SB 996 Hawaii Senate · 2025 Regular Session

RELATING TO RENEWABLE ENERGY.

Summary

Clarifies that adjustments linked to premium interest rates for high yield credit are just and reasonable. Authorizes the Public Utilities Commission to include these incremental adjustments to the rate for electricity generated from nonfossil fuels. (SD1)

Issues: ✓ Energy ✓ Environment

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 17, 2025 Last action Feb 3, 2025

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What changed between versions

SB996 → SB996_SD1 · 4 edits

MODERATE

This bill clarifies that rate adjustments linked to higher interest rates for renewable energy projects are fair and allows the Public Utilities Commission to include these adjustments in electricity rates. It addresses financial challenges faced by renewable energy developers when a utility's credit rating drops, which could otherwise increase project costs and threaten project viability. The change ensures that consumers can share in fuel cost savings while allowing utilities to recover necessary financing costs for clean energy projects.

Scope change

The bill applies specifically to electricity generated from nonfossil fuels supplied to public utilities, with adjustments for premium interest rates on high-yield credit.

REQUIREMENT

Authorizes the Public Utilities Commission to include incremental rate adjustments linked to premium interest rates for high-yield credit in electricity rates from nonfossil fuel sources.

Clarifies that rate adjustments for financing costs due to credit rating changes are just and reasonable.

Updated Section 269-27.2 of Hawaii Revised Statutes to explicitly allow for incremental adjustments including those linked to consumer price indices, premium interest rates, or other acceptable mechanisms.

TIMELINE

Establishes that the Act takes effect upon approval.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 3, 2025

Committee

Reported from EIG (Stand. Com. Rep. No. 4) with recommendation of passage on Second Reading, as amended (SD 1) and referral to CPN.

upper

Jan 28, 2025

Upper · Passed

The committee(s) on EIG recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EIG were as follows: 3 Aye(s): Senator(s) Wakai, Richards, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Chang, DeCoite.

upper

Jan 24, 2025

Upper · Passed

The committee(s) on EIG has scheduled a public hearing on 01-28-25 3:15PM; Conference Room 016 & Videoconference.

upper

Jan 23, 2025

Committee

Referred to EIG, CPN.

upper

Jan 17, 2025

Introduced

Introduced.

upper

2 primary · 1 co-sponsor