Bill Text: HI HB1583 | 2014 | Regular Session | Introduced

Hawaii House Bill 1583 (Prior Session Legislation)

Introduced

Bill Title: Construction Industry Task Force; Public Utilities Commission; Retail Wheeling; Intra-Governmental

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-01-17 - Referred to EEP, CPC, referral sheet 2 [HB1583 Detail]

Download: Hawaii-2014-HB1583-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	1583
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII

A BILL FOR AN ACT

relating to retail wheeling.

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

SECTION 1. In 2009, the legislature adopted senate concurrent resolution no. 132, S.D. 1, which established the construction industry task force (task force) to determine the economic value of the construction industry in Hawaii. As directed in the concurrent resolution, the task force was charged with developing a series of recommendations to stimulate the construction industry and create new jobs in the local construction industry. Unfortunately, to date, many of the task force's recommendations have yet to be enacted by the legislature. One of the task force's recommendations was to establish policies and administrative rules for retail wheeling in Hawaii.

The legislature finds that in the 1990s, some states opted to fully or partially unbundle their electricity sectors to allow for competitive generation segments, separate transmission and distribution segments, and independent system operators.

The legislature further finds that retail wheeling refers to the distribution of electricity owned by an independent power supplier and sold to a consumer over transmission and distribution lines of a public utility. While fifteen other states have restructured their energy markets to adopt retail wheeling in some form, in Hawaii, independent power producers must sell power to a public utility rather than make direct sales to end users.

The legislature additionally finds that in an environment and electricity market such as Hawaii's, intra-governmental wheeling can provide a vehicle for increased competition in energy markets and improved service without requiring the utility to divest its own generation assets or lose control over the operation of transmission and distribution.

The purpose of this Act is to enact and implement one of the recommendations of the task force by authorizing a limited retail wheeling market where independent renewable energy producers located on state lands may sell electricity directly to state government entities located on the same island as the power producer.

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

"§269‑ Retail wheeling; rules and procedures; intra-governmental. (a) The public utilities commission shall establish necessary policies and rules pursuant to chapter 91 and shall issue orders for the deployment of retail wheeling to enable power producers to sell electricity directly to state government entities located on the same island as the power producer.

(b) For purposes of this section:

"Power producer" means an independent renewable energy producer operating on state lands.

"Retail wheeling" means the distribution, over a public utility's transmission and distribution system, of power that is generated by a power producer and sold by the power producer directly to the end user."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2014.

INTRODUCED BY:	_____________________________

Report Title:

Construction Industry Task Force; Public Utilities Commission; Retail Wheeling; Intra-Governmental

Description:

Requires the public utilities commission to establish rules and policies and issue orders related to retail wheeling to enable renewable energy producers operating on state lands to sell electricity directly to state government entities located on the same island as the producer.

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