Report Title:

Renewable Energy Branch; Appropriation

 

Description:

Establishes the renewable energy branch in the department of business, economic development, and tourism to coordinate and promote renewable energy initiatives.  Strengthens existing renewable energy and planning provisions.  Provides for staffing, and, subject to federal funding, project managers to oversee energy projects funded by federal grants.  Appropriates funds.  (SD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

279

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 2

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO ENERGY.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The purpose of this Act is to support the renewable energy industry in Hawaii by:

     (1)  Establishing a renewable energy branch in the department of business, economic development, and tourism to coordinate and promote renewable energy initiatives;

     (2)  Strengthening laws supporting energy diversification, long-term provision of dependable energy services, and use of diverse energy technologies; and

     (3)  Providing adequate resources for the support of the renewable energy industry, and for comprehensive energy planning, in the department of business, economic development, and tourism.

     SECTION 2.  Chapter 201, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§201-    Renewable energy branch; establishment.  (a)  There is established a renewable energy branch within the department.

     (b)  Branch functions shall include but not be limited to:

     (1)  Renewable energy resource assessments, technical analyses, and resource development functions, including design, management, and completion of systematic analysis of existing and proposed energy resource programs;

     (2)  Evaluation of analyses conducted by government agencies and other organizations;

     (3)  Development and management of programs to encourage public and private exploration, research, and commercial development of renewable energy resources;

     (4)  Project facilitation functions, including the development and implementation of programs to facilitate the efficient permitting of renewable energy projects;

     (5)  Renewable energy partnership and outreach functions, including participation in renewable and sustainable energy evaluation and demonstration projects, outreach, and other activities to promote technically, economically, and environmentally feasible technologies and projects;

     (6)  Renewable energy resource, technology, and project viability consultant functions, including serving as a consultant to the governor, public agencies, and private industry on matters related to the use of Hawaii's renewable energy resources; and

     (7)  Research, reporting, implementation, and support of renewable and transportation energy related laws."

     SECTION 3.  Section 196-4, Hawaii Revised Statutes, is amended to read as follows:

     "§196-4  Powers and duties.  Subject to the approval of the governor, the coordinator shall:

     (1)  Formulate plans, including objectives, criteria to measure accomplishment of objectives, programs through which the objectives are to be attained, and financial requirements for the optimum development of Hawaii's energy resources;

     (2)  Conduct systematic analysis of existing and proposed energy resource programs, evaluate the analysis conducted by government agencies and other organizations and recommend [to the governor and to the legislature] programs [which] that represent the most effective allocation of resources for the development of energy sources;

     (3)  Formulate and recommend specific proposals, as necessary, for conserving energy and fuel, including the allocation and distribution thereof[, to the governor and to the legislature];

     (4)  Assist public and private agencies in implementing energy conservation and efficiency programs, the development of indigenous energy resources, and related measures;

     (5)  Coordinate the State's energy [conservation and allocation] programs with [that] those of the federal government, other state governments, governments of nations with interest in common energy resources, and the political subdivisions of the State;

     (6)  Develop programs to encourage private and public exploration [and], research, and development of [alternative] indigenous energy resources [which] that will benefit the State;

     (7)  Conduct public education programs to inform the public of the energy situation as may exist from time to time and of the government actions taken thereto;

     (8)  Serve as consultant to the governor, public agencies, and private industry on energy-related matters [related to the acquisition, utilization and conservation of energy resources];

     (9)  Contract for services when required for implementation of this chapter;

    (10)  Review proposed state actions [which] that the coordinator finds to have significant effect on [energy consumption] the State's energy objectives and report to the governor their effect on the energy [conservation] program, and perform [such] other services as may be required by the governor and the legislature;

    (11)  Prepare and submit an annual report and [such] other reports as may be requested to the governor and to the legislature on the implementation of this chapter and all matters related to energy resources; [and]

    (12)  Formulate a systematic process, including the development of requirements, to identify geographic areas that are rich with renewable energy resource potential that can be developed in a cost-effective and environmentally benign manner and designate these areas as renewable energy zones;

    (13)  Develop and recommend incentives, plans, and programs to encourage the development of renewable energy resource projects within the renewable energy zones;

    (14)  Assist public and private agencies in identifying utility transmission projects or infrastructure required to accommodate and facilitate the development of renewable energy resources;

    (15)  Assist public and private agencies, in coordination with the department of budget and finance, in accessing the use of special purpose revenue bonds to finance the engineering, design, and construction of transmission projects and infrastructure that are deemed critical to the development of renewable energy resources;

    (16)  Develop the criteria or requirements for identifying and qualifying specific transmission projects and infrastructure that are critical to the development of renewable energy resources, including providing assistance in accessing the use of special purpose revenue bonds to finance the projects or infrastructure; and

   [(12)] (17)  Adopt rules for the administration of this chapter pursuant to chapter 91[, provided that the rules shall be submitted to the legislature for review]."

     SECTION 4.  Section 226-18, Hawaii Revised Statutes, is amended to read as follows:

     "§226-18  Objectives and policies for facility systems--energy.  (a)  Planning for the State's facility systems with regard to energy shall be directed toward the achievement of the following objectives, giving due consideration to all:

     (1)  Dependable, efficient, and economical statewide energy systems capable of supporting the needs of the people;

     (2)  Increased energy self-sufficiency where the ratio of indigenous to imported energy use is increased;

     (3)  Greater energy security and diversification in the face of threats to Hawaii's energy supplies and systems; and

     (4)  Reduction, avoidance, or sequestration of greenhouse gas emissions from energy supply and use.

     (b)  To achieve the energy objectives, it shall be the policy of this State to ensure the short- and long-term provision of adequate, reasonably priced, and dependable energy services to accommodate demand.

     (c)  To further achieve the energy objectives, it shall be the policy of this State to:

     (1)  Support research and development as well as promote the use of renewable energy sources;

     (2)  Ensure that the combination of energy supplies and energy-saving systems is sufficient to support the demands of growth;

     (3)  Base decisions of least-cost supply-side and demand-side energy resource options on a comparison of their total costs and benefits when a least-cost is determined by a reasonably comprehensive, quantitative, and qualitative accounting of their long-term, direct and indirect economic, environmental, social, cultural, and public health costs and benefits;

     (4)  Promote all cost-effective conservation of power and fuel supplies through measures, including:

         (A)  Development of cost-effective demand-side management programs;

         (B)  Education; and

         (C)  Adoption of energy-efficient practices and technologies;

     (5)  Ensure, to the extent that new supply-side resources are needed, that the development or expansion of energy systems uses the least-cost energy supply option and maximizes efficient technologies;

     (6)  Support research, development, [and] demonstration, and use of energy efficiency, load management, and other demand-side management programs, practices, and technologies;

     (7)  Promote alternate fuels and transportation energy efficiency [by encouraging diversification of transportation modes and infrastructure];

     (8)  Support actions that reduce, avoid, or sequester greenhouse gases in utility, transportation, and industrial sector applications;

     (9)  Support actions that reduce, avoid, or sequester Hawaii's greenhouse gas emissions through agriculture and forestry initiatives; and

    (10)  Provide priority handling and processing for all state and county permits required for renewable energy projects."

     SECTION 5.  Subject to the availability of federal funding for energy programs provided by grants and subject to the constraints, oversight, and reporting requirements of those federal programs, the governor is hereby authorized to establish positions necessary to accomplish the management of those projects funded by federal grants; provided that the positions shall be exempt from chapter 76, Hawaii Revised Statutes; and provided further that the governor shall submit a report to the legislature on all positions established as of December 31 and June 30 of each fiscal year that the positions exist and are occupied.

     SECTION 6.  There are established within the department of business, economic development, and tourism seven full-time temporary positions to support the planning and renewable energy provisions of chapters 196, 201, and 226, Hawaii Revised Statutes.  The positions shall be exempt from chapter 76, Hawaii Revised Statutes.

     SECTION 7.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2009-2010 and the same sum or so much thereof as may be necessary for fiscal year 2010-2011 to be deposited into the energy security special fund.

     SECTION 8.  There is appropriated out of the energy security special fund the sum of $           or so much thereof as may be necessary for fiscal year 2009-2010 and the same sum or so much thereof as may be necessary for fiscal year 2010-2011 for the seven full-time, temporary positions, established under section 6.

     The sums appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

     SECTION 9.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 10.  This Act shall take effect on July 1, 2009.