STAND. COM. REP. NO. 1074-20

Honolulu, Hawaii

, 2020

RE: S.B. No. 2818

S.D. 2

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 S.B. No. 2818, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to require the Public Utilities Commission (PUC) to contract with the Hawaii Natural Energy Institute to conduct a study regarding the availability, feasibility, and costs of the use of renewable gas in Hawaii by gas utility companies.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs Division of Consumer Advocacy, Hawaii Gas, Hawaiian Electric, EcoTipping Points Project, Chamber of Commerce Hawaii, Hawaii Bioeconomy Trade Organization, Sustainable Energy Hawaii, Par Hawaii, Ulupono Initiative, Blue Planet Foundation, Land Use Research Foundation of Hawaii, and fourteen individuals. Your Committee received testimony in opposition to this measure from 350Hawaii.org, Climate Protectors Coalition, Life of the Land, and five individuals. Your Committee received comments on this measure from the Hawaii State Energy Office and Public Utilities Commission.

Your Committee finds that the study required under this measure will provide important data to support future policies to increase the development, deployment, and use of renewable natural gas in the State. Your Committee further finds that the State statutorily is committed to one hundred percent renewable energy sales in the State by 2045. By amending the method by which the State's one hundred percent renewable energy goal is calculated, the State may more accurately determine whether the State is truly achieving its goal of sourcing one hundred percent of its electricity from renewable sources.

Your Committee has amended this measure by:

(1) Deleting its preamble;

(2) Inserting the preamble of H.B. No. 1242, H.D. 1 (Regular Session of 2020);

(3) Deleting the language requiring the PUC to conduct the study and replacing it with language from H.B. No. 1242, H.D. 2 (Regular Session of 2020), to make technical amendments to the study requirement and amend the definition of "gas utility company";

(4) Further amending the study requirement by deleting provisions requiring review of the study by a panel of experts and confirmation and verification of information and analysis used in conducting the study and amending the scope of the study;

(5) Inserting an appropriation from the Public Utilities Commission Special Fund of an unspecified amount for the PUC to conduct the study;

(6) Inserting the contents of H.B. No. 1864, H.D. 2 (Regular Session of 2020), which amends the definition of "renewable portfolio standard" to more accurately reflect the percentage of total electrical energy generated that is represented by renewable electrical energy in the State;

(7) Inserting a savings clause;

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

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

Should your Committee on Consumer Protection & Commerce or Committee on Finance deliberate on this measure, your Committee respectfully requests consideration of an appropriation amount of $150,000 from the Public Utilities Special Fund for the study.

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 S.B. No. 2818, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2818, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

NICOLE E. LOWEN, Chair