STAND. COM. REP. NO. 2467

Honolulu, Hawaii

RE: S.B. No. 2801

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. 2801 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose and intent of this measure is to require the Public Utilities Commission to establish preferential electricity rates for residential properties located within a five-mile radius of a utility scale wind energy facility.

Your Committee received testimony in support of this measure from the Environmental Caucus of the Democratic Party of Hawaii; We Are One, Inc; 350Hawaii; and nineteen individuals. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs, Hawaii State Energy Office, Public Utilities Commission, and Hawaiian Electric.

Your Committee finds that utility scale wind energy facilities are a valuable source of renewable energy and brings the State closer to realizing its goal of one hundred percent renewable energy by 2045. However, your Committee further finds that there are financial, societal, and environmental costs to the installation of industrial wind energy systems. Utility scale wind energy facilities typically require a significant amount of tax dollars and raises health concerns. Your Committee also finds that the communities near utility scale wind energy systems are burdened by being in close proximity to these facilities, yet seldom receive direct benefits to offset the potential risks of living near utility scale wind facilities. This measure will offset the potential risks by offering preferential electricity rates to communities near a utility scale wind energy facility.

Your Committee has amended this measure by:

(1) Reducing the radius of eligible properties that receive the preferential rate from five miles to one mile;

(2) Requiring the Public Utilities Commission, in its consideration of preferential rates, to ensure that any subsidization being paid by other customers is limited and reasonable and to periodically review and adjust the rate, if necessary; and

(3) 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. 2801, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2801, S.D. 1, and be referred to your Committee on Commerce, Consumer Protection, and Health.

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

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GLENN WAKAI, Chair