Report Title:

Utilities

Description:

Adopts a state policy of favoring underground utilities. Establishes a conversion fund for sustained incremental conversion of overhead utilities.

THE SENATE

S.B. NO.

1647

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO UNDERGROUNDING OF OVERHEAD UTILITIES.

 

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

SECTION 1. The legislature finds that there is a general preference for underground utilities based on improved visual quality of Hawaii's natural environment, improved road safety, improved utility service reliability, increased property values, and improved visitor experience for Hawaii's major industry.

The legislature also finds that the high cost of converting to underground utilities has prevented many communities from receiving the benefits. Therefore, overhead utilities have been continually maintained and even reconstructed while adjacent public improvements are built. Underground conversion will take significant financial resources, the participation of many entities, and many years of effort.

Accordingly, the purpose of this Act is to break the cycle of continually reconstructing overhead utilities by adopting state policy in favor of underground utilities and establishing a conversion fund for sustained incremental conversion of most overhead utilities by 2065.

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

"PART . UNDERGROUND CONVERSION

§269- Underground conversion fund. There is established in the state treasury the underground conversion fund that shall be administered by the underground conversion board in the public utilities commission. The revenues to be deposited into the fund shall include:

(1) Five per cent of the state public utility fee or the excess remaining after funding of public utilities commission operations, whichever is the greater; and

(2) Federal and state appropriations and contributions by other public bodies; and

(3) Voluntary conversion funds.

§269- Underground conversion board. There shall be established an underground conversion board for the purpose of implementing this part. The board shall consist of nine voting members. Of the voting members:

(1) Three shall be appointed by the governor as follows:

(A) One from the electric utility industry;

(B) One from the telecommunications utility industry; and

(C) One from the cable service industry;

(2) One shall be the director of the state department of transportation, or the director's representative;

(3) One shall be the chairperson of the public utilities commission, or the chairperson's representative;

(4) Two shall be representative of the general public appointed by the speaker of the house of representatives; and

(5) Two shall be representative of the general public appointed by the president of the senate.

No member shall receive any compensation for the member's services, but each shall be reimbursed for necessary travel expenses incurred in the performance of the member's duties.

§269- Powers and duties of underground conversion board. In addition to any other powers and duties authorized by law, the underground conversion board may:

(1) Establish and administer the underground conversion fund to plan, design, and construct the conversion of overhead lines to underground lines;

(2) Accept revenues, compensations, proceeds, charges, penalties, grants, or any other payments in any form, from any public agency or from any other source for deposit into the underground conversion fund;

(3) Adopt guidelines and criteria for the expenditure of funds from the underground conversion fund;

(4) Expend funds from the underground conversion fund to plan, design, and construct the conversion of overhead lines to underground lines;

(5) Authorize the issuance of loans pursuant to section 269- ;

(6) Establish a systematic prioritization of improvement areas for the conversion of overhead lines to underground lines;

(7) Publish and distribute information and conduct educational programs in furtherance of this part;

(8) Issue binding interpretations or declaratory rulings, and conduct contested case proceedings pursuant to chapter 91;

(9) Subpoena witnesses and documents, administer oaths, and receive affidavits and oral testimony, including telephonic and electronic communications;

(10) Recommend to the legislature additional statutory amendments to effectuate the purposes of this part;

(11) Adopt, amend, or repeal rules pursuant to chapter 91 as it may deem necessary to effectuate this part; and

(12) Enforce this part and its rules.

§269- Advisory committee. (a) There is established within the commission for administrative purposes, and not subject to section 26-34, a utility lines advisory committee to advise the underground conversion board in developing a comprehensive statewide plan for the long-term incremental undergrounding of utility lines.

(b) The advisory committee shall be composed of the following twenty-one members:

(1) Four members appointed by the governor from the:

(A) Department of business, economic development, and tourism's office of planning;

(B) Public utilities commission;

(C) Department of land and natural resources;

(D) Department of transportation;

(2) Twelve members appointed by the legislature, one member in each category by the president of the senate and the balance by the speaker of the house of representatives, from the:

(A) Electric utility industry, two members;

(B) Telecommunications industry;

(C) Cable television industry;

(D) Environmental protection organizations, four members;

(E) Organized labor;

(F) Business or professional organizations, three members; and

(3) Five members representing utility customers appointed by the consumer advocate; provided that each county shall have representation.

(c) The advisory committee shall:

(1) Review the policies and laws of other jurisdictions that address the incremental undergrounding of utilities as studied by the legislative reference bureau in 1999;

(2) Review community priorities and financing options studied in "Oahu Utilities Under-grounding and Visual Mitigation Studies" by the American Institute of Architects Honolulu Chapter in 2003;

(3) Review the current "work-share" program of the Hawaiian electric company for undergrounding utilities based on cost sharing with participating communities;

(4) Clarify the relationship between the public utilities commission and above ground infrastructure wiring regulated by other governmental bodies;

(5) Balance undergrounding conversion cost to consumers with environmental and aesthetic concerns;

(6) Envision a plan that is driven by financing available in the conversion fund rather than a fixed firm date for converting all utilities;

(7) Recommend a process for the board to determine priorities for specific incremental undergrounding projects or grants; and

(8) Make provisions to facilitate private funding of underground utilities in locations that will have a lower priority for conversion funds.

(d) The advisory committee shall perform its duties as follows:

(1) Members shall serve without compensation; provided that members may be reimbursed for reasonable expenses incurred in the discharge of their duties;

(2) A simple majority of the members of the advisory committee shall constitute a quorum for the transaction of business, and all actions of the advisory committee shall require the affirmative vote of a majority of members present;

(3) The advisory committee may hold public hearings as frequently as deemed necessary and feasible to receive testimony on issues relative to its activities; and

(4) The advisory committee may have the commission procure independent professional services to assist in its work.

(e) The advisory committee shall submit an interim report of its findings and recommendations to the legislature and the governor no later than twenty days before the convening of the regular session of 2006. The advisory committee shall submit a final report of its findings and recommendations to the president of the senate, the speaker of the house of representatives, and the governor no later than twenty days before the convening of the regular session of 2007.

(f) The board may extend the life of the advisory committee for an additional period.

§269- Long-term loans. The commission shall have the authority to make long-term loans to private property owners in communities that are low on the priority list for underground conversion grants."

SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Voluntary contributions to the underground conversion fund. The director shall establish procedures to allow a taxpayer to designate and pay a voluntary contribution to the underground conversion fund on the taxpayer's annual state income tax return. The amount of the voluntary contribution shall be added to the final income tax due or subtracted from any refund due and deposited in the underground conversion fund."

SECTION 4. Section 226-14, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) To achieve the general facility systems objective, it shall be the policy of this State to:

(1) Accommodate the needs of Hawaii's people through coordination of facility systems and capital improvement priorities in consonance with state and county plans.

(2) Encourage flexibility in the design and development of facility systems to promote prudent use of resources and accommodate changing public demands and priorities.

(3) Ensure that required facility systems can be supported within resource capacities and at reasonable cost to the user.

(4) Pursue alternative methods of financing programs and projects and cost-saving techniques in the planning, construction, and maintenance of facility systems.

(5) Convert existing overhead utilities in the public domain to underground utilities, and to encourage the same of the State's political subdivisions for private construction projects with construction costs in excess of $100,000."

SECTION 5. Section 264-33.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The director of transportation may make exceptions to subsection (a) if:

(1) The director determines that exceptions are appropriate due to [either:

(A) Any of the following criteria:] environmental, safety, research, technology, corridor alignment, or management concern[; or

(B) The following criteria collectively: state funding impacts, economic feasibility, and federal funding concerns;] criteria; or

(2) The projects do not lend themselves to undergrounding, such as: resurfacing, traffic signal and camera installation, drainage installation, bikeway markings, guardrail installation, traffic markings, [and] safety, and landscaping enhancement improvements."

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

SECTION 7. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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