STAND. COM. REP. NO. 398

Honolulu, Hawaii

RE: S.B. No. 1293

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 Public Safety, Intergovernmental, and Military Affairs and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 1293 entitled:

"A BILL FOR AN ACT RELATING TO A MUTUAL ASSISTANCE AGREEMENT,"

beg leave to report as follows:

The purpose and intent of this measure is to ensure that in times of emergencies or natural disasters, the State and electrical utilities in the State are allowed to enter into a mutual assistance agreement with an out of state utility to assist in the restoration of electrical power.

Your Committees received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Hawaiian Electric Companies, Land Use Research Foundation of Hawaii, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and one individual. Your Committees received comments on this measure from Hawai‘i Gas.

Your Committees find that natural disasters and powerful storms are increasing in frequency due to climate change. Your Committees further find that an emergency or natural disaster may cause overwhelming damage to the electrical grid, on which most of Hawaii depends for electricity. Mutual assistance agreements are agreements between public electric and gas utilities that allow utilities in one state to provide assistance to utilities in another state to help restore utilities following emergencies and disasters. Your Committees find that mutual assistance agreements are one important mechanism that the Legislature should adopt because these mutual assistance agreements will help speed up the restoration of utility service to customers across the State.

Your Committees note that all Hawaii-based public utility providers are members of the Western Region Mutual Assistance Agreement and that emergencies and natural disasters may affect the provision of all sources of energy and utility service, not just electrical and non-renewable energy sources. Therefore, your Committees find that amendments to this measure are necessary to authorize the State and all public utilities in the State to enter into mutual assistance agreements with out of state utilities to assist in the restoration of all energy and utility services.

Your Committees have amended this measure by:

(1) Expanding the permissible entities with which the State may enter into a mutual assistance agreement to include all energy providers and utilities and making conforming amendments; and

(2) 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 Public Safety, Intergovernmental, and Military Affairs and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1293, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1293, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Public Safety, Intergovernmental, and Military Affairs and Commerce, Consumer Protection, and Health,

________________________________ ROSALYN H. BAKER, Chair

________________________________ CLARENCE K. NISHIHARA, Chair