Hawaii Energy
Policy Forum > Energy in the News
News Release-June 2, 2006
GOVERNOR LINGLE SIGNS ADDITIONAL “ENERGY FOR TOMORROW” BILLS
HILO – Governor Linda Lingle today signed into law two more energy bills as part of the Lingle-Aiona Administration’s Energy for Tomorrow vision. The bills (SB 3185 and HB 2848) are part of a bold and strategic energy plan that encourages and supports market-based development of reliable, cost-effective, and self-reliant energy for Hawai`i.
“Through these new laws we are reaffirming our desire to establish a secure energy and economic future for the people of Hawai`i by reducing our dependence on imported oil,” said Governor Lingle. “We also want to encourage the use of energy efficiency and renewables, including biofuels in Hawai`i. One of these new laws (SB 3185), which was passed with bipartisan support by the Legislature, includes provisions that will help strengthen the state’s Renewable Portfolio Standards law. It will ensure that the electric utilities meet the 20 percent renewable energy targets by the year 2020 - our 20% by 2020 goal.”
SB3185 SD2 HD2 CD1 , along with three other bills supported by the Administration and passed by the Legislature (HB2175 - Act 96, HB2848 – Act 163, and SB2957), represents a breakthrough in securing the state’s energy future in a comprehensive and integrated manner.
This bill, which becomes Act 162, emphasizes Savings Through Efficiency and Independence Through Renewable Energy by:
Authorizing the Public Utilities Commission (PUC) to establish a public benefits fund to support energy efficiency and conservation programs also known as demand-side management (DSM). The PUC is charged with determining if energy efficiency and DSM operations are better managed through an independent organization rather than being run by the utility. Authorizing the PUC to determine whether the existing Energy Cost Adjustment Clause fairly allocates the risk of fuel cost changes between the public utility and its customers. Currently, changes in the price of oil are passed on to customers, without the utility absorbing any of the impact. On Maui, this cost makes up 50 percent of a homeowner’s electric bill. On the Big Island and O`ahu, the energy adjustment charge is almost 30 percent of a typical utility bill. Directing the PUC to establish a ratemaking methodology that removes or significantly reduces any linkage between the utility cost of fossil fuel and payments to independent power producers using non-fossil resources. This change will potentially enable utility customers to benefit from fuel cost savings. It will also allow renewable energy producers to negotiate and sell their power at fair rates. Strengthening the Renewable Portfolio Standards law by eliminating guaranteed utility profit language and authorizing penalties to be established by the PUC for failure to meet the standards. The standards are set at 10 percent renewable energy by 2010; 15 percent by 2015 and 20 percent by 2020.
The Governor also signed HB2848 HD2 SD2 CD1 , which appropriates $200,000 to reconvene the Hawai`i Energy Policy Forum to develop an action plan, timeline, recommendations and benchmarks to meet Hawai`i’s energy self-sufficiency goals.
Today’s bill-signing ceremony at the University of Hawai`i – Hilo was the second of three ceremonies to be held around the state in order to mark passage of the comprehensive Energy for Tomorrow legislation.
The first energy bill (HB2175 HD2 SD2 CD1) was signed and became Act 96 at the State Capitol last month.
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For more information, contact:
Ted Liu
Director, DBEDT
Phone: (808) 586-2355
Maurice Kaya
Chief Technology Officer, DBEDT, Strategic Industries Division
Phone: (808) 587-3807
Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708
Russell Pang
Chief of Media Relations
Phone: (808) 586-0043
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