STAND. COM. REP. NO. 266-18

Honolulu, Hawaii

, 2018

RE: H.B. No. 2249

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2249 entitled:

"A BILL FOR AN ACT RELATING TO ELECTRIC GRID RESILIENCY,"

begs leave to report as follows:

The purpose of this measure is to prepare the State's electrical grid for natural disasters and other emergencies by:

(1) Establishing programs and designating funds that shall provide immediate, emergency funding for the development of energy facilities at critical infrastructure;

(2) Creating a Grid Resiliency Task Force to identify critical infrastructure needs and provide recommendations for enhancing grid resiliency throughout the State;

(3) Directing government agencies to begin building grid resiliency into their planning; and

(4) Directing public utilities to incorporate grid resiliency planning into their integrated resource and grid modernization planning.

The Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, Distributed Energy Resources Council of Hawaii, Life of the Land, Tesla, The Alliance for Solar Choice, Environmental Caucus of the Democratic Party of Hawaii, Hawaii Solar Energy Association, and many individuals supported this measure. Hawaii Electric Company, Maui Electric Company, and Hawaii Electric Light Company opposed this measure. The Department of Budget and Finance, Department of Business, Economic Development and Tourism, Public Utilities Commission and an individual provided comments.

Your Committee has amended this measure by:

(1) Inserting the language of H.B. No. 2249, which, among other things:

(A) Creates a $30,000,000 revolving line of credit sub-fund under the umbrella of the green energy market securitization loan fund for any state agency or department to finance energy efficiency measures; and

(B) Appropriates $30,000,000 out of the Hawaii Green Infrastructure Special Fund for the financing of installation costs for energy-efficient lighting and other energy efficiency measures for any state agency or department;

(2) Deleting the provisions which establishes the grid resiliency capital investment program and grid resiliency capital investment special fund;

(3) Including the mayors of the counties of Hawaii, Kauai, and Maui and the mayor of the City and County of Honolulu as members of the grid resiliency task force;

(4) Amending the duties of the grid resiliency task force;

(5) Requiring the grid resiliency task force to submit to the Legislature an interim report prior to the convening of the 2019 Regular Session and a final report prior to the convening of the 2020 Regular Session;

(6) Amending the definition of "critical infrastructure" to exclude the primary residences of first responders, and to include emergency care providers and health centers;

(7) Deleting the definition of "first responder";

(8) Transferring funds from the green infrastructure special fund to the grid resiliency rebate special fund; and

(9) Making technical, nonsubstantive amendments for 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. 2249, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2249, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

CHRIS LEE, Chair