STAND. COM. REP. NO. 2348

Honolulu, Hawaii

RE: S.B. No. 2483

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Government Operations, to which was referred S.B. No. 2483 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Include, as an objective in energy-related planning for the State's facility systems, that all new utility scale electricity generation projects be renewable;

(2) Establish state policies that ensure short- and long-term provision of adequate, reasonably priced, and dependable renewable energy services, prioritizing the dispatch of renewable energy generation;

(3) Update the State's policies to ensure that all new utility scale electricity generation projects are renewable, prioritize renewable energy generation, and include the use of non-fossil fuel sources in the development or expansion of energy systems; and

(4) Appropriate moneys for the Hawaii Natural Energy Institute (HNEI)to study the costs of dispatching renewable energy resources.

Your Committees received testimony in support of this measure from Hawai‘i Natural Energy Institute, Hawaii Clean Power Alliance, Tawhiri Power LLC, and one individual. Your Committees received testimony in opposition to this measure from the Hawaiian Electric Company and one individual. Your Committees received comments on this measure from the Department of Budget and Finance and Hawaii State Energy Office.

Your Committees find that this measure requires electric utilities to prioritize the dispatch of energy from renewable sources above those from fossil fuels. Although your Committees appreciate the discussion regarding renewable capable utility scale electricity generation projects, your Committees note that a renewable capable project could allow the energy produced or generated to come from diesel, a fossil fuel. According to testimony received by your Committees, HNEI can perform the study with the funds it receives from its portion of the environmental response, energy, and food security tax that is deposited into the energy systems development special fund established by section 304A-2169.1, Hawaii Revised Statutes.

Accordingly, your Committees have amended this measure by specifying that the amounts appropriated for the study are to be deducted from the moneys that HNEI receives from its portion of the environmental response, energy, and food security tax.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2483, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2483, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Government Operations,

________________________________ SHARON MORIWAKI, Chair

________________________________ GLENN WAKAI, Chair