Hawaii 2022 Regular Session

Hawaii Senate Bill SB2965 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 2965 THIRTY-FIRST LEGISLATURE, 2022 STATE OF HAWAII A BILL FOR AN ACT RELating to renewable energy. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 2965
4	4	THIRTY-FIRST LEGISLATURE, 2022
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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11	11	2965
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13	13	THIRTY-FIRST LEGISLATURE, 2022
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	RELating to renewable energy.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. The legislature finds that Act 97, Session Laws of Hawaii 2015, amended section 269-92, Hawaii Revised Statutes, to establish a one hundred per cent renewable portfolio standard by December 31, 2045, with the intent to transition the State away from imported fuels and toward renewable local resources that provide a secure source of affordable energy. In 2021, Hawaii became the first state in the nation to declare a climate emergency. Currently, the calculation of the renewable portfolio standard enacted in 2001 and amended in 2006, is the percentage of electrical energy sales that is represented by renewable electrical energy. The legislature further finds that the calculation of the renewable portfolio standard based on electrical energy sales (renewable electrical energy sales divided by total electrical energy sales), rather than on electrical energy generation (renewable electrical energy generation divided by total electrical energy generation), overestimates the amount of renewable energy serving Hawaii's electric utility customers. Using energy sales rather than energy generation distorts the calculation of the renewable portfolio standard and produces an inflated amount because that method does not consider material customer-sited, grid-connected energy generation and ignores the renewable energy lost during the transmission of the points at which electrical energy is generated and a customer's electricity meter, where sales are measured. In light of new scientific information about the climate emergency, including accelerating climate warming, feedback loops, and other dire global warming impacts, the legislature also finds that the State's renewable portfolio standard target for 2030 needs to be raised from the current forty per cent of sales to eighty per cent of generation. Accordingly, the purpose of this Act is to: (1) Amend the definition of renewable portfolio standard for electric utility companies to be a percentage of its electrical energy generation, rather than its sales; (2) Increases the renewable portfolio standard of forty per cent to eighty per cent; (3) Removes the 2040 renewable energy standard; and (4) Requires an appropriate period for public comment before the public utilities commission may grant a waiver from the renewable portfolio standard or an extension for meeting the prescribed standard to an electric utility company. SECTION 2. Section 269-91, Hawaii Revised Statutes, is amended by amending the definition of "renewable portfolio standard" to read as follows: ""Renewable portfolio standard" means the percentage of electrical energy [sales] generation that is represented by renewable electrical energy." SECTION 3. Section 269-92, Hawaii Revised Statutes, is amended to read as follows: "§269-92 Renewable portfolio standards[.] for electric utility companies. (a) Each electric utility company that sells electricity for consumption in the State shall establish a renewable portfolio standard of: (1) Ten per cent of its net electricity sales by December 31, 2010; (2) Fifteen per cent of its net electricity sales by December 31, 2015; (3) Thirty per cent of its net electricity sales by December 31, 2020; (4) [Forty] Eighty per cent of its net electricity [sales] generation by December 31, 2030; and [(5) Seventy per cent of its net electricity sales by December 31, 2040; and (6)] (5) One hundred per cent of its net electricity [sales] generation by December 31, 2045. (b) The public utilities commission may establish standards for each electric utility company that prescribe [what] the portion of the renewable portfolio standards that shall be met by specific types of renewable energy resources; provided that: (1) Prior to January 1, 2015, at least fifty per cent of the renewable portfolio standards shall be met by electrical energy generated using renewable energy as the source, and after December 31, 2014, the entire renewable portfolio standard shall be met by electrical generation from renewable energy sources; (2) Beginning January 1, 2015, electrical energy savings shall not count toward renewable energy portfolio standards; (3) Where electrical energy is generated or displaced by a combination of renewable and nonrenewable means, the proportion attributable to the renewable means shall be credited as renewable energy; and (4) Where fossil and renewable fuels are co-fired in the same generating unit, the unit shall be considered to generate renewable electrical energy (electricity) in direct proportion to the percentage of the total heat input value represented by the heat input value of the renewable fuels. (c) If the public utilities commission determines that an electric utility company failed to meet the renewable 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 renewable portfolio standards [due to] because of reasons beyond the reasonable control of [an] the electric utility[,] company as set forth in subsection (d), the commission, in its discretion, may waive in whole or in part any otherwise applicable penalties. (d) Events or circumstances that are [outside of] beyond 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 renewable 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 renewable electrical energy under contract to an electric utility company; (7) Inability to acquire sufficient renewable electrical energy due to lapsing of tax credits related to renewable energy development; (8) Inability to obtain permits or land use approvals for renewable electrical energy projects; (9) Inability to acquire sufficient cost-effective renewable electrical energy; (10) Inability to acquire sufficient renewable electrical energy to meet the renewable portfolio standard goals beyond 2030 in a manner that is beneficial to Hawaii's economy in relation to comparable fossil fuel resources; (11) Substantial limitations, restrictions, or prohibitions on utility renewable electrical energy projects; and (12) Other events and circumstances of a similar nature[.] that could not be reasonably foreseen and ameliorated." SECTION 4. Section 269-93, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows: "§269-93 Achieving electric utility company portfolio standard. (a) An electric utility company and its electric utility affiliates may aggregate their renewable portfolios to achieve the renewable portfolio standard[.] as established and defined in section 269-92." SECTION 5. Section 269-94, Hawaii Revised Statutes, is amended to read as follows: "[[]§269-94 Waivers, extensions, and incentives[.]] for electric utility companies. Any electric utility company not meeting the renewable portfolio standard, as established and defined in section 269-92, shall report to the public utilities commission within ninety days following the goal dates established in section [[]269-92[]], and provide an explanation for not meeting the renewable portfolio standard. The public utilities commission, after allowing an appropriate period for public comment, shall have the option to either grant a waiver from the renewable portfolio standard or an extension for meeting the prescribed standard. The public utilities commission may provide incentives to encourage electric utility companies to exceed their renewable portfolio standards or to meet their renewable portfolio standards ahead of time, or both." SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 8. This Act shall take effect on July 1, 2022. INTRODUCED BY: _____________________________
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49	49	SECTION 1. The legislature finds that Act 97, Session Laws of Hawaii 2015, amended section 269-92, Hawaii Revised Statutes, to establish a one hundred per cent renewable portfolio standard by December 31, 2045, with the intent to transition the State away from imported fuels and toward renewable local resources that provide a secure source of affordable energy.
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51	51	In 2021, Hawaii became the first state in the nation to declare a climate emergency. Currently, the calculation of the renewable portfolio standard enacted in 2001 and amended in 2006, is the percentage of electrical energy sales that is represented by renewable electrical energy. The legislature further finds that the calculation of the renewable portfolio standard based on electrical energy sales (renewable electrical energy sales divided by total electrical energy sales), rather than on electrical energy generation (renewable electrical energy generation divided by total electrical energy generation), overestimates the amount of renewable energy serving Hawaii's electric utility customers. Using energy sales rather than energy generation distorts the calculation of the renewable portfolio standard and produces an inflated amount because that method does not consider material customer-sited, grid-connected energy generation and ignores the renewable energy lost during the transmission of the points at which electrical energy is generated and a customer's electricity meter, where sales are measured.
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53	53	In light of new scientific information about the climate emergency, including accelerating climate warming, feedback loops, and other dire global warming impacts, the legislature also finds that the State's renewable portfolio standard target for 2030 needs to be raised from the current forty per cent of sales to eighty per cent of generation. Accordingly, the purpose of this Act is to:
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55	55	(1) Amend the definition of renewable portfolio standard for electric utility companies to be a percentage of its electrical energy generation, rather than its sales;
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57	57	(2) Increases the renewable portfolio standard of forty per cent to eighty per cent;
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59	59	(3) Removes the 2040 renewable energy standard; and
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61	61	(4) Requires an appropriate period for public comment before the public utilities commission may grant a waiver from the renewable portfolio standard or an extension for meeting the prescribed standard to an electric utility company.
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63	63	SECTION 2. Section 269-91, Hawaii Revised Statutes, is amended by amending the definition of "renewable portfolio standard" to read as follows:
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65	65	""Renewable portfolio standard" means the percentage of electrical energy [sales] generation that is represented by renewable electrical energy."
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67	67	SECTION 3. Section 269-92, Hawaii Revised Statutes, is amended to read as follows:
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69	69	"§269-92 Renewable portfolio standards[.] for electric utility companies. (a) Each electric utility company that sells electricity for consumption in the State shall establish a renewable portfolio standard of:
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71	71	(1) Ten per cent of its net electricity sales by December 31, 2010;
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73	73	(2) Fifteen per cent of its net electricity sales by December 31, 2015;
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75	75	(3) Thirty per cent of its net electricity sales by December 31, 2020;
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77	77	(4) [Forty] Eighty per cent of its net electricity [sales] generation by December 31, 2030; and
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79	79	[(5) Seventy per cent of its net electricity sales by December 31, 2040; and
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81	81	(6)] (5) One hundred per cent of its net electricity [sales] generation by December 31, 2045.
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83	83	(b) The public utilities commission may establish standards for each electric utility company that prescribe [what] the portion of the renewable portfolio standards that shall be met by specific types of renewable energy resources; provided that:
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85	85	(1) Prior to January 1, 2015, at least fifty per cent of the renewable portfolio standards shall be met by electrical energy generated using renewable energy as the source, and after December 31, 2014, the entire renewable portfolio standard shall be met by electrical generation from renewable energy sources;
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87	87	(2) Beginning January 1, 2015, electrical energy savings shall not count toward renewable energy portfolio standards;
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89	89	(3) Where electrical energy is generated or displaced by a combination of renewable and nonrenewable means, the proportion attributable to the renewable means shall be credited as renewable energy; and
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91	91	(4) Where fossil and renewable fuels are co-fired in the same generating unit, the unit shall be considered to generate renewable electrical energy (electricity) in direct proportion to the percentage of the total heat input value represented by the heat input value of the renewable fuels.
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93	93	(c) If the public utilities commission determines that an electric utility company failed to meet the renewable 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 renewable portfolio standards [due to] because of reasons beyond the reasonable control of [an] the electric utility[,] company as set forth in subsection (d), the commission, in its discretion, may waive in whole or in part any otherwise applicable penalties.
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95	95	(d) Events or circumstances that are [outside of] beyond an electric utility company's reasonable control may include, to the extent the event or circumstance could not be reasonably foreseen and ameliorated:
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97	97	(1) Weather-related damage;
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99	99	(2) Natural disasters;
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101	101	(3) Mechanical or resource failure;
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103	103	(4) Failure of renewable electrical energy producers to meet contractual obligations to the electric utility company;
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105	105	(5) Labor strikes or lockouts;
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107	107	(6) Actions of governmental authorities that adversely affect the generation, transmission, or distribution of renewable electrical energy under contract to an electric utility company;
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109	109	(7) Inability to acquire sufficient renewable electrical energy due to lapsing of tax credits related to renewable energy development;
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111	111	(8) Inability to obtain permits or land use approvals for renewable electrical energy projects;
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113	113	(9) Inability to acquire sufficient cost-effective renewable electrical energy;
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115	115	(10) Inability to acquire sufficient renewable electrical energy to meet the renewable portfolio standard goals beyond 2030 in a manner that is beneficial to Hawaii's economy in relation to comparable fossil fuel resources;
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117	117	(11) Substantial limitations, restrictions, or prohibitions on utility renewable electrical energy projects; and
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119	119	(12) Other events and circumstances of a similar nature[.] that could not be reasonably foreseen and ameliorated."
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121	121	SECTION 4. Section 269-93, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows:
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123	123	"§269-93 Achieving electric utility company portfolio standard. (a) An electric utility company and its electric utility affiliates may aggregate their renewable portfolios to achieve the renewable portfolio standard[.] as established and defined in section 269-92."
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125	125	SECTION 5. Section 269-94, Hawaii Revised Statutes, is amended to read as follows:
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127	127	"[[]§269-94 Waivers, extensions, and incentives[.]] for electric utility companies. Any electric utility company not meeting the renewable portfolio standard, as established and defined in section 269-92, shall report to the public utilities commission within ninety days following the goal dates established in section [[]269-92[]], and provide an explanation for not meeting the renewable portfolio standard. The public utilities commission, after allowing an appropriate period for public comment, shall have the option to either grant a waiver from the renewable portfolio standard or an extension for meeting the prescribed standard.
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129	129	The public utilities commission may provide incentives to encourage electric utility companies to exceed their renewable portfolio standards or to meet their renewable portfolio standards ahead of time, or both."
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131	131	SECTION 6. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
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133	133	SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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135	135	SECTION 8. This Act shall take effect on July 1, 2022.
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139	139	INTRODUCED BY: _____________________________
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141	141	INTRODUCED BY:
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149	149	Report Title: Renewable Energy; Renewable Portfolio Standard; Electricity; Public Utilities Commission Description: Amends the definition of renewable portfolio standard for electric utility companies to be a percentage of electrical energy generation, rather than sales. Increases the renewable portfolio standard from forty to eighty percent. Requires an appropriate period for public comment before the public utilities commission may grant a waiver from the renewable portfolio standard or an extension for meeting the prescribed standard to an electric utility company. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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155	155	Report Title:
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157	157	Renewable Energy; Renewable Portfolio Standard; Electricity; Public Utilities Commission
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161	161	Description:
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163	163	Amends the definition of renewable portfolio standard for electric utility companies to be a percentage of electrical energy generation, rather than sales. Increases the renewable portfolio standard from forty to eighty percent. Requires an appropriate period for public comment before the public utilities commission may grant a waiver from the renewable portfolio standard or an extension for meeting the prescribed standard to an electric utility company.
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171	171	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.