STAND. COM. REP. NO. 2365

Honolulu, Hawaii

RE: S.B. No. 3314

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 Water and Land, to which was referred S.B. No. 3314 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII STATE ENERGY OFFICE,"

beg leave to report as follows:

The purpose and intent of this measure is to transfer the Hawaii State Energy Office from the Department of Business, Economic Development, and Tourism to the Department of Land and Natural Resources.

Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism; Hawaii State Energy Office; and Department of Land and Natural Resources.

Your Committees find that the Hawaii State Energy Office (HSEO) was established in 2019 to, in part, facilitate renewable energy, energy efficiency, energy resiliency, and clean transportation project deployment to assist private sector project completion when aligned with state energy goals. However, your Committees note that over the past few years, the focus of the agency has shifted towards climate change mitigation and sea level rise priorities. Although your Committees also find that the Department of Land and Natural Resources is an already large department with a broad mandate, its focus on natural and cultural resources may better align with HSEO's current priorities. Your Committees further note that the transfer of HSEO to the Department of Land and Natural Resources should not affect the Department's base budget as HSEO is primarily funded through a portion of the environmental response, energy, and food security tax.

Accordingly, your Committees have amended this measure by:

(1) Emphasizing that HSEO is to be administratively attached to the Department of Land and Natural Resources; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3314, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3314, 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 Water and Land,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ GLENN WAKAI, Chair