HOUSE OF REPRESENTATIVES |
H.B. NO. |
1945 |
TWENTY-SIXTH LEGISLATURE, 2012 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO PUBLIC UTILITIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that for farmers and ranchers to remain competitive and self-sustaining, the State must provide incentives and mechanisms to ensure that all means of supporting the local agriculture industry are implemented. The public utilities commission regulates the rates charged for public utilities that provide essential services to the agriculture industry such as water, interisland shipping, and electricity.
The purpose of this Act is to provide for preferential rates for public utility services provided to ratepayers engaged in agricultural activities on land within an agricultural district.
SECTION 2. Section 269-26.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§269-26.5[]]
Preferential [water] public utility rates for agricultural
activities. (a) It is the policy of the State to promote the long-term
viability of agriculture by establishing mechanisms that provide for
preferential rates for [potable water for] public utility services
that are provided to ratepayers that engage in agricultural activities[.]
on land within agricultural districts. The public utilities commission
shall have the authority to establish preferential rates for [potable water]
public utility services that are used by ratepayers for
agricultural activities on land within agricultural districts in a
public utility's service area.
(b) Upon receipt of a bona fide request for
preferential rates for [potable water] any public utility service
to be used for agricultural activities[,] on lands within an
agricultural district, and proof that the customer engages in agricultural
activities[,] on lands within an agricultural district, a public
utility [shall] may provide proposed preferential rates for [potable
water] the requested public utility service, including but not limited
to potable water, electricity, and freight transport, to be used only for
qualified agricultural activities subject to the public utilities
commission for approval. All such rates approved by the public utilities
commission shall be subsidized by the [potable water] rates charged to
other customers of the public utility, if required, as determined
by the public utilities commission. In reviewing the proposed preferential
rates, the public utilities commission, in consultation with the department of
agriculture, may establish additional criteria to qualify bona fide
agribusinesses for [water] public utility services used solely
for agricultural activities[. For rate cases initiated pursuant to this
section, the public utilities commission shall allow the recovery of any
reasonable unamortized costs incurred by the public utility in its previous
rate case; provided however, upon full amortization of these costs, rates shall
be adjusted accordingly.] on lands within an agricultural district."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
Public Utilities; Rates; Agriculture
Description:
Authorizes public utilities to propose preferential rates for public utility services provided to ratepayers engaged in agricultural activities in agricultural districts. Effective July 1, 2050. (HB1945 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.