STAND. COM. REP. NO. 179-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2054

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2054 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Authorize the Hawaii Technology Development Corporation to temporarily re-establish the Hawaii Office of Naval Research Grant Program to provide fifty percent matching grants to Hawaii awardees of alternative energy research grants from the United States Office of Naval Research; and

(2) Establish the Alternative Energy Research and Development Revolving Fund and appropriate funds to provide grants.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office; Hawai‘i Technology Development Corporation; Oceanit; Hawai‘i Gas; Makai Ocean Engineering, Inc.; and two individuals. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that the Hawaii Office of Naval Research Grant Program was established in 2015 to provide matching grants to further strengthen and support Hawaii's local companies that are conducting renewable energy research and development through existing contracts with the United States Department of Defense Office of Naval Research. However, the program was only funded for two years. This measure would re-establish the program and take important steps to encourage high-impact, clean energy solutions that promote innovative economic development.

Your Committee has amended this measure by:

(1) Referencing the Hawaii Technology Development Corporation, rather than the High Technology Development Corporation;

(2) Deleting the establishment of the Alternative Energy Research and Development Revolving Fund and instead appropriating general revenues to provide grants under the Hawaii Office of Naval Research Grant Program;

(3) Changing the effective date to July 1, 2100, to encourage further discussion; and

(4) 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. 2054, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2054, H.D. 1, and be referred to your Committee on Higher Education & Technology.

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

____________________________

NICOLE E. LOWEN, Chair