HOUSE OF REPRESENTATIVES

H.B. NO.

1385

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to administrative procedure.

 

 

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

 


     SECTION 1.  The legislature finds that the goals and policies expressed in Act 97, Session Laws of Hawaii 2015, which extended the State's renewable energy standard to achieve a one hundred per cent renewable energy portfolio by December 31, 2045, remain of the utmost importance to the State and the legislature reaffirms its commitment to them.  The further development of renewable energy sources to replace energy derived from fossil fuels is critically important to the State of Hawaii.  Renewable energy from natural sources is a public trust resource under article XI, section 1, of the Hawaii state constitution, which provides that the state shall promote "the development and utilization" of such resources.

     Renewable energy projects typically require a number of permits and other approvals by governmental agencies.  These agencies have a duty to consider the effects of such projects on the environment, public health, and public safety and to ensure that the projects meet criteria established by law and have minimal adverse effects.  When these approvals are made by boards or commissions, the State's open meeting law requires that the board or commission hear public testimony on the project.  Under the current law, some of these permits and approvals are subject to formal contested case hearings.

     Because a contested case hearing is procedurally similar to a courtroom trial, these hearings are often very lengthy and can seriously delay the implementation of important and beneficial projects, even when permits are ultimately approved.  There is also some uncertainty under current law regarding whether various types of permits and approvals are indeed subject to contested case hearings.  This can cause further barriers to the development of renewable energy resources.  If a formal contested case hearing is ordered when it is not required, the applicant will suffer unnecessary delay and expense.  On the other hand, if a contested case hearing is not held but a court later determines it was required, a project could be stopped mid-construction, resulting in even greater cost and delays.

     Under current law, a contested case hearing may be required by statute or administrative rule even if it is not constitutionally required or requested by a party with cognizable rights under the state or federal constitution.  The legislature finds that the State's existing administrative approval process contains sufficient safeguards to protect the general public interest without the cost and time burdens inherent in the formal contested case hearing process.

     The purpose of this Act is to limit the requirement for a contested case hearing on permits for renewable energy projects to situations where such a hearing is requested by the applicant seeking to develop a renewable energy project or another person who has the right to request such a hearing under the state or federal constitution.  This Act further clarifies the administrative review process by specifying that the benefits of renewable energy shall be considered in the review of permit applications for renewable energy projects.

     SECTION 2.  Chapter 91, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§91-    Administrative procedures for renewable energy projects.  (a)  For the purposes of this section:

     "Applicant" means any person that has submitted an application for a license, permit, or other approval required to construct a renewable energy project or portion of a renewable energy project and includes the person's authorized representative.

     "Approval" means any license, permit, or other approval by an agency required for a renewable energy project.

     "Renewable energy" has the same meaning as in section 269-91.

     "Renewable energy project" means any project that will generate renewable energy and includes electric transmission infrastructure used to connect a renewable energy project to the electrical grid.

     (b)  Notwithstanding any other law to the contrary, no contested case hearing shall be held on an application for any approval required for a renewable energy project unless the contested case hearing is otherwise required by law and is requested by:

     (1)  The applicant; or

     (2)  Another person whose rights, duties, or privileges are required by the state or federal constitution to be determined in a matter after an opportunity for a contested case hearing.

     The requesting party shall comply with all applicable requirements contained in statute or administrative rules in requesting a contested case hearing under this section.

     (c)  If a contested case hearing is not held on an application subject to this section, any agency decision that is adverse to the applicant:

     (1)  Shall be accompanied by written findings of fact and conclusions of law; and

     (2)  May be appealed by the applicant pursuant to section 91-14.

     The record for purposes of an administrative appeal of an agency decision subject to this subsection shall consist of the agency's complete file on the application, including any environmental assessment or environmental impact statement, and any testimony received at any public meeting or public hearing held on the application.

     (d)  Subsection (c) shall be the sole means of review available for an agency decision on an application for a renewable energy project unless another method of judicial review is specifically provided by law.  Any allowable process for judicial review shall be commenced within the time required by section 91-14(b) and shall be limited in scope to the criteria specified in 91-14(g).

     (e)  In reviewing an application for an approval for a renewable energy project, the reviewing agency shall weigh the public benefits of the renewable energy to be produced by the project in its consideration of any criteria otherwise required by law in making its decision on the application.  This subsection shall not be construed to override or invalidate any specific standards or requirements for an approval established by law for the protection of public health, safety, or welfare or to exempt any renewable energy project from obtaining any approval otherwise required by law.

     (f)  This section shall not apply to petitions for land use district boundary amendments under section 205-3.1."

     SECTION 3.  An applicant in any contested case hearing for an approval for a renewable energy project in which a final decision has not been issued as of the effective date of this Act may, within sixty days of the effective date, request agency reconsideration of whether the contested case hearing may be held pursuant to the terms of this Act.  Any agency that receives a request for reconsideration shall terminate any subject contested case hearing unless the hearing would be allowable pursuant to this Act.

     SECTION 4.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 5.  New statutory material is underscored.

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

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Renewable Energy; Administrative Approval; Contested Case Hearing

 

Description:

Prohibits administrative contested case hearings on applications for approvals for renewable energy production projects unless specifically required by law and requested by the applicant or another party with a constitutional right to do so for the matter.  Provides for judicial review and specifies exceptions.

 

 

 

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