THE SENATE

S.B. NO.

2438

TWENTY-SIXTH LEGISLATURE, 2012

S.D. 1

STATE OF HAWAII

H.D. 1

 

PROPOSED

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE PUBLIC UTILITIES COMMISSION.

 

 

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

 

     SECTION 1.  Section 269-6, Hawaii Revised Statutes, is amended to read as follows:

     "§269-6  General powers and duties.  (a)  The public utilities commission shall have the general supervision hereinafter set forth over all public utilities, and shall perform the duties and exercise the powers imposed or conferred upon it by this chapter.  Included among the general powers of the commission is the authority to adopt rules pursuant to chapter 91 necessary for the purposes of this chapter.

     (b)  The public utilities commission shall consider the need to reduce the State's reliance on fossil fuels through energy efficiency and increased renewable energy generation in exercising its authority and duties under this chapter.  In making determinations of the reasonableness of the costs of utility system capital improvements and operations, the commission shall explicitly consider, quantitatively or qualitatively, the effect of the State's reliance on fossil fuels on price volatility, export of funds for fuel imports, fuel supply reliability risk, and greenhouse gas emissions.  The commission may determine that short-term costs or direct costs that are higher than alternatives relying more heavily on fossil fuels are reasonable, considering the impacts resulting from the use of fossil fuels.

     (c)  Upon the request of the public utilities commission, the energy resources coordinator of the department of business, economic development, and tourism shall provide the commission with an analysis of the technology readiness of renewable energy projects.  The analysis shall categorize the technology readiness level of each renewable energy project as set forth in this subsection.  The public utilities commission shall not consider any proposal or contract for a renewable energy project with a technology readiness level below technology readiness level 6.  The public utilities commission may consider the technology readiness analysis in making its final determination on renewable energy projects by balancing the technology readiness level assessment with other factors including costs to consumers, job creation, capital attraction, increased revenues, and other critical indicators.  

     For the purposes of this subsection:

     (1)  Technology readiness level 1 means scientific research has begun to be translated into applied research and development.

     (2)  Technology readiness level 2 means practical applications based on observed principles, including experimental work that corroborates basic scientific observations, have been invented.

     (3)  Technology readiness level 3 means active research and development, including analytical studies and laboratory-scale studies, has been initiated.

     (4)  Technology readiness level 4 means the basic technological components have been integrated to establish that the pieces work together as a system.

     (5)  Technology readiness level 5 means the basic technological components have been integrated so that the system configuration is similar to the final application in almost all respects.

     (6)  Technology readiness level 6 means engineering-scale models or prototypes have been tested in an environment that closely resembles the actual operating environment.

     (7)  Technology readiness level 7 means an actual system prototype of the technology is able to be demonstrated in a relevant environment.

     (8)  Technology readiness level 8 means the technology has been proven to work in its final form and under expected operating conditions.

     (9)  Technology readiness level 9 means the technology is in its final form and operates under the full range of possible operating conditions.

    [(c)] (d)  The chairperson of the public utilities commission may appoint a hearings officer, who shall not be subject to chapter 76, to hear and recommend decisions in any proceeding before it other than a proceeding involving the rates or any other matters covered in the tariffs filed by the public utilities.  The hearings officer shall have the power to take testimony, make findings of fact and conclusions of law, and recommend a decision; provided that the findings of fact, the conclusions of law, and the recommended decision shall be reviewed and may be approved by the commission after notice to the parties and an opportunity to be heard.  The hearings officer shall have all of the above powers conferred upon the public utilities commission under section 269-10."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

 

Report Title:

Public Utilities Commission; Technological Readiness; Department of Business, Economic Development, and Tourism; Renewable Energy

 

Description:

Requires the department of business, economic development, and tourism to provide, upon request by the public utilities commission, technological readiness analysis information which the public utilities commission may consider when making final determinations on renewable energy projects.  (PROPOSED SB2438 HD1)

 

 

 

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