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HB342
HOUSE OF REPRESENTATIVES
H.B. NO.
342
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
Relating
to Renewable Gas Tariff
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The legislature finds that there must be enabling
legislation establishing a renewable gas tariff with appropriate and reasonable
rates to meet the demand of environmentally and socially conscious consumers.
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The
legislature also finds that existing law regulates the procurement of supply
and production of renewable gas.
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Utilizing renewable energy resources that have the potential to
contribute to renewable gas production will help the State achieve its
environment and climate resilience objectives.
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The
legislature further finds that it is imperative that a renewable gas tariff be
established by a gas utility, and a decision rendered by the public utilities
commission as expeditiously as possible, to reduce the State's dependence on
imported petroleum and minimize disruptions caused by price fluctuations.
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The
legislature also finds that ratemaking procedures for a proposed tariff can be
effective as soon as thirty days after notice to the public utilities
commission pursuant to section 269-16(b), Hawaii Revised Statutes, and section 16‑601‑111,
Hawaii Administrative Rules.
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However,
these provisions do not require the public utilities commission to complete its
review in a timely manner.
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Accordingly,
it is imperative to minimize the length of the public utilities commission's
review of a renewable gas tariff under existing ratemaking procedures to best
achieve the State's decarbonization goals; provided that the renewable gas
tariff does not increase rates for other customers.
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The legislature further finds that gas
utilities in the State must be required to promptly establish a renewable gas
tariff to satisfy immediate demand from customers who choose to receive service
under the tariff.
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Under section
269-16(a), Hawaii Revised Statutes, all rates, fares, charges, classifications,
schedules, rules, and practices made, charged, or observed by any public
utility shall be just and reasonable.
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Accordingly,
the purpose of this Act is to require gas utility companies to promptly file
renewable gas tariffs with the public utilities commission for review and
approval; provided that the public utilities commission completes its review
within six months of the filing of a proposed renewable gas tariff, the
proposed tariff does not increase rates for other customers, and the public
utilities commission finds the tariff to be just, reasonable, and in the public
interest.
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SECTION
2.
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Chapter 269, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:
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�269-
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Renewable gas tariff.
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(a)
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Each
gas utility in the State shall file a proposed initial renewable gas tariff or
tariffs with the public utilities commission by August 31, 2025, to establish
appropriate and reasonable rates for renewable gas for customers who choose to receive
service under a renewable gas tariff.
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The public utilities commission shall establish an initial or revised
renewable gas tariff or tariffs no later than six months after the filing of a
proposed renewable gas tariff; provided that the renewable gas tariff shall not
increase rates for other customers and the commission finds the tariff or
tariffs to be just, reasonable, and in the public interest; provided further
that all filings shall be in accordance with section 16-601-111, Hawaii
Administrative Rules.
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(b)
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The renewable gas tariff shall
be based on the eligible customer's net therm usage and as determined by the
public utilities commission.
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(c)
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For the purposes of this
section:
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"Net therm usage" means the amount of gas a customer uses
during a designated time period as measured in therm units.
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"Renewable gas" means gas produced from non-petroleum feedstock,
as defined in section 269-45(b), for use by a gas utility in the State, or as
otherwise defined by the public utilities commission by rule or order.
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"Renewable gas tariff" means a tariff approved by the public
utilities commission that a
llows a gas utility customer to voluntarily purchase
renewable gas from a gas utility company.
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SECTION
3.
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New statutory material is
underscored.
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SECTION
4.
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This Act shall take effect on July 1,
2025.
INTRODUCED BY:
_____________________________
Report Title:
PUC;
Renewable Energy; Renewable Gas Tariff
Description:
Requires
gas utility companies to submit proposed renewable gas tariffs to the Public Utilities
Commission by August 31, 2025.
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Requires
the Public Utilities Commission to establish a renewable gas tariff within six
months of receiving a proposed renewable gas tariff.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.