If enacted, HB1522 would amend various sections of the Hawaii Revised Statutes, requiring the public utilities commission to develop a social cost of carbon that regulated electric and gas utilities must incorporate into their integrated resource planning processes. This would impact future infrastructure and capital improvement projects, mandating that they consider the social cost of carbon as part of their planning process, effectively integrating climate-related risks into financial decision-making.
Summary
House Bill 1522 aims to address climate mitigation efforts in Hawaii by establishing an estimated social cost of carbon. The bill finds that assessing the economic costs of greenhouse emissions is crucial for planning investments in durable infrastructure. By creating a framework for an implicit carbon price, it intends to guide decisions to align with a transition to a low-carbon economy. This includes considering the costs of infrastructure projects over medium- and long-term perspectives rather than just short-term implications.
Sentiment
The overall sentiment surrounding HB1522 is supportive among environmental advocacy groups, who view it as a vital step towards sustainable development and climate readiness. However, there may be some concerns regarding potential compliance costs for utilities and the implications for utility rates. Thus, while many back the bill for its potential environmental benefits, others express caution over potential economic impacts on consumers.
Contention
Notable points of contention arise over the methods of calculating the social cost of carbon and its implementation. Critics may argue about the accuracy of the estimates and the burden it places on utilities, which could affect energy prices. Additionally, the specific amendments to the state construction regulations may raise questions on how existing practices align with new mandates, particularly regarding local adaptations and building code flexibility.
Requires public utilities and cable television companies to accommodate and relocate facilities and pay costs thereof when necessary for infrastructure projects.
Requires public utilities and cable television companies to accommodate and relocate facilities and pay costs thereof when necessary for infrastructure projects.