Report Title:

Electric Grid Interconnect Standards

 

Description:

Requires the public utilities commission to lift regulatory barriers to interconnection with the existing electric grid, and encourage the establishment of new electric generation facilities, including renewable facilities, by adopting and implementing uniform technical standards, standard interconnection agreement practices and terminology, and standard conditions for interconnection. (HB1386 HD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1386

TWENTY-FIRST LEGISLATURE, 2001

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO DISTRIBUTED ELECTRIC GENERATION.

 

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

SECTION 1. The legislature finds that distributed energy resources can be distinguished from centralized energy resources in several respects. Distributed energy resources are small, modular, and come in sizes that range in capacity from kilowatts to megawatts. They comprise a portfolio of technologies, both supply- and demand-side, that can be located onsite or nearby the location where the energy is used. This provides the opportunity for greater local control and more efficient waste heat utilization to boost efficiency and lower emissions.

The portfolio of distributed energy resource technologies includes, for example, photovoltaic systems, fuel cells, natural gas engines, advanced turbines and microturbines, energy storage devices, thermally-activated cooling systems, humidity control equipment, wind turbines, demand management devices, concentrating solar power collectors, and geothermal energy systems. These technologies can be used to meet a variety of customer energy needs, including, for example, continuous power, backup power, remote power, cooling-heating-and-power, and peak shaving. They can be installed directly on the customer's premise or located nearby in district energy systems, power parks, and minigrids.

The legislature further finds that a federal Department of Energy study recently found that a variety of technical, business practice, and regulatory barriers discourage interconnection and sometimes prevent projects from being developed. These findings confirm the experiences of independent power producers and utility customers installing co-generation systems in Hawaii. To address this problem nationwide, the Distributed Power Coalition of America, an organization composed of electric and gas utilities, consumers, distributed power equipment manufacturers and suppliers, natural gas transmission pipeline companies, gas and electric marketers, and research organizations, developed a model package based on the work of states that have succeeded in adopting interconnection standards or whose proceedings are nearing resolution. The package reflects the best of these efforts to create streamlined approval for interconnection while maintaining the safety and reliability of the grid.

The purpose of this Act is to support and encourage the construction of new electric generation facilities in Hawaii that promote the use of renewable energy and energy efficiency and conservation by lifting Hawaii's regulatory barriers to interconnection. This Act mandates the public utilities commission to adopt uniform interconnection standards and practices for the purpose of creating a streamlined procedure for interconnection that maintains the safety and reliability of the electric grid.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269- Uniform distributed power interconnection standards and practices. (a) The public utilities commission, pursuant to chapter 91, shall adopt and implement uniform interconnection standards and practices that facilitate and encourage interconnection of distributed power generating units to the existing grid. Interconnection standards and practices adopted shall:

(1) Establish a streamlined procedure for interconnection while maintaining the safety and reliability of the electric grid;

(2) To the extent consistent with other requirements of this section, encourage and facilitate interconnection with renewable energy producers;

(3) To the extent possible, maintain uniformity with national technical and other relevant standards and practices; and

(4) Be adopted in a form allowing new technical and other interconnection standards and practices to be easily substituted for existing standards and practices."

SECTION 3. (a) In developing interconnection standards and practices, the public utilities commission shall:

(1) Consider the Model Standardized Interconnection Package for Distributed Generation, published in June 2000, by the Distributed Power Coalition of America;

(2) Consider the concerns of utilities, manufacturers, energy service providers, consumers, and other stakeholders; and

(3) Adapt the model to Hawaii's unique needs.

(b) The public utilities commission shall submit its recommended uniform interconnection standards and practices to the legislature no later than twenty days prior to the regular session of 2002, together with any legislation necessary to finalize and adopt the standards and practices by rule.

(c) Following the regular session of 2002, the public utilities commission shall submit uniform interconnection standards and practices rules developed pursuant to this Act and in accordance with chapter 91, HRS, to the governor for approval by January 1, 2003.

SECTION 4. New statutory material is underscored.

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