STAND. COM. REP. NO. 2691

Honolulu, Hawaii

RE: S.B. No. 2559

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 2559 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Authorize the State Energy Office to enter into contracts with certain non-profit organizations to create a plan and administer the energy security special fund; and

(2) Increase the amount of funds deposited into the energy security special fund from the state environmental response, energy, and food security tax.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office; University of Hawai‘i System; Environmental Caucus of the Democratic Party of Hawaii; Our Revolution Hawaii; Climate Protectors Coalition; Elemental Excelerator; We Are One, Inc; 350Hawaii; and fifteen individuals. Your Committee received comments on this measure from the Department of Budget and Finance and Tax Foundation of Hawaii.

Your Committee finds that the development and utilization of innovative technologies is imperative for the State to reach its renewable energy goals by 2045. Your Committee believes that public private partnerships are crucial to meeting the State's renewable energy goals as they support the development and commercialization of technology to assist the State reach its zero emissions target. This measure will expand on existing resources in the State to facilitate technology development for future project deployment and commercialization through public private partnerships and provide more funding to be used for such projects.

Your Committee has amended this measure by:

(1) Requiring, among other things, a non-profit organization to support the commercialization of technologies that further the State's agriculture goals;

(2) Requiring the Hawaii State Energy Office, instead of the Department of Business, Economic Development, and Tourism, to submit a report to the Legislature on the status and progress of existing programs and activities of new programs and activities that are funded by the energy security special fund;

(3) Providing the Hawaii State Energy Office all necessary powers to enter into contracts, including the power to acquire, hold, and sell qualified securities; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2559, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2559, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

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GLENN WAKAI, Chair