| 47 | | - | SECTION 1. The legislature finds that the State has committed to transition away from fossil fuels and toward a clean energy economy powered by one hundred per cent renewable energy. The State has also committed to reducing carbon emissions. This renewable energy transformation will help to stabilize and strengthen Hawaii's economy by reducing its dependency on imported and price-volatile fossil fuels, foster innovation and clean energy job growth, help protect Hawaii's environment by greatly reducing carbon emissions by replacing fossil fuel energy with renewable energy, and positioning Hawaii as a global leader in renewable energy and climate solutions. The legislature took a bold and decisive step toward achieving its renewable energy goals by passing Act 23, Session Laws of Hawaii 2020, which eliminated the use of coal in Hawaii for electricity production. Hawaii must further commit to the path of eliminating the use of all types of fossil fuels for electricity generation, not just coal-powered electricity generation. The legislature further finds that Hawaii must also eliminate the use of fossil fuel-powered electricity generated for battery energy storage resources interconnected to a public utility's grid. Not only does fossil fuel-powered electricity used to fill battery energy storage resources further encourage fossil fuel use, but it also results in inherent inefficiencies and higher costs to ratepayers because of wasteful energy losses when fossil fuel-powered electricity flows through a battery energy storage resource prior to distribution to ratepayers on the grid. The purpose of this Act is to eliminate fossil fuels in Hawaii for electricity generation and storage. SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows: "§269- Elimination of fossil fuels for electricity production. (a) Beginning after December 31, 2045, the public utilities commission shall not approve or extend any electricity generation facility that applies or proposes to use fossil fuels to generate electricity or to store electricity into a public utility grid-tied energy storage system resource. (b) By December 31, 2045, electricity generation facilities shall cease the use of all fossil fuels for the generation or storage of electricity. (c) The public utilities commission shall not approve any application or proposal for public utility cost recovery for any generation or storage facilities that use fossil fuels, except as provided under section 269-6(d)(3); provided that, if the commission determines that the generation or storage facility is unable to meet the requirements of this section due to reasons beyond reasonable control of the generation or storage facility, 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 a generation or storage facility's control may include, to the extent the event or circumstance would 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 facility; (5) Labor strikes or lockouts; (6) Actions of governmental authorities that adversely affect the generation, transmission, or distribution of renewable electrical energy under contract with a facility; (7) Inability to acquire sufficient renewable electrical energy to meet the renewable portfolio standard goals beyond 2030 in a manner that is beneficial to the State's economy in relation to comparable fossil fuel resources; (8) Substantial limitations, restrictions, or prohibitions on renewable electrical energy utility projects; and (9) Other events and circumstances of a similar nature." SECTION 3. Section 269-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) The public utilities commission shall consider the need to reduce the State's reliance on fossil fuels through energy efficiency and increased renewable energy generation in exercising its authority and duties under this chapter. In making determinations of the reasonableness of the costs of fossil fuel electricity generation and fossil fuel-powered energy storage utility system capital improvements and operations, the commission shall explicitly consider, quantitatively or qualitatively, the effect of the State's reliance on fossil fuels on [price]: (1) Price volatility[, export]; (2) Export of funds for fuel imports[, fuel]; (3) Fuel supply reliability risk[, and greenhouse]; and (4) Greenhouse gas emissions. The commission may determine that short-term costs or direct costs of renewable energy generation and renewable energy-powered energy storage that are higher than alternatives relying more heavily on fossil fuels are reasonable, considering the impacts resulting from the use of fossil fuels." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 2055. |
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| 47 | + | SECTION 1. The legislature finds that the State has committed to transition away from fossil fuels and towards a clean energy economy powered by one hundred per cent renewable energy. The State has also committed to reducing carbon emissions. This renewable energy transformation will help to stabilize and strengthen Hawaii's economy by reducing its dependency on imported and price-volatile fossil fuels, foster innovation and clean energy job growth, help protect Hawaii's environment by greatly reducing carbon emissions by replacing fossil fuel energy with renewable energy, and positioning Hawaii as a global leader in renewable energy and climate solutions. The legislature took a bold and decisive step toward achieving its renewable energy goals by passing Act 23, Session Laws of Hawaii 2020, which eliminated the use of coal in Hawaii for electricity production. Hawaii must further commit to the path of eliminating the use of all types of fossil fuels for electricity generation, not just coal-powered electricity generation. The legislature further finds that Hawaii must also eliminate the use of fossil fuel-powered electricity generated for battery energy storage resources interconnected to a public utilities' grid. Not only does fossil fuel-powered electricity used to fill battery energy storage resources further encourage fossil fuel use, but it also results in inherent inefficiencies and higher costs to ratepayers because of wasteful energy losses when fossil fuel-powered electricity flows through a battery energy storage resource prior to distribution to ratepayers on the grid. The purpose of this Act is to eliminate fossil fuels in Hawaii for electricity generation and storage. SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows: "§269- Elimination of fossil fuels for electricity production. (a) Beginning after December 31, 2035, the public utilities commission shall not approve or extend: (1) Any electricity generation facility that applies or proposes to use fossil fuels to generate electricity or to store electricity into a public utility grid-tied battery energy storage system resource; or (2) Any material improvements, overhauling, or refurbishing of any existing electricity generation facilities that extend the life of fossil fuel-powered electricity generation facilities or storage facilities that use fossil fuel-powered electricity, except for routine maintenance or minor repairs up to $2,500,000 per existing facility in order to maintain reliability. (b) By December 31, 2045, electricity generation facilities shall cease the use of all fossil fuels for the generation or storage of electricity. (c) The public utilities commission shall not approve any application or proposal for public utility cost recovery for any generation or storage facilities that use fossil fuels, except as provided under section 269-6(d)(3)." SECTION 3. Section 269-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) The public utilities commission shall consider the need to reduce the State's reliance on fossil fuels through energy efficiency and increased renewable energy generation in exercising its authority and duties under this chapter. In making determinations of the reasonableness of the costs of fossil fuel electricity generation and fossil fuel-powered battery energy storage utility system capital improvements and operations, the commission shall explicitly consider, quantitatively or qualitatively, the effect of the State's reliance on fossil fuels on [price]: (1) Price volatility[, export]; (2) Export of funds for fuel imports[, fuel]; (3) Fuel supply reliability risk[, and greenhouse]; and (4) Greenhouse gas emissions. The commission may determine that short-term costs or direct costs of renewable energy generation and renewable energy-powered battery energy storage that are higher than alternatives relying more heavily on fossil fuels are reasonable, considering the impacts resulting from the use of fossil fuels." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect upon its approval. |
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