REPORT TITLE:
Utility Lines


DESCRIPTION:
Improves evaluation process by valuing aesthetic benefits and
makes appropriation to quantify benefits of undergrounding;
requires independent preparation of EIS; establishes intervenors
programs and appropriates funds for PUC web page for consumers;
requires use of ADR prior to hearing; establishes a conversion
program and establishes fund to pay for program; establishes one-
call system to locate underground facilities.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2843
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO UTILITY LINES.



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

 1      SECTION 1.  The legislature finds there is increasing
 
 2 community interest in the placement of existing and proposed
 
 3 overhead utility facilities underground for a variety of reasons
 
 4 including the desire to preserve, protect, and enhance the visual
 
 5 environment and scenic resources for residents and visitors
 
 6 worldwide.
 
 7      The legislative reference bureau was requested by Senate
 
 8 Concurrent Resolution No. 30, Regular Session of 1999, to conduct
 
 9 a policy and issue study concerning the underground of overhead
 
10 utility facilities.  In conducting the study, the bureau
 
11 consulted with the utilities, the public utility commission, the
 
12 consumer advocate, environmental organizations, and community
 
13 members.  After specifically reviewing topics such as the type of
 
14 line, location, benefits of undergrounding, costs, public
 
15 sentiment, technological issues and legal matters, and studying
 
16 how other jurisdictions have handled the issue of undergrounding
 
17 utility lines, the bureau proposed several suggestions for
 
18 legislation.
 
19      The purpose of this Act is to implement the legislative
 

 
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 1 reference bureau's recommendations for evaluating whether utility
 
 2 lines should be underground and the conversion of existing
 
 3 overhead to underground lines.  This Act incorporates alternative
 
 4 approaches in the areas of valuation and conversion where the
 
 5 bureau recommended these subjects be addressed, but did not
 
 6 recommend one alternative over the other.  This Act:
 
 7      (1)  Improves the evaluation process by requiring the
 
 8           determination of the need for a project by the public
 
 9           utilities commission prior to acceptance of a
 
10           conservation district use application;
 
11      (2)  Sets standards in regard to the value of benefits by
 
12           establishing in the law that aesthetic benefits of the
 
13           natural landscape are valued, and, alternately, makes
 
14           an appropriation to quantify the benefits of
 
15           underground utility lines;
 
16      (3)  Establishes an independent review by requiring the
 
17           independent preparation of environmental impact
 
18           statements required by regulated utilities; 
 
19      (4)  Encourages consumer participation and open
 
20           communication by directing the public utilities
 
21           commission to establish an intervenors program and a
 
22           one-call system to identify the location of underground
 

 
 
 
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 1           utilities, and appropriating funds to establish a world
 
 2           wide web page that educates and informs consumers about
 
 3           the activities, processes, and procedures of the public
 
 4           utilities commission; 
 
 5      (5)  Encourages the settlement in areas of interests and
 
 6           concerns of separate parties by authorizing the public
 
 7           utilities commission to require the use of alternative
 
 8           dispute resolution process prior to a hearing;
 
 9      (6)  Directs the public utilities commission to establish a
 
10           program to convert overhead utility lines to
 
11           underground and to establish and administer a fund to
 
12           pay for the program; and
 
13      (7)  Addresses safety issues of existing and future
 
14           underground lines by establishing a one-call system to
 
15           identify the location of underground facilities.
 
16                        PART I.  PROCESSES
 
17      SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended
 
18 by adding a new section to be appropriately designated and to
 
19 read as follows:
 
20      "§269-     Authorization of need; conservation district use
 
21 permits.  Whenever a regulated utility proposes a capital project
 
22 within the boundaries of the conservation district for which an
 

 
 
 
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 1 environmental impact statement is required under chapter 343, the
 
 2 commission shall issue an order authorizing or denying the need
 
 3 and scope of the project prior to the acceptance of a completed
 
 4 application for a conservation district use permit by the
 
 5 department of land and natural resources under section 183C-6."
 
 6      SECTION 3.  Section 183C-6, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (b) to read as follows:
 
 8      "(b)  The department shall render a decision on a completed
 
 9 application for a permit within one-hundred-eighty days of its
 
10 acceptance by the department.  In the case of a public utility
 
11 proposing a capital project within the boundaries of the
 
12 conservation district for which an environmental impact statement
 
13 is required pursuant to chapter 343, no application shall be
 
14 deemed to be complete until the department has received an order
 
15 from the public utilities commission authorizing the need and
 
16 scope of the proposed action pursuant to section 269-   .  If
 
17 within one-hundred-eighty days after acceptance of a completed
 
18 application for a permit, the department shall fail to give
 
19 notice, hold a hearing, and render a decision, the owner may
 
20 automatically put the owner's land to the use or uses requested
 
21 in the owner's application.  When an environmental impact
 
22 statement is required pursuant to chapter 343, or when a
 

 
 
 
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 1 contested case hearing is requested pursuant to chapter 91, the
 
 2 one-hundred-eighty days may be extended an additional ninety days
 
 3 at the request of the applicant.  Any request for additional
 
 4 extensions shall be subject to the approval of the board."
 
 5                   PART II.  VALUING INTANGIBLES
 
 6      SECTION 4.  Chapter 269, Hawaii Revised Statutes, is amended
 
 7 by adding a new section to be appropriately designated and to
 
 8 read as follows:
 
 9      "§269-     Value of benefits.  It is the policy of the State
 
10 with regard to the placement of utility lines to value the
 
11 aesthetic benefit of the natural landscape in residential and
 
12 conservation zoned districts above all else."
 
13      SECTION 5.  Section 269-27.6, Hawaii Revised Statutes,
 
14 requires the evaluation of whether a benefit of underground high-
 
15 voltage utility lines exists that outweighs the costs of placing
 
16 the system underground.  This Act appropriates funds to enable
 
17 the consumer advocate to quantify the benefits accurately and
 
18 include the measurement of externalities.
 
19      SECTION 6.  There is appropriated out of the general
 
20 revenues of the State of Hawaii the sum of $500,000, or so much
 
21 thereof as may be necessary for fiscal year 2000-2001, to develop
 
22 measures to quantify the benefits of underground high-voltage
 

 
 
 
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 1 utility lines including the measurement of externalities
 
 2 associated with underground lines.  The sum appropriated shall be
 
 3 expended by the division of consumer advocacy of the department
 
 4 of commerce and consumer affairs for the purposes of this Act.
 
 5                   PART III.  INDEPENDENT REVIEW
 
 6      SECTION 7.  Section 343-5, Hawaii Revised Statutes, is
 
 7 amended by amending subsection (c) to read as follows:
 
 8      "(c)  Whenever an applicant proposes an action specified by
 
 9 subsection (a) which requires approval of an agency, and which is
 
10 not a specific type of action declared exempt under section
 
11 343-6, the agency receiving the request for approval shall
 
12 prepare an environmental assessment of such proposed action at
 
13 the earliest practicable time to determine whether an
 
14 environmental impact statement shall be required.  For
 
15 environmental assessments for which a finding of no significant
 
16 impact is anticipated, a draft environmental assessment shall be
 
17 made available for public review and comment for a period of
 
18 thirty days.  The office shall inform the public of the
 
19 availability of the draft environmental assessment for public
 
20 review and comments pursuant to section 343-3.  The applicant
 
21 shall respond in writing to comments received during the review
 
22 and the agency shall prepare a final environmental assessment to
 

 
 
 
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 1 determine whether an environmental impact statement shall be
 
 2 required.  A statement shall be required if the agency finds that
 
 3 the proposed action may have a significant effect on the
 
 4 environment.  The agency shall file notice of such determination
 
 5 with the office which, in turn, shall publish the agency's
 
 6 determination for the public's information pursuant to section
 
 7 343-3.  The draft and final statements, if required, shall be
 
 8 prepared by [the applicant,] either:
 
 9      (1)  The applicant, who shall file these statements with the
 
10           office[.]; or
 
11      (2)  If the applicant is a regulated utility under chapter
 
12           269, by a qualified environmental consultant retained
 
13           under contract by the office in accordance with the
 
14           competitive sealed bidding or the competitive sealed
 
15           proposals source selection methods established under
 
16           sections 103D-302 and 103D-303, respectively.  No
 
17           prospective consultant who is in any way affiliated
 
18           with the applicant, or who has ever received
 
19           remuneration in the past from the applicant for
 
20           services rendered, shall be allowed to submit bids for
 
21           the preparation of a statement under this subsection.
 
22           The applicant shall reimburse the office for all
 

 
 
 
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 1           contractual as well as reasonable administrative costs
 
 2           incurred by the office as a result of negotiating the
 
 3           contract immediately upon the ascertainment of the
 
 4           contract amount by the office.
 
 5      The draft statement shall be made available for public
 
 6 review and comments through the office for a period of forty-five
 
 7 days.  The office shall inform the public of the availability of
 
 8 the draft statement for public review and comments pursuant to
 
 9 section 343-3.  The applicant shall respond in writing to
 
10 comments received during the review and shall submit a request to
 
11 the office to begin the competitive process of selecting a
 
12 consultant, as required under this subsection, to prepare a final
 
13 statement.  The office, when requested by the applicant or
 
14 agency, may make a recommendation as to the acceptability of the
 
15 final statement.  The authority to accept a final statement shall
 
16 rest with the agency receiving the request for approval.
 
17 Acceptance of a required final statement shall be a condition
 
18 precedent to approval of the request and commencement of proposed
 
19 action.  Upon acceptance or nonacceptance of the final statement,
 
20 the agency shall file notice of such determination with the
 
21 office.  The office, in turn, shall publish the determination of
 
22 acceptance or nonacceptance of the final statement pursuant to
 

 
 
 
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 1 section 343-3.  The agency receiving the request, within thirty
 
 2 days of receipt of the final statement, shall notify the
 
 3 applicant and the office of the acceptance or nonacceptance of
 
 4 the final statement.  The final statement shall be deemed to be
 
 5 accepted if the agency fails to accept or not accept the final
 
 6 statement within thirty days after receipt of the final
 
 7 statement; provided that the thirty-day period may be extended at
 
 8 the request of the applicant for a period not to exceed fifteen
 
 9 days.
 
10      In any acceptance or nonacceptance, the agency shall provide
 
11 the applicant with the specific findings and reasons for its
 
12 determination.  An applicant, within sixty days after
 
13 nonacceptance of a final statement by an agency, may appeal the
 
14 nonacceptance to the environmental council, which, within thirty
 
15 days of receipt of the appeal, shall notify the applicant of the
 
16 council's determination.  In any affirmation or reversal of an
 
17 appealed nonacceptance, the council shall provide the applicant
 
18 and agency with specific findings and reasons for its
 
19 determination.  The agency shall abide by the council's
 
20 decision."
 
21          PART IV.  PARTICIPATION AND OPEN COMMUNICATION
 
22      SECTION 8.  Chapter 269, Hawaii Revised Statutes, is amended
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 by adding a new section to be appropriately designated and to
 
 2 read as follows:
 
 3      "§269-     Intervenor program.  The commission shall
 
 4 establish an intervenor program that assists consumers who have
 
 5 significant information to contribute to hearings and other
 
 6 proceedings before the commission that is outside the scope of
 
 7 the functions of the consumer advocate.  The intervenor program
 
 8 shall include procedural assistance and financial compensation
 
 9 for consumer costs including reasonable consultant and attorney's
 
10 fees.  The commission shall adopt rules under chapter 91 for the
 
11 implementation of and to establish standards for the intervenor
 
12 program."
 
13      SECTION 9.  There is appropriated out of the general
 
14 revenues of the State of Hawaii the sum of $       , or so much
 
15 thereof as may be necessary for fiscal year 2000-2001, to the
 
16 public utilities commission to create and maintain an information
 
17 and communication resource accessible through the world wide web.
 
18      SECTION 10.  The sum appropriated shall be expended by the
 
19 public utilities commission for the purposes of this Act.
 
20                        PART V.  SETTLEMENT
 
21      SECTION 11.  Chapter 269, Hawaii Revised Statutes, is
 
22 amended by adding a new section to be appropriately designated
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 and to read as follows:
 
 2      "§269-     Alternative dispute resolution.  The commission
 
 3 may require the parties in any matter before the commission to
 
 4 participate in arbitration, mediation, or other alternative
 
 5 dispute resolution process prior to the hearing."
 
 6                       PART VI.  CONVERSION
 
 7      SECTION 12.  Chapter 269, Hawaii Revised Statutes, is
 
 8 amended by adding three new sections to be appropriately
 
 9 designated and to read as follows:
 
10      "§269-    Conversion program.  The commission shall
 
11 establish a conversion program that allows for the systematic
 
12 conversion of overhead utility lines to underground lines.  The
 
13 conversion program shall:
 
14      (1)  Authorize each county to determine underground zones by
 
15           ordinance;
 
16      (2)  Require any utility that transports or distributes
 
17           services across utility lines and cables to contribute
 
18           to the funding of the program provided that annual
 
19           contributions from the utilities shall not exceed two
 
20           per cent of annual gross revenues; and
 
21      (3)  Establish criteria that allocates funding to each
 
22           county for its underground conversion zones.
 

 
 
 
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 1      The commission shall adopt rules according to chapter 91 for
 
 2 the implementation of and to establish standards for the
 
 3 conversion program.
 
 4      §269-A  Underground conversion fund.  (a)  There is
 
 5 established in the state treasury the underground conversion
 
 6 fund, which shall be administered by the commission.  The
 
 7 following revenues shall be deposited into the fund:
 
 8      (1)  Legislative appropriations;
 
 9      (2)  Voluntary contributions including any contributions
 
10           paid along with state income tax due or amounts paid in
 
11           excess of a utility bill that is part of a "round-up"
 
12           program; and
 
13      (3)  Contributions by a utility by order of the commission.
 
14      (b)  All moneys from the fund shall be used for the
 
15 conversion of overhead utility lines to underground facilities.
 
16 The conversion of overhead utility lines includes the planning,
 
17 design, and construction of the new facilities and the removal of
 
18 the old overhead facilities.
 
19      (c)  The commission shall establish criteria allocating
 
20 funds to counties that determine undergrounding zones through
 
21 special improvement districts by ordinance.
 
22      (d)  The commission shall adopt rules according to
 

 
 
 
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 1 chapter 91 to carry out the administration of the fund.
 
 2      §269-B  Allocation of revenues to underground conversion
 
 3 fund.  (a)  The commission shall establish an annual allocation
 
 4 of revenues from each utility company having above ground
 
 5 facilities.  The allocation shall be deposited into the
 
 6 underground conversion fund established in section 269-A.
 
 7 Revenues allocated annually to the fund by each utility shall not
 
 8 exceed two per cent of the annual gross revenues of the utility.
 
 9      (b)  The commission shall allow the utilities to collect
 
10 voluntary contributions by consumers for deposit into the fund
 
11 through a "round-up" program.  A round-up program is a program in
 
12 which consumers may choose to round their utility bill up to the
 
13 nearest dollar.  The difference between the actual bill and the
 
14 rounded amount is deposited into the underground conversion fund.
 
15 The round-up program shall be administered by the utility.  All
 
16 funds collected by a utility in a round-up program shall be
 
17 deposited monthly into the underground conversion fund.  Any
 
18 funds collected by a utility through a round-up program shall be
 
19 excluded in determining the annual gross revenue of the utility."
 
20      SECTION 13.  Chapter 235, Hawaii Revised Statutes, is
 
21 amended by adding a new section to be appropriately designated
 
22 and to read as follows:
 

 
 
 
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 1      "§235-     Voluntary contributions to the underground
 
 2 conversion fund.  The director shall allow for taxpayers to
 
 3 designate and pay a voluntary contribution to the underground
 
 4 conversion fund on their annual income tax return.  The voluntary
 
 5 contribution shall be added to the final income tax due or
 
 6 subtracted from any refund due and may be allocated to the
 
 7 underground conversion fund, if applicable."
 
 8                         PART VII.  SAFETY
 
 9      SECTION 14.  Chapter 269, Hawaii Revised Statutes, is
 
10 amended by adding a new section to be appropriately designated
 
11 and to read as follows:
 
12      "§269-     One-call system.  (a)  The commission shall
 
13 establish or authorize an independent entity to establish and
 
14 maintain a one-call system to identify the location of
 
15 underground facilities before January 1, 2001.  All owners of
 
16 underground facilities shall subscribe to the service.
 
17      (b)  Before commencing any excavation, an excavator shall
 
18 provide notice of the scheduled commencement of excavation to the
 
19 one-call system.  All underground facilities shall be identified
 
20 through the one-number locator service.  The notice shall be
 
21 communicated to the one-call system not less than two business
 
22 days or more than ten business days before the scheduled date for
 

 
 
 
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 1 commencement of excavation, unless otherwise agreed by the
 
 2 parties.
 
 3      Upon receipt of the notice provided for in this section, the
 
 4 excavator shall obtain reasonably accurate information as to
 
 5 locatable underground facilities by surface-marking the location
 
 6 of the facilities.  Excavators shall have the right to receive
 
 7 compensation from the owner of the underground facility for costs
 
 8 incurred if the owner of the underground facility does not locate
 
 9 its facilities in accordance with this section.  The owner of the
 
10 underground facility shall have the right to receive compensation
 
11 for costs incurred in responding to excavation notices given less
 
12 than two business days prior to the excavation from the
 
13 excavator.
 
14      Emergency excavations shall be exempt from the time
 
15 requirements for notification provided in this section.
 
16      If the excavator, while performing the contract, discovers
 
17 underground facilities that are not identified, the excavator
 
18 shall cease excavating in the vicinity of the facility and
 
19 immediately notify the one-number locator service.
 
20      (c)  Unless the context clearly requires otherwise, as used
 
21 in this section:
 
22      "Business day" means any day other than Saturday, Sunday, or
 

 
 
 
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 1 a legal state or federal holiday.
 
 2      "Emergency" means any condition constituting a clear and
 
 3 present danger to life or property, or a customer service outage.
 
 4      "Excavation" means any operation in which earth, rock, or
 
 5 other material on or below the ground is moved or otherwise
 
 6 displaced by any means, except the tilling of soil less than
 
 7 twelve inches in depth for agricultural purposes, or road and
 
 8 ditch maintenance that does not change the original road grade or
 
 9 ditch flowline.
 
10      "Excavator" means any person who engages directly in
 
11 excavation.
 
12      "Marking" means the use of stakes, paint, or other clearly
 
13 identifiable materials to show the field location of underground
 
14 facilities, in accordance with the current color code standard of
 
15 the American public works association.  Markings shall include
 
16 identification letters indicating the specific type of the
 
17 underground facility.
 
18      "Reasonably accurate" means location within twenty-four
 
19 inches of the outside dimensions of both sides of an underground
 
20 facility.
 
21      "Underground facility" means any item buried or placed below
 
22 ground for use in connection with the storage or conveyance of
 

 
 
 
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 1 water, sewage, electronic, telephonic or telegraphic
 
 2 communications, cablevision, electric energy, petroleum products,
 
 3 gas, gaseous vapors, hazardous liquids, or other substances and
 
 4 including but not limited to pipes, sewers, conduits, cables,
 
 5 valves, lines, wires, manholes, attachments, and those parts of
 
 6 poles or anchors below ground.
 
 7      "One-number locator service" means a service through which a
 
 8 person can notify utilities and request field-marking of
 
 9 underground facilities.
 
10      (d)  The commission may adopt rules pursuant to chapter 91
 
11 to implement this section."
 
12      SECTION 15.  In codifying the new sections added by part VI
 
13 of this Act, the revisor of statutes shall substitute appropriate
 
14 section numbers for the letters used in the new sections
 
15 designated in this Act.
 
16      SECTION 16.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 17.  This Act shall take effect upon its approval.
 
19 
 
20                           INTRODUCED BY:  _______________________