STAND. COM. REP. NO. 22

Honolulu, Hawaii

RE: S.B. No. 1071

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Energy and Intergovernmental Affairs, to which was referred S.B. No. 1071 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Authorize the Clean Energy and Energy Efficiency Revolving Loan Fund to be used to provide financial assistance to underserved ratepayers, in addition to other eligible borrowers; and

(2) Appropriate funds into and out of the Clean Energy and Energy Efficiency Revolving Loan Fund to provide loans or other financial assistance to eligible borrowers for clean energy investments or other authorized uses.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Hawaii Green Infrastructure Authority; Public Utilities Commission; Hawaiʻi Climate Change Mitigation and Adaptation Commission; Green Party of Hawaiʻi; 350Hawaii; Hawaii Solar Energy Association; Inter-Island Solar Supply; Holu Hou Energy LLC; PV Tech; HI Energy Alternatives Inc.; Shifted Energy, Inc.; Kauai Climate Action Coalition; and twenty-seven individuals.

Your Committee finds that, according to a recent report published by the Department of Business, Economic Development, and Tourism, Hawaii's electricity costs are still the highest in the nation. Your Committee further finds that low- to moderate-income households pay a disproportionately higher percentage of their income towards energy bills and do not have the financial means to pursue the installation of renewable energy technologies. This measure seeks to address the financial barrier preventing many struggling households and other underserved ratepayers, such as nonprofits and small businesses, from reducing their energy burdens and moving towards energy independence. According to testimony received by your Committee, this measure will also allow the Hawaii Green Infrastructure Authority to finance solar systems for state and local governments, allowing the State to access an additional thirty percent in federal funds under the federal Inflation Reduction Act's Direct Pay Program.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Energy and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1071, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1071, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Intergovernmental Affairs,

________________________________

GLENN WAKAI, Chair