STAND. COM. REP. NO. 1119

Honolulu, Hawaii

RE: H.B. No. 1020

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Energy and Intergovernmental Affairs and Agriculture and Environment, to which was referred H.B. No. 1020, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO A PROGRAM TO CHARACTERIZE CARBON SEQUESTRATION POTENTIAL AND UNDERGROUND WATER RESOURCES STATEWIDE,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Hawaii State Energy Office to implement a Carbon Sequestration and Underground Water Resource Characterization Program, which includes conducting an environmental assessment;

(2) Require the Hawaii State Energy Office to submit a progress report to the Legislature before the Regular Session of 2028; and

(3) Appropriate funds for the Carbon Sequestration and Underground Water Resource Characterization Program, including the establishment of positions to support the Program.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii State Energy Office; Ulupono Initiative; Young Democrats of Hawaiʻi; Sustainable Energy Hawaiʻi; and six individuals.

Your Committees received testimony in opposition to this measure from the Innovations Development Group and three individuals.

Your Committees received comments on this measure from Restore the Commons.

Your Committees find that resource characterization through slim-hole test wells is a high priority of Hawaii's updated energy strategy as the wells identify geothermal and carbon sequestration resources necessary to meet the State's energy decarbonization goals. Your Committees recognize that geothermal exploration and identification require significant investment of upfront capital. The Carbon Sequestration and Underground Water Resource Characterization Program and related statewide environmental assessment proposed in this administrative measure will address issues that have limited the State from fully developing its geothermal potential.

Your Committees note that the Hawaii State Energy Office is administratively attached to the Department of Business, Economic Development, and Tourism, which has been the lead agency for the exploration and development of geothermal energy resources in the State. Your Committees believe that requiring the Department of Business, Economic Development, and Tourism, rather than the Hawaii State Energy Office, to fulfill the mandates of this measure would increase governmental support and efficiency and consolidate statewide efforts to reach the State's ambitious energy decarbonization goals. Amendments to this measure therefore are necessary to address this issue.

Accordingly, your Committees have amended this measure by:

(1) Requiring the Department of Business, Economic Development, and Tourism, rather than the Hawaii State Energy Office, to:

(A) Implement the Carbon Sequestration and Underground Water Resource Characterization Program; and

(B) Submit a progress report to the Legislature before the Regular Session of 2028;

(2) Updating section 1 to reflect its amended purpose; and

(3) 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 and Intergovernmental Affairs and Agriculture and Environment that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1020, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1020, H.D. 1, 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 and Intergovernmental Affairs and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ GLENN WAKAI, Chair