RESOLUTION

WHEREAS, Hawaii is unique among the fifty states in its dependence on imported oil; and

WHEREAS, Hawaii is dependent on imported oil for over ninety per cent of its energy needs, making the State the most vulnerable of all the states in the nation to the disruption of its economy and way of life in the event of a disruption in the world oil market or rapid oil price increases; and

WHEREAS, for these reasons, the development of nonfossil fuel producers utilizing renewable resources is vitally necessary to reduce Hawaii's dependence on imported oil, as well as to reduce electricity rates for Hawaii's rate payers, and reduce the environmental impact caused by the consumption of fossil fuels; and

WHEREAS, nonfossil fuel producers have contributed significantly to the local economy by investing significant amounts of capital in start-up costs and maintenance and by employing many local residents to operate their facilities; and

WHEREAS, perhaps even more importantly, nonfossil fuel producers have reduced fossil fuel requirements (and pollution) by thousands of barrels of oil per year, which also translates into an annual decrease of thousands of tons of carbon dioxide, sulfur dioxide, and nitrogen oxide; and

WHEREAS, there is a need to ensure that nonfossil fuel producers are able to negotiate and enter into timely power purchase agreements to ensure lower electricity rates, reduce the State's dependence on imported oil; stimulate the local economy; and reduce the environmental impact caused by the consumption of fossil fuels; and

WHEREAS, presently, there is no standard form of power purchase contract for nonfossil fuel producers of electricity to utilize in selling the electricity they generate to the public utilities, and there is no standard interconnection agreement specifying the equipment requirements needed to connect the electricity generated by these producers to the public utilities' power grids; and

WHEREAS, as a result, it may take producers more than five years to negotiate a power purchase contract with the public utilities for the sale of their electricity, and this inordinate length of time to negotiate a contract discourages many potential producers of electricity utilizing renewable energy resources to invest the capital required to develop the facilities; and

WHEREAS, a standard form of power purchase contract would eliminate the long delays in negotiating a contract between nonfossil fuel producers and the public utilities, encourage private investors to fund the construction and operation of renewable energy facilities, provide a public benefit through lower electricity rates, generate less pollution in the State's environment, and further the goals of the Legislature and public utilities commission in promoting Hawaii's long-term objective of energy self-sufficiency; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-First Legislature of the State of Hawaii, Regular Session of 2001, the House of Representatives concurring, that the Division of Consumer Advocacy (Consumer Advocate) is requested to develop and adopt a standard form of power purchase contract for the sale of electricity to the public utilities from nonfossil fuel producers utilizing renewable energy resources; and

BE IT FURTHER RESOLVED that the standard power purchase contract shall include general terms and conditions, interconnection requirements, price, duration of contract, installed capacity, and any other provisions deemed appropriate and in the best interest of the public; and

BE IT FURTHER RESOLVED that the Consumer Advocate shall include opportunities for testimony from the public during this process; and

BE IT FURTHER RESOLVED that the Consumer Advocate shall report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2002 on the status of the development and adoption of a standard form of power purchase contract; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Chairperson of the Public Utilities Commission and the Consumer Advocate, who, in turn, is requested to transmit copies to the major nonfossil fuel generated power providers doing business in each county.