Updated 9:15 a.m., 2/4/2016
Should Hawaii set a goal of burning no fossil fuels for electricity by 2045?
If you鈥檙e thinking the state already did that聽last year, the fact is, it left itself some聽wiggle room.
Lawmakers plan to revisit the state’s 100 percent renewable goal Thursday morning, when the Energy and Environmental Protection Committee hears .
It鈥檚 one of more than two dozen energy measures this session that would affect the . The聽efforts include setting parameters on when electric rates can be increased, controlling the chair’s power to manage staff, and making sure there’s a “substantial net benefit” in聽the proposed $4.3 billion sale of Hawaiian Electric Industries to Florida-based NextEra Energy.
Among its long list of duties, the PUC regulates ; Hawaiian Electric Industries鈥櫬 on Oahu, Maui and the Big Island; gas and coal companies; and independent power producers, including wind and solar farms.
Under House Bill 2575, the commission would be authorized to set reasonable interim percentages to get to zero聽percent fossil fuels, allow for variances and determine penalties for the utilities if they fail to comply.
The law currently says each electric utility company must establish a renewable portfolio standard of 100 percent of its net electricity sales by Dec. 31, 2045. The standard is defined as 鈥渢he percentage of electrical energy sales that is represented by renewable electrical energy.鈥
Under this formula, that percentage is based on sales not generation, so it鈥檚 possible to meet the goal while still burning coal, natural gas or oil for power.聽
Despite assurances from officials that the state wasn鈥檛 trying to create聽loopholes, lawmakers are considering a cleaner way of kicking the state’s oil addiction.
“We want to remain on track for our clean energy future,” said Rep. Chris Lee, who introduced the bill and chairs the Energy and Environmental Protection Committee.
叠辞迟丑听, which has a hearing later Thursday morning,聽and its Senate counterpart strike at the same issue聽鈥斅爐rying to clean up the technical language to ensure that 100 percent renewable means 100 percent.
The legislation, which was part of Gov. David Ige’s package of bills, would base聽the renewable portfolio standard calculation on electricity generation instead of sales.
Community Solar (Again)
Many of the PUC-related measures have yet to gain traction this session, which started Jan. 20, and plenty of them are carryover bills that stalled聽last session.
Ideas like requiring periodic financial audits of the agency, for instance, or giving people cheaper electric rates if they live within a mile of a wind farm, were introduced and that’s as far as they’ve come.
But House and Senate committees have started to schedule times this week and next to consider a handful of new proposals.
, set to be heard at 8 a.m. Thursday by the House Energy and Environmental Protection Committee, would help renters and others who now can’t take advantage of onsite clean energy options like rooftop solar to do so by creating community-based renewable energy tariffs.
The state passed a law last year to do this, but the plan聽Hawaiian Electric submitted in response 鈥渇ell far short of the legislature鈥檚 vision, in scope, scale, and accessibility,鈥 according to the legislation.
Blue Planet Executive Director Jeff Mikulina said it鈥檚 been 鈥渋ncredibly frustrating鈥 to the clean-energy nonprofit to get a law passed to do community solar projects after working on it for four years but then have Hawaiian Electric thwart the effort by piling on restrictions that make it unfeasible.
鈥淧eople have just waited far too long,鈥 he said.
Lee said the program should be “open and fair” to anyone who’s interested.
“This bill much more explicitly lays out the program in the statute so the utility or anyone else can鈥檛 mess with the technical details to try to keep control over the different projects that might arise,” he said.
‘Just And Reasonable’
Another bill set to be heard Thursday morning would change the rules for how the PUC approves electric rate increases. says the rate would only be considered 鈥渏ust and reasonable鈥 if it鈥檚 derived from an earnings-impact mechanism that directly ties the utility’s revenues to meeting聽certain performance-based metrics and conditions.
Regardless of which company owns the utilities in Hawaii, Lee said it’s critical to protect ratepayers from having infrastructure costs passed down to them 鈥 especially in light of the billions of dollars that are expected to be spent on a new 21st Century grid.
“Right now utilities are able to recover costs for infrastructure, so they have a financial incentive to inflate costs and build the biggest power plants,” Lee said. “This bill is about聽rightsizing those projects聽for the public instead of oversizing them to boost profits at our expense.”
颁辞尘尘颈蝉蝉颈辞苍听础耻迟丑辞谤颈迟测
, set to be heard Feb. 12, would require the PUC chair to have one of the two other commissioner鈥檚 approval to fire or fire an executive officer. It also allows each commissioner to hire five professional staff members plus assistants and their own personal attorney.
There has been friction between PUC Chair Randy Iwase and his fellow commissioners, Lorraine Akiba and Mike Champley.
Some聽of the concerns are over his 鈥淚鈥檓 not here to make everyone happy鈥 management style. But he鈥檚 received support for getting dockets moving that were idling聽due to poor strategic planning, staff problems and an inability to come to a consensus on policy direction, as a state audit put it.
After taking over as聽chair聽in January 2015, Iwase implemented his so-called 鈥淎merican Flag鈥 process for commissioners to follow when drafting and reviewing key opinions that the PUC issues. It sets a three-day deadline for the commissioners to respond to draft decisions once they鈥檝e been circulated, and an up-or-down vote on any amendments and the overall opinion.
Iwase has also issued a directive saying he will be the one to prioritize work for the commission and staff members.聽
Legislation introduced in the House and Senate would require the PUC to include at least one person from a neighbor island, and allow them to work remotely by attending hearings via teleconference or video conference.
is set for a Feb. 12 hearing. The same measure also is moving forward in the聽House; the Consumer Protection Committee passed 耻苍补尘别苍诲别诲听奥别诲苍别蝉诲补测.
‘Substantial Net Benefit’
Last year, the Legislature allocated additional resources for the PUC to beef up its staff, which it did in large part to handle the massive docket to determine if NextEra Energy should be allowed to buy HEI.
The PUC鈥檚 quasi-judicial hearing process for that case resumed this week, and a decision is expected this聽summer.
Bills carried over from the 2015 session would to apply when approving a merger. The legislation cleared the House last year but the Senate hasn鈥檛 set a hearing yet this session.
However, 鈥 introduced this session by Lee and Reps. Cullen, Matt LoPresti and Cynthia Thielen 鈥 is expected to be heard as soon as next week.
The legislation establishes “substantial net benefit” as the standard that the PUC must apply when considering whether to approve the transfer or assignment of a franchise.
Rather than giving an OK under a “no net harm” standard, Lee said, this bill says the deal should聽be better than the status quo.
“It鈥檚 not to say the PUC won鈥檛 go this direction, but it’s just to be sure because we have an obligation to look out for our residents before anything else,” he said.
Update聽Iwase said the best way to go on many of these issues is through the PUC’s docket process. He said he’s concerned that the Legislature may be jumping the gun.
“We just opened a docket on community renewables. Now we have more bills on that,” he said. “My goodness, let us try to get the groundwork laid with the players. And if changes are needed, we’ll let you know.
“If you are interacting with the players in the field and hear from them that change is needed, then go ahead and do it,” Iwase added. “But give us time to set the foundation through the process of the dockets.”
– Eric Pape contributed reporting to this story.
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Nathan Eagle is a deputy editor for Civil Beat. You can reach him by email at neagle@civilbeat.org or follow him on Twitter at , Facebook and Instagram .