HI HB1248

Designates property controlled by the Natural Energy Laboratory of Hawaii Authority as a microgrid demonstration project for renewable energy generation, storage, and distribution.

Requires the project to be authorized by the Public Utilities Commission and limits electricity generation capacity to five megawatts or less using only renewable energy sources.

Exempts the microgrid project from most Chapter 269 utility regulations and allows it to cross property boundaries, easements, and utility rights-of-way within NELHA property to provide or sell renewable energy to tenants and users.

Permits the microgrid to use electric utility transmission or distribution lines to deliver electricity to participants and allows it to be islanded from the public utility grid as needed.

Requires NELHA to submit a report to the legislature by January 20, 2018 addressing fairness to customers, safety, system reliability, and cost shifting issues related to the demonstration project.