HOUSE OF REPRESENTATIVES

H.B. NO.

742

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

Relating to energy.

 

 

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

 


     SECTION 1.  Section 227D-3, Hawaii Revised Statutes, is amended to read as follows:

     "§227D-3  Powers of the authority.  The authority may:

     (1)  Sue and be sued;

     (2)  Have a seal and alter the same at its pleasure;

     (3)  Promote the use of the geothermal energy and natural resources sites for the purposes provided by law;

     (4)  Through its executive director appoint officers, agents and employees without regard to chapter 76 and to establish the salaries therefor;

     (5)  Adopt rules under chapter 91 necessary to effectuate this chapter in connection with its operation, facilities, parks, properties, and projects;

     (6)  Make, execute, enter into, amend, supplement, and carry out contracts and all other instruments, including concessions for cell towers, necessary or convenient for the exercise of its powers and functions under this chapter with any private person, firm, partnership, association, company, or corporation only as it may be necessary in the conduct of its business and on such terms as it may deem appropriate; provided that the authority shall not obligate any funds of the State except as have been appropriated to it.  Notwithstanding the foregoing, the authority may enter into and perform such contracts, leases, cooperative agreements, or other transactions with any agency or instrumentality of the United States, a foreign nation, a state, a territory, or a possession, or with any political subdivision thereof;

     (7)  Accept, hold, or expend gifts or grants in any form from any public agency or private source, or from any other source;

     (8)  Impose and collect fees pertaining to the use of properties and facilities of the authority;

     (9)  Formulate budgets to provide for the operation of the facilities of the authority;

    (10)  Submit an annual report to the governor and the legislature at least twenty days prior to the convening of each regular session;

    (11)  Acquire, own, lease, hold, clear, improve, and rehabilitate real, personal, or mixed property and assign, exchange, transfer, convey, lease, sublease, or encumber any project including by way of easements;

    (12)  Construct, reconstruct, rehabilitate, improve, alter, or repair, or provide for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project and designate a qualified person as its agent for this purpose, and own, hold, assign, transfer, convey, exchange, lease, sublease, or encumber any project;

    (13)  Arrange or initiate appropriate action for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, easements, or other places, the furnishings or improvements, the acquisition of property or property rights, or the furnishing of property or services in connection with a research and technology park;

    (14)  Prepare or cause to be prepared plans, specifications, designs, and estimates of cost for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project or research and technology park, and from time to time, modify these plans, specifications, designs, or estimates;

    (15)  Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

    (16)  Procure insurance against any loss in connection with its properties and other assets and operations in amounts and from insurers as it deems desirable;

    (17)  Issue bonds pursuant to this chapter in principal amounts as may be authorized from time to time by law to finance the cost of a project, including the repair or addition to its parks and facilities as authorized by law and to provide for the security thereof as permitted by this chapter;

    (18)  Lend or otherwise apply the proceeds of the bonds issued for a project or a research and technology park either directly or through a trustee or a qualified person for use and application in the acquisition, construction, installation, or modification of a project or research and technology park, or agree with the qualified person whereby any of these activities shall be undertaken or supervised by that qualified person or by a person designated by the qualified person;

    (19)  With or without terminating a project agreement, exercise any and all rights provided by law for entry and re-entry upon or to take possession of a project at any time or from time to time upon breach or default by a qualified person under a project agreement;

    (20)  Create an environment that supports appropriate natural resource utilization and results in economic development, including:

         (A)  Supporting research projects and facilitating the transition from research and development to pilot scale and then to full commercial operation of companies using the natural resources available at the research and technology parks;

         (B)  Developing educational and conservation programs;

         (C)  Supporting commercialization of the natural resources available at the research and technology parks, if the commercialization is compatible with the research, development, and other retail, commercial, and tourism activities of the research and technology parks;

         (D)  Identifying issues and impediments to the development of natural resource utilization; and

          (E)  Providing policy analysis and information important to the development of natural resource utilization in Hawaii;

    (21)  Develop programs that support projects and companies which locate at the research and technology parks;

    (22)  Attract appropriate new uses of the natural resources in Hawaii, including retail, commercial, and tourism activities;

    (23)  Acquire, hold, and sell qualified securities; provided that the authority shall not acquire qualified securities using authority funds or capital or moneys of the natural energy laboratory of Hawaii authority special fund; provided further that the authority shall not acquire, hold, or sell qualified securities of its tenants without first obtaining the approval of the board by a simple majority vote in each case considered.  The acquisition and sale of qualified securities shall be detailed in the annual report of the natural energy laboratory of Hawaii authority;

    (24)  Accept donations, grants, bequests, and devises of money, property, services, or other things of value that may be received from the United States or any agency thereof, any governmental agency, or any public or private institution, person, firm, or corporation, to be held, used, or applied for any or all of the purposes specified in this chapter.  Receipt of each donation, grant, bequest, or devise shall be detailed in the annual report of the natural energy laboratory of Hawaii authority.  The report shall include the identity of the donor or grantor, the nature of the transaction, and any conditions attaching thereto; [and]

    (25)  Provide support to the Hawaii natural energy institute established pursuant to section 304A-1891; and

   [(25)] (26)  Do any or all other acts reasonably necessary to carry out the purposes of the authority."

     SECTION 2.  Section 269-95, Hawaii Revised Statutes, is amended to read as follows:

     "§269-95  Renewable portfolio standards study.  The public utilities commission shall:

     (1)  By December 31, 2007, develop and implement a utility ratemaking structure, which may include performance-based ratemaking, to provide incentives that encourage Hawaii's electric utility companies to use cost-effective renewable energy resources found in Hawaii to meet the renewable portfolio standards established in section 269-92, while allowing for deviation from the standards in the event that the standards cannot be met in a cost-effective manner or as a result of events or circumstances, such as described in section 269-92(d), beyond the control of the utility that could not have been reasonably anticipated or ameliorated;

     (2)  Gather, review, and analyze empirical data to:

         (A)  Determine the extent to which any proposed utility ratemaking structure would impact electric utility companies' profit margins; and

         (B)  Ensure that the electric utility companies' opportunity to earn a fair rate of return is not diminished;

     (3)  Use funds from the public utilities special fund to contract with the Hawaii natural energy institute of the University of Hawaii at Hilo to conduct independent studies to be reviewed by a panel of experts from entities such as the United States Department of Energy, National Renewable Energy Laboratory, Electric Power Research Institute, Hawaii electric utility companies, environmental groups, and other similar institutions with the required expertise.  These studies shall include findings and recommendations regarding:

         (A)  The capability of Hawaii's electric utility companies to achieve renewable portfolio standards in a cost-effective manner and shall assess factors such as:

              (i)  The impact on consumer rates;

             (ii)  Utility system reliability and stability;

            (iii)  Costs and availability of appropriate renewable energy resources and technologies;

             (iv)  Permitting approvals;

              (v)  Effects on the economy;

             (vi)  Balance of trade, culture, community, environment, land, and water;

             (vii)  Climate change policies;

           (viii)  Demographics; and

             (ix)  Other factors deemed appropriate by the commission; and

         (B)  Projected renewable portfolio standards to be set five and ten years beyond the then current standards;

     (4)  Evaluate the renewable portfolio standards every five years, beginning in 2013, and may revise the standards based on the best information available at the time to determine if the standards established by section 269-92 remain effective and achievable; and

     (5)  Report its findings and revisions to the renewable portfolio standards, based on its own studies and other information to the legislature no later than twenty days before the convening of the regular session of 2014, and every five years thereafter."

     SECTION 3.  Section 304A-1891, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§304A-1891[]]  Hawaii natural energy institute; structure; function.  (a)  There is established the Hawaii natural energy institute at the University of Hawaii[.] at Hilo.  The institute shall be administered by a director to be appointed by the [board of regents upon recommendation by the president.] chancellor of the University of Hawaii at Hilo in consultation with the president of the University of Hawaii.  The director of the institute shall appoint the professional members of the staff and other employees.  The [president and board of regents] chancellor shall have the same powers over the institute and its staff as over [the university and its facilities.] the University of Hawaii at Hilo.

     (b)  The director of the institute shall coordinate the institute's work with the energy resources coordinator in carrying out duties pursuant to section 196-4 in the area of research and development of renewable energy sources.

     (c)  The institute shall:

     (1)  Develop renewable sources of energy for power generation and transportation fuels by working in coordination with state agencies, federal agencies, and private entities;

     (2)  Conduct research and development of renewable sources of energy;

     (3)  Demonstrate and deploy efficient energy end-use technologies, including those that address peak electric demand issues;

     (4)  Aggressively seek matching funding from federal agencies and private entities for its research and development and demonstration activities; [and]

     (5)  Report annually to the legislature, no later than twenty days prior to the convening of each regular session, on its activities, expenditures, contracts developed, advances in technology, its work in coordination with state agencies and programs, and recommendations for proposed legislation[.] and;

     (6)  Establish a research station at the natural energy laboratory of Hawaii authority ocean science and technology park."

     SECTION 4.  Section 304A-1892, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The institute shall establish an advisory council of seven members, appointed by the [president] chancellor of the University of Hawaii at Hilo from a list of nominees submitted by the director of the institute and the energy resources coordinator of the department of business, economic development, and tourism.  The members of the advisory council shall be from the general public, the energy industry, technology providers, state agencies whose primary functions relate to energy planning and policy analyses, and environmental groups, or other relevant stakeholder representatives as recommended by the director of the institute and the energy resources coordinator.  Members shall be selected on the basis of their proven expertise and interest in the field of renewable energy.  The director of the institute and the energy resources coordinator shall serve as ex officio nonvoting members of the advisory council."

     SECTION 5.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Hawaii Natural Energy Institute; Natural Energy Laboratory of Hawaii Authority

 

Description:

Transfers authority over the Hawaii natural energy institute (HNEI) from the University of Hawaii to the University of Hawaii at Hilo.  Establishes a HNEI research station at the natural energy laboratory of Hawaii authority ocean science and technology park.

 

 

 

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