Public Benefits Fee for Energy Efficiency

Summary

In June 2006 Hawaii passed legislation which allowed for all utility surcharges that were previously part of demand-side management (DSM) measures to be available also to a Public Benefits Fund (PBF) established by the Hawaii Public Utilities Commission (PUC). In July 2007, House Bill 1003 created an energy systems development special fund for the development of renewable energy and energy efficient technologies through a partnership with the University of Hawaii. In May of 2008, S.B. 3001 required that all or a portion of the funds collected by Hawaii's electric utilities from its ratepayers through a demand-side management surcharge be transferred to a third-party administrator contracted by the public utilities commission. , S.D. 2 clarifies that the public benefits fees collected by Hawaii's electric utility companies and then transferred to a new third-party public benefits fee administrator, to be appointed by the PUC, shall not be considered state or public funds subject to appropriation by the legislature or for deposit into the state general fund. S.B. 3001, S.D.2 makes clear that the sole purpose of a public benefits fund in Hawaii is to provide demand-side management and energy-efficiency services to Hawaii's residential and commercial ratepayers. The bill also makes explicit that the State of Hawaii may participate in any of the DSM programs on the same basis as any other ratepayer.