THE SENATE	S.B. NO.	2292
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

Relating to air pollution.

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

     SECTION 1.  The legislature finds that coal as a source of energy is not part of a clean and sustainable energy future for Hawaii.  All of the coal consumed in the State is imported for various energy needs, and the burning of coal affects the State's air quality and its image as the "health state".

     The legislature also finds that coal is the most carbon-intensive fuel of any fossil fuel and it releases more greenhouse gas emissions per unit of electricity produced than any other fuel source.  In 2008, Hawaii launched the Hawaii clean energy initiative, a partnership between the State of Hawaii and the United States Department of Energy designed to bring together business leaders, policy makers, and concerned citizens committed to leading Hawaii to energy independence.  As part of the Hawaii clean energy initiative, the State entered into an energy agreement with Hawaiian Electric Company, the Hawaii Electric Light Company, and the Maui Electric Company in an attempt to work together to integrate a greener and lower-cost energy generation plan that meets the needs of Hawaii's electrical energy demand.  As part of the energy agreement, the parties acknowledged that new generators fueled partly or entirely by coal are not in the best interests of the people of Hawaii and agreed to oppose any attempts to add new coal-based generation in Hawaii.

     The purpose of this Act is to prohibit the department of health from issuing permits to owners and operators for the construction of new facilities that burn or consume coal or for the expansion, relocation, or modification of existing facilities that would result in an increase of coal consumption and to prohibit the public utilities commission from approving new, modified, or renewed power purchase agreements that propose to burn or consume coal to generate energy.

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

"§269‑ No coal power purchase agreements. Beginning January 1, 2015, the public utilities commission shall not approve any new, modified, or renewed power purchase agreement that proposes to burn or consume coal to generate energy."

     SECTION 3.  Chapter 342B, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§342B-   Permits for coal-burning covered sources. (a)  Beginning on July 1, 2012, the department shall not issue any permit for any term to an owner or operator of a covered source of which construction has not begun that will burn or consume coal to generate energy.

(b)  The department shall not issue any permit for any term to an owner or operator of an existing covered source for an expansion, relocation, or modification of the covered source that would result in an increase in the burning or consumption of coal for energy."

     SECTION 4.  Section 269-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Power purchase agreement" means an agreement between an energy facility owner and a public utility on the sale of electricity produced by the facility to the public utility."

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Coal Burning; Air Pollution Control; Permits; Public Utilities Commission; Power Purchase Agreement

Description:

Beginning 7/1/2012, prohibits the department of health from issuing permits for new covered sources that burn or consume coal for energy needs and the expansion, relocation, or modification of existing covered sources that would increase the burning or consumption of coal for energy needs.  Beginning 1/1/2015, prohibits the public utilities commission from approving new, modified, or renewed power purchase agreements that propose to burn or consume coal to generate energy.

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