STAND. COM. REP. NO. 516-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 1864

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1864, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY,"

begs leave to report as follows:

The purpose of this measure is to accelerate the renewable portfolio standard interim goals for the State and amend the method for calculating the renewable portfolio standard.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Hawaii State Energy Office, Climate Protectors Coalition, 350Hawaii.org, Hawaii Youth Climate Coalition, Sierra Club of Hawaii, Hawaii Solar Energy Association, Life of the Land, Ulupono Initiative, Elemental Excelerator, Blue Planet Foundation, and sixteen individuals. Your Committee received testimony in opposition to this measure from Hawaiian Electric and Chamber of Commerce of Hawaii. Your Committee received comments on this measure from the Public Utilities Commission.

Your Committee finds that the State statutorily committed to one hundred percent renewable energy sales in the State by 2045 through the enactment of Act 97, Session Laws of Hawaii 2015. However, your Committee finds that the calculation of the renewable portfolio standard based on electrical energy sales, rather than electrical energy generation, overestimates the amount of renewable energy serving the State's electric utility customers. By amending the method by which the State's one hundred percent renewable energy goal is calculated, the State may accurately determine whether the State is truly achieving its goal of sourcing one hundred percent of its electricity from renewable sources.

Your Committee further finds that concerns were raised in the hearing as to whether the accelerated interim standards, as proposed in this measure, would be feasible for electric utilities with the new method of calculation. Your Committee notes that assurances were given that electric utilities were ahead of schedule with the current goals in place; however, no assurances could be given that electric utilities could meet the accelerated goals proposed in this measure. While your Committee admires the ambition to hasten the transition to renewable energy, your Committee must also consider what is pragmatic in the face of obstacles renewable energy projects have encountered. As such, your Committee finds that the renewable portfolio standard interim goals should remain the same.

Your Committee has amended this measure by:

(1) Reinstating the existing statutory renewable portfolio standard interim goals; and

(2) 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 Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1864, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1864, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROY M. TAKUMI, Chair