Remember how hard we pushed together to pass on-bill financing two legislative sessions ago? We're pleased to announce that the PUC has determined it to be a viable program and initiated the process to make it a reality. Here's the press release we sent out today:

Public Utilities Commission sets landmark on-bill financing program for Hawai‘i in motion

The Hawai‘i Public Utilities Commission (PUC) has issued an order that lays out the framework for an on-bill financing program for Hawai‘i residents and small businesses. On-bill financing will enable customers—including renters—to pay for energy efficiency devices and solar energy directly through their electricity bill using the cost savings over time. Blue Planet Foundation successfully advocated for the on-bill financing act at the legislature in 2011 that initiated the investigative proceeding at the PUC later that year. Since then, Blue Planet has been a vocal champion of the policy, serving as an active intervening party throughout the PUC's proceeding.
 
“On-bill financing opens the door for residents statewide to participate in Hawaii's clean energy future," said Jeff Mikulina, executive director of Blue Planet Foundation. "By eliminating the hurdle of unaffordable upfront costs, on-bill financing makes the benefits of clean energy accessible to those who stand to gain the most—those who can least afford it.”

The PUC's order determined that on-bill financing is a viable program for the state and specified key components to be included in the program’s design. The Commission also ordered the creation of a working group to finalize the details of the program and its implementation.
 
Decision highlights:
 
·      Solar photovoltaic, solar thermal water heating and all permanently installed energy efficiency improvements are eligible for financing.
·      Participants will be enrolled in the utility’s demand response programs to help enforce grid stability.
·      An energy audit should be required for participants. This will help prescribe efficiency measures that should be taken before installation of solar PV, and it will determine the size of the PV system that qualifies for financing.
·      The Public Benefits Fee Administrator, currently Hawaii Energy, will administer the program.
·      The working group will offer recommendations to select a financing administrator that has the flexibility of obtaining and distributing low-cost capital from various sources.
·      The financing is attached to the meter so that those making the payments will receive the benefits, and these benefits can be passed between successive occupants of a property.
·      Kaua‘i’s utility cooperative, KIUC, has been directed to create an on-bill financing program for its customers.

Blue Planet advocated for an expansive on-bill program that included energy-efficient appliances and all customer classes. Unfortunately, the PUC took a more narrow position, limiting the types of devices that would qualify for the program and restricting the program to residential and small business customers only.

“We’re disappointed that the Commission didn’t see the value in including all businesses and other commercial customers who face the same challenges to accessing clean energy,” Mikulina continued, emphasizing the need to create a scalable program that can have an even greater overall impact.

He added, “On-bill financing is the kind of smart, innovative solution we need to simultaneously bring economic relief to ratepayers and accelerate our transition to a fossil-free future.”

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Residents and small businesses will be able to finance solar directly on their utility bills? Sunny and Flare do the dance of joy!

 

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In other news...

 

Blue Planet is extremely active at the PUC on a number of critical policy dockets. Here's an update on works in progress:
 
Feed-in Tariff (Docket No. 2008-0273)
The Feed-in Tariff (FIT) program is now oversubscribed (180 MW requested for the 80 MW program), marking successful implementation of this keystone energy policy. The FIT program Independent Observer and HECO Companies continue efforts to monitor the queue to prevent unqualified projects from taking capacity from qualified projects. On May 4, 2012, the HECO Companies filed a motion for clarification seeking the further abilities to manage the queue by removing projects. Blue Planet supports addressing these issues by expanding the FIT program to allow more projects and improving the grid to address reliability concerns. The Commission has ordered a review of Tiers 1 and 2 in October 2012 which will allow Blue Planet to advocate for further expansion and improvements to the FIT program.
 
Rule 14H (Docket No. 2010-0015)
The new version of Tariff Rule 14H, which substantially improves grid access by reducing the need for costly and time-consuming interconnection requirements studies, remains in effect. Motions for reconsideration threatened by the HECO Companies and Consumer Advocate did not materialize. Blue Planet is now shifting its focus to further improvements to Rule 14, based in part on improvements to California’s Rule 21.
 
Energy Efficiency Portfolio Standards (Docket No. 2010-0037)
On January 3, 2012, the Commission issued its final decision and order adopting the Energy Efficiency Portfolio Standards (EEPS) framework. The Commission subsequently closed the docket and established a Technical Working Group (TWG) to implement the EEPS. The TWG members include the utilities, Hawaii Energy, and government agencies. Blue Planet successfully petitioned the Commission to join the TWG and is playing an active role in
implementing the EEPS Framework as a member of the TWG.
 
On-Bill Financing (Docket No. 2011-0168)
In December 2011, the Commission retained consultant Harcourt Brown & Carey to design Hawaii’s on-bill financing (OBF) program. On December 30, 2011, however, the HECO Companies filed a proposal for a solar water heating “Simply Solar” OBF program. The Commission subsequently consolidated the Simply Solar proposal with the OBF docket. On April 16, 2012, the consultant filed its assessment of the Simply Solar proposal. Blue Planet filed
its brief on the Simply Solar proposal on May 7, 2012. The timing of a Commission decision on Simply Solar is unclear. On April 16, 2012 the Commission also issued an order amending the procedural schedule under which the docket is to conclude in approximately April 2013. Blue Planet agreed to pay up to $200,000 for the costs of the on-bill financing study for the docket, $100,000 of which was paid in 2011. Fortunately, the total cost was $167,275, the balance of which ($67, 275) was paid in the first quarter of 2012.
 
Reliability Standards (Docket No. 2011-0206)
Blue Planet continues to be an active participant, leader, and driving force in the Reliability Standards Working Group (RSWG), which was established to identify reliability standards and resolve issues pertaining to the expansion of renewable energy in the HECO Companies' service territories. The purpose of the RSWG effort is to recommend reliability standards, metrics, rules, criteria and processes to determine how the maximum amount of renewable
generation can be interconnected to the grid while preserving grid reliability. Bash Nola, acting as Blue Planet’s consultant, is chair of the Reliability Standards Drafting subgroup. Bash is also active member of the Reliability Data and Metrics subgroup which is addressing metrics and defining ancillary services and requirements, the Minimum Load and Curtailment subgroup which is addressing minimum load/curtailment issues and mitigation measures, the Gap Analysis subgroup which is addressing current studies underway to increase the penetration of renewable energy resources, including distributed PV generation, and defining system mitigation measures to achieve this increased penetration, and the PV subgroup which is specifically addressing PV integration and interconnection issues. The efforts of the RSWG are targeted to be completed by year end with a set of recommendations to be forwarded to the PUC. These efforts will foster understanding of what is required to achieve maximum renewable energy resource penetration, the modernization of the existing HECO utilities’ generating assets, the costs (including production costs), and the impacts to consumers/ratepayers.  
 
Integrated Resources Planning (Docket No. 2012-0036)
On March 1, 2012, the Commission issued an order initiating the Integrated Resource Planning process for HECO, HELCO and MECO. The order, which has been anticipated since last fall, tracks the requirements of the March 14, 2011 IRP Framework adopted in the Docket No. 2010-0108. The IRP process presents a significant opportunity for Blue Planet to advance planning for Hawaii’s clean energy future, in conjunction with the Blueprint. Under the Framework, HECO must file an IRP Report and an Action Plan which covers all three utilities. The Commission has selected Carl Freedman to serve as the Independent Entity overseeing the process. Blue Planet and other parties wishing to serve on the IRP Advisory Group must apply by June 8, 2012.

Legislative hearing schedule for Wednesday, Feb. 29 and Thursday, Mar. 1
Sometimes you have to take a leap of faith... easy to justify today.

Feb. 29 | 9:30a | Senate Committee on Ways and Means, Room 211
SB 2512 SD1  Reallocates barrel tax and renames Hawaii Economic Development Task Force

Mar. 1 | 9:30a | Senate Committee on Commerce and Consumer Protection, Room 229
GM 648  Confirmation hearing for PUC Commissioner nominee Michael Champley

Click the bill links to read our testimony. Check progress of these measures on our Read More

The bell has rung, and the 2012 Hawaii state legislature is now in session. The hearing schedule is jam-packed with some key measures that Blue Planet will comment on. (Read more about our legislative priorities for 2012.) Click the links to see our testimony. If you're interested in tracking the progress of bills, please refer to our policy initiatives pages, which will be updated throughout the session.

Feb. 7 9a House Committee on Energy and Environmental Protection, Room 325
HB 425 HD1 Requires PUC to consider diverse portfolio of fossil fuels
HB 2259 Establishes hydrogen safety codes and standards
HB 2484 HD1 Clarifies EV registration rules and codifies existing incentives
HB 2485 HD1 Amends law requiring designated EV parking spaces

Feb. 6 9a House Committee on Transportation, Room 309
HB 2626 Establishes Safe Routes to School Program within Department of Transportation funded through a surcharge for certain traffic violations

Feb. 6 1:17p Senate Committee on Transportation and International Affairs, Senate Committee on Energy and Environment, Room 224
SB 2747 Amends law requiring designated EV parking spaces
SB 2746 Clarifies EV registration rules and codifies existing incentives

Feb. 2 10a House Committee on Energy and Environmental Protection, Room 325
HB 2400  Seeks to bifurcate Hawaii's main electric utility company into a transmission and distribution company and generating assets

Jan. 31 8:15a House Committee on Energy and Environmental Protection, Room 325
HB 2525 Authorizes a Hawaii Electricity Reliability Administrator (HERA) and authorizes PUC to perform necessary electric system reliability and grid access oversight functions
HB 2490 Reduces the level of imputed debt assumed by electric utitilies when entering into power purchase agreements
HB 2041 Reduces curtailment of renewable power sold to public utilities and enables independent power producers to sell to other customers

Funny comment on facebook! Want to learn more about the PUC's ruling on 14H? Here's the news release we sent out. Also here's Alan Yonan, Jr.'s story in the Star-Advertiser, and Sophie Cocke's article in Civil Beat. These interconnection-related issues are among the regulations that govern the addition of new renewable systems to the grid.

Congratulations to Mina Morita, the new chair of the Hawaii Public Utilities Commission. The Hawaii Senate confirmed her appointment this afternoon with a 24-1 vote. (Sam Slom, the lone Senate Republican, cast the only dissenting vote.) Sophie Cocke of Pacific Business News reported the confirmation here. With a long track record of enacting bold energy and environmental policies at the state legislature, clean energy advocates hope that Morita's leadership at the PUC will put pressure on the utility to achieve the renewable energy goals set by the Hawaii Clean Energy Initiative and hold it accountable for its kuleana to that end.

 

PHOTO: Newly appointed PUC Chairwoman Hermina Morita at the State Capitol with Blue Planet Executive Director Jeff Mikulina

Rep. Mina Morita says energy's not the sexiest issue, but it's a most powerful one that has the potential to drive Hawaii's economy.

... HECO executive Robbie Alm declared, rallying key players in the energy industry and reminding them we're at a historic stage in the evolution of energy production and it's an exciting place to be. Alm's talk was among a series of short presentations delivered by chief decision makers at the State Capitol this morning. The public briefing and panel discussion, organized by the Hawaii Energy Policy Forum, offered an overview of Hawaii's clean energy goals and the progress we've made to date. Following are some highlights.