THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII
A BILL FOR AN ACT
relating to renewable energy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Act 97, Session Laws of Hawaii 2015, amended section 269-92, Hawaii Revised Statutes, to establish a one hundred per cent renewable portfolio standard by December 31, 2045, with the intent to transition the State away from imported fuels and toward renewable local resources that provide a secure source of affordable energy. Since that time, the need to reduce carbon emissions globally to avoid the worst impacts of climate change has become increasingly urgent. In addition, studies indicate that accelerating the adoption of renewable energy will cost less than the course laid out by the current renewable portfolio standard interim benchmarks. Speeding up the deployment of renewable energy will also create thousands of jobs and will position Hawaii at the forefront of energy innovation and investment.
Currently, the calculation of the renewable portfolio standard, based on the definition of renewable portfolio standard enacted in 2001 and amended in 2006, is the percentage of electrical energy sales that is represented by renewable electrical energy. The legislature finds that the calculation of the renewable portfolio standard based on electrical energy sales (renewable electrical energy sales divided by total electrical sales), rather than on electrical energy generation (renewable electrical energy generation divided by total electrical energy generation), overestimates the amount of renewable energy serving Hawaii's electric utility customers. There are two fundamental issues that lead to the current discrepancy:
(1) The current renewable portfolio standard calculation inflates the reported percentage of renewable energy by excluding customer-sited, grid-connected energy generation in the denominator, which becomes material with higher levels of customer-sited, grid-connected renewable energy generation and higher renewable portfolio standard percentages; and
(2) The current electrical energy sales number does not include energy losses that occur between the points of electrical energy generation and the customer meter, where sales are measured.
Failure to address these issues creates an incorrect measure of the State's progress toward its statutory goal of one hundred per cent renewable energy.
Therefore, the purpose of this Act is to:
(1) Amend the renewable portfolio standard interim goals for 2030 and 2040 to accelerate the adoption of renewable energy; and
(2) Amend the definition of renewable portfolio standard to more accurately reflect the percentage of renewable energy used in the State.
SECTION 2. Section 269-91, Hawaii Revised Statutes, is amended by amending the definition of "renewable portfolio standard" to read as follows:
portfolio standard" means the percentage of electrical energy [
generation that is represented by renewable electrical energy."
SECTION 3. Section 269-92, Hawaii Revised Statutes, is amended to read as follows:
"§269-92 Renewable portfolio standards. (a) Each electric utility company that sells electricity for consumption in the State shall establish a renewable portfolio standard of:
(1) Ten per cent of its net electricity sales by December 31, 2010;
(2) Fifteen per cent of its net electricity sales by December 31, 2015;
(3) Thirty per cent of its net electricity sales by December 31, 2020;
Forty] Sixty-five per cent of
its net electricity [ sales] generation by December 31, 2030;
Seventy] Eighty-five per cent
of its net electricity [ sales] generation by December 31, 2040;
(6) One hundred per cent of its net electricity [
generation by December 31, 2045.
(b) The public utilities commission may establish
standards for each electric utility company that prescribe [
the portion of the renewable portfolio standards that shall be
met by specific types of renewable energy resources; provided that:
(1) Prior to January 1, 2015, at least fifty per cent of the renewable portfolio standards shall be met by electrical energy generated using renewable energy as the source, and after December 31, 2014, the entire renewable portfolio standard shall be met by electrical generation from renewable energy sources;
(2) Beginning January 1, 2015, electrical energy savings shall not count toward renewable energy portfolio standards;
(3) Where electrical energy is generated or displaced by a combination of renewable and nonrenewable means, the proportion attributable to the renewable means shall be credited as renewable energy; and
(4) Where fossil and renewable fuels are co-fired in the same generating unit, the unit shall be considered to generate renewable electrical energy (electricity) in direct proportion to the percentage of the total heat input value represented by the heat input value of the renewable fuels.
(c) If the public utilities commission determines
that an electric utility company failed to meet the renewable portfolio
standard, after a hearing in accordance with chapter 91, the utility shall be
subject to penalties to be established by the public utilities commission;
provided that if the commission determines that the electric utility company is
unable to meet the renewable portfolio standards [
due to] because of
reasons beyond the reasonable control of an electric utility, as set forth in
subsection (d), the commission, in its discretion, may waive in whole or in
part any otherwise applicable penalties.
(d) Events or circumstances that are [
of] beyond an electric utility company's reasonable control may
include, to the extent the event or circumstance could not be reasonably
foreseen and ameliorated:
(1) Weather-related damage;
(2) Natural disasters;
(3) Mechanical or resource failure;
(4) Failure of renewable electrical energy producers to meet contractual obligations to the electric utility company;
(5) Labor strikes or lockouts;
(6) Actions of governmental authorities that adversely affect the generation, transmission, or distribution of renewable electrical energy under contract to an electric utility company;
(7) Inability to acquire sufficient renewable electrical energy due to lapsing of tax credits related to renewable energy development;
(8) Inability to obtain permits or land use approvals for renewable electrical energy projects;
(9) Inability to acquire sufficient cost-effective renewable electrical energy;
(10) Inability to acquire sufficient renewable electrical energy to meet the renewable portfolio standard goals beyond 2030 in a manner that is beneficial to Hawaii's economy in relation to comparable fossil fuel resources;
(11) Substantial limitations, restrictions, or prohibitions on utility renewable electrical energy projects; and
(12) Other events and circumstances of a similar
.] that could not be reasonably foreseen and ameliorated."
SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2020.
Renewable Portfolio Standard; Electricity
Amends the definition of renewable portfolio standard to be a percentage of electrical energy generation, rather than sales. Amends the renewable portfolio standard interim goals for 2030 and 2040 to accelerate the adoption of renewable energy.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.