The concept of moving the goalposts isn’t always a dodge of responsibilities. In the case of renewable energy, it’s an acknowledgement that Hawaii can be more ambitious about producing its own clean energy, becoming more secure and economically stronger.
The Legislature and the state Public Utilities Commission are facing decision points concerning energy policy, all aimed at positioning Hawaii optimally to make the best use of its renewable energy riches.
The PUC has correctly resolved to decide on four outstanding dockets that would govern the utility’s business approach toward expanding the penetration of clean energy on the power grid. These decisions — which would determine how customers are charged, how more rooftop solar can be deployed and other factors — are likely to take a year to 18 months, officials have said.
The onus is on state lawmakers to act before the PUC in authorizing the next set of goals. Ideally, the new aim would take Hawaii off imported fossil fuels entirely, as soon as it’s possible without busting household budgets.
And action by legislators as well as the regulatory agency is essential in advance of any final deal by the Florida-based NextEra Inc. to merge with Hawaiian Electric Industries, as is being proposed. The expectations the state has for its electric utilities should be known to the principal players, both current and prospective.
At issue at the state Capitol are a few bills of interest, all of which deserve serious consideration and debate:
» House Bill 623, House Draft 2, is the proposal that has passed the House; the Senate Energy Committee has slated a hearing for 2:45 p.m. Tuesday in conference room 225.
This bill would update the Hawaii Clean Energy Initiative to achieve a state energy portfolio of 100 percent renewable energy by 2045. The original initiative goal included a 70 percent clean-energy benchmark, which by 2030 would be achieved through conservation and substitution of renewables for the fossil fuels that now dominate.
A similar bill, Senate Bill 715, Senate Draft 2, would push back the deadline to 2050; it has not been scheduled for a hearing.
» HB 484, HD 2, and its companion bill SB 1050, SD 2, would require the PUC to establish a "community-based renewable energy tariff" system, a means of allowing people who lack the means or opportunity to install their own photovoltaic panels to buy into a larger project and reap some of the energy savings solar PV systems enable.
Whichever vehicle moves, it must allow these relatively small-scale projects to be developed by private individuals and groups, as well as by the power utility.
» HB 1504, HD 2, would provide funds and direct the Legislative Reference Bureau to do a comparative study of various utility models, including those that are owned cooperatively or in the public sector.
It would also impose a cap on interconnection costs that the utility could recover through a surcharge. These are the expenses associated with connecting external electricity generators to its grid. The cap would be based on national averages.
The primary accelerator for all of this would be the 100 percent clean-energy legislation. Judging by the meteoric rate of adoption of clean energy in recent years, this goal should be more than aspirational. It should be within reach.
However, the utility is bound to act in the interest of ratepayers, so it’s essential that enabling legislation have an "out clause" to keep costs manageable, meaning the costs that are passed through to ratepayers. Technology developments over time should present more affordable consumer options, and it’s important that the PUC has the discretion to make adjustments to the goals.
Fortunately, both bills currently offer some needed flexibility. Allowances in the current law already are made for circumstances beyond the utility’s control; added to the list of circumstances would be the inability to garner enough renewable electrical energy to meet benchmarks "in a manner that is beneficial to Hawaii’s economy in relation to comparable fossil fuel resources."
By almost every measure, getting Hawaii off imported fuel makes sense. It would reduce our carbon footprint at a time when concern about climate change is skyrocketing. It would keep more money in the local economy, as well. And if customers are ensured enough competition and choice, it gives ratepayers more control over their household budgets.
NextEra is positioned to become the dominant force in Hawaii’s market, and it certainly has the capacity to increase green-energy generation. Additionally, the company can make liquefied natural gas potentially cheaper as a "bridge" fuel in the near term.
But before NextEra comes to town, decision makers must act promptly to set the renewable-energy bar where it should be: 100 percent.