HOUSE OF REPRESENTATIVES

H.C.R. NO.

172

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

 
   


HOUSE CONCURRENT

RESOLUTION

 

requesting the Consumer advocate to form an ad hoc advisory group to investigate and make recommendations regarding the development and implementation of standard offer contracts and STANDARDIZED interconnection agreements to REDUCE THE APPROVAL PROCESS TIME FOR THE IMPLEMENTATION OF RENEWABLE ENERGY SYSTEMS; AND FACILITATE the PURCHASE of electricity from renewable energy producers in hawaii.

 

 

WHEREAS, the State of Hawaii depends upon imported fossil fuel for ninety per cent of its electricity needs, seventy-seven per cent of which is petroleum; and

WHEREAS, the State's reliance on fossil fuel threatens the health of the economy and the environment due to price volatility, oil spill, air quality, and global climate change risks; and

WHEREAS, the State of Hawaii is generously endowed with indigenous sources of renewable fuel, including solar radiation, wind, geothermal, ocean temperature differential, ocean wave, and river currents; and

WHEREAS, the Legislature finds that the anomalous situation of being dependent on imported fossil fuel and generously endowed with indigenous renewable resources can no longer continue; and

WHEREAS, the state energy policy objectives as enumerated in section 226-18, Hawaii Revised Statutes, state that increased energy self-sufficiency where the ratio of indigenous to imported energy use is increased shall be an objective of planning for state facility systems regarding energy planning; and

WHEREAS, section 269-27.2, Hawaii Revised Statutes, authorizes the Public Utilities Commission to direct public electric utilities to arrange for the acquisition of electricity generated from nonfossil fuel sources; and

WHEREAS, currently, there is no standard form of power purchase contract for nonfossil fuel producers of electricity to use in selling the generated electricity to public utilities; and

WHEREAS, there is currently no standard interconnection agreement specifying the necessary equipment requirements to connect the electricity generated by producers to the public utilities' power grids; and

WHEREAS, it may take producers of electricity generated from renewable fuels more than five years to negotiate a power purchase contract and interconnection agreement with the public utilities for the sale of electricity; and

WHEREAS, long delays in negotiating a contract and interconnection agreement may discourage potential producers of renewable electricity from developing facilities in Hawaii; and

WHEREAS, a standardized power purchase contract and interconnection agreement would eliminate the long delays in negotiating a contract between nonfossil fuel producers and the public utilities; and

WHEREAS, creating more certainty to the process would encourage renewable energy developers to invest in Hawaii; and

WHEREAS, encouraging renewable energy developers to invest in Hawaii will further the goals of the Legislature in promoting energy self-sufficiency and encouraging the development of nonfossil fuel sources of electrical energy; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2003, the Senate concurring, that the Consumer Advocate is requested to form an ad hoc advisory group to investigate and make recommendations regarding the development and implementation of standard offer contracts and standardized interconnection agreements to:

(1) Reduce the approval process time for the implementation of renewable energy systems; and

(2) Facilitate the purchase of electricity from renewable energy producers in Hawaii; and

BE IT FURTHER RESOLVED that the ad hoc advisory group include representatives from:

(1) Public Utilities Commission;

(2) Hawaii's electric utilities;

(3) Cogeneration producers;

(4) Department of Business, Economic Development, and Tourism;

(5) Hawaii Renewable Energy Association;

(6) Renewable energy producers;

(7) Sierra Club; and

(8) Life of the Land;

as well as:

(1) The energy coordinator or a representative from each county; and

(2) Other interested parties;

and

BE IT FURTHER RESOLVED that for all existing power purchase agreements, and, to the extent possible, for all power purchase agreements currently under negotiation, the Consumer Advocate is requested to create a spreadsheet that includes the following:

(1) Public Utilities Commission docket number;

(2) Public Utilities Commission approval decision and order;

(3) Public Utilities Commission approval date;

(4) The power purchase agreement expiration date;

(5) The agreed upon on-peak and off-peak rates per kilowatt-hour;

(6) Any other per kilowatt-hour payments, such as for capacity or avoided losses;

(7) Allowable frequency fluctuations;

(8) Allowable voltage fluctuations;

(9) Required ramping rates;

(10) The length of time it took to complete:

(A) The interconnection agreement;

(B) The power purchase agreement;

(C) The Consumer Advocate's review and recommendation; and

(D) The Public Utilities Commission's review and decision and order;

and

(11) Any other information the Consumer Advocate deems necessary, relevant, or informative to develop standardized power purchase agreements;

and

BE IT FURTHER RESOLVED that the Consumer Advocate is further requested to report on the following:

(1) The power purchase agreement spreadsheet;

(2) The methodology used by the Consumer Advocate to evaluate the nonfinancial costs and benefits of each power purchase agreement;

(3) Recommendations to shorten the approval process time for the implementation of new renewable energy systems; and

(4) Recommended standardized power purchase agreements;

and

BE IT FURTHER RESOLVED that the Consumer Advocate is requested to submit an interim report of the ad hoc advisory group at least twenty days prior to the convening of the Regular Session of 2004, and a final report, including findings and recommendations, and any necessary proposed legislation, to the Legislature at least twenty days prior to the convening of the Regular Session of 2005; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Executive Director of the Division of Consumer Advocacy, Director of Commerce and Consumer Affairs, Director of Business, Economic Development, and Tourism, Chair of the Public Utilities Commission, President of Hawaiian Electric Company, Director of the Sierra Club, Executive Director of Life of the Land, President of the Kauai Island Utility Cooperative, and the Mayor of each county.

Report Title:

Instructing the Consumer Advocate to convene a working group TO study the need for and make recommendations regarding the implementation of standardized power purchase contracts and standardized interconnection agreements.