STAND. COM. REP. NO. 550-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 1844

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1844 entitled:

"A BILL FOR AN ACT RELATING TO CLEAN ENERGY FINANCING,"

begs leave to report as follows:

The purpose of this measure is to strengthen the Hawaii Green Infrastructure Authority's (HGIA) ability to support investment in clean energy technology and infrastructure by:

(1) Creating a Clean Energy and Energy Efficiency Revolving Loan Fund (CEEERLF) Program to finance a broad range of clean energy technologies;

(2) Repealing the Building Energy Efficiency Revolving Loan Fund; and

(3) Making an appropriation out of the CEEERLF to make clean energy investment loans or for other approved uses.

Your Committee received testimony in support of this measure from Surfrider Oahu, 350 Hawaii.org, Honokaa People's Theatre, Blue Planet Foundation, and numerous individuals. Your Committee received comments on this measure from the Department of Budget and Finance, Department of Commerce and Consumer Affairs Division of Consumer Advocacy, Hawaii Green Infrastructure Authority, and Hawaii State Energy Office.

Your Committee finds that green infrastructure investment supports Hawaii's evolving energy market and provides affordable options for Hawaii's ratepayers. A significant barrier to clean energy adoption has been the unavailability of flexible financing and low-cost capital. Ratepayer-funded programs, such as energy efficiency rebates and the Green Energy Market Securitization Loan Program, have made progress but do not serve all ratepaying customers or the entire clean energy technology market.

Your Committee has amended this measure by:

(1) Excluding from deposit into the CEEERLF funds collected as payment of loans and interest payments from funds advanced from proceeds of green energy market securitization bonds;

(2) Removing the Energy Security Special Fund as a source of funding for the CEEERLF, as the barrel tax allocation should be sufficient;

(3) Changing its effective date to July 1, 2050, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of 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. 1844, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1844, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

NICOLE E. LOWEN, Chair