S.B. NO.



S.D. 2


H.D. 2














SECTION 1. The legislature finds that all Hawaii residents should be able to participate in and enjoy the economic, environmental, and societal benefits of renewable energy. Spurred by the Hawaii clean energy initiative and increasingly affordable clean energy options, such as solar photovoltaic, localized renewable energy generation technology has become increasingly attainable.

While residential solar energy use statewide has grown dramatically in recent years, many residents and businesses are currently unable to directly participate in renewable energy generation because of their location, building type, access to the electric utility grid, and other impediments. The community-based renewable energy program seeks to rectify this inequity by dramatically expanding the market for eligible renewable energy resources to include residential and business renters, occupants of residential and commercial buildings with shaded or improperly oriented roofs, and other groups who are unable to access the benefits of onsite clean energy generation.

The legislature finds that it is in the public interest to promote broader participation in self-generation by Hawaii residents and businesses through the development of community-based renewable energy facilities in which participants are entitled to generate electricity and receive credit for that electricity on their utility bills.

Community-based renewable energy creates new construction jobs, stimulates the economy, reduces emissions of greenhouse gases, promotes energy independence, and assists in meeting the State's clean energy goals. Further, community-based renewable energy enables residents and businesses to save money on their electricity bills, thereby providing additional funds for other purchasing, investment, or other economic activity.

The purpose of this Act is to establish the Hawaii community-based renewable energy program to make the benefits of renewable energy generation more accessible to a greater number of Hawaii residents. The legislature also finds that, in order to facilitate the timely implementation of community-based renewable energy, the electric utilities should collaborate with the department of business, economic development and tourism, and other stakeholders from the renewable energy industry and environment advocacy community, on the development of a community-based renewable energy tariff prior to filing the tariff with the public utilities commission.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"269-   Community-based renewable energy tariffs. (a) Each electric utility in the State shall file a proposed community-based renewable energy tariff with the public utilities commission by October 1, 2015. The public utilities commission shall establish a community-based renewable energy tariff if the tariff is found to be in the public interest and is not unduly discriminatory.

(b) Any person or entity may participate in an eligible community-based renewable energy project.

(c) As used in this section:

"Community-based renewable energy tariff" means a tariff approved by the commission that:

(1) Allows an electric utility customer to participate in an eligible renewable energy project that is providing electricity to the electric utility;

(2) Allows the electric utility to implement a billing arrangement to compensate those customers for the electricity provided to the electric utility;

(3) Is designed to provide fair compensation for electric grid services and other benefits provided to or by the utility, participating ratepayers, and non-participating ratepayers; and

(4) To the extent possible, standardizes the related interconnection processes for community-based renewable energy projects.

"Eligible community-based renewable energy project" means a project that:

(1) Is subject to a community-based renewable energy tariff; and

(2) Generates or produces energy using one or more of the following sources:

(A) Wind;

(B) Sun;

(C) Geothermal;

(D) Falling water;

(E) Biogas, including landfill and sewage-based digester gas;

(F) Ocean water, currents, and waves, including ocean thermal energy conversion;

(G) Biomass, including biomass crops, agricultural and animal residues and wastes, and municipal solid waste and other solid waste;

(H) Biofuels; and

(I) Hydrogen produced from renewable energy sources."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2015.



Report Title:

Community-based Renewable Energy Program; Community-based Renewable Energy Tariff; Public Utilities Commission



Requires electric utilities to file proposed community-based renewable energy tariffs with the public utilities commission by October 1, 2015. Authorizes ratepayer participation in eligible community-based renewable energy projects. (SB1050 HD2)




The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.