STAND. COM. REP. NO.  572

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 448

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 448 entitled:

"A BILL FOR AN ACT RELATING TO LIQUEFIED NATURAL GAS,"

begs leave to report as follows:

The purpose of this measure is to:

     (1)  Require public utilities importing liquefied natural gas into the State to file annual reports with the Public Utilities Commission (PUC) regarding the amount, source, and extraction information of all liquefied natural gas imported; and

     (2)  Require the PUC to conduct an investigative proceeding to examine the risks and benefits of liquefied natural gas and to report regularly during the proceeding's pendency to the Legislature prior to the convening of each regular session.

The Sierra Club Maui Group, Environmental Caucus of the Democratic Party of Hawaii, Life of the Land, and several individuals testified in support of this measure.  HAWAIIGAS and an individual testified in opposition to this measure.  The Department of Commerce and Consumer Affairs; the Public Utilities Commission; Sierra Club, Hawaii Chapter; Blue Planet Foundation; and an individual provided comments on this measure.

     Your Committee has amended this measure by:

     (1)  Requiring that public utilities importing liquefied natural gas into the State file annual liquefied natural gas reports with the PUC that contain information as determined by the PUC;

     (2)  Requiring that the Department of Business, Economic Development, and Tourism report to the 2014 Legislature on the costs, benefits, feasibility, and impact of importing and selling liquefied natural gas in the State, including recommendations on needed metrics and reporting requirements; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 448, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 448, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

CHRIS LEE, Chair