HB 1182: RELATING TO RENEWABLE ENERGY.

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 the State has a goal to achieve a one hundred per cent renewable portfolio standard by 2045.  The legislature recognizes that the Internal Revenue Service offers a clean electricity investment tax credit that provides incentives to support qualified renewable energy facilities that utilize labor paid at prevailing wages.  These incentives further support a clean energy economy by improving job quality in clean energy industries and expanding workforce training pathways into these jobs.  The legislature notes that Hawaii, unlike other states, does not provide any tax incentives for large-scale renewable energy facilities.

     Accordingly, the purpose of this Act is to help the State achieve its clean energy goals by authorizing the public utilities commission to establish preferential rates for the purchase of renewable energy from facilities that meet certain prevailing wage requirements.

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

     "§269-    Preferential renewable energy rates; prevailing wages.  (a)  The public utilities commission may authorize preferential rates for the purchase of renewable energy produced from facilities in conjunction with prevailing wages.

     (b)  Upon receipt of a bona fide request for preferential rates for the purchase of renewable energy produced from facilities in conjunction with prevailing wages, a public utility shall forward the request to the public utilities commission for approval.

     (c)  As used in this section, "prevailing wages" has the same meaning as defined in section 104-1."

     SECTION 3.  There is appropriated out of the public utilities commission special fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for any costs incurred by the public utilities commission in authorizing preferential rates for the purchase of renewable energy pursuant to section 269-   , Hawaii Revised Statutes.

     The sums appropriated shall be expended by the public utilities commission for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

PUC; Renewable Energy; Preferential Rates; Prevailing Wages; Public Utilities Commission Special Fund; Appropriations

Description:

Grants the Public Utilities Commission the ability to authorize preferential rates for the purchase of renewable energy from facilities that meet certain prevailing wage requirements.  Requires public utilities to forward certain requests for preferential rates to the PUC for approval.  Appropriates funds.  Effective 07/01/3000.  (HD1)

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

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 the State has a goal to achieve a one hundred per cent renewable portfolio standard by 2045.  The legislature recognizes that the Internal Revenue Service offers a clean electricity investment tax credit that provides incentives to support qualified renewable energy facilities that utilize labor paid at prevailing wages.  These incentives further support a clean energy economy by improving job quality in clean energy industries and expanding workforce training pathways into these jobs.  The legislature notes that Hawaii, unlike other states, does not provide any tax incentives for large-scale renewable energy facilities.

     Accordingly, the purpose of this Act is to help the State achieve its clean energy goals by authorizing the public utilities commission to establish preferential rates for the purchase of renewable energy from facilities that meet certain prevailing wage requirements.

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

     "§269-    Preferential renewable energy rates; prevailing wages.  (a)  The public utilities commission may authorize preferential rates for the purchase of renewable energy produced from facilities in conjunction with prevailing wages.

     (b)  Upon receipt of a bona fide request for preferential rates for the purchase of renewable energy produced from facilities in conjunction with prevailing wages, a public utility shall forward the request to the public utilities commission for approval.

     (c)  As used in this section, "prevailing wages" has the same meaning as defined in section 104-1."

     SECTION 3.  There is appropriated out of the public utilities commission special fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for any costs incurred by the public utilities commission in authorizing preferential rates for the purchase of renewable energy pursuant to section 269-  , Hawaii Revised Statutes.

     The sums appropriated shall be expended by the public utilities commission for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2025.

Report Title:

PUC; Renewable Energy; Preferential Rates; Prevailing Wages; Public Utilities Commission Special Fund; Appropriations

Description:

Grants the Public Utilities Commission the ability to authorize preferential rates for the purchase of renewable energy from facilities that meet certain prevailing wage requirements.  Requires public utilities to forward certain requests for preferential rates to the PUC for approval.  Appropriates funds.

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

STAND. COM. REP. NO.  133

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 1182

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Labor, to which was referred H.B. No. 1182 entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY,"

begs leave to report as follows:

     The purpose of this measure is to authorize the Public Utilities Commission to establish preferential rates for the purchase of renewable energy from facilities that utilize labor paid at prevailing wages.

     Your Committee received testimony in support of this measure from the Hawaiʻi State Energy Office and Hawaii Clean Power Alliance.  Your Committee received testimony in opposition to this measure from Hawaiian Electric.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Public Utilities Commission.

     Your Committee finds that providing tax incentives for large-scale renewable energy facilities can support the State in achieving its clean energy goal of having a one hundred percent renewable portfolio standard by 2045.  Your Committee further finds that growing the workforce and developing career pathways in this industry can help support a clean energy economy.  Your Committee believes that this measure supports the State's clean energy goals by authorizing the Public Utilities Commission to establish preferential rates for the purchase of renewable energy from facilities that meet certain prevailing wage requirements, as an incentive to support these facilities.  Your Committee does note that there are some concerns about whether this measure would increase prices for rate payers.

     Your Committee amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

     Your Committee respectfully requests your Committee on Consumer Protection & Commerce, should it deliberate on this measure, to consider issues raised by the Public Utilities Commission in its testimony on:

     (1)  Whether renewable energy facilities that pay prevailing wages to out-of-state workers would be entitled to preferential rates under this measure; and

     (2)  The ambiguity of whether the preferential rates contemplated in this measure benefit the consumer or the producer of electricity.

     As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1182, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1182, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor,