SB589 Summary

• Requires the Public Utilities Commission to establish an installation goal for customer-sited distributed energy resources (solar, storage systems) in Hawaii by December 31, 2030.

• Directs the PUC to establish tariffs for grid services programs, microgrids, and community-based renewable energy projects with fair compensation to achieve the installation goal.

• Mandates the PUC to establish grid service compensation values that compensate system owners for resiliency, capacity, and ancillary service value provided by their distributed energy systems.

• Exempts persons operating new microgrids from being classified as public utilities solely for furnishing service through those microgrids to participating consumers.

• Authorizes wheeling of renewable electricity (transmission through utility meters between separate accounts) and requires the PUC to establish policies, procedures, and tariffs for wheeling projects between 100 kilowatts and 2 megawatts by January 1, 2027.