STAND. COM. REP. NO. 310-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 2657

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. 2657, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO A COAL-FREE HAWAII,"

begs leave to report as follows:

The purpose of this measure is to eliminate the use of coal in Hawaii for electricity production.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs, Hawaii State Energy Office, IMUAlliance, Hawaii Youth Climate Coalition, Pono Hawaii Initiative, Climate Protectors Coalition, Surfrider Oahu, Young Progressives Demanding Action, Sierra Club of Hawaii, Environmental Caucus of the Democratic Party of Hawaii, Our Revolution Hawaii, Blue Planet Foundation, and numerous individuals. Your Committee received comments on this measure from the Department of Health, Public Utilities Commission, and Hawaiian Electric Company, Inc.

Your Committee finds that the usage of coal as a fuel source is harmful to the environment and has a negative impact on public health. Further, your Committee finds that in order to reach the goal of clean energy in the State, coal must be phased out.

Your Committee has amended this measure by:

(1) Clarifying the power purchase agreements, fuel supply agreements, and facility construction and purchases that the Public Utilities Commission cannot approve;

(2) Prohibiting an independent power producer from passing on the environmental response, energy, and food security tax onto a purchasing utility company; and

(3) 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. 2657, 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. 2657, H.D. 2.

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

____________________________

ROY M. TAKUMI, Chair