Bill Text: HI SB929 | 2022 | Regular Session | Introduced
Bill Title: Relating To Renewable Energy.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2021-12-10 - Carried over to 2022 Regular Session. [SB929 Detail]
Download: Hawaii-2022-SB929-Introduced.html
THE SENATE |
S.B. NO. |
929 |
THIRTY-FIRST LEGISLATURE, 2021 |
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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 Act 97, Session Laws of Hawaii 2015, established a renewable portfolio standards target of one hundred per cent renewable electric energy by 2045. The legislature also enacted Act 15, Session Laws of Hawaii 2018, into law, establishing a statewide zero emissions clean economy target to sequester more atmospheric carbon and greenhouse gases than emitted within the State as quickly as practicable, but no later than 2045.
In order to move the State closer to its carbon negative target as soon as possible, which is needed to mitigate the damaging effects of projected sea level rise due to greenhouse gas emissions, the legislature finds that continual progress and the timely approval, commencement of construction, and completion of renewable energy projects is of paramount importance.
The legislature also finds that Act 23, Session Laws of Hawaii 2020,
prohibited the further use of coal in Hawaii for electricity production to
advance these goals. While the
legislature supports the scheduled retirement of the largest single source,
lowest cost energy on Oahu, and last coal power plant in the State, the
legislature also understands that the reliability of the electric grid is now in
jeopardy unless more renewable energy projects capable of replacing the total energy
lost by the coal power plant can be delivered into the system prior to the coal
power plant's retirement.
The legislature further finds that renewable energy projects
take multiple years to develop. In June
2016, Hawaiian Electric Co., Inc. (HECO) requested that the public utilities commission
open a docket to review approval requests relating to HECO's plan to acquire
new renewable generation on the islands of Oahu, Hawaii, Maui, Molokai, and
Lanai. In February 2018, the public utilities
commission approved HECO's request for proposal phase 1. This was followed by bids selected and power
purchase agreements for the first seven of eight projects that were submitted by
HECO to the public utilities commission for approval in December 2018, with the
eighth project submitted in February 2019. While seven of these eight projects were
approved by the public utilities commission in approximately three months, it took
approximately twenty-one months to approve one of these projects.
In addition, HECO did not submit the interconnection
transmission line requests for approval until some eighteen to twenty-one months
later for five of the projects; has still yet to submit requests for approval
for two projects as of January 2021; and indicated for the first time in
September 2020 that one project did not require an interconnection transmission
line.
In addition, although the first of the interconnection transmission line requests for approval was filed with the public utilities commission in August 2020, five months have passed and the request has not been approved. Renewable project developers must wait until their projects have received approval from the public utilities commission for both the power purchase agreement and the interconnection transmission line in order to obtain financing or expend significant moneys to begin construction of their respective projects. Accordingly, any delays in receiving both approvals from the public utility commission typically result in a delay in the start of construction of the renewable energy project.
The following table illustrates the ongoing interconnection delays.
RFP 1 PUC Docket Transmission Line Approval Timelines |
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Docket No. |
Project Name |
PPA Application Date |
PPA Approval Date |
Transmission Line Approval Request Date |
Transmission Line Approval Date |
2018-0430 |
AES Waikoloa Solar |
12/31/2018 |
3/25/2019 |
8/31/2020 |
Not yet approved (as of 1/5/2021). |
2018-0431 |
Hoohana Solar 1 |
12/31/2018 |
3/25/2019 |
Not yet
filed (as of 1/5/2021). |
Not yet approved (as of 1/5/2021). |
2018-0432 |
Hale Kuawehi Solar |
12/31/2018 |
3/25/2019 |
9/4/2020 |
Not yet approved (as of 1/5/2021). |
2018-0433 |
Paeahu Solar |
12/31/2018 |
10/5/2020 |
10/29/2020 |
Not yet approved (as of 1/5/2021). |
2018-0434 |
Mililani I Solar |
12/31/2018 |
3/25/2019 |
Informed PUC
Transmission Line not required. (9/18/2020) |
Not applicable |
2018-0435 |
Waiawa Solar Power |
12/31/2018 |
3/25/2019 |
10/9/2020 |
Not yet approved (as of 1/5/2021). |
2018-0436 |
AES Kuihelani Solar |
12/31/2018 |
3/25/2019 |
Not yet
filed (as of 1/5/2020) |
Not yet approved (as of 1/5/2021). |
2019-0050 |
AES West Oahu |
2/28/2019 |
8/20/2019 |
9/8/2020 |
Not yet approved (as of 1/5/2021). |
In addition, three of HECO's request for proposal phase two projects have been approved in three and a half months, while eight projects are currently being reviewed by the public utilities commission for approval and have procedural schedules set by the public utilities commission indicating that decision-making will go beyond six months, despite the majority of RFP phase one projects only requiring approximately three months for a decision to be made.
The legislature finds that there have been significant delays for
HECO to complete its interconnection process so that utility-scale renewable
energy projects know how they may interconnect with HECO's electric grid, and
at what cost, before beginning construction. In addition, the extended timing for the public
utilities commission's review and approval of certain project power purchase agreements
and interconnection line requests has likewise delayed the financing and start
of construction for renewable energy projects.
The Hawaii natural energy institute informed the public utilities
commission in December 2020, that timely completion of these projects are
critical to mitigate grid reliability issues caused by the retirement of the Oahu
coal plant in September 2022. Specifically,
the Hawaii natural energy institute stated that "[b]ased on projected
timelines for Stage 1, sufficient solar + storage to provide full replacement
will not likely be in place at time of AES [coal plant] retirement - making
timing of standalone battery critical."
Accordingly, if certain HECO request for proposal phase one and two
projects are not completed and do not deliver sufficient renewable energy to
replace the energy from Oahu coal plant prior to September 2022, the use of additional
fossil fuel generation from HECO's plants (at a substantially higher cost than
the cost of energy from the coal plant) may be needed to maintain grid
reliability at an increased cost to Oahu ratepayers.
The legislature finds that facilitating the timing of the public
utilities commission's review and HECO's interconnection will not only help bring
utility-scale renewable energy projects online sooner. It will also:
(1) Decrease electricity rates for consumers by providing project developers with added certainty regarding timing, which helps to lower bid pricing;
(2) Help achieve the State's RPS goals in a timely manner; and
(3) Help reduce greenhouse gas emissions earlier in order to mitigate climate change.
The legislature has previously established time limits for state
and county agencies by which they must issue decisions in certain types of
matters. For example, to facilitate
timely broadband deployment, counties are required to approve, approve with modification,
or disapprove all applications for broadband-related permits within sixty days
of submission of a complete permit application and full payment of any
applicable fee, otherwise the application is deemed approved by the county pursuant
to section 46-89(a), Hawaii Revised Statutes.
In addition, under the State Procurement Code, hearings officers must
issue a written decision on procurement matters no later than forty-five days
from the receipt of a request from a party for administrative review pursuant to
section 103D-709(b), Hawaii Revised Statutes.
The legislature also enacted section 269-16(d), Hawaii Revised Statutes, to provide for public utilities commission's decisions on rate cases within nine months. For rate cases, the public utilities commission is required to make every effort to complete its deliberations and issue its decision as expeditiously as possible and before nine months from the date the public utility filed its completed application.
The legislature finds that State revenues have been greatly reduced due to the coronavirus disease 2019 pandemic, and accordingly, the state departments need to implement more efficient ways to streamline government processing and review of proposed renewable energy projects.
The purpose of this Act is to facilitate the timely approval of renewable energy matters.
SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§269- Public utilities commission decision-making
for renewable energy matters. Beginning July 1, 2021, the public utilities commission shall
approve, approve with conditions, or deny matters for proposed renewable energy
power purchase agreement applications filed with the commission within one hundred
and eighty days of the filing. In
carrying out this mandate, the commission shall set and enforce a procedural
schedule that allows the commission to meet the one hundred and eighty day period. If the application is not approved, approved
with modification, or disapproved by the commission within one hundred and eighty
days, the matter shall be deemed approved by the commission. If a decision is not made within the one hundred
and eighty day period, the commission shall report the reasons therefor to the
legislature and the governor in writing within thirty days after the expiration
of the one hundred and eighty day period.
§269- Electric public utility completion of
interconnection process. (a) The public utilities
commission shall require electric public utilities to complete the
interconnection design, reach agreement with the renewable energy project
developer, and file a request for interconnection or transmission
line approval (if required) with the commission as soon as practicable, but
no later than two hundred and seventy days after the renewable energy project power
purchase agreement is filed with the commission for review and approval.
If the electric public utility is unable to complete the
interconnection design, reach agreement with the renewable energy project
developer, and file a request for interconnection or transmission line approval,
if required, with the commission within the two hundred and seventy day period,
the electric public utility shall report in writing the reasons therefor to the
commission within ten calendar days after the expiration of the two hundred and
seventy day period.
If the electric public utility fails to meet these
requirements within the two hundred and seventy day period, the utility shall
forfeit and return all moneys or other financial incentives it 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. The commission shall report to
the legislature and the governor the failure to meet the timing under this
subsection by any electric public utility within thirty days after first being
notified of such failure.
(b) Upon the filing of
a request for interconnection or transmission line approval by an electric
public utility under subsection (a), the commission shall either approve or disapprove
such request within one hundred and twenty days of the filing of the request. If the request for interconnection or
transmission line approval is not approved, approved with modification, or
disapproved by the commission within one hundred and twenty days, the matter
shall be deemed approved by the commission notwithstanding any other law to the
contrary. If a decision is not made
within the one hundred and twenty day period, the commission shall report the
reasons therefor to the legislature and the governor in writing within thirty
days after the expiration of the one hundred and twenty day period.
(c) This section shall
only apply to utility-scale renewable energy projects that are five megawatts
in total output capacity or larger and require interconnection or transmission
line approval by the public utilities commission.
(d) This section shall not apply to a member-owned
cooperative electric utility."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
INTRODUCED BY: |
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Report Title:
Renewable Energy; Public Utilities Commission; Electric Public Utilities
Description:
Provides for timely review by the public utilities commission in its decision-making process regarding proposed renewable energy projects. Requires timely completion of the interconnection process by electric public utilities.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.