HB859

SECTION 1. The Legislature finds that the cost of living in Hawaii is continuing to rise. The price of electricity has drastically increased by almost forty per cent in the last year in part because of the forced closure of Oahu's coal plant to meet the renewable energy goals set by this Legislature.

Along with concerns on cost effectiveness, there are also concerns that Hawaii needs to have firm energy capabilities for exigent circumstances where renewable power is not available, such as during hurricanes and other natural disasters. In support of this is testimony for SB2510 – 2022 from University of Hawaii Manoa that says, "Specifically, detailed modeling of grid operations shows that the availability of small fossil-fuel generators that run sparingly can, under some circumstances, improve grid reliability and allow reduced usage and even faster retirement of aging oil units resulting in a net system wide fossil fuel reduction. While these flexible firm units should be required to operate using cost-effective renewable fuels whenever they are available; operation using fossil fuels when they are not may still move us toward our low GHG objectives and improve reliability." Hawaiian Electric also testified, "Mandating a switch to renewable fuels may also cause a significant burden to underserved communities in cases where renewable fuels are significantly more expensive than fossil fuels, there should be flexibility to use multiple types of fuels in the best interest of customers. Having fuel flexibility and not being limited to renewable only fuels (i.e., biomass or biofuel) would make for a more resilient grid where new utility scale generation that is added would have that flexibility should a hurricane, major supply chain issue, fallen trees after a storm, or geopolitical events affect the supply of renewable fuels, and in the event solar and wind plants are damaged. Underserved communities would be disproportionately affected in this situation as these communities are less likely have the means to be energy self-sufficient during these times. "

The purpose of this act is to:

(1) Allow for the use of firm energy sources as part of the State's clean energy initiative program; and

(2) Extend the timeline for the State's renewable energy goals.

SECTION 2. Section 269-92, Hawaii Revised Statutes, is amended to read as follows:

"§269-92 Renewable portfolio standards. (a) Each electric utility company that sells electricity for consumption in the State shall establish a renewable portfolio standard of:

(1) Ten per cent of its net electricity sales by December 31, 2010;

(2) Fifteen per cent of its net electricity sales by December 31, 2015;

(3) Thirty per cent of its net electricity sales by December 31, 2020;

(4) Forty per cent of its net electricity generation by December 31, 2030;

(5) [~~Seventy~~] Sixty per cent of its net electricity generation by December 31, [~~2040~~] 2050; and

(6) [~~One hundred~~] Eighty per cent of its net electricity generation by December 31, [~~2045~~] 2070.

(b) The public utilities commission may establish standards for each electric utility company that prescribe the portion of the renewable portfolio standards that shall be met by specific types of renewable energy resources; provided that:

(1) Before January 1, 2015, at least fifty per cent of the renewable portfolio standards shall be met by electrical energy generated using renewable energy as the source, and after December 31, 2014, the entire renewable portfolio standard shall be met by electrical generation from renewable energy sources;

(2) Beginning January 1, 2015, electrical energy savings shall not count toward renewable energy portfolio standards;

(3) Where electrical energy is generated or displaced by a combination of renewable and nonrenewable means, the proportion attributable to the renewable means shall be credited as renewable energy; and

(4) Where fossil and renewable fuels are co-fired in the same generating unit, the unit shall be considered to generate renewable electrical energy (electricity) in direct proportion to the percentage of the total heat input value represented by the heat input value of the renewable fuels.

(c) If the public utilities commission determines that an electric utility company failed to meet the renewable portfolio standard, after a hearing in accordance with chapter 91, the utility shall be subject to penalties to be established by the public utilities commission; provided that if the commission determines that the electric utility company is unable to meet the renewable portfolio standards because of reasons beyond the reasonable control of the electric utility company, as set forth in subsection (d), the commission, in its discretion, may waive in whole or in part any otherwise applicable penalties.

(d) Events or circumstances that are beyond an electric utility company's reasonable control may include, to the extent the event or circumstance could not be reasonably foreseen and ameliorated:

(1) Weather-related damage;

(2) Natural disasters;

(3) Mechanical or resource failure;

(4) Failure of renewable electrical energy producers to meet contractual obligations to the electric utility company;

(5) Labor strikes or lockouts;

(6) Actions of governmental authorities that adversely affect the generation, transmission, or distribution of renewable electrical energy under contract to an electric utility company;

(7) Inability to acquire sufficient renewable electrical energy due to lapsing of tax credits related to renewable energy development;

(8) Inability to obtain permits or land use approvals for renewable electrical energy projects;

(9) Inability to acquire sufficient cost-effective renewable electrical energy;

(10) Inability to acquire sufficient renewable electrical energy to meet the renewable portfolio standard goals beyond 2030 in a manner that is beneficial to Hawaii's economy in relation to comparable fossil fuel resources;

(11) Substantial limitations, restrictions, or prohibitions on utility renewable electrical energy projects;

(12) Non-renewable energy generated by electric generation facilities where the electric utility company otherwise does not have direct control or ownership of independent power producers, government and non-government agencies, and any persons or entities, including merchant or co-generation facilities; and

(13) Other events and circumstances of a similar nature."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

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

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	859
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII