STAND. COM. REP. NO. 296-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2089

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. 2089 entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE PORTFOLIO STANDARDS,"

begs leave to report as follows:

The purpose of this measure is to amend the definition of "renewable portfolio standard" to mean the percentage of renewable electrical energy generated, rather than sold, that is represented by renewable electrical energy.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Commerce and Consumer Affairs; Hawaii State Energy Office; Public Utilities Commission; Hawaii Clean Power Alliance; Ulupono Initiative; 350Hawaii.org; Blue Planet Foundation; and two individuals. Your Committee received testimony in opposition to this measure from the Hawaiian Electric Company.

Your Committee finds that the State has established a goal of reaching a one hundred percent renewable portfolio standard by 2045, with the intent to transition the State away from imported fossil fuels and toward renewable local resources that provide a secure source of affordable energy. The existing calculation of the renewable portfolio standard, which is based on electrical energy sales rather than on electrical energy generation, overestimates the amount of renewable energy serving Hawaii's electric utility customers. This measure ensures that the State's progress toward its energy and climate goals is accurately measured.

Your Committee has amended this measure by:

(1) Excluding customer-sited, grid-connected fossil fuel generation from the definition of "renewable portfolio standard";

(2) Expanding the events or circumstances that are beyond an electric utility company's reasonable control to include non-renewable energy generated by electric generation facilities over which or of which the electric utility company does not have direct control or ownership;

(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. 2089, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2089, 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