STAND. COM. REP. NO. 1151-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 2474

S.D. 2

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 S.B. No. 2474, 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:

(1) Require the Public Utilities Commission to establish reliability standards and interconnection requirements for all electric utilities and all users, owners, or operators of the Hawaii electric system;

(2) Establish a timeline and requirements for interconnection procedures to be established by the Public Utilities Commission for certain utility-scale renewable energy projects;

(3) Make the Public Utilities Commission's contracting for the Hawaii Electric Reliability Administrator mandatory rather than discretionary; and

(4) Require the Public Utilities Commission to submit a report and assessment of the Hawaii Electric Reliability Administrator to the Legislature.

Your Committee received testimony in support of this measure from the Hawaii Clean Power Alliance and one individual. Your Committee received testimony in opposition to this measure from Hawaiian Electric Company. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Public Utilities Commission.

Your Committee finds that accelerating the development of renewable energy to reduce greenhouse gases will help the State achieve its goal of a one hundred percent renewable portfolio standard by 2045. However, significant delays in transitioning from fossil fuel plants make it difficult to plan for the design and construction of future utility-scale renewable energy projects. This measure will facilitate the timely interconnection of utility-scale renewable energy projects, helping the State achieve its renewable portfolio standard goals in a timely manner and reducing greenhouse gas emissions.

Your Committee has amended this measure by:

(1) Deleting certain findings related to electric grid reliability issues;

(2) Authorizing the Public Utilities Commission to determine timelines and deadlines relating to any interconnection procedures;

(3) Specifying that the procedures for interconnection also apply to community-based renewable energy projects;

(4) Deleting language that would have required the Public Utilities Commission to contract for the performance of some of its duties by the Hawaii Electricity Reliability Administrator and submit a report and assessment to the Legislature;

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

(6) 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 S.B. No. 2474, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2474, 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