RELATING TO ENERGY EQUITY.

SB3009

THE SENATE

S.B. NO.

3009

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to energy Equity
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�
The purpose of this Act is to ensure
affordable access to essential electricity for all residents, strengthen
protections for households with medically essential electricity needs, and
direct the public utilities commission to develop rate structures that reduce
energy burden, advance public health, and align with the performance-based
regulation framework.

����
The legislature finds that Hawai
ʻ
i's electricity costs
create disproportionately high energy burdens on low-income households and
medically fragile individuals.
�
High
electricity burden is associated with adverse health outcomes, increased
hardship for seniors and caregivers, barriers to distributed energy resource
adoption, and increased risk of disconnection during extreme heat and
climate-driven emergencies.
�
Modernized
rate design consistent with performance-based regulation is necessary to
support equitable access to essential services, protect medically essential
needs, and strengthen community resilience.

����
The legislature further finds that
aligning rate design with medically essential needs, household size and
configuration, and heat-risk conditions is consistent with the mission of the
public utilities commission to ensure just and reasonable rates, protect
consumers, and advance the public interest.

����
Accordingly, the purpose of this Act
is to:

����
(1)
�
Require the public utilities commission to
establish residential electricity rate structures that prioritize affordability
and equity;

����
(2)
�
Require the public utilities commission to
establish a lifeline baseline performance standard, a medical essential needs
energy program, and a new tariff;

����
(3)
�
Require electric utilities to file revised
tariffs no later than twelve months after the commission has issued a final
decision and order under this Act; and

����
(4)
�
Require the public utilities commission to
convene a stakeholder process for developing and implementing this Act.

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

����
"
�269-
�
Lifeline
and medical essential needs electricity protections.
�
(a)
�
The public utilities commission shall
initiate a docketed proceeding to establish residential electricity rate
structures that:

����
(1)
�
Maintain
affordability for essential household electricity use;

����
(2)
�
Reduce energy
burden for low-income and medically fragile households;

����
(3)
�
Support
medically necessary electricity consumption;

����
(4)
�
Align with the
performance-based regulation framework under section 269-16.1; and

����
(5)
�
Support equitable
access to distributed energy resources and climate resilience objectives.

����
(b)
�

The public utilities commission shall establish a lifeline baseline
performance standard that reflects the monthly electricity consumption
necessary to meet essential household needs, determined through the docket
record and based on evidence related to:

����
(1)
�
Household size
and multigenerational residence;

����
(2)
�
Climate zone,
island-specific heat risk, and extreme temperature trends;

����
(3)
�
Household
medical and health-related electricity needs; and

����
(4)
�
Relevant data
required under section 269-124.

The public
utilities commission may approve regionally differentiated baselines supported
by evidence in the docket record.

����
(c)
�
The
public utilities commission shall establish a medical essential needs energy
program to protect households with medically essential electricity
requirements.
�
The program shall:

����
(1)
�
Provide an
enhanced baseline allowance at the lifeline rate for certified medical need;

����
(2)
�
Allow
certification by licensed healthcare providers, including via telehealth;

����
(3)
�
Prohibit disconnection
of certified households:

���������
(A)
�
During
National Weather Service heat advisories;

���������
(B)
�
During
declared grid reliability or healthcare emergencies; and

���������
(C)
�
Without
a documented offer of a payment arrangement and individualized assessment of
health risk; and

����
(4)
�
Ensure that
participation does not affect eligibility for any other assistance or
distributed energy resource program.

����
(d)
�

The public utilities commission shall establish, in the docket required
under this section, either a rising block tariff for residential customers or a
time-varying or alternative tariff that achieves affordability and equity
outcomes equivalent to a rising block tariff, as demonstrated in the docket
record.

����
Any tariff approved under this subsection
shall:

����
(1)
�
Preserve affordable
access to essential and medically essential electricity use;

����
(2)
�
Avoid
regressive cost shifts that disproportionately burden low-income or medically
fragile households;

����
(3)
�
Encourage
efficient electricity use and distributed energy resource integration;

����
(4)
�
Integrate with
performance incentive mechanisms and multi-year rate planning under section
269-16.1; and

����
(5)
�
Be supported by
an equity impact analysis included in the final decision and order.

����
(e)
�

The public utilities commission shall ensure that any fixed charge or
minimum bill approved under this section:

����
(1)
�
Does not
increase the average energy burden of low-income or medically fragile
households;

����
(2)
�
Is demonstrated
in the docket record to be non-regressive; and

����
(3)
�
Includes a
published equity impact analysis as part of the final decision and order.

The
public utilities commission shall consider alternatives to fixed charges,
including performance incentive mechanisms, where necessary to achieve the
objectives of this section.

����
(f)
�
Costs
incurred to implement this section may only be recovered through customer rates
if the public utilities commission finds, in the docket record, that the costs
are prudent and will not increase the energy burden of low-income or medically
fragile households.
�
The public utilities
commission may require shareholder contributions when appropriate under
performance-based regulation.

����
(g)
�

The public utilities commission and electric utilities shall
submit
a report of its findings and recommendations, including any proposed
legislation, to the legislature no later than twenty days prior to the
convening of each regular session
.
�
The report shall include:

����
(1)
�
Lifeline and
medical program enrollment;

����
(2)
�
Disconnection
notices and completed disconnections, disaggregated by island and zip code;

����
(3)
�
Household
electricity burden by income decile;

����
(4)
�
Access to and
enrollment in distributed energy resource programs; and

����
(5)
�
Heat-risk and
emergency event data affecting household energy stability.
"

����
SECTION 3.
�
Each electric utility shall file revised
residential tariffs implementing section 269- , Hawaii Revised
Statutes, as added by this Act, within twelve months after the public utilities
commission issues a final decision and order in the docketed proceeding
required under this Act.

����
SECTION 4.
�
(a)
�

The public utilities commission shall convene a stakeholder process to support
implementation of this Act.

����
(b)
�
Stakeholders shall include, at minimum, the
consumer advocate and Hawaii state energy office.
�
The public utilities commission shall invite
the following to be participants:

����
(1)
�
Disability rights organizations;

����
(2)
�
Health care providers and elder care
organizations;

����
(3)
�
Environmental and energy justice
organizations; and

����
(4)
�
Electric utilities.

����
(c)
�
To the extent practicable, this process shall
be integrated with ongoing public utilities commission proceedings related to
advanced rate design, energy equity, or utility disconnection policies.

����
SECTION 5.
�
New statutory material is underscored.

����
SECTION 6.
�
This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

PUC; Residential
Electricity Rate Structures; Medical Essential Needs Energy Program;
Rising-Block Tariff

Description:

Requires
the Public Utilities Commission to establish residential electricity rate
structures that prioritize affordability and equity.
�
Requires the Public Utilities Commission to
establish a lifeline baseline performance standard, a medical essential needs
energy program, and a new tariff.
�

Requires electric utilities to file revised tariffs no later than twelve
months after the Public Utilities Commission has issued a final decision and
order under this Act.
�
Requires the
Public Utilities Commission to convene a stakeholder process for developing and
implementing this Act.

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