STAND. COM. REP. NO. 2626

Honolulu, Hawaii

RE: S.B. No. 2474

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 2474 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Public Utilities Commission to develop and adopt reliability standards and interconnection requirements;

(2) Establish an interconnection procedure for utility-scale renewable energy projects; and

(3) Require the Public Utilities Commission to contract for an electricity reliability administrator.

Your Committee received testimony in support of this measure from Hawaii Clean Power Alliance and Ulupono Initiative. Your Committee received testimony in opposition to this measure from Hawaiian Electric Company, Inc. and two individuals. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs, Public Utilities Commission, and Hawaii State Energy Office.

Your Committee finds that with the retirement of the AES coal plant, the timely interconnection of alternative utility-scale renewable energy generation and storage projects to the Hawaii electric system is necessary to maintain electric grid reliability and ensure that the State's electrical energy needs are met. Independent power producers rely on a clear timeline and transparent costs to ensure their proposed projects are completed within budget and will contribute to the State's renewable energy portfolio standards. This measure will help reduce the risks of delays and variables to benefit ratepayers, support the State's renewable energy goals, and set standards for grid-reliability.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2474, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2474, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

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GLENN WAKAI, Chair