HOUSE OF REPRESENTATIVES

H.B. NO.

2103

THIRTY-SECOND LEGISLATURE, 2024

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO LONG DURATION CLEAN ENERGY STORAGE.

 

 

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

 

     SECTION 1.  The legislature finds that extreme weather, exacerbated by climate change, can affect the supply and availability of all forms of energy, including local renewable resources and imported fuels.  The ability to store locally produced clean energy can help mitigate the risk of supply disruptions during extreme weather or other events.

     The legislature recognizes that the United States Department of Energy has a goal of reducing the cost of long duration clean energy storage by ninety per cent by the end of 2030.  The department intends to make significant funding available to the states to support the federal government's energy storage grand challenge roadmap.

     Accordingly, the purpose of this Act is to support the continued development and storage of resilient, sustainable, and locally produced clean energy in the State, and to make the State competitive for clean energy storage federal grants, by:

     (1)  Amending the Hawaii renewable hydrogen program and hydrogen investment special fund to encompass a broader focus on long duration clean energy storage; and

     (2)  Transferring responsibility for the program to the Hawaii state energy office.

     SECTION 2.  Section 196-10, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§196-10[]]  Hawaii [renewable hydrogen] long duration clean energy storage program.  There is established[,] within the [department of business, economic development, and tourism,] Hawaii state energy office a Hawaii [renewable hydrogen] long duration clean energy storage program [to manage the State's transition to a renewable hydrogen economy]. The program shall design, implement, and administer activities that include:

     (1)  Strategic partnerships for the research, development, testing, and deployment of [renewable hydrogen] long duration clean energy storage technologies[;], including renewable hydrogen, pumped storage hydroelectricity, batteries, and other technologies;

     (2)  Engineering and economic evaluations of Hawaii's potential for [renewable hydrogen use and] long duration clean energy storage, including near-term project opportunities for the State's renewable energy resources;

     (3)  Electric grid reliability and security projects that will enable the integration of a substantial increase of electricity from renewable energy resources on the island of Hawaii;

     (4)  [Hydrogen] Long duration clean energy storage demonstration projects, including infrastructure for the production, storage, and refueling of hydrogen vehicles; hydroenergy storage; pumped storage hydroelectricity; battery storage; and other technologies;

     (5)  A statewide [hydrogen economy] long duration clean energy storage public education and outreach plan focusing on the island of Hawaii, to be developed in coordination with Hawaii's public education institutions[;], and to include education on renewable hydrogen and other technologies;

     (6)  Promotion of Hawaii's [renewable hydrogen] long duration clean energy storage resources, including renewable hydrogen, to potential partners and investors;

    [(7)  A plan, for implementation during the years 2007 to 2010, to more fully deploy hydrogen technologies and infrastructure capable of supporting the island of Hawaii's energy needs, including:

          (A)  Expanded installation of hydrogen production facilities;

          (B)  Development of integrated energy systems, including hydrogen vehicles;

          (C)  Construction of additional hydrogen refueling stations; and

          (D)  Promotion of building design and construction that fully incorporates clean energy assets, including reliance on hydrogen-fueled energy generation;

     (8)  A plan, for implementation during the years 2010 to 2020, to transition the island of Hawaii to a hydrogen-fueled economy and to extend the application of the plan throughout the State; and

     (9)] (7)  Evaluation of policy recommendations to:

          (A)  Encourage the adoption of [hydrogen-fueled vehicles;] long duration clean energy storage and the identification of potential customers for the storage;

          (B)  Continually fund the [hydrogen] long duration clean energy storage investment capital special fund; and

          (C)  Support investment in [hydrogen] long duration clean energy storage infrastructure, including [production, storage, and dispensing facilities.] storage for renewable hydrogen, pumped storage hydroelectricity, and other technologies; and

     (8)  Engineering and economic evaluations of potential locations for long duration clean energy storage, prioritizing locations for storing pumped storage hydroelectricity, that:

          (A)  Maximize the ecological, social, and economic benefits of nearby resources and make the best use of agricultural and recreational lands; and

          (B)  Minimize or avoid negative impacts on cultural sites, productive agricultural lands, and animal habitats."

     SECTION 3.  Section 206M-63, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§206M-63[]  Hydrogen] Long duration clean energy storage investment capital special fund.  (a)  There shall be established the [hydrogen] long duration clean energy storage investment capital special fund, into which shall be deposited:

     (1)  Appropriations made by the legislature to the fund;

     (2)  All contributions from public or private partners;

     (3)  All interest earned on or accrued to moneys deposited in the special fund; and

     (4)  Any other moneys made available to the special fund from other sources.

     (b)  Moneys in the fund shall be expended by the [development corporation:] Hawaii state energy office:

     (1)  To provide seed capital for and venture capital investments in private sector and federal projects for research, development, testing, and implementation of the Hawaii [renewable hydrogen] long duration clean energy storage program, as set forth in section 196‑10; and

     (2)  For any other purpose deemed necessary to carry out the purposes of section 196-10."

     SECTION 4.  All rights, powers, functions, and duties of the department of business, economic development, and tourism related to the administration of the renewable hydrogen program are transferred to the Hawaii state energy office.

     All employees who occupy civil service positions and whose functions are transferred to the Hawaii state energy office by this Act shall retain their civil service status, whether permanent or temporary.  Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

     Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act.  An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws.  The chief energy officer may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

     SECTION 5.  In accordance with section 9 of article VII, of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriation contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $          , or      per cent.  The reasons for exceeding the general fund expenditure ceiling are that the appropriation made in this Act is necessary to serve the public interest and to meet the need provided for by this Act.

     SECTION 6.  There is appropriated out of the general revenues of the State of Hawaii the sum of $3,500,000 or so much thereof as may be necessary for fiscal year 2024-2025 to support the long duration clean energy storage program, including the hiring of any temporary staff that may be needed to support the transfer of the program to the Hawaii state energy office.

     The sum appropriated shall be expended by the Hawaii state energy office for the purposes of this Act.

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 3000.

 


 

Report Title:

HSEO; Renewable Energy; Long Duration Clean Energy Storage; Appropriation; Expenditure Ceiling

 

Description:

Amends the Hawaii renewable hydrogen program and hydrogen investment capital special fund to include a broader focus on long duration clean energy storage.  Transfers responsibility for the program to the Hawaii State Energy Office.  Appropriates moneys.  Effective 7/1/3000.  (HD1)

 

 

 

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