STAND. COM. REP. NO. 1053

Honolulu, Hawaii

, 2019

RE: H.B. No. 298

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 298, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INTRA-GOVERNMENTAL WHEELING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Expedite implementation of intra-governmental wheeling by authorizing government agencies to wheel electricity produced at their own facilities from renewable energy resources, subject to disallowance by the Public Utilities Commission (PUC);

(2) Designate the Natural Energy Laboratory of Hawaii Authority (NELHA) as a microgrid demonstration project;

(3) Require the PUC to complete its intra-governmental wheeling proceeding and establish an intra-governmental tariff by December 31, 2020; and

(4) Authorize the PUC to consider allowing wheeling among facilities located within the boundaries of the Hawaii Ocean Science and Technology Park.

The City and County of Honolulu Department of Environmental Services, Tawhiri Power LLC, and O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i testified in support of this measure. Hawaiian Electric Company, Inc., Maui Electric Company, Ltd., and Hawai‘i Electric Light Company, Inc. opposed this measure. The Department of Commerce and Consumer Affairs, PUC, and NELHA provided comments on this measure.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 298, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair