STAND. COM. REP. NO. 662

Honolulu, Hawaii

RE: S.B. No. 1529

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 Agriculture and Environment, Energy, Economic Development, and Tourism, and Water and Land, to which was referred S.B. No. 1529 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII ENERGY AND CLIMATE CHANGE OFFICE,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Hawaii Energy and Climate Change Office;

(2) Make the Hawaii Climate Change Mitigation and Adaptation Commission permanent and transferring it from the Department of Land and Natural Resources to the Department of Business, Economic Development, and Tourism;

(3) Establish a new position, the Deputy Director of Energy and Climate Change, who shall serve as the Energy Resources Coordinator;

(4) Repeal the energy security special fund and ends funding for the Hawaii Clean Energy Initiative from the energy security special fund; and

(5) Appropriate funds from the general fund for the Hawaii Energy and Climate Change Office.

Your Committees received testimony in support of this measure from the Hawaii Farmers Union, Sierra Club of Hawai‘i, and one individual. Your Committees received testimony in opposition to this measure from one individual. Your Committees received comments on this measure from the Department of Land and Natural Resources and Department of Business, Economic Development, and Tourism.

Your Committees find that climate change is a major threat to the economy, environment, and overall well-being of the State. Your Committees further find that this measure consolidates various state entities involved in furthering the State's goals of resiliency and self-sufficiency in an effort to pool their resources and focus their efforts.

Your Committees have amended this measure by:

(1) Changing the name "Hawaii Energy and Climate Change Office" to the "Hawaii State Energy Office";

(2) Changing the position title "Deputy Director of Energy and Climate Change" to the "Deputy Director of Energy";

(3) Deleting language that would have transferred the energy feedstock program from the Department of Agriculture to the Department of Business, Economic Development, and Tourism;

(4) Requiring the Energy Resources Coordinator to formulate, analyze, and recommend evaluation metrics;

(5) Requiring the Energy Resources Coordinator to assess incentive programs and report to the Governor and the Legislature on their effectiveness and necessity annually;

(6) Reinstating the administrative placement and membership of the Hawaii Climate Change Mitigation and Adaptation Commission in existing law but replacing the Director of Business, Economic Development, and Tourism with the Deputy Director of Energy as a member of the Commission;

(7) Removing language that would have transferred all rights, powers, functions, duties, documents, personal property, and policies and procedures of the Hawaii Climate Change Mitigation and Adaptation Commission from the Department of Land and Natural Resources to the Department of Business, Economic Development, and Tourism, and preserved the civil service status of any employees transferred;

(8) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(9) 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 Agriculture and Environment, Energy, Economic Development, and Tourism, and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1529, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1529, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Agriculture and Environment, Energy, Economic Development, and Tourism, and Water and Land,

________________________________ GLENN WAKAI, Chair	________________________________ MIKE GABBARD, Chair
	________________________________ KAIALI'I KAHELE, Chair