HOUSE OF REPRESENTATIVES	H.B. NO.	2644
TWENTY-SIXTH LEGISLATURE, 2012		H.D. 2
STATE OF HAWAII		S.D. 1

A BILL FOR AN ACT

RELATING TO THE PUBLIC UTILITIES COMMISSION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

     SECTION 1.  The legislature finds that from smart grid to broadband, Hawaii is facing many new opportunities and challenges in utility technologies and policies that are reshaping our vision of the State's future, and in the process, redefining Hawaii's economy for decades to come.  Yet, to successfully take advantage of opportunities to fundamentally improve Hawaii's network of infrastructure, our regulatory bodies must effectively oversee and guide Hawaii's utilities on that path.

     The legislature further finds that for the public utilities commission to appropriately guide the development and modernization of Hawaii's infrastructure in the twenty-first century, its procedures and processes must reflect best practices that most effectively help stakeholders navigate the emerging economic, technological, and regulatory transformations that are taking place in Hawaii's utility sector.  From increasing transparency and public access, to streamlining internal and external procedures, to adopting the best regulatory frameworks for fostering growth and development, it is imperative that the commission use the necessary tools and best practices to effectively and efficiently make informed decisions about Hawaii's future infrastructure.

     The purpose of this part is to increase transparency and efficiency at the public utilities commission by requiring the adoption of best practices in relation to all commission activities, both internal and external, to ensure the commission is in the best position to guide the State in utility matters.

     SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269-   Commission best practices. (a)  The commission shall integrate and implement utility and regulatory best practices, including in the following areas:

(1) The use of innovative regulatory frameworks to solve utility issues and concerns resulting from economic, technological, and policy changes;

(2) The making and updating of rules and procedures that streamline the internal and external procedures of the commission, in particular streamlining and shortening the timeframe of procedural actions; and

(3) The use of information technology to improve internal workflow, transparency, and public access to filings and data.

(b)  The commission shall establish a system to gather, assess, and update utility and regulatory best practices, and implement appropriate best practices, particularly in areas set forth in subsection (a)."

     SECTION 3.  The commission shall include in its 2012 and 2013 annual reports to the legislature, as required pursuant to section 269-5, Hawaii Revised Statutes, an update on its progress in implementing best practices.

     SECTION 4.  There is appropriated out of the public utilities commission special fund established pursuant to section 269-33, Hawaii Revised Statutes, the sum of            or so much thereof as may be necessary for fiscal year 2012-2013 to carry out the purposes of this part, including the hiring of necessary consultants.

     The sum appropriated shall be expended by the public utilities commission for the purposes of this part.

PART II

     SECTION 5.  The legislature finds that for Hawaii's farmers and ranchers to remain competitive and self-sustaining, incentives and mechanisms must be implemented to reduce costs and ensure that the State's constitutional mandate to promote diversified agriculture and increase agricultural self-sufficiency is fulfilled.  The public utilities commission regulates the tariffs set for public utilities that provide essential services to the agricultural industry, such as interisland shipping.

     The purpose of this part is to permit the public utilities commission to authorize preferential rates for water carrier service for ratepayers engaged in agricultural activities.

     SECTION 6.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269-   Preferential water carrier service rates for agricultural activities. The public utilities commission may authorize preferential water carrier service rates by tariff for ratepayers that engage in agricultural activities.  The application process for obtaining preferential water carrier service rates by tariff may be established by the public utilities commission."

PART III

     SECTION 7.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2012.

Report Title:

Public Utilities Commission; Best Practices; Appropriation; Water Carrier; Tariffs

Description:

Requires the Public Utilities Commission to implement best practices in the areas of regulatory frameworks, rules and procedures, and information technology and public access.  Appropriates funds to implement best practices.  Authorizes the Public Utilities Commission to provide preferential water carrier service tariffs for ratepayers that engage in agricultural activities.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.