STAND. COM. REP. NO. 224

Honolulu, Hawaii

, 2025

RE: H.B. No. 790

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. 790 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish an installation goal for customer-sited distributed energy resources in the State;

(2) Ensure that fair compensation is provided to distributed energy resources exports as part of grid service programs; and

(3) Authorize retail wheeling of renewable energy and require the Public Utilities Commission to establish policies and procedures to implement retail wheeling and microgrid service tariffs.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office; Hawaii Green Infrastructure Authority; Sunrun; Photonworks Engineering; Credence Projects LLC; Energy Advisors, LLC; Enphase Energy, Inc.; Hawaii Solar Energy Association; Holu Hou Energy; and seven individuals. Your Committee received testimony in opposition to this measure from Hawaiian Electric; International Brotherhood of Electrical Workers Local Union 1260; and Kauaʻi Island Utility Cooperative. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Public Utilities Commission; and Life of the Land.

Your Committee finds that customer-sited distributed energy resources, such as rooftop solar and energy storage systems, play a critical role in meeting the State's renewable energy goals. This measure seeks to increase renewable energy usage by establishing an installation goal for customer-sited distributed energy resources and ensuring fair compensation is provided to distributed energy resource exports.

Your Committee has amended this measure by:

(1) Changing the deadline for the distributed energy resources installation goal to December 31, 2030;

(2) Clarifying that the Public Utilities Commission may, but is not required to, use tariffs for grid services programs and community-based renewable energy;

(3) Removing an exemption from the definition of "public utility" relating to microgrid construction, maintenance, or operation and the authorization for the Public Utilities Commission to use tariffs for microgrids and retail wheeling;

(4) Changing the rate at which energy exported to the electric grid as part of a grid service program will be credited to a rate sufficient to encourage the deployment of distributed energy resources in order to meet the goal of December 31, 2030;

(5) Removing the authorizations for microgrids and retail wheeling;

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

(7) 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. 790, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 790, 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