STAND. COM. REP. NO. 2477

Honolulu, Hawaii

RE:    S.B. No. 3044

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Transportation and Energy and Economic Development, Environment, and Technology, to which was referred S.B. No. 3044 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

(1)  Reduce Hawaii's dependence on imported fossil fuels for electrical generation and ground transportation by 2045; and

     (2)  Create goals and targets in Hawaii's Clean Energy Initiative and State Planning Act.

     Your Committees received testimony in support of this measure from the Blue Planet Foundation, Pacific Biodiesel Technologies, and one individual.  Your Committees received testimony in opposition to this measure from the Hawaii Petroleum Marketers Association; Hawaii Petroleum, Inc.; PAR Hawaii; The Alliance of Automobile Manufacturers; and one individual.  Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism; Office of Economic Development of the County of Kaua‘i; and Hawaii Transportation Association.

     Your Committees find that Hawaii's dependency on imported fossil fuels drains the State's economy of billions of dollars each year.  A stronger local economy depends on a transition away from imported fossil fuel powered ground transportation and toward multi-modal transportation systems powered by renewable local energy resources.

     Your Committees further find that climate change caused by greenhouse gas emissions from burning fossil fuels poses a serious threat to the economic well-being, public health, natural resources, and the environment of Hawaii.

     Your Committees have amended this measure by:

     (1)  Removing language updating Hawaii's Clean Energy Initiative and State Planning Act;

     (2)  Establishing the transitional energy working group within the Department of Business, Economic Development, and Tourism to lay the foundation for future renewable energy development that transitions the State away from fossil fuels and to one hundred percent clean electricity in general, beginning with the transportation sector;

     (3)  Requiring the transitional energy working group to report its findings and recommendations to the Legislature; and

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

     As affirmed by the records of votes of the members of your Committees on Transportation and Energy and Economic Development, Environment, and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3044, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3044, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Energy and Economic Development, Environment, and Technology,

________________________________ GLENN WAKAI, Chair

________________________________ LORRAINE R. INOUYE, Chair