STAND. COM. REP. NO.  781

 

Honolulu, Hawaii

                , 2025

 

RE:   H.B. No. 338

      H.D. 1

 

 

 

 

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

 

Madame:

 

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 338, H.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose of this measure is to specify that adjustments required to compensate for certain unavoidable increases in financing costs, if proven by a producer of nonfossil fuel generated electricity by clear and convincing evidence, are mechanisms for reasonable and appropriate incremental adjustments that the Public Utilities Commission may include in the rate payable to the producer.

 

     Your Committee received testimony in support of this measure from the Hawaiʻi State Energy Office; Public Utilities Commission; Hawaii Clean Power Alliance; Longroad Energy; AES Hawaiʻi; and Ameresco.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Hawaiian Electric.

 

     Your Committee finds that Hawaii's energy project developers are facing a dynamic situation regarding interest rates, exacerbated by the 2023 Maui wildfires.  The relatively long project development, approval, and construction timelines of energy projects also contribute to difficulty in maintaining static terms for financing.  This measure will support the ability of independent power producers to successfully finance their projects and enter into agreements with Hawaii's electric utilities, which will ensure the financial viability of renewable energy projects and help the State achieve its renewable energy goals.

 

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 338, H.D. 1, and recommends that it be referred to your Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

 

 

 

____________________________

SCOT Z. MATAYOSHI, Chair