A bill that would remove barriers for landlords to invest in
renewable energy became law today.
Governor Neil Abercrombie signed four bills related to
energy at a ceremony on Oahu on Wednesday. One of those measures was Senate
Bill 19, Relating to Renewable Energy. SB 19 was enacted as Act 261, and is
being called the “PV Renter” bill. The new law…
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Exempts landlords and lessors who install renewable energy
systems on their property and provide, sell, or transmit electricity
generated from those renewable energy systems to tenants or lessees on the
premises from the definition of public utility, under certain conditions.
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Those conditions, taken from the language of the bill:
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(i) An interconnection, as defined in section 269-141, is
maintained with an electric public utility to preserve the lessees’ or
tenants’ ability to be served by an electric utility;
(ii) Such person does not use an electric public utility’s
transmission or distribution lines to provide, sell, or transmit electricity
to lessees or tenants;
(iii) At the time that the lease agreement is signed, the
rate charged to the lessee or tenant for the power generated by the renewable
energy system shall be no greater than the effective rate charged per
kilowatt hour from the applicable electric utility schedule filed with the
public utilities commission;
(iv) The rate schedule or formula shall be established for
the duration of the lease, and the lease agreement entered into by the lessee
or tenant shall reflect such rate schedule or formula;
(v) The lease agreement shall not abrogate any terms or
conditions of applicable tariffs for termination of services for non-payment
of electric utility services or rules regarding health, safety, and welfare;
(vi) The lease agreement shall disclose: (1) the rate
schedule or formula for the duration of the lease agreement; (2) that, at the
time that the lease agreement is signed, the rate charged to the lessee or
tenant for the power generated by the renewable energy system shall be no
greater than the effective rate charged per kilowatt hour from the applicable
electric utility schedule filed with the public utilities commission; (3)
that the lease agreement shall not abrogate any terms or conditions of
applicable tariffs for termination of services for non-payment of electric
utility services or rules regarding health, safety, and welfare; and (4)
whether the lease is contingent upon the purchase of electricity from the
renewable energy system; provided further that any disputes concerning the
requirements of this provision shall be resolved pursuant to the provisions
of the lease agreement or chapter 521, if applicable; and
(vii) Nothing in this section shall be construed to permit
wheeling.
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District 20 State Senator Mike Gabbard introduced the bill,
along with Senator Suzanne Chun Oakland and Puna’s own Senator Russell
Ruderman. Gabbard, who chairs the Senate Committee on Energy and the
Environment, had this to say in a media release:
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“I’m a big supporter of distributed generation –
generating electricity where it’s used. That’s why I introduced SB 19 to get
rid of the barriers to allowing renters to also access PV. Renters make up
40% of our population, so it’s huge that they’ll now be able to lower their electricity
bills but without having to pay the upfront cost. These energy savings will
greatly benefit our renters, including those in Kalaeloa who are faced with a
steep electricity hike recently announced by the Navy. It will also open up a
great investment opportunity for places like Ala Moana Center that could put
up a big PV system and then sell the electricity to the different stores in
the mall.”
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Governor Neil Abercrombie, speaking on all four bills he
signed, said:
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“We are removing unnecessary barriers to allow a greater
segment of our community to invest in and benefit from renewable energy.
These bills also improve the efficiency of the industry’s registration and
reporting process, while encouraging greater openness and expanding
protections for our local communities.”
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