STAND. COM. REP. NO. 2609

Honolulu, Hawaii

RE: S.B. No. 2964

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Commerce and Consumer Protection, to which was referred S.B. No. 2964 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to authorize independent generators of renewable energy to wheel the renewable energy transmitted and used to produce hydrogen, subject to certain conditions determined by the Public Utilities Commission.

Your Committees received testimony in support of this measure from the Hawaii Center for Advanced Transportation Technologies; Hawaii Clean Power Alliance; and Tigershark, LLC.

Your Committees received testimony in opposition to this measure from the Kauaʻi Island Utility Cooperative.

Your Committees received comments on this measure from the Hawaii State Energy Office, Department of Commerce and Consumer Affairs, Public Utilities Commission, Hawaiian Electric, and Ulupono Initiative LLC.

Your Committees find that there are many renewable energy generating facilities that are curtailed when there is an oversupply of energy generation. This excess energy is wasted and can be utilized to create hydrogen through the permitting of wheeling renewable energy. This measure aids the State in meeting its future energy needs, facilitates the development of green hydrogen and renewable energy industries, and reduces dependance on fossil fuels through authorizing the wheeling of renewable energy to produce hydrogen.

Your Committees have amended this measure by:

(1) Changing references from "third-party electric utility" to "third-party investor-owned electric utility";

(2) Inserting an effective date of January 1, 2060, to encourage further discussion; and

(3) Making a technical, nonsubstantive amendment 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 Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2964, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2964, 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 Commerce and Consumer Protection,

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ LYNN DECOITE, Chair