Bill Text: HI SB2553 | 2020 | Regular Session | Introduced


Bill Title: Relating To Energy.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2020-01-23 - Referred to EET/HOU, WAM. [SB2553 Detail]

Download: Hawaii-2020-SB2553-Introduced.html

THE SENATE

S.B. NO.

2553

THIRTIETH LEGISLATURE, 2020

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to energy.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that Hawaii's energy sector is undergoing a transition to renewable energy that is strengthening the State's economy, environment, security, and energy efficiency.  In an effort to attain the State's goal of reaching one hundred per cent renewable portfolio standard by 2045, consumers must adopt more energy efficient practices, such as riding bicycles, driving an electric car, and turning off lights in rooms that are not in use.  Another option is installing a grid interactive water heater, which could be used in place of solar water heaters.

     The legislature further finds that under the renewable portfolio standard goals, electric utilities must integrate increasing amounts of variable renewable energy.  The intermittent nature of renewable energy generation means that electricity production is not always aligned with customer demand, and there are frequent and sudden fluctuations in generation.  To manage this, the grid resources must provide support that can stabilize and shift the demand side to account for the variability.  These are valuable services that a grid interactive water heater can supply, but a solar hot water or a conventional hot water heater cannot provide.

     Water heater tanks represent the potential for large-scale thermal energy storage across Hawaii that are commercially viable technologies that offer relatively inexpensive, non-intrusive control of electric resistive water heaters.  The grid interactive water heater can control the best time to heat residential water heaters to allow more grid stability and renewable integration when the public utility may need it most.

     While solar hot water heaters are required for every new residential home, they may not be as cost effective as a grid interactive water heater.  Solar water heaters do not necessarily afford the grid with the same amount of flexibility that a grid interactive water heater offers.

     The purpose of this Act is to require that, beginning January 1, 2021, no building permit shall be issued for a new single-family dwelling unit unless it includes a solar water heater or a grid interactive water heater.

     SECTION 2.  Section 196-6.5, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows:

     "§196-6.5  [Solar] Renewable resourced water heater system required for new single-family residential construction.  (a)  On or after January 1, [2010,] 2021, no building permit shall be issued for a new single-family dwelling that does not include a solar water heater system that meets the standards established pursuant to section 269-44[,] or a grid interactive water heater system, unless the chief energy officer of the Hawaii state energy office approves a variance.  A variance application shall only be accepted if submitted by an architect or mechanical engineer licensed under chapter 464, who attests that:

     (1)  Installation of a solar hot water heater is impracticable due to poor solar resource;

     (2)  Installation of a grid interactive hot water heater is impractical due to lack of inventory, space, or installer availability;

    [(2)] (3)  Installation is cost-prohibitive based upon a life cycle cost-benefit analysis, performed separately for a new solar water heater system or a new grid interactive water heater system, that incorporates the average residential utility bill and the cost of the [new solar water heater] proposed system with a life cycle that does not exceed fifteen years;

    [(3)] (4)  A renewable energy technology system, as defined in section 235-12.5, is substituted for use as the primary energy source for heating water; or

    [(4)] (5)  A demand water heater device approved by Underwriters Laboratories, Inc., is installed; provided that at least one other gas appliance is installed in the dwelling.  For the purposes of this paragraph, "demand water heater" means a gas-tankless instantaneous water heater that is sourced from a renewable resource and provides hot water only as it is needed.

     For purposes of this section, "grid-interactive water heater" means an electric resistance water heater filled with grid-integrated controls that are capable of participating in an electric utility load controls or demand response system."

     SECTION 3.  Section 235-12.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The amount of credit allowed for each eligible renewable energy technology system shall not exceed the applicable cap amount, which is determined as follows:

     (1)  If the primary purpose of the solar energy system is to use energy from the sun to heat water for household use, then the cap amounts shall be:

          (A)  $2,250 per system for single-family residential property;

          (B)  $350 per unit per system for multi-family residential property; and

          (C)  $250,000 per system for commercial property;

     (2)  For all other solar energy systems, the cap amounts shall be:

          (A)  $5,000 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section [196-6.5(a)(3),] 196-6.5(a)(4), the credit shall be reduced by thirty-five per cent of the actual system cost or $2,250, whichever is less;

          (B)  $350 per unit per system for multi-family residential property; and

          (C)  $500,000 per system for commercial property; and

     (3)  For all wind-powered energy systems, the cap amounts shall be:

          (A)  $1,500 per system for single-family residential property; provided that if all or a portion of the system is used to fulfill the substitute renewable energy technology requirement pursuant to section [196-6.5(a)(3),] 196-6.5(a)(4), the credit shall be reduced by twenty per cent of the actual system cost or $1,500, whichever is less;

          (B)  $200 per unit per system for multi-family residential property; and

          (C)  $500,000 per system for commercial property."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Grid Interactive Water Heater; Renewable Resource; Single-family Dwelling

 

Description:

Requires that, beginning 1/1/2021, no building permit shall be issued for a new single-family dwelling unit unless the unit includes a solar water heater or a grid interactive water heater.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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