HOUSE OF REPRESENTATIVES

H.B. NO.

342

THIRTY-THIRD LEGISLATURE, 2025

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO RENEWABLE GAS TARIFF.

 

 

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

 

     SECTION 1.  The legislature finds that there must be enabling legislation establishing a renewable gas tariff with appropriate and reasonable rates to meet the demand of environmentally and socially conscious consumers.

     The legislature further finds that existing law regulates the procurement of supply and production of renewable gas.  Utilizing renewable energy resources that have the potential to contribute to renewable gas production will help the State achieve its environmental and climate resilience objectives.

     The legislature also finds that it is imperative that a renewable gas tariff be established by a gas utility and a decision be rendered by the public utilities commission as expeditiously as possible to reduce the State's dependence on imported petroleum and minimize disruptions caused by price fluctuations.

     The legislature additionally finds that ratemaking procedures for a proposed tariff can be established as soon as thirty days after notice is given to the public utilities commission pursuant to section 269-16(b), Hawaii Revised Statutes, and section 16‑601‑111, Hawaii Administrative Rules.  However, these provisions do not require the public utilities commission to complete its review in a timely manner.  Accordingly, it is imperative to minimize the length of the public utilities commission's review of a renewable gas tariff under existing ratemaking procedures to best achieve the State's decarbonization goals; provided that the renewable gas tariff does not increase rates for other customers.

     The legislature further finds that gas utilities in the State must be required to promptly establish a renewable gas tariff to satisfy immediate demand from customers who choose to receive service under the tariff.  Under section 269-16(a), Hawaii Revised Statutes, all rates, fares, charges, classifications, schedules, rules, and practices made, charged, or observed by any public utility shall be just and reasonable.

     Accordingly, the purpose of this Act is to require:

     (1)  Gas utility companies to file a proposed initial renewable gas tariff or tariffs with the public utilities commission by August 31, 2025; and

     (2)  The public utilities commission to approve or modify the proposed initial renewable gas tariff or tariffs no later than six months after the filing of the tariff; provided that the proposed tariff does not increase rates for other customers, and the public utilities commission finds the tariff to be just, reasonable, and in the public interest.

     SECTION 2.  (a)  Each gas utility in the State shall file a proposed initial renewable gas tariff or tariffs with the public utilities commission by August 31, 2025, to establish appropriate and reasonable rates for renewable gas for customers who choose to receive service under a renewable gas tariff.  The public utilities commission shall approve or modify an initial or revised renewable gas tariff or tariffs no later than six months after the filing of a completed application for a proposed renewable gas tariff, the completeness of which shall be determined by the public utilities commission no later than thirty days after the application is filed; provided that the renewable gas tariff shall not increase rates for other customers and the commission finds the tariff or tariffs to be just, reasonable, and in the public interest; provided further that all filings shall be in accordance with rules adopted under this chapter.

     (b)  The renewable gas tariff shall be based on the eligible customer's net therm usage or as otherwise determined by the public utilities commission.

     (c)  For the purposes of this section:

     "Net therm usage" means the amount of gas a customer uses during a monthly billing cycle as measured in therm units.

     "Renewable gas" means gas produced from non-petroleum feedstock, as defined in section 269-45(b), Hawaii Revised Statutes, for use by a gas utility in the State, or as otherwise defined by the public utilities commission by rule or order.

     "Renewable gas tariff" means a tariff approved by the public utilities commission that allows a gas utility customer to voluntarily purchase renewable gas from a gas utility.

     SECTION 3.  This Act shall take effect on July 1, 3000.

 

 

Report Title:

PUC; Renewable Energy; Renewable Gas Tariff

 

Description:

Requires gas utilities to file a proposed initial renewable gas tariff or tariffs with the Public Utilities Commission by August 31, 2025.  Requires the Public Utilities Commission to approve or modify a renewable gas tariff within six months of receiving a proposed renewable gas tariff.  Effective 7/1/3000.  (HD1)

 

 

 

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