HOUSE OF REPRESENTATIVES
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII
A BILL FOR AN ACT
relating to renewable portfolio standards.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. In 2001, the legislature passed the renewable portfolio standards law, which defined "renewable portfolio standard" as "the percentage of electrical energy sales that is represented by renewable electrical energy." Over time, sections 269-91 and 269-92, Hawaii Revised Statutes, have become verbose and difficult to understand. A cause for the confusion is the definition of "renewable energy". The legislature finds that it is more effective to adopt a different approach by establishing maximum fossil fuel standards, rather than renewable portfolio standards.
SECTION 2. Section 269-91, Hawaii Revised Statutes, is amended to read as follows:
the purposes of this [part]: "Biofuels" means liquid or gaseous
fuels produced from organic sources such as biomass crops, agricultural
residues and oil crops, such as palm oil, canola oil, soybean oil, waste
cooking oil, grease, and food wastes, animal residues and wastes, and sewage
and landfill wastes. "Cost-effective" means the ability
to produce or purchase electric energy or firm capacity, or both, from
renewable energy resources at or below avoided costs or as the commission
otherwise determines to be just and reasonable consistent with the methodology
set by the public utilities commission in accordance with section 269-27.2. "Electric utility company" means a
public utility as defined under section 269-1, for the production, conveyance,
transmission, delivery, or furnishing of power. "Renewable electrical energy"
means: (1) Electrical energy generated using
renewable energy as the source, and beginning January 1, 2015, includes
customer-sited, grid-connected renewable energy generation; and (2) Electrical energy savings brought about
by: (A) The use of renewable
displacement or off-set technologies, including solar water heating, sea-water
air-conditioning district cooling systems, solar air-conditioning, and
customer-sited, grid-connected renewable energy systems; provided that,
beginning January 1, 2015, electrical energy savings shall not include
customer-sited, grid-connected renewable-energy systems; or (B) The use of energy efficiency
technologies, including heat pump water heating, ice storage, ratepayer-funded
energy efficiency programs, and use of rejected heat from co-generation and
combined heat and power systems, excluding fossil-fueled qualifying facilities
that sell electricity to electric utility companies and central station power
projects. "Renewable energy" means energy
generated or produced using the following sources: (1) Wind; (2) The sun; (3) Falling water; (4) Biogas, including landfill and
sewage-based digester gas; (5) Geothermal; (6) Ocean water, currents, and waves,
including ocean thermal energy conversion; (7) Biomass, including biomass crops,
agricultural and animal residues and wastes, and municipal solid waste and
other solid waste; (8) Biofuels; and (9) Hydrogen produced from renewable
energy sources. "Renewable portfolio standard"
means the percentage of electrical energy sales that is represented by renewable
Renewable portfolio standards. (a) All public utilities regulated by the public utilities commission shall have a maximum fossil fuel standard of:
(1) Seventy-five per cent by December 31, 2020;
(2) Forty per cent by December 31, 2030; and
(3) Zero per cent by December 31, 2045.
(b) The public utilities commission may establish reasonable interim percentages, variances, and penalties.
(c) As used in this section:
"Fossil fuel" means coal, natural gas, petroleum, and their byproducts. Where fuels are produced by a combination of renewable and fossil fuel means, the proportion attributable to fossil fuels shall be credited as fossil fuel.
"Fossil fuel standard" means the percentage of sales that is represented by fossil fuel."
SECTION 3. Section 269-92, Hawaii Revised Statutes, is repealed.
§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; (4) Forty per cent of its net electricity sales
by December 31, 2030; (5) Seventy per cent of its net electricity
sales by December 31, 2040; and (6) One hundred per cent of its net
electricity sales by December 31, 2045. (b) The public utilities commission may
establish standards for each utility that prescribe what portion of the
renewable portfolio standards 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
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
outside of 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
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on January 1, 2017.
Renewable Portfolio Standards; Public Utilities Commission; Fossil Fuel Standards
Simplifies the renewable portfolio standards law by establishing maximum fossil fuel standards instead. Allows the Public Utilities Commission to establish reasonable interim percentages, variances, and penalties.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.