Report Title:

Pollution; Clean Power

Description:

Enacts the Clean Power Act to regulate power plants and control emissions of nitrogen oxide, sulfur dioxide, mercury, and carbon dioxide; requires the Department of Health to formulate a comprehensive emission control plan and to adopt rules; requires Public Utilities Commission to adopt energy efficiency plan. Establishes a working group to oversee the effectiveness of the emissions limitations. (SD1)

THE SENATE

S.B. NO.

499

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO clean power.

 

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

SECTION 1. The legislature finds that existing law does not regulate electric power plants to control the emission of nitrogen oxide, sulfur dioxide, mercury, and carbon dioxide. The legislature further finds that these pollutants could be harmful to health if the amount of emissions are not regulated. The consequence is severe respiratory disease such as asthma and premature death.

Electric power plants are the nation's number one air polluter. Older power plants pollute up to ten times more than newer power plants. Nationally, power plants are responsible for seventy-six per cent of total sulfur dioxide emissions, fifty-nine per cent of nitrogen oxide emissions, thirty-seven per cent of mercury emissions, and forty per cent of man-made carbon dioxide emissions. These air pollutants are not regulated under chapter 342B, Hawaii Revised Statutes, relating to air pollution control, because regulation is not required under title 42, chapter 85, United States Code, air pollution prevention and control. Existing law does not require the department of health to regulate power plants.

The legislature further finds that regulating the four pollutants would necessitate modernization of power plant equipment, which would, in addition to preventing disease and death, result in:

(1) Increased fuel efficiency and power reliability at a cost savings to consumers;

(2) Reduced mercury contamination in fish and animal tissue; and

(3) Reduced acid rain and global warming.

The purpose of this Act is to provide a regulatory framework for power plant emissions.

SECTION 2. Chapter 342B, Hawaii Revised Statutes is amended by adding a new part to be appropriately designated and to read as follows:

"PART    

CLEAN POWER ACT

§342B-A Purpose. The purpose of this part is to regulate the emissions of nitrogen oxide, sulfur dioxide, mercury, and carbon dioxide by power plants, in order to protect the public health and safety and to enhance environmental quality of life.

§342B-B Definitions. As used in this part:

"Department" means the department of health.

"Director" means the director of health.

"Power plant" means a stationary source of power using a combustion installation to generate electricity for sale or use and having a nameplate capacity of not less than fifteen megawatts.

§342B-C Power plant emission limitations. (a) Power plants shall:

(1) Emit not more than 1.5 pounds per megawatt hour of total nitrogen oxide emissions not later than January 1, 2004, and reduce aggregate nitrogen oxide emissions by seventy-five per cent from 1997 levels not later than January 1, 2007;

(2) Emit not more than six pounds per megawatt hour of total sulfur dioxide emissions by January 1, 2004, and not more than three pounds per megawatt hour of total sulfur dioxide emissions by January 1, 2007;

(3) Reduce aggregate mercury emissions by an amount equal to ninety per cent from 1999 levels not later than January 1, 2007; and

(4) Reduce aggregate carbon dioxide emissions to 1990 levels not later than January 1, 2007; provided that the department may establish or employ an emissions credit trading mechanism to facilitate compliance with this paragraph.

(b) Honolulu project of waste energy recovery (H-POWER) plants shall be exempt from the emission limitations of this section; provided that construction or major facilities renovation of H-POWER plants after January 1, 2004, shall use the best technology available at the time for limiting emissions.

(c) The director shall adopt rules pursuant to chapter 91 necessary for the purposes of this part.

(d) This section shall not be construed to supersede or replace more stringent emission limitations in other laws.

§342B-D Formulation of pollution plan. The department shall formulate a comprehensive plan for the control or abatement of existing air pollution and the control or prevention of new air pollution, with appropriate variations for different areas of the State. The plan shall include an assessment of mercury air emission sources, establishment of standards to eliminate the threat to public health and the environment of each source, and guidelines for the capturing or recovery of mercury to prevent re-release into the environment. The plan shall be made available to the general public and to entities operating power plants for the purpose of determining safe operation practices."

SECTION 3. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269-   Energy efficient production; rules. The commission shall adopt rules pursuant to chapter 91 to provide policies and incentives to increase energy efficiency of electricity and natural gas use, and efficiency in electricity production; provided that the policies shall:

(1) Facilitate the ability of a public utility to meet the requirements of section 342B-C; and

(2) Be at least as effective as the demand-side policies for end users and advanced supply-side policies for electricity suppliers as described in the U.S. Department of Energy report "Scenarios for a Clean Energy Future", November 2000."

SECTION 4. (a) There is established a clean power act working group to oversee the effectiveness of the emission limitations provided in section 342B-C, Hawaii Revised Statutes, and to advise the legislature as to any need for adjusting the limitations. The advisory committee shall:

(1) Assist the public utilities commission and health department in monitoring the effectiveness of the emission limitations of section 342B-C, Hawaii Revised Statutes; and

(2) Periodically report findings and recommendations to the senate committee on energy and environment and the house committee on energy and environmental protection.

(b) The advisory committee members shall be appointed by the chair of the senate committee on energy and environment and the chair of the house committee on energy and environmental protection, not later than sixty days from the effective date of this Act. The advisory committee shall be composed of seven members, of whom there shall be:

(1) A representative from the public utilities commission;

(2) A representative from the department of health;

(3) A representative from an electric utility company in Hawaii;

(4) A representative that is an expert in the field of power plant emissions; and

(5) Three representatives from the environmental community.

(c) The advisory committee shall elect a chairperson and vice-chairperson from among its members. A majority of the members shall constitute a quorum. The advisory committee shall be placed within the public utilities commission for administrative purposes. Members of the advisory committee shall serve without compensation, but shall be reimbursed for costs incurred in the performance of their duties under this section. The advisory committee shall meet not later than sixty days after appointment.

(d) The advisory committee shall submit a report on the effectiveness of the clean power act emission limitations, including any recommendations for administrative or statutory changes, to the legislature not less than twenty days prior to the convening of the 2006 regular session of the legislature.

SECTION 5. In codifying this Act, the revisor of statutes shall substitute appropriate section numbers for the section references used in this Act.

SECTION 6. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2003.