STAND. COM. REP. NO. 1522

Honolulu, Hawaii

RE: H.B. No. 1583

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Education and Energy, Economic Development, and Tourism, to which was referred H.B. No. 1583, H.D. 2, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Department of Education to establish a pilot program in at least four schools to install renewable energy systems capable of providing backup power in the event of a natural disaster or other similar emergency; and

(2) Require the Public Utilities Commission to consider in its current and ongoing proceedings ways to incentivize the implementation of renewable energy systems in public schools.

Your Committees received testimony in support of this measure from one individual. Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs, Department of Education, and Public Utilities Commission.

Your Committees find that Hawaii's residents and businesses are vulnerable to disruptions in the State's energy systems caused by extreme weather events or other disasters. In many areas of the State, Hawaii residents and visitors rely on public school structures that serve as designated shelters during disaster events.

Your Committees further find that many public schools have begun to install renewable energy systems in order to meet the State's goal for public schools to become net-zero in regard to energy use by the year 2035. This measure provides incentives for the Department of Education to invest in such systems and encourages the Public Utilities Commission to consider ways to incentivize the implementation of renewable energy systems in public schools.

Your Committees have amended this measure by:

(1) Removing the requirement that the renewable energy system established by the Department of Education be capable of continuously providing backup power;

(2) Removing the mandate that the Department of Education conduct a pilot program in at least four schools;

(3) Authorizing the Department of Education to evaluate the feasibility and cost-benefit of renewable powered backup system at one facility;

(4) Authorizing the Natural Energy Laboratory of Hawaii to establish a microgrid demonstration project;

(5) Authorizing the Department of Transportation to perform a microgrid feasibility and cost-benefit analysis at an appropriate facility with an existing or proposed renewable energy system that is capable of providing backup electrical power;

(6) Expanding the consideration of the Public Utilities Commission to include feasibility, cost-benefit, and possible ways to incentivize installation of renewable energy backup systems in public facilities by incorporating findings and data reported from the public facility microgrid evaluations and pilot programs authorized in this measure;

(7) Updating the purpose section to reflect the amendments made to this measure; and

(8) 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 Education and Energy, Economic Development, and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1583, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1583, H.D. 2, S.D. 1, and be referred to your Committees on Commerce, Consumer Protection, and Health and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Education and Energy, Economic Development, and Tourism,

________________________________ GLENN WAKAI, Chair

________________________________ MICHELLE N. KIDANI, Chair