HOUSE OF REPRESENTATIVES

H.B. NO.

2496

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

ReLATING TO DISTRIBUTED GENERATION.

 

 

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

 


     SECTION 1.  The legislature finds that Hawaii's dependence on imported fuel hurts families, the economy, the environment, and costs the State billions of dollars each year.  The legislature further finds that a monopoly drives up costs by discouraging competition and causing the costs of living to be unbearable.  Alternative energy technologies have significantly improved in solar and storage capacities, making both more economically feasible for the consumer.  This allows for energy independence as well as creates new markets and jobs in the State. 

     The legislature further finds that transitioning a single electric utility monopoly from a primary producer to a secondary producer would be in the public interest and encourage renewable energy generation.  Distributed energy generation by independent producers supports the local economy through clean energy and allows small producers to decentralize the electrical generation.  Furthermore, distributed generation plays a key role in the State's commitment to clean and renewable energy.

     The purpose of this Act is to complement the Hawaii clean energy initiative and renewable portfolio standards by establishing a distributed generation portfolio standard of one hundred per cent by 2045 by transitioning from a monopoly to decentralized independent production.  This target will ensure that Hawaii moves beyond its dependence on a centralized producer and continues to be a leader in renewable energy.

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

     "§269-    Distributed generation portfolio standards.  (a)  Each electric utility company that sells electricity for consumption in the State shall establish a distributed generation portfolio standard of:

     (1)  Thirty per cent of its net electricity sales by December 31, 2020;

     (2)  Forty per cent of its net electricity sales by December 31, 2030;

     (3)  Seventy per cent of its net electricity sales by December 31, 2040; and

     (4)  One hundred per cent of its net electricity sales by December 31, 2045.

     (b)  If the public utilities commission determines that an electric utility company failed to meet the distributed generation portfolio standard, after a hearing in accordance with chapter 91, the utility shall be subject to penalties to be established by the public utilities commission; provided that if the commission determines that the electric utility company is unable to meet the distributed generation portfolio standards due to reasons beyond the reasonable control of an electric utility, as set forth in subsection (c), the commission, in its discretion, may waive in whole or in part any otherwise applicable penalties.

     (c)  Events or circumstances that are outside of an electric utility company's reasonable control may include, to the extent the event or circumstance could not be reasonably foreseen and ameliorated:

     (1)  Weather-related damage;

     (2)  Natural disasters;

     (3)  Mechanical or resource failure;

     (4)  Failure of independent electrical energy producers to meet contractual obligations to the electric utility company;

     (5)  Labor strikes or lockouts;

     (6)  Actions of governmental authorities that adversely affect the generation, transmission, or distribution of independent electrical energy under contract to an electric utility company; and

     (7)  Inability to acquire sufficient renewable electrical energy due to lapsing of tax credits related to renewable energy development."

     SECTION 3.  New statutory material is underscored.

SECTION 4.  This Act shall take effect on July 1, 2017.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Public Utilities Commission; Electric Utilities Companies; Distributed Generation.

 

Description:

Establishes a distributed generation standard of 30 per cent by 2020, 40 per cent by 2030, 70 per cent by 2040, and 100 per cent by 2045.  Authorizes the Public Utilities Commission to enforce the provision.  Provides allowances for events out of the electric utility's control.

 

 

 

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