RELATING TO ENERGY.

Added explicit State credit support through step-in agreements where the State agrees to make payments to independent power producers if the utility defaults on payment obligations.

Added detailed definitions for key terms including 'covered power purchase agreement', 'default', 'investment grade status' (requiring BBB- or equivalent from major rating agencies), and 'power purchase costs'.

Established a Power Purchase Costs Trust Fund that must be capitalized immediately upon default and a reserve fee surcharge of up to 15% of forecasted monthly power purchase costs.

Modified eligibility criteria to include specific docket numbers for qualifying power purchase agreements and clarified that the State's obligations do not constitute contingent liabilities under Hawaii State Constitution Article VII, Section 13, Clause 8.

Added provisions requiring the electric utility to serve as the billing, collection, payment, and management agent for the Department of Budget and Finance, with specific procedures for handling defaults and bankruptcy scenarios.

Changed the effective date from the original version to May 13, 2040, and added a requirement for the Public Utilities Commission to authorize the reserve fee surcharge by August 1, 2025.

Added metadata headers, revision information, and summary descriptions that were not present in the original version, along with formatting changes to the bill structure.

Text formatting was corrected to remove document metadata and improve readability.

Some language was rephrased for clarity, such as changing 'procurement or purchase' to 'procurement' and 'sub-investment-grade' to 'sub-investment-grade status'.

Section numbering and structure were adjusted to match standard House bill format.

Added specific requirements for the Department of Budget and Finance to enter into step-in agreements within 90 days of receiving notice of a power purchase agreement application, with due diligence conditions.

Established a new Power Purchase Costs Trust Fund outside the state treasury, capitalized by a surcharge (reserve fees) and revenues from power purchase charges, to cover payment obligations if the utility defaults.

Added comprehensive definitions for key terms including 'covered power purchase agreement,' 'default,' 'obligee,' 'power purchase charges,' and 'investment grade status' to clarify applicability and triggers.

Set specific deadlines for agreement execution (within 90 days), revenue transfer (within 24-48 hours of default notice), and fund establishment (by August 1, 2025).

Limited step-in agreements to power purchase agreements arising from specific utility procurement requests (Stage 3 RFP under docket 2017-0352 and Integrated Grid Planning under docket 2024-0258).

Added provisions allowing the Department to terminate agreements when the utility achieves investment grade status for 30 days, and specified that the sole remedy for breach is specific performance via court order, not damages.

Expanded legislative findings to explicitly address concerns raised by independent power producers regarding payment reliability due to the utility's sub-investment-grade credit status following the 2023 Maui wildfires.