Report Title:

Low-head hydroelectric plants. CIP appropriation.

Description:

Establishes the irrigation system special fund. Requires proceeds from the sale of electricity from low-head hydroelectric plants that utilize water from state irrigation projects to be deposited into the special fund. Proceeds shall be used to operate and maintain state irrigation projects. Requires public utilities to purchase electricity. Authorizes issuance of $5,000,000 in general obligation bonds to construct low-head hydroelectric plants.

THE SENATE

S.B. NO.

2870

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO HYDROELECTRICITY.

 

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

SECTION 1. The Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§ - Irrigation system special fund. (a) There is established in the state treasury the irrigation system special fund, into which shall be deposited all proceeds paid by public utilities for the purchase of electricity generated by low-head hydroelectric plants.

(b) Moneys in the irrigation system special fund shall be used to defray the cost of operation, maintenance, and equipment replacement relating to state irrigation and water utilization projects established under chapters 167 and 168.

(c) As used in this section, "low-head hydroelectric plant" means a facility that generates a maximum of watts of electricity annually for distribution to the public by utilizing water:

(1) In a state irrigation project established under chapters 167 and 168; and

(2) With a vertical drop of less than feet.

§ - Electricity generated from low-head hydroelectric plants. (a) The public utilities commission shall direct public utilities that supply electricity to the public to:

(1) Arrange for the acquisition of and to acquire electricity generated from low-head hydroelectric plants that utilize water from state irrigation projects as is available from and which the department of agriculture is willing and able to make available to the public utilities; and

(2) Employ and dispatch the generated electricity in a manner consistent with the availability thereof.

(b) The rate payable by the public utility to the department for the electricity generated from low-head hydroelectric plants supplied to the public utility shall be as agreed between the public utility and the department; provided that in the event the public utility and the department fail to reach an agreement for a rate, the rate shall be as prescribed by the public utilities commission according to the powers and procedures provided in chapter 269."

SECTION 2. Section 168-2, Hawaii Revised Statutes, is amended to read as follows:

"§168-2 Powers. (a) In addition to any other powers conferred upon the board of agriculture, the board shall have the powers hereinafter set forth. The board shall have the power to make preliminary surveys and engineering studies, and to construct irrigation and water utilization projects, designed to serve and supply the owners and occupants of lands, and to manage, control, operate, and maintain the projects in accordance with this chapter. If, in the board's reasonable discretion, existing civil service staff is inadequate to service the projects or the project facilities, the board shall also have the power to contract for services with the private sector for operation or maintenance of project facilities with any qualified person. It shall also have the power to contract with domestic water users including the counties. It shall further have the power to contract with the government of the United States or any bureau or agency thereof with regard to the construction or the financing of a system.

(b) The board shall have the power to fix, charge, and collect reasonable water rates for service from the water system to defray the cost of operation, maintenance, and replacements of the system. It shall also have the power to acquire by eminent domain, water and water sources either above or underground watersheds, reservoir sites, rights-of-way over lands and property for paths, trails, roads, and landing sites, ditches, tunnels, flumes, reservoirs, and pipelines necessary or proper for the construction and maintenance of a system for conveying, distributing, and transmitting water for irrigation and domestic use and for such other purposes as may properly fall within the scope of its activities in creating, managing, controlling, operating, and maintaining an irrigation and water utilization system. The power of eminent domain shall be exercised in the manner and under the procedure provided by law.

(c) The board shall have the power to:

(1) Make preliminary surveys and engineering studies for the establishment of low-head hydroelectric plants that utilize water from state irrigation projects;

(2) Construct, manage, control, operate, and maintain these plants; and

(3) Sell the electricity generated from these plants to public utilities."

SECTION 3. Section 168-3, Hawaii Revised Statutes, is amended to read as follows:

"[[]§168-3[]] Funds. [The] Except as provided in section

- the board of agriculture shall pay all receipts and revenues received by it from the operation of an irrigation and water utilization system into the irrigation system revolving fund established under section 167-22. The fund shall be used and expended for the following purposes:

(1) Payment of the operating and maintenance costs of the system;

(2) Repairs, replacements, additions, and extensions;

(3) Reimbursement to the State the amount of any principal or interest due upon any bond issue under this chapter."

SECTION 4. The director of finance is authorized to issue general obligation bonds in the sum of $5,000,000 or so much thereof as may be necessary and the same sum or so much thereof as may be necessary is appropriated for fiscal year 2002-2003 to construct low-head hydroelectric plants that utilize water from state irrigation projects.

The sum appropriated shall be expended by the department of agriculture for the purposes of this Act.

SECTION 5. The appropriation made for capital improvement projects authorized in this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all appropriations that are unencumbered as of June 30, 2004, shall lapse as of that date.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval; provided that section 4 shall take effect on July 1, 2002.

INTRODUCED BY:

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