THE SENATE

S.B. NO.

2641

TWENTY-EIGHTH LEGISLATURE, 2016

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO PUBLIC UTILITIES.

 

 

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

 


SECTION 1. The legislature finds that preferential rates for the purchase of energy for agricultural activities and incentives to agricultural customers to acquire storage technology will help support the long-term viability of agricultural activities.

The purpose of this Act is to establish preferential rates for the purchase of energy for agricultural activities and provide incentives for agricultural customers to acquire energy storage technology to support the viability of agricultural activities 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-   Preferential energy rates; agricultural activities. (a) The public utilities commission shall establish preferential off-peak rates for the purchase of energy that is used or consumed for agricultural activities.

(b) Upon receipt of a bona fide request for preferential off-peak rates for energy to be used or consumed for agricultural activities and proof that the energy will be used or consumed for agricultural activities, a public utility shall present a request for preferential off-peak rates to the public utilities commission for approval. In reviewing the proposal for preferential off-peak rates, the commission in consultation with the department of agriculture may establish additional criteria for energy used or consumed for agricultural activities; provided that the public utilities commission shall:

(1) Notify the public of the request for preferential off-peak rates;

(2) Consider public comments; and

(3) Approve the request only if the public utilities commission determines that the requested preferential off-peak rates will provide a benefit to ratepayers through improved system operations or other impacts."

SECTION 3. 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-   Agricultural energy storage incentive program. (a) The public utilities commission shall require each electric utility and gas utility to develop an incentive program no later than January 1, 2017, within the electric or gas utility's demand-side management programs authorized by the commission, to provide incentives to an agricultural customer to acquire energy storage technology for use at the agricultural customer's sites.

(b) Eligibility for incentives under the program shall be limited to energy storage technologies that the public utilities commission determines meet all of the following requirements:

(1) The energy storage technology is capable of reducing demand from the grid by offsetting some or all of the customer's onsite energy load, including but not limited to peak electric demand;

(2) The energy storage technology is commercially available;

(3) The energy storage technology safely utilizes the existing transmission and distribution system; and

(4) The energy storage technology improves air quality by reducing air pollutants."

SECTION 4. New statutory material is underscored.

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

 


 


 

Report Title:

Public Utilities Commission; Preferential Energy Rates; Agricultural Activities; Incentives; Energy Storage Technology

 

Description:

Requires the PUC to establish preferential off-peak rates for the purchase of energy that is used or consumed for agricultural activities. Requires the PUC to require electric and gas utilities to develop energy storage technology incentive programs to provide incentives to agricultural customers to acquire energy storage technology for use at the agricultural customers' sites. (SD1)

 

 

 

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