HOUSE OF REPRESENTATIVES H.B. NO. 342 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT Relating to Renewable Gas Tariff. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
HOUSE OF REPRESENTATIVES H.B. NO. 342
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
HOUSE OF REPRESENTATIVES
H.B. NO.
342
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
Relating to Renewable Gas Tariff.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that there must be enabling legislation establishing a renewable gas tariff with appropriate and reasonable rates to meet the demand of environmentally and socially conscious consumers. The legislature also finds that existing law regulates the procurement of supply and production of renewable gas. Utilizing renewable energy resources that have the potential to contribute to renewable gas production will help the State achieve its environment and climate resilience objectives. The legislature further finds that it is imperative that a renewable gas tariff be established by a gas utility, and a decision rendered by the public utilities commission as expeditiously as possible, to reduce the State's dependence on imported petroleum and minimize disruptions caused by price fluctuations. The legislature also finds that ratemaking procedures for a proposed tariff can be effective as soon as thirty days after notice to the public utilities commission pursuant to section 269-16(b), Hawaii Revised Statutes, and section 16‑601‑111, Hawaii Administrative Rules. However, these provisions do not require the public utilities commission to complete its review in a timely manner. Accordingly, it is imperative to minimize the length of the public utilities commission's review of a renewable gas tariff under existing ratemaking procedures to best achieve the State's decarbonization goals; provided that the renewable gas tariff does not increase rates for other customers. The legislature further finds that gas utilities in the State must be required to promptly establish a renewable gas tariff to satisfy immediate demand from customers who choose to receive service under the tariff. Under section 269-16(a), Hawaii Revised Statutes, all rates, fares, charges, classifications, schedules, rules, and practices made, charged, or observed by any public utility shall be just and reasonable. Accordingly, the purpose of this Act is to require gas utility companies to promptly file renewable gas tariffs with the public utilities commission for review and approval; provided that the public utilities commission completes its review within six months of the filing of a proposed renewable gas tariff, the proposed tariff does not increase rates for other customers, and the public utilities commission finds the tariff to be just, reasonable, and in the public interest. SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§269- Renewable gas tariff. (a) Each gas utility in the State shall file a proposed initial renewable gas tariff or tariffs with the public utilities commission by August 31, 2025, to establish appropriate and reasonable rates for renewable gas for customers who choose to receive service under a renewable gas tariff. The public utilities commission shall establish an initial or revised renewable gas tariff or tariffs no later than six months after the filing of a proposed renewable gas tariff; provided that the renewable gas tariff shall not increase rates for other customers and the commission finds the tariff or tariffs to be just, reasonable, and in the public interest; provided further that all filings shall be in accordance with section 16-601-111, Hawaii Administrative Rules. (b) The renewable gas tariff shall be based on the eligible customer's net therm usage and as determined by the public utilities commission. (c) For the purposes of this section: "Net therm usage" means the amount of gas a customer uses during a designated time period as measured in therm units. "Renewable gas" means gas produced from non-petroleum feedstock, as defined in section 269-45(b), for use by a gas utility in the State, or as otherwise defined by the public utilities commission by rule or order. "Renewable gas tariff" means a tariff approved by the public utilities commission that allows a gas utility customer to voluntarily purchase renewable gas from a gas utility company." SECTION 3. New statutory material is underscored. SECTION 4. This Act shall take effect on July 1, 2025. INTRODUCED BY: _____________________________
SECTION 1. The legislature finds that there must be enabling legislation establishing a renewable gas tariff with appropriate and reasonable rates to meet the demand of environmentally and socially conscious consumers.
The legislature also finds that existing law regulates the procurement of supply and production of renewable gas. Utilizing renewable energy resources that have the potential to contribute to renewable gas production will help the State achieve its environment and climate resilience objectives.
The legislature further finds that it is imperative that a renewable gas tariff be established by a gas utility, and a decision rendered by the public utilities commission as expeditiously as possible, to reduce the State's dependence on imported petroleum and minimize disruptions caused by price fluctuations.
The legislature also finds that ratemaking procedures for a proposed tariff can be effective as soon as thirty days after notice to the public utilities commission pursuant to section 269-16(b), Hawaii Revised Statutes, and section 16‑601‑111, Hawaii Administrative Rules. However, these provisions do not require the public utilities commission to complete its review in a timely manner. Accordingly, it is imperative to minimize the length of the public utilities commission's review of a renewable gas tariff under existing ratemaking procedures to best achieve the State's decarbonization goals; provided that the renewable gas tariff does not increase rates for other customers.
The legislature further finds that gas utilities in the State must be required to promptly establish a renewable gas tariff to satisfy immediate demand from customers who choose to receive service under the tariff. Under section 269-16(a), Hawaii Revised Statutes, all rates, fares, charges, classifications, schedules, rules, and practices made, charged, or observed by any public utility shall be just and reasonable.
Accordingly, the purpose of this Act is to require gas utility companies to promptly file renewable gas tariffs with the public utilities commission for review and approval; provided that the public utilities commission completes its review within six months of the filing of a proposed renewable gas tariff, the proposed tariff does not increase rates for other customers, and the public utilities commission finds the tariff to be just, reasonable, and in the public interest.
SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§269- Renewable gas tariff. (a) Each gas utility in the State shall file a proposed initial renewable gas tariff or tariffs with the public utilities commission by August 31, 2025, to establish appropriate and reasonable rates for renewable gas for customers who choose to receive service under a renewable gas tariff. The public utilities commission shall establish an initial or revised renewable gas tariff or tariffs no later than six months after the filing of a proposed renewable gas tariff; provided that the renewable gas tariff shall not increase rates for other customers and the commission finds the tariff or tariffs to be just, reasonable, and in the public interest; provided further that all filings shall be in accordance with section 16-601-111, Hawaii Administrative Rules.
(b) The renewable gas tariff shall be based on the eligible customer's net therm usage and as determined by the public utilities commission.
(c) For the purposes of this section:
"Net therm usage" means the amount of gas a customer uses during a designated time period as measured in therm units.
"Renewable gas" means gas produced from non-petroleum feedstock, as defined in section 269-45(b), for use by a gas utility in the State, or as otherwise defined by the public utilities commission by rule or order.
"Renewable gas tariff" means a tariff approved by the public utilities commission that allows a gas utility customer to voluntarily purchase renewable gas from a gas utility company."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2025.
INTRODUCED BY: _____________________________
INTRODUCED BY:
_____________________________
Report Title: PUC; Renewable Energy; Renewable Gas Tariff Description: Requires gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by August 31, 2025. Requires the Public Utilities Commission to establish a renewable gas tariff within six months of receiving a proposed renewable gas tariff. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
Report Title:
PUC; Renewable Energy; Renewable Gas Tariff
Description:
Requires gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by August 31, 2025. Requires the Public Utilities Commission to establish a renewable gas tariff within six months of receiving a proposed renewable gas tariff.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.