STAND. COM. REP. NO. 191

Honolulu, Hawaii

, 2021

RE: H.B. No. 1290

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1290 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure is to authorize government agencies to wheel electricity that is produced by their own facilities from renewable energy sources to another agency's facilities, subject to disallowance by the Public Utilities Commission.

Your Committee received testimony in support of this measure from two individuals. Your Committee received testimony in opposition to this measure from the Hawaiian Electric Company, Inc. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs, Public Utilities Commission, Life of the Land, and Environmental Caucus of the Democratic Party of Hawai‘i.

Your Committee finds that the State continues to depend heavily upon imported petroleum for its energy needs and is falling short of its ambitious renewable energy goals. The production of clean electricity may be further encouraged if government agencies, as sellers of clean electricity, are allowed to transmit electric power from one agency's power generation to the facilities of other governmental agencies over the existing transmission lines of a third-party electric public utility.

Your Committee has amended this measure by:

(1) Clarifying that the Public Utilities Commission may authorize government agencies to wheel electricity through the adoption of rules or by Commission order;

(2) Changing the effective date to July 1, 2050, to encourage further discussion; 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 Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1290, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1290, 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