THE SENATE |
S.B. NO. |
2146 |
THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to renewable energy.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that accelerating the development of renewable energy to reduce greenhouse gases is a high priority. The legislature has enacted numerous acts to achieve this objective, including:
(1) Act 97, Session Laws of Hawaii 2015, which established a renewable energy portfolio standards target of one hundred per cent renewable electric energy by 2045;
(2) Act 15, Session Laws of Hawaii 2018, which established a statewide zero emissions clean economy target to sequester throughout the State more atmospheric carbon and greenhouse gases than emitted, as quickly as practicable but no later than 2045; and
(3) Act 23, Session Laws of Hawaii 2020, which prohibited the further use of coal in Hawaii for electricity production.
The legislature believes that the development and completion of renewable energy is also a high priority.
The legislature recognizes that in November 2020, the public utilities commission issued a letter to the parties in docket numbers 2015-0389, 2017-0352, and 2018-0165, stating that it "is markedly concerned that Hawaiian Electric [Company]'s interconnection processes and policies are increasing development costs and extending renewable project timelines."
In addition, in docket number 2018-0088 (Performance Based Regulation), the public utilities commission issued order number 37507 on December 23, 2020, indicating that the commission was concerned about interconnection delays and will implement a performance incentive mechanism to encourage Hawaiian Electric Company to accelerate the interconnection process. Order number 37507 also stated that "the scheduled retirement of the AES Power Plant in 2022, as well as [Hawaiian Electric Company, Inc.; Hawaii Electric Light Company, Inc.; and Maui Electric Company, Limited's] proposal to delay interconnecting several renewable energy and storage projects recently approved by the [public utilities c]ommission, underscores the need for expeditiously securing alternative sources of grid services to ensure that system needs are met."
The legislature notes that during procurement phase 1, all eight projects had delayed commercial operations dates relative to the commercial operations dates provided in each project's power purchase agreement. During procurement phase 2, eight of the eleven projects had delayed commercial operations dates relative to the commercial operations dates provided in each project's power purchase agreement. The public utilities commission has opened a docket, docket number 2021-0024, to review Hawaiian Electric Company's interconnection process and transition plans for retirement of fossil fuel plants. The legislature also believes that these delays, coupled with the retiring of the AES Coal Plant, may cause grid reliability issues.
The legislature further finds that there have been significant delays for Hawaiian Electric Company to complete its interconnection process, making it difficult to plan for the design and construction of utility-scale renewable energy projects that require interconnection with Hawaiian Electric Company's electric grid.
The legislature finds that facilitating the timing of interconnection will:
(1) Help to bring utility-scale renewable energy projects online sooner;
(2) Decrease electricity rates for consumers by providing project developers with added certainty regarding project timelines to lower bid pricing;
(3) Help to achieve the State's renewable portfolio standard goals in a timely manner; and
(4) Help to reduce greenhouse gas emissions and mitigate the effects of climate change sooner.
Accordingly, the purpose of this Act is to require the public utilities commission to develop and adopt reliability standards and interconnection requirements to facilitate the timely interconnection of utility-scale renewable energy projects.
SECTION 2. Section 269-142, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:
"(a) The commission [may] shall adopt, by
rule or order, reliability standards and interconnection requirements. Reliability standards and interconnection
requirements adopted by the commission shall apply to any electric utility and
any user, owner, or operator of the Hawaii electric system. The commission shall not contract for the
performance of the functions under this subsection to any other entity as
provided under section 269-147.
(b)
The commission [may] shall develop reliability
standards and interconnection requirements as it determines necessary or upon
recommendation from any entity, including an entity contracted by the
commission to serve as the Hawaii electricity reliability administrator
provided for under this part, for the continuing reliable design and operation
of the Hawaii electric system. Any
reliability standard or interconnection requirement developed by the commission
shall be adopted by the commission in accordance with subsection (a) in order
to be effective. The commission shall
not contract for the performance of the functions under this subsection to any
other entity as provided under section 269-147."
SECTION 3. Section 269-145, Hawaii Revised Statutes, is amended to read as follows:
"[[]§269-145[]] Grid access; procedures for interconnection;
dispute resolution. (a) Each user, owner, or operator of the Hawaii
electric system, or any other person, business, or entity seeking to make an interconnection
on the Hawaii electric system shall do so in accordance with procedures to be
established by the commission by rule or order.
(b)
The commission shall include in any interconnection procedures
established pursuant to this section requirements that the electric public
utilities:
(1) Complete the
interconnection design;
(2) Reach agreement
with the renewable energy project developer; and
(3) File a request
for interconnection or line extension approval, if required;
provided
that the electric public utilities shall meet these requirements as soon as
practicable, but no later than two hundred seventy days after the renewable
energy project power purchase agreement is filed with the commission for review
and approval; provided further that the electric public utility shall submit
interim reports to the commission on the status of the electric public
utility's efforts to comply with the requirements of this subsection both
ninety days and one hundred eighty days after the renewable energy project power
purchase agreement is filed with the commission for review and approval; and
provided further that if the electric public utility is unable to comply with
the requirements of this clause, the electric public utility shall report in
writing the reasons therefore to the commission within ten calendar days after
the expiration of the two hundred seventy-day period.
If the electric public utility fails to
meet the requirements established by the commission pursuant to this subsection
within the two hundred seventy-day period, the electric public utility shall
forfeit and return all monies or other financial incentives that the electric
public utility has received as part of any performance incentive mechanism
program or similar incentive-based award recognized by the commission in
connection with the renewable energy project; provided that the commission
shall submit a report to the governor and legislature regarding any failure to
meet the timing under this subsection by any electric public utility within thirty
days of the commission receiving notice of this failure; provided further that
upon the filing of a request for interconnection or line extension approval by
an electric public utility under this subsection, the commission shall either
approve or disapprove the request within one hundred twenty days of the filing
of the request.
This subsection shall only apply to
utility-scale renewable energy projects that are five megawatts in total output
capacity or larger.
[(b)] (c) The commission shall have the authority to
make final determinations regarding any dispute between any user, owner, or
operator of the Hawaii electric system, or any other person, business, or
entity connecting to the Hawaii electric system, concerning either an existing
interconnection on the Hawaii electric system or an interconnection to the
Hawaii electric system created under the processes established by the
commission under this section."
SECTION 4. Section 269-147, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The commission [may] shall contract
for the performance of its functions under this part with a person, business,
or organization, except for a public utility as defined under this chapter,
that will serve as the Hawaii electricity reliability administrator provided for
under this part; provided that the commission shall not contract for the
performance of its functions under sections 269-142(a) and (b) and 269-146."
SECTION 5. Section 269-149, Hawaii Revised Statutes, is amended to read as follows:
"[[]§269-149[]] Funding; reporting. (a)
The Hawaii electricity reliability administrator shall use funds collected
through the Hawaii electricity reliability surcharge provided for under section
269-146 to carry out its operations, including administrative, technological,
or other related requirements for effectively ensuring the reliability of the
Hawaii electric system.
(b) The Hawaii electricity reliability administrator shall report to the commission each year on the date of agreement under section 269-147 following the original contracting between the Hawaii electricity reliability administrator and the commission on the status of its operations, financial position, and a projected operational budget for the fiscal year following the date of the report.
(c) The Hawaii electricity reliability administrator shall be subject to regulation by the commission under any provision applicable to a public utility in sections 269-7, 269-8, 269‑8.2, 269-8.5, 269-9, 269-10, 269-13, 269-15, 269-19.5, and 269-28. Notwithstanding any other provision of law to the contrary, the Hawaii electricity reliability administrator shall not be an electric public utility or an electric public utility affiliate.
(d) Within thirty days of receipt of the Hawaii electric reliability administrator's report submitted to the commission pursuant to this section, the commission shall submit to the legislature the report and the commission's assessment of the status and progress of the Hawaii electric reliability administrator in achieving and accomplishing the objectives of this part."
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect upon its approval.
INTRODUCED BY: |
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Report Title:
PUC; Renewable Energy; Transmission Lines; Timely Interconnection
Description:
Requires the Public Utilities Commission to develop and adopt reliability standards and interconnection requirements to facilitate the timely interconnection of utility-scale renewable energy projects.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.