THE SENATE	S.B. NO.	1314
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO FEED-IN TARIFFS.

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

     SECTION 1. The legislature finds that feed-in tariffs can be a powerful catalyst for private and public-private development of alternative energy projects in fulfillment of the State’s renewable energy goals.  Feed-in tariffs can bring financial viability to projects that otherwise could not participate in competitive procurement solicitations for interconnection with utility systems.  The expanded opportunities allow diversification of participants in the industry, job growth, and economic growth. Feed-in tariffs provide a “one size fits all” approach to resource development that allows generating units of a certain size and with certain technical characteristics to interconnect quickly and efficiently. These do so by offering clear and set pricing terms, standardized interconnection requirements, and avoidance of the costs that generation owners might otherwise incur in feasibility studies or participation in a competitive solicitation process. Such an approach makes sense for projects that are too small to meaningfully participate in utility competitive solicitations for renewable energy. Hawaii's electric utilities would benefit from an appropriately designed feed-in tariff by enjoying an accelerated pace of deployment of renewable generation on their systems.

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

     "§269-97 Feed-in tariff. (a) Before December 31, 2013, the public utilities commission shall implement a feed-in tariff program that provides a standard offer contract for electric utilities to purchase energy from renewable energy generators.

(b)  In developing a feed-in tariff program, the public utilities commission shall consider:

(1) A program size that is commensurate with Hawaii's renewable portfolio standards;
(2) Renewable projects up to 20 megawatts in size;
(3) Project pricing that provides meaningful incentive to project developers while protecting ratepayers from undue costs;
(4) A fair and transparent project queue that ensures projects are developed in a timely manner; and
(5) Other issues the public utilities commission deems appropriate.

(c)  The Public Utilities Commission shall report to the Legislature by January 15, 2014, on the resolution of existing complaints on the queue issue and changes to policy to ameliorate the situation."

     SECTION 3.  New statutory material is underscored.

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

INTRODUCED BY:

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Report Title:

Feed-in Tariffs.

Description:

Requires Public Utilities Commission to implement a feed-in tariff program to protect consumers and developers of renewable energy  generation projects, and facilitate progress toward self-sustainability goals.

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