STAND. COM. REP. NO. 607

Honolulu, Hawaii

RE:    S.B. No. 376

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Commerce, Consumer Protection, and Health and Transportation and Energy, to which was referred S.B. No. 376 entitled:

"A BILL FOR AN ACT RELATING TO THE INTERISLAND TRANSMISSION SYSTEM,"

beg leave to report as follows:

     The purpose and intent of this measure is to repeal chapter 269, part VIII, Hawaii Revised Statutes, relating to the interisland transmission system.

     Your Committees received testimony in support of this measure from the Office of the Mayor of the County of Hawai‘i, Friends of Lana‘i, and Life of the Land.  Your Committees received testimony in opposition to this measure from Ulupono Initiative and one individual.  Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs; Department of Business, Economic Development, and Tourism; and Public Utilities Commission.

Your Committees find that in 2012, the Legislature established a regulatory structure under which interisland undersea transmission cables could be developed, financed, and constructed.  Your Committees further find that the current priorities of the Legislature and the electric utility companies do not include an interisland transmission system.  Your Committees recognize that there is an existing regulatory proceeding regarding the issue that is intended to solicit information and evaluate whether an undersea transmission cable may be in the public interest, however your Committees find that it is more appropriate to remove references to the interisland transmission system from state law until an agreement on such a system can be reached.

     Your Committees have amended this measure by 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 Commerce, Consumer Protection, and Health and Transportation and Energy that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 376, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 376, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection, and Health and Transportation and Energy,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ ROSALYN H. BAKER, Chair