HOUSE OF REPRESENTATIVES

H.B. NO.

191

THIRTY-SECOND LEGISLATURE, 2023

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO CLIMATE MITIGATION.

 

 

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

 

     SECTION 1.  The legislature finds that in order for the State to make comprehensive and cost-effective assessments of investments in durable infrastructure projects, the cost of the greenhouse gas emissions associated with that infrastructure over the span of its expected useful life should be considered.  A value assigned to the cost of greenhouse emissions is sometimes called an implicit carbon price, or "the social cost of carbon".  While an explicit carbon price might be a tax or a fee levied directly on emissions, an implicit carbon price instead assigns a monetary value to greenhouse gas emissions.  This cost can then be factored into decisions as a way to account for the impacts of increased emissions over time and the associated risks and costs, as well as the benefits of avoiding emissions.

     The legislature further finds that the adoption of an implicit carbon price will help to guide decisions made about infrastructure projects so that they align with the transition to a low-carbon economy and with the State's climate policy.  Hawaii has statutory goals to reduce emissions by fifty per cent from 2005 levels by 2030 and to have a carbon-negative economy by 2045.  Incorporating consideration of emissions in decision-making today will facilitate achieving these goals and lead to more cost-effective outcomes for the State over the long term.

     The legislature also finds that the public utilities commission should require regulated electric and gas utilities to use the social cost of carbon (SC-CO2), methane (SC-CH4), and nitrous oxide (SC-N2O) emissions established by the United States Interagency Working Group on the Social Cost of Greenhouse Gases when determining the cost, benefit, or net present value of any integrated resource plan or project proposal.  Hawaii's renewable portfolio standards have charted a course to reach one hundred per cent renewable energy generation by 2045.  However, the renewable portfolio standards do not account for the varying levels of emissions associated with different types of resources that are included in the State's definition of "renewable energy".  Adopting an implicit carbon price would ensure that the State's transition to renewable energy includes consideration of emissions and of Hawaii's decarbonization goals under section 225P-5, Hawaii Revised Statutes.

     Accordingly, the purpose of this Act is to require:

     (1)  Each regulated electric and gas utility to use the estimated social cost of greenhouse gas emissions established by the United States Interagency Working Group on the Social Cost of Greenhouse Gases in that utility's respective integrated resource planning process; and

     (2)  The State to consider the estimated social cost of greenhouse gas emissions in planning new infrastructure and capital improvement projects and when designing and constructing new buildings.

     SECTION 2.  Chapter 225P, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§225P-     Estimated social cost of greenhouse gas emissions; new infrastructure; capital improvement projects; requirements.  (a)  The State shall consider the estimated social cost of greenhouse gas emissions in planning new infrastructure and capital improvement projects.

     (b)  As used in this section, "estimated social cost of greenhouse gas emissions" has the same meaning as in section 269-1."

     SECTION 3.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§269-     Estimated social cost of greenhouse gas emissions; requirements.  (a)  The public utilities commission shall require regulated electric and gas utilities to use the estimated social cost of greenhouse gas emissions when determining the cost, benefit, or net present value of any integrated resource plan or project proposal.

     (b)  The public utilities commission shall use the estimated social cost of greenhouse gas emissions in assessing penalties for delays in integrating renewable energy projects and programs that lower carbon emissions."

     SECTION 4.  Section 107-27, Hawaii Revised Statutes, is amended to read as follows:

     "§107-27  Design and construction of state buildings.  (a)  No later than one year after the adoption of codes or standards pursuant to section 107-24(c), the design of all state building construction shall [be in compliance] comply with the Hawaii state building codes, except state building construction shall be allowed to be exempted from:

     (1)  County codes that have not adopted the Hawaii state building codes;

     (2)  Any county code amendments that are inconsistent with the minimum performance objectives of the Hawaii state building codes or the objectives enumerated in this part; or

     (3)  Any county code amendments that are contrary to code amendments adopted by another county.

     (b)  Exemptions shall include county ordinances allowing the exercise of indigenous Hawaiian architecture adopted in accordance with section 46-1.55.

     (c)  The State shall consider [hurricane resistant] hurricane-resistant criteria when designing and constructing new public schools for the capability of providing shelter refuge.

     (d)  Beginning July 1, 2023, where feasible and cost-effective, the design of all new state building construction shall:

     (1)  Maximize energy and water efficiency measures;

     (2)  Maximize energy generation potential; and

     (3)  Use building materials that reduce the carbon footprint of the project.

     (e)  The State shall consider the estimated social cost of greenhouse gas emissions when designing and constructing new buildings.

     (f)  As used in this section, "estimated social cost of greenhouse gas emissions" has the same meaning as in section 269-1."

     SECTION 5.  Section 269-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Estimated social cost of greenhouse gas emissions" means the estimated social cost of carbon (SC-CO2), methane (SC-CH4), and nitrous oxide (SC-N2O) emissions established by the United States Interagency Working Group on the Social Cost of Greenhouse Gases."

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 3000.

 

Report Title:

Public Utilities Commission; Utilities; Estimated Social Cost of Greenhouse Gas Emissions

 

Description:

Requires each regulated electric and gas utility to use the estimated social cost of greenhouse gas emissions established by the United States Interagency Working Group on the Social Cost of Greenhouse Gases in that utility's respective integrated resource planning process.  Requires the State to consider the estimated social cost of greenhouse gas emissions in planning new infrastructure and capital improvement projects and when designing and constructing new buildings.  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.