REPORT TITLE:
Utility Lines


DESCRIPTION:
Improves evaluation process by valuing aesthetic benefits and
makes appropriation to quantify benefits of undergrounding;
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. (HB2843 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2843
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
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 that 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 alike.
 
 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 undergrounding of
 
10 overhead utility facilities.  In conducting the study, the bureau
 
11 consulted with the utilities, the public utilities commission,
 
12 the 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
 
20 reference bureau's recommendations for evaluating whether utility
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 lines should be underground and the conversion of existing
 
 2 overhead lines to underground lines.  This Act incorporates
 
 3 alternative approaches in the areas of valuation and conversion
 
 4 where the bureau recommended these subjects be addressed, but did
 
 5 not recommend one alternative over the other.  This Act:
 
 6      (1)  Improves the evaluation process by requiring the
 
 7           determination of the need for a project by the public
 
 8           utilities commission prior to acceptance of a
 
 9           conservation district use application;
 
10      (2)  Sets standards in regard to the value of benefits by
 
11           establishing in the law that aesthetic benefits of the
 
12           natural landscape are valued, and, alternately, makes
 
13           an appropriation to quantify the benefits of
 
14           underground utility lines;
 
15      (3)  Encourages consumer participation and open
 
16           communication by directing the public utilities
 
17           commission to establish an intervenor program and a
 
18           one-call system to identify the location of underground
 
19           utilities, and appropriating funds to establish a world
 
20           wide web page that educates and informs consumers about
 
21           the activities, processes, and procedures of the public
 
22           utilities commission; 
 
23      (4)  Encourages the settlement in areas of interests and
 

 
Page 3                                                     2843
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           concerns of separate parties by authorizing the public
 
 2           utilities commission to require the use of an
 
 3           alternative dispute resolution process prior to a
 
 4           hearing;
 
 5      (5)  Directs the public utilities commission to establish a
 
 6           program to convert overhead utility lines to
 
 7           underground lines and to establish and administer a
 
 8           fund to pay for the program; and
 
 9      (6)  Addresses safety issues of existing and future
 
10           underground lines, including high-voltage utility
 
11           lines, by establishing a one-call system to identify
 
12           the location of underground facilities.
 
13                        PART I.  PROCESSES
 
14      SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended
 
15 by adding a new section to be appropriately designated and to
 
16 read as follows:
 
17      "§269-     Authorization of need; conservation district use
 
18 permits.  Whenever a regulated utility proposes a capital project
 
19 within the boundaries of the conservation district for which an
 
20 environmental impact statement is required under chapter 343, the
 
21 commission shall issue an order authorizing or denying the need
 
22 and scope of the project prior to the acceptance of a completed
 
23 application for a conservation district use permit by the
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 department of land and natural resources under section 183C-
 
 2 6(b)."
 
 3      SECTION 3.  Section 183C-6, Hawaii Revised Statutes, is
 
 4 amended by amending subsection (b) to read as follows:
 
 5      "(b)  The department shall render a decision on a completed
 
 6 application for a permit within [one-hundred-eighty] one hundred
 
 7 eighty days of its acceptance by the department.  In the case of
 
 8 a public utility proposing a capital project within the
 
 9 boundaries of the conservation district for which an
 
10 environmental impact statement is required pursuant to chapter
 
11 343, no application shall be deemed to be complete until the
 
12 department has received an order from the public utilities
 
13 commission authorizing the need and scope of the proposed action
 
14 pursuant to section 269-   .  If within [one-hundred-eighty] one
 
15 hundred eighty days after acceptance of a completed application
 
16 for a permit, the department shall fail to give notice, hold a
 
17 hearing, and render a decision, the owner may automatically put
 
18 the owner's land to the use or uses requested in the owner's
 
19 application.  When an environmental impact statement is required
 
20 pursuant to chapter 343, or when a contested case hearing is
 
21 requested pursuant to chapter 91, the [one-hundred-eighty] one
 
22 hundred eighty days may be extended an additional ninety days at
 
23 the request of the applicant.  Any request for additional
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

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

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

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

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 utilities commission for the purposes of this Act.
 
 2                       PART IV.  SETTLEMENT
 
 3      SECTION 9.  Chapter 269, Hawaii Revised Statutes, is amended
 
 4 by adding a new section to be appropriately designated and to
 
 5 read as follows:
 
 6      "§269-     Alternative dispute resolution.  The commission
 
 7 may require the parties in any matter before the commission to
 
 8 participate in arbitration, mediation, or other alternative
 
 9 dispute resolution process prior to the hearing."
 
10                        PART V.  CONVERSION
 
11      SECTION 10.  The legislature finds that the conversion of
 
12 overhead electric and communication lines to underground lines
 
13 and the initial underground installation of such lines are
 
14 substantially beneficial to the public safety and welfare, is in
 
15 the public interest, and is a public purpose, notwithstanding any
 
16 resulting incidental private benefit to any electric or
 
17 communication utility affected by such conversion or
 
18 installation.
 
19      SECTION 11.  Chapter 235, Hawaii Revised Statutes, is
 
20 amended by adding a new section to be appropriately designated
 
21 and to read as follows:
 
22      "§235-     Voluntary contributions to the underground
 
23 conversion fund.  The director shall allow for taxpayers to
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 designate and pay a voluntary contribution to the underground
 
 2 conversion fund on their annual income tax return.  The voluntary
 
 3 contribution shall be added to the final income tax due or
 
 4 subtracted from any refund due the taxpayer and shall be
 
 5 allocated to the underground conversion fund in the amount
 
 6 designated by the taxpayer."
 
 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-A  Conversion program.  The commission shall establish
 
11 a conversion program that allows for the systematic conversion of
 
12 overhead utility lines to underground lines.  The conversion
 
13 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 underground conversion fund under section 269-B;
 
19           provided that annual contributions from a utility shall
 
20           not exceed two per cent of the annual gross revenues of
 
21           that utility; and
 
22      (3)  Establish criteria that allocates funding to each
 
23           county for its underground conversion zones through
 

 
Page 9                                                     2843
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           special improvement districts by ordinance.
 
 2      The commission shall adopt rules according to chapter 91 for
 
 3 the implement and establish standards for the conversion program.
 
 4      §269-B  Underground conversion fund.  (a)  There is
 
 5 established in the state treasury the underground conversion
 
 6 special 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      (d)  The commission shall adopt rules according to
 
20 chapter 91 to carry out the administration of the fund.
 
21      §269-C  Allocation of revenues to underground conversion
 
22 fund.  The commission shall establish an annual allocation of
 
23 revenues from each utility having above ground facilities.  The
 

 
Page 10                                                    2843
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 allocation shall be deposited into the underground conversion
 
 2 fund established in section 269-B.  Revenues allocated annually
 
 3 to the fund by each utility shall not exceed two per cent of the
 
 4 annual gross revenues of the utility."
 
 5                         PART VI.  SAFETY
 
 6      SECTION 13.  Chapter 269, Hawaii Revised Statutes, is
 
 7 amended by adding a new section to be appropriately designated
 
 8 and to read as follows:
 
 9      "§269-     One-call system.  (a)  The commission shall
 
10 establish or authorize an independent entity to establish and
 
11 maintain a one-call system to identify the location of
 
12 underground facilities in the state before January 1, 2001.  All
 
13 owners of underground facilities shall subscribe to the service.
 
14      (b)  Before commencing any excavation, an excavator shall
 
15 provide notice of the scheduled commencement of excavation to the
 
16 one-call system.  All underground facilities shall be identified
 
17 through the one-number locator service.  The notice shall be
 
18 communicated to the one-call system not less than two business
 
19 days or more than ten business days before the scheduled date for
 
20 commencement of excavation, unless otherwise agreed by the
 
21 parties.
 
22      Upon receipt of the notice provided for in this section, the
 
23 excavator shall be provided reasonably accurate information as to
 

 
Page 11                                                    2843
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 the location of underground facilities by a surface-marking of
 
 2 the facilities.  Excavators shall have a cause of action against
 
 3 the owner of the underground facility for costs incurred if the
 
 4 underground facility is not located in accordance with this
 
 5 section.  The owner of the underground facility shall have the
 
 6 right to receive compensation for costs incurred in responding to
 
 7 excavation notices not given in compliance with this section.
 
 8      Emergency excavations shall be exempt from the notice
 
 9 requirements required under this section.
 
10      If the excavator discovers any unidentified underground
 
11 facility, the excavator shall cease excavating in the vicinity of
 
12 the facility and immediately notify the one-number locator
 
13 service.
 
14      (c)  Unless the context clearly requires otherwise, as used
 
15 in this section:
 
16      "Business day" means any day other than Saturday, Sunday, or
 
17 a legal state or federal holiday.
 
18      "Emergency" means any condition constituting a clear and
 
19 present danger to life or property, or a customer service outage
 
20 or as determined by the commissioner.
 
21      "Excavation" means any operation in which earth, rock, or
 
22 other material on or below the ground is moved or otherwise
 
23 displaced by any means, except the tilling of soil less than
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 twelve inches in depth for agricultural purposes, or road and
 
 2 ditch maintenance that does not change the original road grade or
 
 3 ditch flowline.
 
 4      "Excavator" means any person who engages directly in
 
 5 excavation.
 
 6      "Marking" means the use of stakes, paint, or other clearly
 
 7 identifiable materials to show the field location of underground
 
 8 facilities, in accordance with the current color code standard of
 
 9 the American public works association.  Markings shall include
 
10 identification letters indicating the specific type of the
 
11 underground facility.
 
12      "Reasonably accurate" means location within twenty-four
 
13 inches of the outside dimensions of both sides of an underground
 
14 facility.
 
15      "Underground facility" means any item buried or placed below
 
16 ground for use in connection with the storage or conveyance of
 
17 water, sewage, electronic, telephonic or telegraphic
 
18 communications, cablevision, electric energy, petroleum products,
 
19 gas, gaseous vapors, hazardous liquids, or other substances and
 
20 including pipes, sewers, conduits, cables, valves, lines, wires,
 
21 manholes, attachments, those parts of poles or anchors below
 
22 ground, or any other facility that is regulated by the
 
23 commissioner.
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      "One-number locator service" means a service through which a
 
 2 person can notify utilities and request field-markings of
 
 3 underground facilities.
 
 4      (d)  The commission may adopt rules pursuant to chapter 91
 
 5 to implement this section.
 
 6      (e)  An excavator who does not use the one-call system
 
 7 established by this section before excavation and who by such
 
 8 excavation hits or damages an underground facility thereby
 
 9 causing an outage or interruption in the provision of utility
 
10 service delivered by the underground facility shall be liable to
 
11 the affected utility for treble the cost of restoring the outage
 
12 or resuming the interrupted service."
 
13      SECTION 14.  In codifying the new sections added by part V
 
14 of this Act, the revisor of statutes shall substitute appropriate
 
15 section numbers for the letters used in the new sections
 
16 designated in this Act.
 
17      SECTION 15.  Statutory material to be repealed is bracketed.
 
18 New statutory material is underscored.
 
19      SECTION 16.  This Act shall take effect upon _______, except
 
20 that sections 6 and 8 shall take effect on ________.