HOUSE OF REPRESENTATIVES

H.B. NO.

72

THIRTIETH LEGISLATURE, 2019

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to microgrid certificates of public convenience and necessity.

 

 

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

 


SECTION 1. Act 200, Session Laws of Hawaii 2018, requires the public utilities commission to "open a proceeding to establish a microgrid services tariff." Act 200 defines "microgrid project" and "microgrid services tariff."

By contrast, the national debate about what is and is not a microgrid is dynamic and changing. Boundaries are being blurred. Microgrids may be anything that can be islanded or that can maintain power when the utility grid goes down. As a result, a microgrid can range from a single house with solar panels, to a military base with diesel generators, or a section of the utility grid. A microgrid can be located on either side or both sides of the meter; it can be owned by an individual, an association, a third party, or a utility; it can operate as the primary or backup power source; its dispatch can be controlled by the microgrid operator or the utility; and it can be autonomous, intermittently interconnected, or permanently connected to the utility grid.

Section 269-7.5, Hawaii Revised Statutes, states, "No public utility, as defined in section 269-1, shall commence its business without first having obtained from the commission a certificate of public convenience and necessity." Not all microgrids are regulated by the public utilities commission, but all non-regulated microgrids could become regulated by interconnecting to a utility grid. Understanding both regulated and unregulated microgrids can lead to better decision-making. Regulators, utilities, third parties, investors, and communities want varying degrees of certainty.

Accordingly, the purpose of this Act is to allow microgrid owners and operators to file an application for a microgrid certificate of public convenience and necessity to provide greater certainty in the regulation of microgrid projects in the State.

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

"269-   Microgrid certificates of public convenience and necessity. (a) Microgrid owners and operators may file an application with the public utilities commission for a microgrid certificate of public convenience and necessity.

(b) The public utilities commission shall adopt rules pursuant to chapter 91 to establish the minimum standards for microgrid certificates of public convenience and necessity provided for in this section and as otherwise required by law."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Microgrids; Certificates of Public Convenience and Necessity

 

Description:

Allows microgrid owners and operators to file for a certificate of public convenience and necessity.

 

 

 

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