STAND. COM. REP. NO. 91

Honolulu, Hawaii

, 2025

RE: H.B. No. 342

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 Energy & Environmental Protection, to which was referred H.B. No. 342 entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE GAS TARIFF,"

begs leave to report as follows:

The purpose of this measure is to require:

(1) Gas utility companies to file a proposed initial renewable gas tariff or tariffs with the Public Utilities Commission by August 31, 2025; and

(2) The Public Utilities Commission to approve or modify the proposed initial renewable gas tariff or tariffs no later than six months after the filing of the tariff, provided that the proposed tariff does not increase rates for other customers, and the tariff is found to be just, reasonable, and in the public interest.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office; Hawaiʻi Gas; BANA PACIFIC INC; Hawaiʻi Restaurant Association; Coalition for Renewable Natural Gas; and two individuals. Your Committee received testimony in opposition to this measure from Life of the Land. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Public Utilities Commission.

Your Committee finds that it is imperative that renewable gas tariffs be established by gas utilities in the State in order to reduce reliance on imported petroleum and promote renewable energy production. This measure addresses this need by requiring gas utility companies to file proposed initial gas tariffs with the Public Utilities Commission by August 31, 2025, which the Public Utilities Commission shall approve or modify within six months, provided the tariffs meet certain standards.

Your Committee has amended this measure by:

(1) Moving the contents of the measure from Hawaii Revised Statutes to session laws;

(2) Specifying that the Public Utilities Commission shall determine the completeness of an application for a proposed renewable gas tariff within thirty days of the filing of the application;

(3) Amending the definition of "net therm usage" to mean the amount of gas a customer uses during a monthly billing cycle as measured in therm units;

(4) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 342, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 342, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair