Energy Efficiency Portfolio Standard

Origin

Hawaii enacted legislation (HB 1464) in June 2009 that established an Energy Efficiency Portfolio Standard (EEPS). Hawaii's EEPS and Renewable Portfolio Standard (RPS) are related. Until January 1, 2015, energy efficiency was included in Hawaii's RPS. However, beginning in 2015, energy efficiency and displacement or offset technologies were no longer be eligible to fulfill Hawaii's RPS; these technologies became part of the separate EEPS. Displacement or offset technologies include solar water heating, seawater air conditioning district cooling systems, and solar air conditioning. Energy efficiency technologies defined by the RPS include heat pump water heating, ice storage, ratepayer-funded energy efficiency programs, and the use of rejected heat from combined heat and power (CHP) systems. The Hawaii Public Utilities Commission (PUC) will establish rules and specify eligible technologies for the EEPS.

Electric Sales Reduction

Hawaii's EEPS set a goal of reducing electricity use by 4,300 gigawatt-hours (GWh) by 2030. The PUC must establish interim goals and may adjust the 2030 goal by rule or order. However, the PUC will evaluate the EEPS every five years beginning in 2013.

Program Administrator Type

The Hawaii PUC has delegated the administration of the programs intended to meet the standard to Hawaii Energy, a platform managed by third parties contracting with the PUC.

Cost Effectiveness and Program Evaluation

Hawaii uses the Total Resource Cost test (TRC), one of the five "California tests" from the California Standard Practice Manual, as the primary test for evaluating the programs intended to meet the standards.

Utility Cost Recovery Provisions

All of the operating companies of Hawaiian Electric Industries that comprise Hawaii's rate-regulated utilities subject to the EEPS are required to decouple their revenues from their sales.