HOUSE OF REPRESENTATIVES

H.B. NO.

848

TWENTY-NINTH LEGISLATURE, 2017

H.D. 2

STATE OF HAWAII

S.D. 2

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO ENERGY MODERNIZATION AT THE UNIVERSITY OF HAWAII SYSTEM.

 

 

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

 


     SECTION 1.  The legislature finds that the use of renewable energy, advanced distributed energy resources, and energy efficiency in Hawaii provides significant financial, health, environmental, and workforce benefits to the State.  While Hawaii is a national leader in developing renewable energy, barriers remain that inhibit the development of "microgrids", a rapidly emerging technology that can play a key role in expanding the use of clean energy to serve persons and buildings in the State that have been unable to enjoy the benefits of clean energy.

     The legislature further finds that the use of microgrids, generally defined as a localized electrical system composed of interconnected loads and distributed energy resources within clearly defined electrical boundaries, is a positive step toward achieving Hawaiiꞌs energy goals.  Microgrids can facilitate the achievement of Hawaii's clean energy policies by enabling the integration of higher levels of renewable energy and advanced distributed energy resources, including energy storage and demand response.  The purpose of this Act is to encourage and facilitate the development and use of microgrids by requiring the University of Hawaii to develop a plan for one microgrid demonstration project on university property.

     The legislature intends for the microgrid plan to help lower energy costs at the University of Hawaii, including monthly savings on the university's facilities energy bill.  The University of Hawaii may consider monetizing University of Hawaii West Oahu lands by offering the land as a site for renewable energy development.  The legislature also intends for the microgrid plan to be fair and beneficial to all affected electric customers.  The plan requires the University of Hawaii to pay a fair share to access the microgrid and allows the university to receive benefits that it provides to the grid through demand response or other tariffs payment for grid service.  At a minimum, the microgrid plan should complement and provide a positive benefit to the larger energy system to be fair to all customers.

     The legislature further intends for the microgrid plan to ensure that electric service for the university and other customers remains safe and reliable.  Finally, the legislature intends for the microgrid plan to measure and ensure progress toward achieving the university's net-zero energy goal.  The legislature expects that the proposals in the microgrid plan be aligned with the on-going efforts of the public utilities commission.

     SECTION 2.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to subpart D of part VI to be appropriately designated and to read as follows:

     "§304A-    Microgrid project.  (a)  Notwithstanding any other law to the contrary, the university shall develop a microgrid plan for one microgrid project at, or within, any properties on Oahu owned, leased, or controlled by the university; provided that the university shall select the location for the microgrid project; provided further that the university shall develop the plan in collaboration with the electric utility that typically provides service to the selected location.

     (b)  The microgrid plan shall:

     (1)  Lower energy costs to the university;

     (2)  Be fair and provide benefits to other electric customers;

     (3)  Maintain safety and reliability of the electric service for the university and other electric customers; and

     (4)  Demonstrate progress toward achieving the university’s net-zero renewable energy goal.

     (c)  The university, electric utility described in subsection (a), and public utilities commission shall submit quarterly status reports to the legislature to ensure progress is being made on the microgrid plan.

     (d)  The university shall submit the microgrid plan and any proposed legislation to the legislature no later than twenty days prior to the convening of the regular session of 2019.

     (e)  For the purposes of this section, "microgrid" means a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid.  A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

 



 

Report Title:

University of Hawaii; Microgrid; Microgrid Plan

 

Description:

Requires UH to develop a microgrid plan for one demonstration project at any property on Oahu owned, leased, or controlled by UH.  Authorizes UH to select the location for the project.  Requires UH to collaborate with the local electric utility.  Requires quarterly status reports to the legislature.  Requires UH to submit the microgrid plan to the legislature prior to the regular session of 2019.  Defines "microgrid".  Effective 7/1/2050.  (SD2)

 

 

 

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