HI HB2460

Designates property controlled by the Natural Energy Laboratory of Hawaii Authority (NELHA) as a microgrid demonstration project authorized to plan, design, and operate a renewable energy microgrid.

Microgrid must have total generating capacity of five megawatts or less, use only renewable energy (except in emergencies), and may be islanded from the electric utility grid.

Allows the microgrid to provide, sell, or transmit renewable energy to NELHA tenants and other users, cross property boundaries within NELHA, and use utility transmission/distribution lines within project boundaries.

Exempts the NELHA microgrid demonstration project from most Chapter 269 utility regulations; requires Public Utilities Commission to open a docket for expedited proceedings to enable ongoing operation as a test facility for emerging technologies.

Power sold by the microgrid must be priced at or below electric utility rates; NELHA must submit a report to the legislature by December 2018 addressing fairness, safety, reliability, and cost-shifting impacts.