Report Title:

Electric Utilities; Renewable Electrical Energy; Renewable Portfolio Standards

Description:

Authorizes a preferential rate for electricity purchased by electric utilities from renewable energy producers that are associated with agricultural activities.

HOUSE OF REPRESENTATIVES	H.B. NO.	591
TWENTY-FIFTH LEGISLATURE, 2009
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 public utilities in Hawaii are required to meet renewable portfolio standards.  These standards require twenty per cent of each electric utility's sales to come from renewable energy by 2020.  The Hawaii Clean Energy Initiative proposes to increase this renewable energy requirement to forty per cent by 2030.  Additionally, the Constitution of the State of Hawaii identifies increased self-sufficiency as being in the public interest.

     The legislature finds that renewable energy creates the maximum benefit to the State when it is locally produced.  The legislature further finds that renewable energy sources that complement the production of agricultural products are especially desirable.  These sources provide for food and fiber self-sufficiency while also providing electricity.  The legislature finds that it is in the interest of the State to encourage the synergy between agricultural production and renewable energy production.

     The purpose of this Act is to create incentives for electric utilities to meet and exceed renewable portfolio standards, including a preferential rate for renewable electrical energy purchased from renewable energy producers associated with agriculture.

     SECTION 2.  Section 269-94, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§269-94  Waivers, extensions, and incentives.[]] (a) Any electric utility company not meeting the renewable portfolio standard shall report to the public utilities commission within ninety days following the goal dates established in section [[]269-92[]], and provide an explanation for not meeting the renewable portfolio standard.  The public utilities commission shall have the option to either grant a waiver from the renewable portfolio standard or an extension for meeting the prescribed standard.

(b)  The public utilities commission may provide incentives to encourage electric utility companies to exceed their renewable portfolio standards or to meet their renewable portfolio standards ahead of time, or both[.], including, but not limited to:

(1) A preferential rate for the purchase of renewable electrical energy pursuant to section 269-27.2 from a renewable energy producer who is also associated with agricultural activities;

(2) Renewable energy credit trading programs which establish a value for all of the attributes associated with renewable energy production; and

(3) Credits for providing environmental services, such as improving air and water quality, enacting flood control measures, improving wildlife habitat areas, and carbon sequestration."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

INTRODUCED BY:

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