REPORT TITLE:
Utility Lines; PUC


DESCRIPTION:
Establishes an intervenor program that assists consumers
participation in PUC proceedings.  Requires PUC to establish:  a
one-call system to identify underground facilities; a conversion
program that converts overhead utility lines to underground
lines, with utilities to participate in funding.  Authorizes PUC
to require ADR to settle issues prior to hearing.  Appropriates
funds to quantify benefits of underground lines.  Appropriates
funds to educate and inform consumers about PUC activities,
processes & procedure.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2351
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 public health concerns related to electric and magnetic
 
 5 field exposure, public safety concerns related to windstorm,
 
 6 debris, and traffic collision damage risks, expectations of
 
 7 greater system reliability and reduced maintenance needs, and the
 
 8 desire to preserve, protect, and enhance the visual environment
 
 9 and scenic resources for residents, visitors, and filmgoers
 
10 worldwide.
 
11      The legislative reference bureau was requested by Senate
 
12 Concurrent Resolution No. 30, Regular Session of 1999, to conduct
 
13 a policy and issue study concerning the undergrounding of
 
14 overhead utility facilities.  In conducting the study, the bureau
 
15 consulted with the utilities, the public utilities commission,
 
16 the consumer advocate, environmental organizations, and community
 
17 members.  After specifically reviewing topics such as the type of
 
18 line, location, benefits of undergrounding, costs, public
 
19 sentiment, technological issues and legal matters, and after
 

 
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 1 studying how other jurisdictions have handled the issue of 
 
 2 underground utility lines, the bureau proposed several
 
 3 suggestions for legislation.
 
 4      The purpose of this Act is to implement the recommendations
 
 5 of the legislative reference bureau by:
 
 6      (1)  Directing the public utilities commission to establish:
 
 7           (A)  An intervenors program;
 
 8           (B)  A one-call system to identify the location of
 
 9                underground facilities; and 
 
10           (C)  A program to convert overhead utility lines to
 
11                underground and to establish and administer a fund
 
12                to pay for the program; 
 
13      (2)  Authorizing the public utilities commission to require
 
14           alternative dispute resolution to reach a settlement on
 
15           issues prior to the hearing; and
 
16      (3)  Making appropriations to create and maintain an
 
17           information and communication resource accessible
 
18           through the world wide web to educate and inform
 
19           consumers about public utilities commission activities,
 
20           processes, and procedures.
 
21 Additionally, this Act appropriates funds to quantify the
 
22 benefits of underground utility lines, one of two alternatives
 
23 suggested by the legislative reference bureau to set standards
 

 
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 1 with regard to the value of the benefits.
 
 2      SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended
 
 3 by adding three new sections to be appropriately designated and
 
 4 to read as follows:
 
 5      "§269-     Intervenor program.  The commission shall
 
 6 establish an intervenor program that assists consumers who have
 
 7 significant information to contribute to hearings and other
 
 8 proceedings before the commission that is outside the scope of
 
 9 the functions of the consumer advocate.  The intervenor program
 
10 shall include procedural assistance and financial compensation
 
11 for consumer costs including reasonable consultant and attorney's
 
12 fees.  The commission shall adopt rules under chapter 91 for the
 
13 implementation of and to establish standards for the intervenor
 
14 program.
 
15      §269-     One-call system.  (a)  The commission shall
 
16 establish or authorize an independent entity to establish and
 
17 maintain a one-call system to identify the location of
 
18 underground facilities before January 1, 2001.  All owners of
 
19 underground facilities shall subscribe to the service.
 
20      (b)  Before commencing any excavation, an excavator shall
 
21 provide notice of the scheduled commencement of excavation to the
 
22 one-call system.  All underground facilities shall be identified
 
23 through the one-number locator service.  The notice shall be
 

 
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 1 communicated to the one-call system not less than two business
 
 2 days nor more than ten business days before the scheduled date
 
 3 for commencement of excavation, unless otherwise agreed by the
 
 4 parties.
 
 5      Upon receipt of the notice provided for in this section, the
 
 6 excavator shall obtain reasonably accurate information as to
 
 7 locatable underground facilities by surface-marking the location
 
 8 of the facilities.  Excavators shall have the right to receive
 
 9 compensation from the owner of the underground facility for costs
 
10 incurred if the owner of the underground facility does not locate
 
11 its facilities in accordance with this section.  The owner of the
 
12 underground facility shall have the right to receive compensation
 
13 for costs incurred in responding to excavation notices given less
 
14 than two business days prior to the excavation from the
 
15 excavator.
 
16      Emergency excavations shall be exempt from the time
 
17 requirements for notification provided in this section.
 
18      If the excavator, while performing the contract, discovers
 
19 underground facilities that are not identified, the excavator
 
20 shall cease excavating in the vicinity of the facility and
 
21 immediately notify the one-number locator service.
 
22      (c)  Unless the context clearly requires otherwise, as used
 
23 in this section:
 

 
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 1      "Business day" means any day other than Saturday, Sunday, or
 
 2 a legal state or federal holiday.
 
 3      "Emergency" means any condition constituting a clear and
 
 4 present danger to life or property, or a customer service outage.
 
 5      "Excavation" means any operation in which earth, rock, or
 
 6 other material on or below the ground is moved or otherwise
 
 7 displaced by any means, except the tilling of soil less than
 
 8 twelve inches in depth for agricultural purposes, or road and
 
 9 ditch maintenance that does not change the original road grade or
 
10 ditch flowline.
 
11      "Excavator" means any person who engages directly in
 
12 excavation.
 
13      "Marking" means the use of stakes, paint, or other clearly
 
14 identifiable materials to show the field location of underground
 
15 facilities, in accordance with the current color code standard of
 
16 the American Public Works Association.  Markings shall include
 
17 identification letters indicating the specific type of the
 
18 underground facility.
 
19      "Reasonably accurate" means location within twenty-four
 
20 inches of the outside dimensions of both sides of an underground
 
21 facility.
 
22      "Underground facility" means any item buried or placed below
 
23 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      §269-     Alternative dispute resolution.  The commission
 
13 may require the parties in any matter before the commission to
 
14 participate in arbitration, mediation, or other alternative
 
15 dispute resolution process prior to the hearing.
 
16      §269-     Conversion program.  The commission shall
 
17 establish a conversion program that allows for the systematic
 
18 conversion of overhead utility lines to underground lines.  The
 
19 conversion program shall:
 
20      (1)  Authorize each county to determine underground zones by
 
21           ordinance;
 
22      (2)  Require any utility that transports or distributes
 
23           services across utility lines and cables to contribute
 

 
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                                     S.B. NO.           2351
                                                        
                                                        

 
 1           to the funding of the program; provided that annual
 
 2           contributions from the utilities shall not exceed two
 
 3           per cent of annual gross revenues; and
 
 4      (3)  Establish criteria that allocates funding to each
 
 5           county for its underground conversion zones.
 
 6      The commission shall adopt rules according to chapter 91 for
 
 7 the implementation of and to establish standards for the
 
 8 conversion program.
 
 9      §269-A  Underground conversion fund.  (a)  There is
 
10 established in the state treasury the underground conversion
 
11 fund, which shall be administered by the commission.  The
 
12 following revenues shall be deposited into the fund:
 
13      (1)  Legislative appropriations;
 
14      (2)  Voluntary contributions including any contributions
 
15           paid along with state income tax due or amounts paid in
 
16           excess of a utility bill that is part of a "round-up"
 
17           program; and
 
18      (3)  Contributions by a utility by order of the commission.
 
19      (b)  All moneys from the fund shall be used for the
 
20 conversion of overhead utility lines to underground facilities.
 
21 The conversion of overhead utility lines includes the planning,
 
22 design, and construction of the new facilities and the removal of
 
23 the old overhead facilities.
 

 
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 1      (c)  The commission shall establish criteria allocating
 
 2 funds to counties that determine undergrounding zones through
 
 3 special improvement districts by ordinance.
 
 4      (d)  The commission shall adopt rules according to
 
 5 chapter 91 to carry out the administration of the fund.
 
 6      §269-B  Allocation of revenues to underground conversion
 
 7 fund.  (a)  The commission shall establish an annual allocation
 
 8 of revenues from each utility company having above ground
 
 9 facilities.  The allocation shall be deposited into the
 
10 underground conversion fund established in section 269-A.
 
11 Revenues allocated annually to the fund by each utility shall not
 
12 exceed two per cent of the annual gross revenues of the utility.
 
13      (b)  The commission shall allow the utilities to collect
 
14 voluntary contributions by consumers for deposit into the fund
 
15 through a "round-up" program.  A round-up program is a program in
 
16 which consumers may choose to round their utility bill up to the
 
17 nearest dollar.  The difference between the actual bill and the
 
18 rounded amount is deposited into the underground conversion fund.
 
19 The round-up program shall be administered by the utility.  All
 
20 funds collected by a utility in a round-up program shall be
 
21 deposited monthly into the underground conversion fund.  Any
 
22 funds collected by a utility through a round-up program shall be
 
23 excluded in determining the annual gross revenue of the utility."
 

 
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 1      SECTION 3.  Chapter 235, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§235-     Voluntary contributions to the underground
 
 5 conversion fund.  The director shall allow for taxpayers to
 
 6 designate and pay a voluntary contribution to the underground
 
 7 conversion fund on their annual income tax return.  The voluntary
 
 8 contribution shall be added to the final income tax due or
 
 9 subtracted from any refund due and may be allocated to the
 
10 underground conversion fund, if applicable."
 
11      SECTION 4.  There is appropriated out of the general
 
12 revenues of the State of Hawaii the sum of $       , or so much
 
13 thereof as may be necessary for fiscal year 2000-2001, to the
 
14 public utilities commission to create and maintain an information
 
15 and communication resource accessible through the world wide web
 
16 to educate and inform consumers about public utilities commission
 
17 activities, processes, and procedures.
 
18      SECTION 5.  The sum appropriated in section 4 shall be
 
19 expended by the public utilities commission for the purposes of
 
20 this Act.
 
21      SECTION 6.  Section 269-27.6, Hawaii Revised Statutes,
 
22 requires the evaluation of whether a benefit of underground high-
 
23 voltage utility lines exists that outweighs the costs of placing
 

 
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 1 the system underground.  This Act appropriates funds to enable
 
 2 the consumer advocate to quantify the benefits accurately and
 
 3 include the measurement of externalities.
 
 4      SECTION 7.  There is appropriated out of the general
 
 5 revenues of the State of Hawaii the sum of $500,000, or so much
 
 6 thereof as may be necessary for fiscal year 2000-2001, to develop
 
 7 measures to quantify the benefits of underground high-voltage
 
 8 utility lines including the measurement of externalities
 
 9 associated with underground lines.
 
10      SECTION 8.  The sum appropriated in section 7 shall be
 
11 expended by the division of consumer advocacy of the department
 
12 of commerce and consumer affairs for the purposes of this Act.
 
13      SECTION 9.  In codifying the new sections added by section 2
 
14 and 3 of this Act, the revisor of statutes shall substitute
 
15 appropriate section numbers for the letters used in the new
 
16 sections designated in this Act.
 
17      SECTION 10.  New statutory material is underscored.
 
18      SECTION 11.  This Act shall take effect on July 1, 2000.
 
19 
 
20                           INTRODUCED BY:  _______________________