requires the Public Utilities Commission to have electric utilities separately issue requests for proposals for firm renewable energy generation and requests for proposals for intermittent renewable energy generation. Prohibits the Public Utilities Commission from approving any new or renewed utility‑owned generation project by a public utility or any new or renewed power purchase agreement for electricity generation with affiliated interests with a public utility. Appropriates moneys to the Hawaii State Energy Office to conduct a study. Effective 7/31/2050. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
