Bill Text: HI SB2910 | 2018 | Regular Session | Introduced
Bill Title: Relating To Electric Grid Resiliency.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Engrossed - Dead) 2018-04-27 - Conference Committee Meeting will reconvene on Friday, 04-27-18 at 5:00PM in Conference Room 225. [SB2910 Detail]
Download: Hawaii-2018-SB2910-Introduced.html
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THE SENATE |
S.B. NO. |
2910 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ELECTRIC GRID RESILIENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that in September 2017, Hurricanes Irma and Maria struck Puerto Rico with devastating force, causing an estimated $95,000,000,000 in damages to the island, including extensive damages to the island's electrical infrastructure. Recent estimates predict that power in Puerto Rico will not be fully restored until spring of 2018, thus leaving some residents without power for half a year. The prolonged lack of electrical power has left the residents of Puerto Rico without essential services and has created a humanitarian crisis.
The legislature further finds that a direct hit on Oahu from a similar category five hurricane will almost certainly cause extensive property damage and extended power outages across the island. Moreover, much of the State's energy-generating infrastructure is susceptible to storm surges due to the structures being located at or near the coastline. The Hawaii emergency management agency estimates that under a best-case scenario, it would take at least fourteen days after landfall of a category four hurricane on Oahu to restore eighty per cent of grid power. Most public emergency shelters in the State do not have the capacity to provide two weeks of electrical service and relief from the mainland is dependent upon a functioning airport and seaport. Furthermore, the risks of a natural disaster increase with the impacts of climate change. Scientists have described 2017 as the most weather destructive year on record and opined that the number of extreme weather events will continue to increase.
The legislature hereby declares that it shall be the policy of the State to ensure that the State is prepared to withstand natural disasters and other emergencies by making investments in grid resiliency to protect the State's critical infrastructure and its citizens. The goals of this policy are: to prevent or reduce the severity of damage to the electric grid from a natural disaster or state of emergency; enable faster recovery of normal grid operations after a grid outage due to a natural disaster or state of emergency; and maintain critical loads at critical infrastructure such as hospitals, fire stations, police stations, airports, and seaports during a grid outage due to a natural disaster or state of emergency.
The purpose of this Act is to:
(1) Establish programs and designate funds that shall provide immediate, emergency funding for the development of energy facilities at critical infrastructure;
(2) Create a grid resiliency task force to identify critical infrastructure needs and provide recommendations for enhancing grid resiliency throughout the State;
(3) Direct government agencies to begin building grid resiliency into their planning; and
(4) Direct public utilities to incorporate grid resiliency planning into their integrated resource and grid modernization planning.
SECTION 2. Chapter 196, Hawaii Revised Statutes, is amended by adding four new sections to part III to be appropriately designated and to read as follows:
"§196-A Grid resiliency capital investment
program. (a) There is established a grid resiliency
capital investment program that shall be administered by the department of
business, economic development, and tourism.
(b) In administering the grid resiliency capital
investment program, the department shall:
(1) After adopting
or modifying the recommendations of the grid resiliency task force established
pursuant to section 269-C, expend moneys from the grid resiliency capital
investment special fund established pursuant to section 196-B to fund rebates
for the purchase and installation of critical infrastructure in accordance with
this section;
(2) Prepare forms
necessary for a resiliency facility owner to claim a rebate under subsection
(d);
(3) At regular
intervals and within reasonable periods of time, post the balance of the funds
remaining in the grid resiliency capital investment special fund established in
section 196-B on its website; and
(4) Adopt rules,
without regard to chapter 91, necessary to effectuate the purposes of this section.
(c) In administering the grid resiliency capital
investment program, the department of business, economic development, and
tourism may, without regard to chapter 103D, contract with a third party for
services to assist with the administration of the program.
(d) A resiliency facility owner that:
(1) Leases an
eligible resiliency facility to a resiliency facility user; or
(2) Purchases and
installs an eligible resiliency facility in the State,
may apply for a one-time rebate per eligible
resiliency facility under this section; provided that the rebate shall only be available
for eligible resiliency facilities placed into service after June 30, , and before July 1, .
(e) A resiliency facility owner shall be entitled
to receive a rebate equal to per cent of the
qualified resiliency facility costs of each eligible resiliency facility.
(f)
Nothing in this section shall alter taxes due on the original purchase
price of an eligible resiliency facility prior to the application of this
rebate. Any rebate received pursuant to
the grid resiliency capital investment program shall not be considered income
for the purposes of state or county taxes.
§196-B Grid resiliency capital investment special
fund. There is established a
grid resiliency capital investment special fund within the treasury of the
State into which shall be deposited appropriations made by the legislature into
the fund. Moneys from the fund shall be
used to fund rebates for the purchase and installation
of critical infrastructure in accordance with section 196-A.
§196-C Grid resiliency task force; membership. (a)
A grid resiliency task force is established within the department of
business, economic development, and tourism for administrative purposes.
(b) The task force shall comprise the following
members or their designees:
(1) The governor,
who shall serve as the chair;
(2) The head of
each principal department;
(3) The
administrator of the Hawaii emergency management agency;
(4) The chief
justice;
(5) The chairperson
of the board of trustees of the office of Hawaiian affairs;
(6) The president
of the senate; and
(7) The speaker of
the house of representatives.
§196-D Grid resiliency task force; duties. (a)
The grid resiliency task force shall:
(1) Analyze grid
resiliency incentive programs, including the California small generator
incentive program, and recommend aspects of those programs that should be
adopted by the State; and
(2) Identify
critical infrastructure and provide recommendations regarding the:
(A) Amounts
of any emergency spending necessary for the grid resiliency capital investment
program established in section 196-A; and
(B) Amounts
of spending necessary for the grid resiliency rebate program established in
section 269-A.
(b) The task force may hire a consultant to assist
the task force in performing its duties.
(c) No later than twenty days prior to the convening of the 2020 regular session, the task force shall submit a report to the legislature. The report shall include the recommendations required under subsection (a)(2)(A).
(d) No later than twenty days prior to the
convening of the 2021 regular session, the task force shall submit a report to
the legislature. The report shall
include:
(1) A description
of the activities of the task force for the previous fiscal year;
(2) Recommendations,
including, if necessary, amendment to those recommendations made pursuant to
subsection (c); and
(3) Recommended
legislation, if any."
SECTION 3. 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-A Grid
resiliency rebate program. (a) There is established a grid resiliency rebate
program that shall be administered by the commission.
(b) In administering the grid resiliency rebate program, the commission shall:
(1) After adopting or modifying the recommendations of the grid resiliency task force established pursuant to section 269-C, expend moneys from the grid resiliency rebate special fund established pursuant to section 269-B to fund rebates for the purchase and installation of eligible resiliency facilities in accordance with this section;
(2) Prepare forms necessary for a resiliency facility owner to claim a rebate under subsection (c);
(3) At regular
intervals and within reasonable periods of time, post the amounts remaining in
the grid resiliency rebate special fund established in section 269-B on its
website;
(4) Administer the
grid resiliency rebate program in a manner to ensure that critical
infrastructure throughout the State has sufficient grid resiliency facilities
to maintain critical loads; and
(5) Adopt rules, without regard to chapter 91, necessary to effectuate the purposes of this section.
(c) A resiliency facility owner that:
(1) Leases an
eligible resiliency facility to a resiliency facility user; or
(2) Purchases and
installs an eligible resiliency facility in the State,
may apply to the commission, within six months of
the eligible resiliency facility being first placed in service, to claim a
one-time rebate per eligible resiliency facility under this section; provided
that the rebate shall be made available for eligible resiliency facilities
first placed in service after June 30, 2019.
(d) A resiliency facility owner shall be entitled
to receive a rebate of no more than per cent of
the qualified resiliency facility costs for each eligible resiliency facility.
(e) Nothing in this section shall alter taxes due
on the original purchase price of an eligible resiliency facility prior to the
application of this rebate. Any rebate
received pursuant to the grid resiliency rebate program shall not be considered
income for the purposes of state or county taxes.
§269-B Grid resiliency rebate special fund. There is established a grid resiliency
rebate special fund within the treasury of the State into which shall be
deposited:
(1) Appropriations
made by the legislature into the fund; and
(2) The public
benefits fee collected pursuant to section 269-121.
Moneys from the fund shall be used to fund rebates in accordance with section 269-A."
SECTION 4. Section 196-2, Hawaii Revised Statutes, is amended by adding ten new definitions to be appropriately inserted and to read as follows:
""Battery storage
device" means an identifiable facility, equipment, or apparatus that:
(1) Is electrically connected to a resiliency facility user's critical load and paired with a new or existing renewable generation system;
(2) Stores electricity from its paired renewable generation system via a chemical or mechanical process;
(3) Delivers stored energy at a later time to the resiliency facility user, an electric utility, or the Hawaii electric system; and
(4) Has a storage capacity
capable of supplying:
(A) A
critical infrastructure's critical load for a minimum of twenty-four hours; or
(B) The total of a critical infrastructure's average daily usage for a minimum of five hours.
"Critical
infrastructure" means a police station, fire station, hospital, nursing
home, designated emergency shelter, the primary residences of first responders,
and other critical infrastructure that may be designated by the governor
pursuant to the recommendations of the grid resiliency task force, or by the
governor or other authorized official pursuant to a natural disaster or state
of emergency designation.
"Critical load" means
the minimum load necessary for any critical infrastructure to perform its
essential functions during a natural disaster or state of emergency.
"Designated emergency
shelter" means any building owned by the State, a county, or a municipal
government agency that has been designated by appropriate authorities as a
place of community refuge made available to provide temporary shelter and
housing to citizens during any natural disaster or state of emergency as declared
by the governor or other authorized official.
"Eligible resiliency
facility" means a battery storage device paired with an electric
generation system powered by renewable energy that is:
(1) Installed on the property where critical infrastructure is located or on property contiguous to the property where critical infrastructure is located without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way, and utility rights-of-way; provided that the contiguous property is owned or leased by the same person or entity that owns or leases the property where the critical infrastructure is located;
(2) Sized to power at least fifty per cent but not more than one hundred per cent of the critical infrastructure's annual electrical requirements;
(3) Is capable of isolating from the electric grid and operating independently during periods of electrical outages; and
(4) Is not owned by an electric utility.
"First responder" means
a firefighter, police officer, paramedic or individual who is employed by any
federal, state, county, or municipal agency, or employed by a private company
contracted by any federal, state, county, or municipal agency, that ordinarily
provides emergency services to citizens of this State during a natural disaster
or state of emergency as declared by state or federal authorities.
"Grid resiliency" means
the installation and operation of electrical equipment that:
(1) Prevents or reduces the severity of damage to the electric grid from a natural disaster or state of emergency;
(2) Enables faster recovery of normal grid operations after a grid outage due to a natural disaster or state of emergency; and
(3) Maintains critical loads at critical infrastructure during a grid outage due to a natural disaster or state of emergency.
"Qualified resiliency
facility cost" means those expenditures made for the purchase and
installation of an eligible resiliency facility. Expenditures made for the purchase and
installation of a battery storage device that is paired with an existing
renewable generation system is a qualified resiliency facility cost.
"Resiliency facility
owner" means the person, individual, partnership, corporation,
association, or public or private organization that holds legal title to an
eligible resiliency facility.
"Resiliency facility user" means the real property owner, or the real property owner’s lessees or tenants, that use the energy discharged from an eligible resiliency facility."
SECTION 5. Section 269-1, Hawaii Revised Statutes, is amended by adding eight new definitions to be appropriately inserted and to read as follows:
"Critical
infrastructure" shall have the same meaning as defined in section 196-2.
"Critical load" shall
have the same meaning as defined in section 196-2.
"Eligible resiliency
facility" shall have the same meaning as defined in section 196-2.
"First placed in
service" has the same meaning as title 26 Code of Federal Regulations
section 1.167(a)-11(e)(1).
"Grid resiliency" shall
have the same meaning as defined in section 196-2.
"Qualified resiliency
facility cost" shall have the same meaning as defined in section 196-2.
"Resiliency facility
owner" shall have the same meaning as defined in section 196-2.
"Resiliency facility user" shall have the same meaning as defined in section 196-2."
SECTION 6. Section
269-121, Hawaii Revised Statutes, is amended by amending subsection (b) to read
as follows:
"(b)
The public benefits fee shall be used to support clean energy
technology, demand response technology, grid resiliency, and energy use
reduction, and demand-side management infrastructure, programs, and services,
subject to the review and approval of the public utilities commission. Of the revenues collected pursuant to this
section, $ shall be allocated to
the grid resiliency rebate special fund established pursuant to section 269-B. The public benefits fee shall be set at a
level sufficient to meet the allocation to the grid resiliency rebate special
fund required by this section. 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 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.
For the purpose of this subsection,
"clean energy technology" means any commercially available technology
that enables the State to meet the renewable portfolio standards, established
pursuant to section 269-92, or the energy-efficiency portfolio standards,
established pursuant to section 269-96, and approved by the public utilities
commission by rule or order."
SECTION 7. Section 269-145.5, Hawaii Revised Statutes, is amended to read as follows:
"§269-145.5 Advanced grid modernization technology; principles. (a) The commission, in carrying out its responsibilities under this chapter, shall consider the value of improving electrical generation, transmission, and distribution systems and infrastructure within the State through the use of advanced grid modernization technology in order to improve the overall reliability and operational efficiency of the Hawaii electric system.
(b) In advancing the public interest, the commission shall balance technical, economic, environmental, and cultural considerations associated with modernization of the electric grid, based on principles that include but are not limited to:
(1) Enabling a diverse portfolio of renewable energy resources;
(2) Expanding options for customers to manage their energy use;
(3) Maximizing interconnection of distributed generation to the State's electric grids on a cost-effective basis at non-discriminatory terms and at just and reasonable rates, while maintaining the reliability of the State's electric grids, and allowing such access and rates through applicable rules, orders, and tariffs as reviewed and approved by the commission;
(4) Determining fair
compensation for electric grid services and other benefits provided to
customers and for electric grid services and other benefits provided by
distributed generation customers and other non-utility service providers; [and]
(5) Maintaining or
enhancing grid reliability and safety through modernization of the State's
electric grids[.]; and
(6) Maintaining and enhancing grid resiliency.
(c) The commission shall require each electric
public utility within its jurisdiction to incorporate a grid resiliency plan
into the utility's integrated resource and grid modernization planning. All expenditures for grid resiliency approved
by the commission as part of an electric public utility's integrated resource
plan or grid modernization plan shall be presumed to be just and reasonable for
the purposes of the grid resilience rebate program pursuant to section 269-A."
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 2018-2019 to be deposited into the grid resiliency capital investment special fund established pursuant to section 196-B, Hawaii Revised Statutes, established in section 2 of this Act.
SECTION 9. There is appropriated out of the grid resiliency capital investment special fund or so much thereof as may be necessary for fiscal year 2018-2019 for providing rebates for the purchase and installation of critical infrastructure pursuant to section 196-A, Hawaii Revised Statutes, established in section 2 of this Act.
The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.
SECTION 10. In codifying the new sections added by sections 2 and 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 12. This Act shall take effect on July 1, 2018.
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INTRODUCED BY: |
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Report Title:
Grid Resiliency; Energy; Disaster Preparedness; Capital Investment; Rebate Program; Task Force
Description:
Establishes the grid resiliency capital investment program and the grid resiliency rebate program as well as a grid resiliency task force to prepare the State's electrical grid for natural disasters and other emergencies.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
