| 47 | | - | SECTION 1. The legislature finds that electric system resilience should be a metric that the State monitors and considers. Maintaining a resilient electric system is especially important in Hawaii, given the State's geographical isolation. The 2023 wildfires on Maui illustrated how vulnerable the State is to natural and human-caused disasters. It is critical that the State continue to prioritize actions that ensure the electric system can rapidly recover. Accordingly, the purpose of this Act is to: (1) Establish system resilience as a metric that is monitored and considered by the public utilities commission; and (2) Provide that the Hawaii electricity reliability surcharge may be transferred to the commission for the purpose of its duties. SECTION 2. Section 269-141, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows: ""Resilience" means the ability of the Hawaii electric system and its components to adapt to changing conditions and to withstand and rapidly recover from severe disruptions." SECTION 3. Section 269-142, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) The commission may develop reliability standards and interconnection requirements as it determines necessary or upon recommendation from any entity, including an entity contracted by the commission to serve as the Hawaii electricity reliability administrator provided for under this part, for the continuing reliable design, resilience, and operation of the Hawaii electric system. Any reliability standard or interconnection requirement developed by the commission shall be adopted by the commission in accordance with subsection (a) in order to be effective. The commission shall not contract for the performance of the functions under this subsection to any other entity as provided under section 269‑147." SECTION 4. Section 269-143, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) The commission shall have the authority to monitor the reliability, resilience, and operation of the Hawaii electric system using any data, files, maps, reports, or any other information concerning any electric utility, any user, owner, or operator of the Hawaii electric system, or any person, business, or entity connecting to the Hawaii electric system, considered by the commission to be necessary for ensuring the reliable operation and resilience of the Hawaii electric system. The authority of the commission to monitor information in this section shall include the authority to request, acquire, or otherwise accumulate real-time data on any matter the commission deems necessary to monitor the reliable design, resilience, and operation of the Hawaii electric system." SECTION 5. Section 269-145.5, Hawaii Revised Statutes, is amended to read as follows: "§269-145.5 Advanced grid modernization technology; principles. (a) The commission, in carrying out its responsibilities under this chapter, shall consider the value of improving electrical generation, transmission, and distribution systems and infrastructure within the State through the use of advanced grid modernization technology in order to improve the overall reliability, resilience, and operational efficiency of the Hawaii electric system. (b) In advancing the public interest, the commission shall balance technical, economic, environmental, and cultural considerations associated with modernization of the electric grid, based on principles that include but are not limited to: (1) Enabling a diverse portfolio of renewable energy resources; (2) Expanding options for customers to manage their energy use; (3) Maximizing interconnection of distributed generation to the State's electric grids on a cost-effective basis at non-discriminatory terms and at just and reasonable rates, while maintaining the reliability of the State's electric grids, and allowing such access and rates through applicable rules, orders, and tariffs as reviewed and approved by the commission; (4) Determining fair compensation for electric grid services and other benefits provided to customers and for electric grid services and other benefits provided by distributed generation customers and other non‑utility service providers; and (5) Maintaining or enhancing grid reliability, resilience, and safety through modernization of the State's electric grids." SECTION 6. Section 269-146, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows: "(b) Amounts collected through the Hawaii electricity reliability surcharge shall be transferred in whole or in part to any entity contracted by the commission to act as the Hawaii electricity reliability administrator provided for under this part[.] and to the commission for the purpose of its duties pursuant to sections 269-142, 269-143, and 269-144. (c) The Hawaii electricity reliability surcharge shall be used for the purposes of ensuring the reliable operation and resilience of the Hawaii electric system and overseeing grid access on the Hawaii electric system through the activities of the Hawaii electricity reliability administrator contracted under section 269-147; provided that amounts collected under the Hawaii electricity reliability surcharge shall not be available to meet any current or past general obligations of the State." 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, 3000. |
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| 47 | + | SECTION 1. The legislature finds that it is important for the State to strike a careful balance between transitioning to renewable energy and maintaining the reliability of the Hawaii electric system. Meeting the State's renewable energy goals and reducing its greenhouse gas emissions requires public utilities to learn new technologies and develop new operational practices. Actions that help to improve the long-term resilience and environmental sustainability of the State's electric system may temporarily cause power outages and decreased system performance. It is necessary for the State to continually monitor the electric system's reliability and to quickly resolve any issues or disruptions. The legislature believes that electric system resilience should also be a metric that the State monitors and considers. Maintaining a resilient electric system is especially important in Hawaii, given the State's geographical isolation. The 2023 wildfires on the island of Maui illustrated how vulnerable the State is to natural and human-caused disasters. It is critical that the State continue to prioritize actions that ensure the electric system can rapidly recover. The legislature recognizes that the public utilities commission has created modified interconnection requirements and developed various reliability metrics to monitor and maintain the Hawaii electric system. However, this role of the public utilities commission is currently discretionary. The commission is not required to adopt, and has not yet adopted, a comprehensive set of interconnection and reliability standards. The commission also has the discretion, but is not required, to charge a Hawaii electric reliability surcharge and to contract with a Hawaii electric reliability administrator. The legislature believes that a more formal approach is needed to help maintain the reliability and resilience of the Hawaii electric system. Accordingly, the purpose of this Act is to: (1) Require the public utilities commission to establish reliability standards and interconnection requirements for the Hawaii electric system; (2) Establish system resilience as a metric that is monitored and considered by the commission; (3) Require the commission to collect the Hawaii electricity reliability surcharge and provide that the surcharge may be transferred to the commission for the purpose of its duties; and (4) Require the commission to contract for the performance of certain of its functions with a Hawaii electricity reliability administrator. SECTION 2. Section 269-141, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows: ""Resilience" means the ability of the Hawaii electric system and its components to adapt to changing conditions and to withstand and rapidly recover from severe disruptions." SECTION 3. Section 269-142, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows: "(a) The commission [may] shall adopt, by rule or order, reliability standards and interconnection requirements. Reliability standards and interconnection requirements adopted by the commission shall apply to any electric utility and any user, owner, or operator of the Hawaii electric system. The commission shall not contract for the performance of the functions under this subsection to any other entity as provided under section 269-147. (b) The commission [may] shall develop reliability standards and interconnection requirements as it determines necessary or upon recommendation from any entity, including an entity contracted by the commission to serve as the Hawaii electricity reliability administrator provided for under this part, for the continuing reliable design, resilience, and operation of the Hawaii electric system. Any reliability standard or interconnection requirement developed by the commission shall be adopted by the commission in accordance with subsection (a) in order to be effective. The commission shall not contract for the performance of the functions under this subsection to any other entity as provided under section 269‑147." SECTION 4. Section 269-143, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) The commission shall have the authority to monitor the reliability, resilience, and operation of the Hawaii electric system using any data, files, maps, reports, or any other information concerning any electric utility, any user, owner, or operator of the Hawaii electric system, or any person, business, or entity connecting to the Hawaii electric system, considered by the commission to be necessary for ensuring the reliable operation of the Hawaii electric system. The authority of the commission to monitor information in this section shall include the authority to request, acquire, or otherwise accumulate real-time data on any matter the commission deems necessary to monitor the reliable design and operation of the Hawaii electric system." SECTION 5. Section 269-145.5, Hawaii Revised Statutes, is amended to read as follows: "§269-145.5 Advanced grid modernization technology; principles. (a) The commission, in carrying out its responsibilities under this chapter, shall consider the value of improving electrical generation, transmission, and distribution systems and infrastructure within the State through the use of advanced grid modernization technology in order to improve the overall reliability, resilience, and operational efficiency of the Hawaii electric system. (b) In advancing the public interest, the commission shall balance technical, economic, environmental, and cultural considerations associated with modernization of the electric grid, based on principles that include but are not limited to: (1) Enabling a diverse portfolio of renewable energy resources; (2) Expanding options for customers to manage their energy use; (3) Maximizing interconnection of distributed generation to the State's electric grids on a cost-effective basis at non-discriminatory terms and at just and reasonable rates, while maintaining the reliability of the State's electric grids, and allowing such access and rates through applicable rules, orders, and tariffs as reviewed and approved by the commission; (4) Determining fair compensation for electric grid services and other benefits provided to customers and for electric grid services and other benefits provided by distributed generation customers and other non‑utility service providers; and (5) Maintaining or enhancing grid reliability, resilience, and safety through modernization of the State's electric grids." SECTION 6. Section 269-146, Hawaii Revised Statutes, is amended by amending subsections (a) through (c) to read as follows: "(a) The commission [may] shall require, by rule or order, that all utilities, persons, businesses, or entities connecting to the Hawaii electric system, or any other user, owner, or operator of any electric element that is a part of an interconnection on the Hawaii electric system shall pay a surcharge that shall be collected by Hawaii's electric utilities. The commission shall not contract or otherwise delegate the ability to create the Hawaii electricity reliability surcharge under this section to any other entity. This surcharge amount shall be known as the Hawaii electricity reliability surcharge. (b) Amounts collected through the Hawaii electricity reliability surcharge shall be transferred in whole or in part to any entity contracted by the commission to act as the Hawaii electricity reliability administrator provided for under this part[.] and to the commission for the purpose of its duties pursuant to sections 269-142, 269-143, and 269-144. (c) The Hawaii electricity reliability surcharge shall be used for the purposes of ensuring the reliable operation and resilience of the Hawaii electric system and overseeing grid access on the Hawaii electric system through the activities of the Hawaii electricity reliability administrator contracted under section 269-147; provided that amounts collected under the Hawaii electricity reliability surcharge shall not be available to meet any current or past general obligations of the State." SECTION 7. Section 269-147, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) The commission [may] shall contract for the performance of its functions under this part with a person, business, or organization, except for a public utility as defined under this chapter, that will serve as the Hawaii electricity reliability administrator provided for under this part; provided that the commission shall not contract for the performance of its functions under sections 269-142(a) and (b) and 269-146." SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 9. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ |
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