Measure would limit use of liquefied natural gas

The Legislature on Tuesday sent a bill to Gov. David Ige that says state policy is to ensure the use of liquefied natural gas does not slow the development and use of renewable energy sources.

The bill does not include a penalty if the use of LNG is found to slow the adoption of renewable energy.

"By itself, it (the bill) is not the means to penalize anyone," said Rep. Chris Lee (D, Kailua-Waimanalo), who introduced the bill. "It is the first step in laying out the broad plans."

In addition to urging a limit to LNG use, the bill reiterates Hawaii’s need to cut its dependence on imported fuels and encourages utilities to make the social and financial interests of ratepayers a priority.

Hawaiian Electric Co., in its energy plan filed in August, proposed using LNG — which it described as cleaner and cheaper than fuel oil or coal — as a bridge fuel while it moves toward a goal of 65 percent of electricity coming from renewable resources by 2030. The August plan still needs to be approved by the Public Utilities Commission.

Most of Hawaii’s power plants use low-sulfur fuel oil, but HECO plans to shift them to LNG.

HECO said it supports the bill, HB 1286, because it matches the utility’s plans.

"We welcome the bill as passed because it is consistent with our plans for getting Hawaii off oil for electricity in favor of a clean, cheap fuel to transition to a renewable energy future," said Peter Rosegg, HECO spokes­man.

NextEra Energy Inc. the Florida-based company looking to buy HECO’s parent company, Hawaiian Electric Industries, said it supports the utility’s LNG plans.

Organizations including the Blue Planet Foundation and the Sierra Club have opposed shipping liquefied natural gas to Hawaii. The groups argue that utilities should put their efforts into increasing renewable energy use rather than looking for cheaper fossil fuels.

The bill states that "it shall be the policy of this state to … ensure that liquefied natural gas is used only as a cost-effective transitional, limited-term replacement of petroleum for electricity generation and does not impede the development and use of other cost-effective renewable energy sources."

The bill also says it should be the objective of the state to "increase energy security and self-sufficiency through the reduction and ultimate elimination of Hawaii’s dependence on imported fuels for electrical generation and ground transportation."

Blue Planet Foundation testified in favor of the bill because it restricts the use of LNG and sets a goal of eliminating dependence on imported fuels.

The Department of Business, Economic Development and Tourism supported the intent of the bill but said the existing objectives are capable of getting Hawaii to its energy goals.

"The existing energy planning objectives under the Hawaii Clean Energy Initiative provide sufficient direction to perform our role in planning and analysis, as well as, allowing for an optimal roadmap for the state’s longer-term policy to be developed," said DBEDT in its testimony.

Only four House members voted against the bill Tuesday: Reps. Sam Kong (D, Aiea), Bob McDermott (R, Ewa), Andria Tupola (R, Maili-Ewa) and Gene Ward (R, Hawaii Kai-Kalama Valley).

Ward, who favors the use of LNG, said the bill limits inexpensive energy options for Hawaii residents.

"This is a very narrow-minded bill," Ward said. "As long as LNG is in large supply and inexpensive, it is good for the people of Hawaii."

The bill protects Hawaii’s economy by limiting the state’s dependence on fossil fuels, said Lee.

"That is how we support our economy locally," Lee said.

Meanwhile, a nonbinding resolution accusing NextEra Energy of not acting in good faith as it seeks to buy HEI is waiting approval from the Senate.

The resolution, HCR 227, was adopted by the House on April 9.

"After announcing its proposed takeover of Hawaii’s utilities, NextEra Energy, has acted in a manner that does not reflect the good faith that had been promised to ensure that the acquisition would benefit Hawaii’s ratepayer," the resolution said.

In the resolution, the lawmakers faulted NextEra for wanting to limit the number of local stakeholders looking to be a part of the PUC’s review of the proposed sale.

The sale of HEI gained a record amount of attention with 29 parties requesting to be a part of the review process. All intervenors were approved by the PUC.

HECO and NextEra opposed giving intervenor status to all of the groups except DBEDT, the state Office of Planning, and Maui and Hawaii counties.

NextEra is concerned the amount of intervenors in the docket might slow the approval process, said Rob Gould, NextEra spokes­man.

"Our concern has been and continues to be that any delay in the review process puts the ultimate completion of the transaction, and importantly, the significant financial benefits for Hawaiian Electric customers and a more affordable clean energy future for Hawaii, at significant risk," Gould said.