S.B. NO.














relating to renewable energy.





SECTION 1. The legislature finds that the State has committed to transition away from fossil fuels and towards a clean energy economy powered by one hundred per cent renewable energy. The State has also committed to reducing carbon emissions. This renewable energy transformation will help to stabilize and strengthen Hawaii's economy by reducing its dependency on imported and price-volatile fossil fuels, foster innovation and clean energy job growth, help protect Hawaii's environment by greatly reducing carbon emissions by replacing fossil fuel energy with renewable energy, and positioning Hawaii as a global leader in renewable energy and climate solutions.

The legislature took a bold and decisive step toward achieving its renewable energy goals by passing Act 23, Session Laws of Hawaii 2020, that eliminated the use of coal in Hawaii for electricity production. Hawaii must further commit to the path of eliminating the use of all types of fossil fuels for electricity generation, not just coal-powered electricity generation. The legislature further finds that Hawaii must also eliminate the use of fossil fuel-powered electricity generated for battery energy storage resources interconnected to a public utilities' grid. Not only does fossil fuel-powered electricity used to fill battery energy storage resources further encourage fossil fuel use, but it also results in inherent inefficiencies and higher costs to ratepayers because of wasteful energy losses when fossil fuel-powered electricity flows through a battery energy storage resource prior to distribution to ratepayers on the grid.

The purpose of this Act is to eliminate fossil fuels in Hawaii for electricity generation and storage.

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

"269-   Elimination of fossil fuels for electricity production. (a) Beginning after           , the public utilities commission shall not approve or extend:

(1) Any electricity generation facility that applies or proposes to use fossil fuels to generate electricity or to store electricity into a public utility grid-tied battery energy storage system resource; or

(2) Any material improvements, overhauling, or refurbishing of any existing electricity generation facilities that extend the life of fossil fuel-powered electricity generation facilities or storage facilities that use fossil fuel-powered electricity.

(b) By the end of           , electricity generation facilities shall cease the use of all fossil fuels for the generation or storage of electricity.

(c) The public utilities commission shall not approve any application or proposal for public utility cost recovery for any generation or storage facilities that use fossil fuels, except as provided under section 269-6(d)(3)."

SECTION 3. Section 269-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The public utilities commission shall consider the need to reduce the State's reliance on fossil fuels through energy efficiency and increased renewable energy generation in exercising its authority and duties under this chapter. In making determinations of the reasonableness of the costs of fossil fuel electricity generation and fossil fuel-powered battery energy storage utility system capital improvements and operations, the commission shall explicitly consider, quantitatively or qualitatively, the effect of the State's reliance on fossil fuels on [price]:

(1) Price volatility[, export];

(2) Export of funds for fuel imports[, fuel];

(3) Fuel supply reliability risk[, and greenhouse]; and

(4) Greenhouse gas emissions.

The commission may determine that short-term costs or direct costs of renewable energy generation and renewable energy-powered battery energy storage that are higher than alternatives relying more heavily on fossil fuels are reasonable, considering the impacts resulting from the use of fossil fuels."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.








Report Title:

Renewable Energy Generation; Fossil Fuel; Prohibition



Prohibits, after           , any new extension, improvements, overhauling, or refurbishing of any fossil fuel electricity generation or fossil-fuel powered electricity use for grid-tied battery energy storage. Prohibits after     , the use of fossil fuels for electricity generation or grid-tied battery energy storage.




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