THE SENATE

S.B. NO.

3282

THIRTY-SECOND LEGISLATURE, 2024

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to energy.

 

 

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

 

     SECTION 1.  Section 196-71, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§196-71[]]  Hawaii state energy office; established.  (a)  There is established within the department of business, economic development, and tourism the Hawaii state energy office[, which shall be a public body politic and an instrumentality and agency of the State.  The office shall be placed within the department of business, economic development, and tourism for administrative purposes, pursuant to section 26‑35].  The purpose of the Hawaii state energy office shall be to promote energy efficiency, renewable energy, and clean transportation to help achieve a resilient and affordable clean energy economy.

     (b)  The Hawaii state energy office shall:

     (1)  [Provide] Perform analysis and [planning] research to actively develop plans and inform policies to achieve energy efficiency, renewable energy, energy resiliency, grid reliability, and clean transportation goals that are established by statute or rule.  The office shall perform its work in collaboration with the legislature[,]; public utilities commission[,]; other divisions within the department of business, economic development, and tourism; state agencies[,]; and other relevant stakeholders;

     (2)  Lead efforts to incorporate energy efficiency, renewable energy, energy resiliency, and clean transportation to reduce costs or lead by demonstration, and achieve clean energy goals across all public facilities;

    [(3)  Provide renewable energy, energy efficiency, energy resiliency, and clean transportation project deployment facilitation to assist private sector project completion when aligned with state energy goals; and]

     (3)  Assist private sector projects in renewable energy, energy efficiency, energy resiliency, and clean transportation that are aligned with statutorily mandated state energy goals, ensuring completion of those projects expeditiously and in compliance with guaranteed commercial operations dates;

     (4)  Engage the private sector to help lead efforts to achieve renewable energy and clean transportation goals through the Hawaii clean energy initiative[.] program pursuant to section 196-10.5; and

     (5)  Lease lands, grant licenses, and grant easements to private renewable energy producers or producers of renewable fuels, renewable gas, hydrogen fuels, hydrogen, or fuel cells; provided that any lease, license, or easement shall be made through a request for proposals or direct negotiation.

     (c)  The Hawaii state energy office may:

     (1)  Establish offtake agreements with private or utility buyers of renewable energy or renewable fuels, renewable gas, hydrogen, or fuel cells;

     (2)  Facilitate offtake agreements between producers and buyers of renewable energy or renewable fuels, renewable gas, hydrogen, or fuel cells; and

     (3)  Work through the public utilities commission to establish rules for purposes of paragraphs (1) and (2), as applicable.

     [(c)] (d)  The Hawaii state energy office shall be the State's primary government entity for [supporting] implementation of the clean energy initiative[.] program under section 196-10.5.

     [(d)] (e)  No later than twenty days prior to the convening of each regular session, the Hawaii state energy office shall submit a report to the legislature that includes:

     (1)  A description of the activities of the Hawaii state energy office in response to the directives established pursuant to subsection (b) and section 196-72(d), along with progress in meeting [any] all of the [Hawaii] statutorily established state energy [office] goals [established in or pursuant to this part];

     (2)  Progress by the State in meeting its statutorily mandated energy efficiency, renewable energy, and clean transportation goals; [and]

     (3)  An annual updated energy plan to achieve those goals; and

    [(3)] (4)  Proposed legislation[,] to meet those goals, if any."

     SECTION 2.  Section 196-72, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§196-72[]]  Chief energy [officer] administrator of the Hawaii state energy office; duties.  (a)  The Hawaii state energy office shall be led by the chief energy [officer, who shall be nominated and, by and with the advice and consent of the senate, appointed by the governor; provided that the term of the chief energy officer shall be coterminous with the term of the governor.] administrator who shall be appointed by the director of business, economic development, and tourism.

     (b)  The chief energy [officer] administrator shall have:

     (1)  Experience, knowledge, and expertise in policy, programs, or services related to energy efficiency, renewable energy, clean transportation, [and] energy resiliency, and grid reliability related activities and development; and

     (2)  Experience in a supervisory or administrative capacity.

     (c)  The chief energy [officer] administrator shall hire staff necessary to carry out the purposes of this part.  The chief energy [officer] administrator and employees of the Hawaii state energy office shall be exempt from chapter 76 and shall not be considered civil service employees but shall be entitled to any employee benefit plan normally inuring to civil service employees.

     (d)  [Subject to the approval of the governor, the] The chief energy [officer] administrator and the Hawaii state energy office shall:

     (1)  Formulate, analyze, recommend, and implement specific policies, strategies, and plans, in coordination with public and private sector stakeholders, to cost-effectively and equitably achieve the [State's] statutorily established state energy goals;

     (2)  Identify, track, and report key performance measures and milestones related to the State's energy [and decarbonization] goals;

     (3)  Provide technical assistance to state and county agencies and the private sector to assess and implement projects and programs related to energy conservation and efficiency, renewable energy, clean transportation, energy resiliency, and related measures;

     (4)  Coordinate the State's energy programs with those of the federal government[, other territory and state governments, the political subdivisions of the State, departments of the State, and governments of nations with interest in common energy resources];

     (5)  Identify market gaps and innovation opportunities, collaborate with stakeholders, and facilitate public‑private partnerships to develop projects, programs, and tools to encourage private and public exploration, research, and development of energy resources, [distributed energy resources,] and data analytics that will support the State's energy [and decarbonization] goals;

     (6)  Create and review proposed state actions that may have a significant effect on the State's energy [and decarbonization] goals, report to the [governor their effect on the energy program,] legislature the effects of those actions, recommend further actions to increase the benefit or mitigate the effects of those actions, and perform other services as may be required;

     (7)  Evaluate, recommend, and participate in the development of incentives and programs that encourage the development of energy efficiency, renewable energy, energy resiliency, [distributed energy resources,] and clean transportation resources;

     (8)  Assess and evaluate the effectiveness and continued necessity of existing energy related incentives, tax credits, and programs, and provide recommendations and proposed changes;

     (9)  Develop and maintain a comprehensive and systematic quantitative and qualitative capacity to analyze the status of energy resources, systems, and markets, both in-state and in other states and countries, particularly in relation to the State's economy, and to recommend, develop proposals for, and assess the effectiveness of policy and regulatory decisions, and energy emergency planning;

    (10)  Develop and recommend programs for, and assist public agencies in the implementation of, energy assurance and energy resilience;

    (11)  Support the development, evaluation, revision, and adoption of energy-related codes and standards, land use, leasing of land practices, and permitting statutes and ordinances that advance the State's energy goals;

    (12)  Act as the State's energy data clearinghouse by identifying, collecting, compiling, analyzing, publishing, and where possible, monetizing energy and clean transportation data and analyses;

    (13)  Advocate for the State's energy and decarbonization goals at relevant venues and departments, including but not limited to the public utilities commission, legislature, and division of consumer advocacy, to ensure that state energy policies and regulations align with the state strategic goals and are data‑driven;

    (14)  Support economic development, jobs, and innovation initiatives related to and resulting from the State's renewable energy [and distributed energy resources] experience, capabilities, and data analyses;

    (15)  Facilitate the efficient, expedited [permitting of] completion of private-sector energy efficiency, renewable energy, clean transportation, and energy resiliency projects by:

          (A)  Coordinating and aligning state and county departments and agencies to support, expedite, and remove barriers to deployment of energy initiatives and projects; [and]

          (B)  Identify [and], evaluate, coordinate, eliminate, or resolve conflicting or onerous policies, processes, and rules that unreasonably impede project development and deployment and propose regulatory, legislative, administrative, processes, or other solutions to applicable stakeholders;

          (C)  Facilitate the resolution of conflicts between state and county agencies, including engagement with other divisions and the director of business, economic development, and tourism; and

          (D)  Facilitate and expedite approvals and reviews for permits, including permits for land leases or to satisfy environmental or archeological requirements;

    (16)  Identify and recommend policies to align utility company goals and models with [those of ratepayers, including evaluating utility models that best support] state energy plans and goals;

    (17)  Develop a state energy plan that includes:

          (A)  Annual state and division goals for achievement of state energy policies;

          (B)  Strategies and actions for the one-, five-, ten-, and fifteen-year forecasts for the state annual achievement of state energy policy goals;

          (C)  Strategies, tasks, and actions taken by the divisions for one-, five-, ten-, and fifteen-year forecasts for the state annual achievement of state energy policy goals;

          (D)  Annual reporting of the achievements made by the state and divisions, branches, and sections;

          (E)  Tasks taken in efforts to achieve state energy policy goals;

          (F)  Evaluation of causes, effects, improvements, and future actions necessary to compensate for the changes;

          (G)  Identification of barriers to achievement of state energy policy goals;

          (H)  Identification of policies needed to achieve state energy policy goals;

          (I)  Status of land acquisition and leasing for renewable energy projects and fuels;

          (J)  Reporting of how the divisions, branches, and sections have specifically achieved or not achieved goals and strategies; and

          (K)  Actions to assist the public and private sectors with projects toward the achievement of the state energy policy goals.

          The State energy plan shall be completed by December 31, 2024, and updated annually.  The state energy plan shall be submitted to the legislature and be publicly available on the Hawaii state energy office's website;

   [(17)] (18)  Prepare and submit an annual report on the achievements of the division to their duties and energy plan and other reports as may be requested [to] by the governor [and to] or the legislature [on the implementation of this part;].  All reports by the Hawaii state energy office shall be publicly available on the Hawaii state energy office's website;

   [(18)] (19)  Contract for services in accordance with state procurement laws and rules when required for the implementation of this part; and

   [(19)] (20)  Adopt rules, pursuant to chapter 91, for the administration of this part."

     SECTION 3.  Sections 125C-22, 125C-23, 125C-31, 141-9, 196‑5, 196-6.5, 196-11, 196-30, 196-63, 196-81, 196-83, 206M-23, 235-110.32, 286-5, 286-172, 304A-1891, 304A-1892, and 304A‑1894.1, Hawaii Revised Statutes, are amended by substituting the term "chief energy administrator" wherever the term "chief energy officer" appears, as the context requires.

     SECTION 4.  All rights, powers, functions, and duties of the state energy office are transferred to the department of business, economic development, and tourism.

     All employees who occupy civil service positions and whose functions are transferred to the department of business, economic development, and tourism by this Act shall retain their civil service status, whether permanent or temporary.  Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

     Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act.  An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws.  The director of business, economic development, and tourism may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

     SECTION 5.  All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the state energy office relating to the functions transferred to the department of business, economic development, and tourism shall be transferred with the functions to which they relate.

     SECTION 6.  All rules, policies, procedures, guidelines, and other material adopted or developed by the state energy office to implement provisions of the Hawaii Revised Statutes that are reenacted or made applicable to the department of business, economic development, and tourism by this Act shall remain in full force and effect until amended or repealed by the department of business, economic development, and tourism pursuant to chapter 91, Hawaii Revised Statutes.  In the interim, every reference to the state energy office in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of business economic development, and tourism.

     SECTION 7.  In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriation contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $          , or       per cent.  The reasons for exceeding the general fund expenditure ceiling are that the appropriation made in this Act is necessary to serve the public interest and to meet the needs provided for by this Act.

     SECTION 8.  There is appropriated out of the general revenues of the State of Hawaii the sum of $12,105,644 or so much thereof as may be necessary for fiscal year 2024-2025 for the Hawaii state energy office.

     The sum appropriated shall be expended by the Hawaii state energy office for the purposes of this Act.

     SECTION 9.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 10.  This Act shall take effect on July 1, 2024.

 

INTRODUCED BY:

_____________________________

 

 

 

 

 

Report Title:

HSEO; DBEDT; Board; General Fund Expenditure Ceiling Exceeded

 

Description:

Makes the Hawaii State Energy Office a division of the Department of Business, Economic Development, and Tourism.  Renames the Chief Energy Officer as the Chief Energy Administrator.  Requires the Hawaii State Energy Office to establish a State Energy Plan.  Appropriates moneys.  Declares that the appropriation exceeds the state general fund expenditure ceiling for 2024-2025.

 

 

 

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