STAND. COM. REP. NO. 2287

Honolulu, Hawaii

RE: S.B. No. 3057

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. 3057 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Amend the definition of renewable portfolio standard to be a percentage of electrical energy generation, rather than sales; and

(2) Require electric utility companies to track and annually report data and trends on customer retention and attrition to further inform the calculation of renewable portfolio standards.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Transportation; Department of Commerce and Consumer Affairs' Division of Consumer Advocacy; Hawaii State Energy Office; Life of the Land; Climate Protectors Hawai‘i; Hawaii Clean Power Alliance; 350Hawaii.org; Ulupono Initiative; and thirteen individuals. Your Committee received testimony in opposition to this measure from the Hawaiian Electric Company, Inc. Your Committee received comments on this measure from the Public Utilities Commission.

Your Committee finds that not only does the current calculation of renewable portfolio standards in the State inaccurately reflects the amount of renewable energy actually being utilized which ultimately allows for the continued use of fossil fuels. Your Committee further finds that amending the renewable portfolio standard calculation from the amount of renewable electrical energy sales divided by total amount of energy sales to the amount of renewable electrical energy generated divided by the total amount of electrical energy generated more accurately reflects the intent of the State's clean energy economy goals. According to testimony from the Department of Commerce and Consumer Affairs' Division of Consumer Advocacy, it may be more appropriate to place the language requiring electrical utility companies to report data and trends on customer retention and attrition under another section in the Hawaii Revised Statutes.

Accordingly, your Committee has amended this measure by:

(1) Creating a new section for the requirement of electric utility companies to track and annually report data and trends on customer retention and attrition in its own section; and

(2) 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. 3057, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3057, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

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

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GLENN WAKAI, Chair