SB1154 SD1

THE SENATE	S.B. NO.	1154
THIRTY-SECOND LEGISLATURE, 2023		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO ENERGY.

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

SECTION 1. The legislature finds that the high cost of electricity continues to increase despite oil and gas prices. As a result of the ever-increasing price of electricity, many state departments and agencies, specifically educational facilities, face severe cost shortfalls prompting a need for emergency appropriations greater than $30 million. However, facilities such as the University of Hawaii Maui college and nine other campuses across the State have photovoltaic systems installed on their parking shade structures and rooftops. The excess electricity generated at these facilities is wasted because there is no system that allows wheeling of the surplus clean energy to another connected facility.

Furthermore, the legislature finds that readily available renewable energy is not being utilized because of a lack of proximity to other state buildings and facilities. The clean energy could provide electricity to state facilities at peak time of operations that are opposite in time from peak operations for the residential population. The public utilities commission's failure to open and move a docket on wheeling for state facilities has crippled the ability of the State to share and distribute the electricity generated amongst its facilities and lower electric bills, which has result in substantial emergency payments to utility companies.

The legislature finds that the production of clean electricity may be encouraged if government agencies, as sellers of clean electricity, are allowed to engage in intragovernmental wheeling, in which electric power is transmitted from one agency's power generation to the facilities of other governmental agencies over the existing transmission lines of a third-party electric public utility. The State and other government entities could acquire clean electricity by purchasing it from a clean electricity project developer then transmit it across utility lines owned and maintained by an existing electric utility to other government agencies.

Accordingly, the purpose of this Act is to authorize government agencies to wheel electricity that is produced by their own facilities from renewable energy sources, subject to certain conditions determined by the public utilities commission.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§269- Wheeling; renewable energy; government agencies; rules. (a) A government agency may engage in wheeling of electricity produced at its own facilities from renewable sources.

(b) The public utilities commission shall open a docket to determine:

(1) The rate of compensation to an electric company acting as a transmitter; or

(2) Other terms to ensure wheeling is done in the public interest.

(d) This section shall not apply to a member-owned cooperative.

(e) For the purposes of this section, "wheeling" means transmitting electric power from one governmental agency's point of generation to the facilities of other governmental agencies over the existing transmission lines of a third-party electric public utility."

SECTION 3. New statutory material is underscored.

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

Report Title:

Public Utilities Commission; Governmental Agencies; Wheeling; Clean Energy

Description:

Authorizes government agencies to wheel electricity that is produced by their own facilities from renewable energy sources to another government agency's facilities, subject to certain restrictions. Exempts member-owned cooperatives. (SD1)

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