Bill Text: HI SB2820 | 2016 | Regular Session | Amended
Bill Title: Renewable Portfolio Standard; Definition; Calculation
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-02-25 - The committee on WAM deferred the measure. [SB2820 Detail]
Download: Hawaii-2016-SB2820-Amended.html
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THE SENATE |
S.B. NO. |
2820 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
S.D. 1 |
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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 amend the definition of renewable portfolio standard to more accurately reflect the percentage of renewable energy penetration in the State. Section 269-92, Hawaii Revised Statutes, establishes a one hundred per cent renewable portfolio standard by 2045, with the intention of transitioning the State away from imported fuels and toward renewable local resources that provide a secure source of affordable energy. Section 226-18, Hawaii Revised Statutes, states in part that planning for the State's facility systems with regard to energy shall be directed toward the achievement of the objective of increased energy security and self-sufficiency through the reduction and ultimate elimination of Hawaii's dependence on imported fuels for electrical generation.
Creating a more accurate depiction of renewable energy penetration is accomplished by amending the renewable portfolio standard calculation to be based on electrical energy generation as opposed to electrical energy sales. Failure to address this accounting error means that the current renewable portfolio standard calculation (renewable energy divided by total electricity sales) would overestimate the amount of renewable energy serving Hawaii's electric utility customers. There are two fundamental issues that lead to the current discrepancy:
(1) The current renewable portfolio standard calculation inflates the reported percentage of renewable energy by excluding renewables from customer-sited, grid-connected renewable energy generation in the denominator, which becomes material with higher levels of customer-sited, grid-connected renewable energy generation and higher renewable portfolio standard percentages; and
(2) The current electrical energy sales number does not include energy losses that occur between the points of electrical energy generation and the customer meter where sales are measured. Failure to address these issues would create the incorrect public perception of the State's progress towards its one hundred per cent renewable energy statutory goal.
SECTION 2. Section 269-91, Hawaii Revised Statutes, is amended as follows:
1. By adding a new definition of "grid-connected" to read:
""Grid-connected" means interconnected to the Hawaii electric system under an existing standard or rule approved by the commission; provided that this shall not apply where the generation is used exclusively for emergency service in case of failure of the normal supply from the Hawaii electric system."
2. By amending the definition of "renewable portfolio standard" to read:
""Renewable portfolio
standard" means the percentage of
total renewable electrical energy [sales that is represented by] generated
from grid-connected renewable [electrical] energy[.] systems
to the total electrical energy generated from grid-connected energy systems."
SECTION 3. Section 269-92, Hawaii Revised Statutes, is amended to read as follows:
"§269-92 Renewable portfolio standards. (a) Each electric utility company that sells electricity for consumption in the State shall establish a renewable portfolio standard of:
(1) Ten per cent [of its net electricity sales]
by December 31, 2010;
(2) Fifteen per cent [of its net electricity sales]
by December 31, 2015;
(3) Thirty per cent [of its net electricity sales]
by December 31, 2020;
(4) Forty per cent [of its net electricity sales]
by December 31, 2030;
(5) Seventy per cent [of its net electricity sales]
by December 31, 2040; and
(6) One hundred per cent [of its net electricity
sales] by December 31, 2045.
(b) All electric grid-connected energy systems shall be one hundred per cent renewable energy systems by December 31, 2045.
[(b)] (c) The public utilities
commission may establish standards for each utility that prescribe what portion
of the renewable portfolio standards shall be met by specific types of
renewable energy resources; provided that:
(1) Prior to January 1, 2015, at least fifty per cent of the renewable portfolio standards shall be met by electrical energy generated using renewable energy as the source, and after December 31, 2014, the entire renewable portfolio standard shall be met by electrical generation from renewable energy sources;
(2) Beginning January 1, 2015, electrical energy savings shall not count toward renewable energy portfolio standards;
(3) Where electrical energy is generated or displaced by a combination of renewable and nonrenewable means, the proportion attributable to the renewable means shall be credited as renewable energy; and
(4) Where fossil and renewable fuels are co-fired in the same generating unit, the unit shall be considered to generate renewable electrical energy (electricity) in direct proportion to the percentage of the total heat input value represented by the heat input value of the renewable fuels.
[(c)] (d) If the public utilities
commission determines that an electric utility company failed to meet the
renewable portfolio standard, after a hearing in accordance with chapter 91,
the utility shall be subject to penalties to be established by the public
utilities commission; provided that if the commission determines that the
electric utility company is unable to meet the renewable portfolio standards
due to reasons beyond the reasonable control of an electric utility, as set
forth in subsection [(d),] (e), the commission, in its discretion,
may waive in whole or in part any otherwise applicable penalties.
[(d)] (e) Events or
circumstances that are outside of an electric utility company's reasonable
control may include, to the extent the event or circumstance could not be
reasonably foreseen and ameliorated:
(1) Weather-related damage;
(2) Natural disasters;
(3) Mechanical or resource failure;
(4) Failure of renewable electrical energy producers to meet contractual obligations to the electric utility company;
(5) Labor strikes or lockouts;
(6) Actions of governmental authorities that adversely affect the generation, transmission, or distribution of renewable electrical energy under contract to an electric utility company;
(7) Inability to acquire sufficient renewable electrical energy due to lapsing of tax credits related to renewable energy development;
(8) Inability to obtain permits or land use approvals for renewable electrical energy projects;
(9) Inability to acquire sufficient cost-effective renewable electrical energy;
(10) Inability to acquire sufficient renewable electrical energy to meet the renewable portfolio standard goals beyond 2030 in a manner that is beneficial to Hawaii's economy in relation to comparable fossil fuel resources;
(11) Substantial limitations, restrictions, or prohibitions on utility renewable electrical energy projects; and
(12) Other events and circumstances of a similar nature."
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.
Report Title:
Renewable Portfolio Standard; Definition; Calculation
Description:
Clarifies the renewable portfolio standard law. Requires all electric grid connected energy systems to be 100 per cent renewable energy by 12/31/45. Amends the "renewable portfolio standard" definition to more accurately reflect the amount of renewable energy generation in Hawaii by amending the renewable portfolio standard calculation to be based on electrical energy generation as opposed to electrical energy sales and to properly account for customer-sided, grid-connected resources. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
