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THE SENATE |
S.B. NO. |
1220 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO RENEWABLE GAS TARIFF.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature also 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 environment and climate resilience objectives.
The legislature further finds that it is imperative that a renewable gas tariff be established by a gas utility, and a decision 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 also finds that ratemaking procedures for a proposed tariff can be effective as soon as thirty days after notice 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 gas utility companies to promptly file renewable gas tariffs with the public utilities commission for review and approval; provided that the public utilities commission completes its review within nine months of the filing of a proposed renewable gas tariff, 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. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§269- Renewable gas tariff. (a) No
later than August 31, 2025, each gas utility in the State shall file a proposed
initial renewable gas tariff or tariffs with the public utilities commission to
establish appropriate and reasonable rates for renewable gas for customers who
choose to receive service under a renewable gas tariff. If the public utilities commission finds that
the tariff or tariffs are just, reasonable, and in the public interest, the
commission shall establish an initial or revised renewable gas tariff or
tariffs no later than nine 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; provided further that all filings shall be
in accordance with the Hawaii Administrative Rules.
(b) The renewable gas tariff shall
be based on eligible customers' net therm usage and as 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 period, as measured in therm units.
"Renewable gas" means gas produced from non-petroleum
feedstock, as defined in section 269-45(b), 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 company."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
PUC; Renewable Energy; Renewable Gas Tariff
Description:
Requires gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by 8/31/2025. Requires the Public Utilities Commission to establish a renewable gas tariff within 9 months of receiving a completed application for a proposed renewable gas tariff. Provides that the Public Utilities Commission shall determine the completeness of the application no later than 30 days after the application is filed. Effective 7/1/2050. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.