Report Title:
Geothermal Energy; Energy Self-Sufficiency
Description:
Requires maximum use of geothermal energy on the island of Hawaii to achieve energy self-sufficiency and reduce reliance on imported fossil fuels. Establishes a pilot program to facilitate the development of infrastructure for the deployment of renewable energy resources, including geothermal resources. (SD2)
THE SENATE |
S.B. NO. |
287 |
TWENTY-FIFTH LEGISLATURE, 2009 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ENERGY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 201N, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§201N- Geothermal energy pilot program. (a) Not later than July 1, 2009, the energy resources coordinator shall establish and implement a pilot program to:
(1) Develop new energy infrastructure necessary to maximize the production of electricity from geothermal energy sources;
(2) Modify or expand existing energy infrastructure to maximize the production of electricity from geothermal energy sources;
(3) Develop a sufficient workforce within a county to maximize production of electricity from geothermal energy sources; and
(4) Develop incentives that will encourage and facilitate the development of infrastructure for the deployment of renewable energy resources, including geothermal energy resources.
The pilot program shall terminate no later than December 31, 2019.
(b) The geothermal energy pilot program shall be implemented in a county with the largest land mass in the State.
(c) The energy resources coordinator shall adopt rules pursuant to chapter 91 necessary for the purposes of this section."
SECTION 2. Section 269-27.2, Hawaii Revised Statutes, is amended to read as follows:
"§269-27.2 Utilization of electricity generated from nonfossil fuels. (a) The public utilities commission shall investigate and determine the extent to which electricity generated from nonfossil fuel sources is available to public utilities that supply electricity to the public, which electricity is in excess of that utilized or otherwise needed by the producers for their internal uses and which the producers are willing to make available to the electric public utilities.
(b) The public utilities commission may direct public utilities that supply electricity to the public in the county with the largest contiguous land mass in the State to arrange for the acquisition of and to acquire electricity generated from geothermal sources at the maximum capacity that it is available from producers of geothermal energy. The public utilities commission shall direct public utilities that supply electricity to the public in the county with the largest contiguous land mass in the State to employ and dispatch the electricity generated from geothermal sources in a manner consistent with the availability thereof to maximize the reduction in fossil fuel consumption in the generation of electricity and to achieve energy self-sufficiency by no later than January 1, 2020.
To assist the energy resources coordinator in effectuating the purposes of chapter 201N, the public utilities commission shall develop reasonable guidelines and timetables for the creation and implementation of power purchase agreements.
[(b)] (c) The public utilities
commission may direct public utilities that supply electricity to the public in
any county that does not require maximum geothermal energy production as
provided in subsection (b) to arrange for the acquisition of and to acquire
electricity generated from nonfossil fuel sources as it is [available
from and the producers are willing and able to make] available to the
public utilities, and to employ and dispatch the nonfossil fuel generated
electricity in a manner consistent with the availability thereof to maximize
the reduction in consumption of fossil fuels in the generation of electricity
to be provided to the public. To assist the energy resources coordinator in
effectuating the purposes of chapter 201N, the public utilities commission may
develop reasonable guidelines and timetables for the creation and
implementation of power purchase agreements.
[(c)] (d) The rate payable by the
public utility to the producer for the nonfossil fuel generated electricity
supplied to the public utility shall be as agreed between the public utility
and the supplier and as approved by the public utilities commission; provided
that [in the event] if the public utility and the supplier fail
to reach an agreement for a rate, the rate shall be as prescribed by the public
utilities commission according to the powers and procedures provided in this
chapter.
In the exercise of its authority to determine the just and reasonable rate for the nonfossil fuel generated electricity supplied to the public utility by the producer, the commission shall establish that the rate for purchase of electricity by a public utility shall not be more than one hundred per cent of the cost avoided by the utility when the utility purchases the electrical energy rather than producing the electrical energy.
The commission's determination of the just and reasonable rate shall be accomplished by establishing a methodology that removes or significantly reduces any linkage between the price of fossil fuels and the rate for the nonfossil fuel generated electricity to potentially enable utility customers to share in the benefits of fuel cost savings resulting from the use of nonfossil fuel generated electricity. As the commission deems appropriate, the just and reasonable rate for nonfossil fuel generated electricity supplied to the public utility by the producer may include mechanisms for reasonable and appropriate incremental adjustments, such as adjustments linked to consumer price indices for inflation or other acceptable adjustment mechanisms.
[(d)] (e) Upon application of a public
utility that supplies electricity to the public, and notification [of] to
its customers, the commission, after an evidentiary hearing, may allow payments
made by the public utility to nonfossil fuel producers for firm capacity and
related revenue taxes to be recovered by the public utility through an interim
increase in rates until the effective date of the rate change approved by the
commission's final decision in the public utility's next general rate
proceeding under section 269-16, notwithstanding any requirements to the
contrary of any other provision in this chapter or in the commission's rules or
practices; provided the amount recovered by the utility and the amount of
increase in rates due to the payments for firm capacity and related revenue
taxes to be charged to the consumers of the electricity are found by the
commission to be:
(1) Just and reasonable;
(2) Not unduly prejudicial to the customers of the public utility;
(3) Promotional of Hawaii's long-term objective of energy self-sufficiency;
(4) Encouraging to the maintenance or development of nonfossil fueled sources of electrical energy; and
(5) In the overall best interest of the general public.
The evidentiary hearing provided for in this subsection shall be conducted expeditiously and shall be limited to evidence related to the above findings. Notwithstanding section 269-16, no public hearing shall be required, except as the commission in its discretion may require."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2090.