STAND. COM. REP. NO. 3180

Honolulu, Hawaii

RE: H.B. No. 2738

H.D. 2

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 Government Operations and Energy, Economic Development, and Tourism, to which was referred H.B. No. 2738, H.D. 2, 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:

(1) Authorize state agencies to:

(A) Prepare and submit a report assessing the feasibility of installing distributed energy resource systems at each state facility;

(B) Implement and install the distributed energy resource systems detailed in the reports no later than five years from the issue date of the reports; and

(C) Assign priority for the authorized energy efficiency measures to first responder facilities; and

(2) Authorize applicable state agencies to assess the feasibility of developing resilience hubs that can provide emergency services and be open to the general public during times of emergency.

Your Committees received testimony in support of this measure from the Green Party of Hawaiʻi, Kauai Climate ACTION Coalition, Chamber of Sustainable Commerce, Greenpeace Hawaii, Hawaii Chapter of 350.org, Hawaii Solar Energy Association, Climate Protectors Hawaiʻi, and seventeen individuals.

Your Committees received comments on this measure from the Department of Accounting and General Services and Hawaii State Energy Office.

Your Committees find that on-site, distributed energy resources not only reduce greenhouse gas emissions and other pollutants associated with electricity generation and consumption, but also provide affordable and resilient power for Hawaii's energy system users. Your Committees note that the installation of these resources, such as rooftop solar and battery storage, at state facilities would not only result in cost-savings but also help the State meet its clean energy goals. Your Committees further note that on-site, distributed energy resources at first responder facilities are integral to ensuring that essential government services can continue to be provided despite disruptions to the electric grid. This measure will build the State's resilience towards the effects of climate change and enable it to prepare for emergencies where there are disruptions to the electric grid and port activity.

Your Committees have amended this measure by:

(1) Requiring, rather than authorizing, state agencies to:

(A) Prepare and submit a report assessing the feasibility of installing distributed energy resource systems at each state facility;

(B) Implement and install the distributed energy resource systems detailed in the reports no later than five years from the issue date of the reports; and

(C) Assign priority for the authorized energy efficiency measures to first responder facilities;

(2) Clarifying that the reports prepared by state agencies shall be submitted to the Legislature;

(3) Requiring, rather than authorizing, applicable state agencies to assess the feasibility of developing resilience hubs that can provide emergency services and be open to the general public during times of emergency;

(4) Amending references to "energy efficient measures" to "cost-effective energy efficient measures";

(5) Defining "cost-effective energy efficient measures" to mean any energy efficiency measure where the cost of the energy efficiency measure is equal to or less than the estimated savings over a period of twenty years or the life of the installed components, whichever is less;

(6) Deleting language that defines "first responder facilities" and inserting language that defines "first responder";

(7) Amending section 1 to reflect its amended purpose;

(8) Inserting an effective date of July 1, 2112, to encourage further discussion; and

(9) 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 Government Operations and Energy, Economic Development, and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2738, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2738, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ LYNN DECOITE, Chair

________________________________ ANGUS L.K. MCKELVEY, Chair