Electricity Policy
Policies that move Hawai‘i to efficient use of electricity and to renewable electricity generation are essential to achieving the goals of the Hawai‘i Clean Energy Initiative. Today, nearly all of Hawai‘i's electricity is generated with imported fossil fuels (76% from petroleum; 13% from coal). Recent policy initiatives and major policies related to clean energy electrical generation in Hawai‘i include the following:
ACT 155 (09), HB 1464, signed June 25, 2009—The 2009 Clean Energy Omnibus Bill sets a precedent for electrical utility clean energy portfolio standards by including a separate goal for energy efficiency. The law calls for 30% reduction in energy use via efficiency by 2030 and directs the Hawai‘i Public Utilities Commission to establish incentives and penalties that foster compliance. It also increases the renewable portfolio standard to 40% by 2030. With its dual goals of 30% energy efficiency and 40% renewable energy, the Clean Energy Omnibus Bill puts Hawai‘i's electrical generation sector directly in line with the Hawai‘i Clean Energy Initiative goal of 70% clean energy by 2030.
ACT 154 (09), SB 464, signed June 25, 2009—The Renewable Energy Technologies Income Tax Credit amends an existing law, in effect since 1990, which provided personal and corporate tax credits of up to 35% of the cost of installing solar electric and solar thermal equipment and up to 20% of the cost of installing wind turbines. As amended, the law now enables individuals and corporations to receive a tax refund when their earned tax credits under this program exceed their state income tax for the year.
ACT 050 (09), HB 1270, signed May 6, 2009—The Public Utilities Commission Renewable Energy Act (PDF 94 KB) allows utilities to invest in renewable energy technologies even if a project costs more than the fossil fuel costs it aims to avoid. Download Adobe Reader
HRS § 196-6.5, HB 1464, signed June 25, 2009—The Solar Water Heater System Requirement amends the 2008 Solar Roofs Act to require single-family homes built in Hawai‘i to include solar water heating as of 2010. The new law aims to substantially reduce electrical use for domestic water heating over time.
HRS § 269-101 et seq., signed June 25, 2001; amended in 2004 and 2005—Hawai‘i's Net Metering policy, originally established in 2001 and subsequently expanded, requires electric utilities to accept power generated by small residential and commercial renewable energy installations and to reduce customers' bills accordingly, at the retail rate. The combination of the solar and wind energy credit and the net metering program has already played a significant role in encouraging development of nonutility renewable electricity generation in Hawai‘i.
For more on current Hawai‘i policy relating to efficient electrical use and renewable electricity generation, please see the DOE/North Carolina State University Database of State Incentives for Renewables and Efficiency.
Visit Policy Reports to learn more about energy studies and analyses for the islands.
