CONFERENCE COMMITTEE REP. NO. 196

Honolulu, Hawaii

, 2025

RE: S.B. No. 1220

S.D. 2

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1220, S.D. 2, H.D. 1, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Require gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by August 31, 2025; and

(2) Require the Public Utilities Commission to establish a renewable gas tariff within nine months of receiving a completed application for a proposed renewable gas tariff.

Your Committee on Conference finds that the existing regulatory process in the State requires gas utility companies to file an application for proposed renewable gas tariffs with the Public Utilities Commission to review through the process of a general rate case. General rate cases typically take two years to complete and can cost between two and three million dollars. Without an accelerated regulatory process in place, gas utility companies will try to keep rates stable for as long as possible by delaying rate cases.

Your Committee on Conference further finds that this measure will facilitate the timely consideration of tariff approvals by requiring gas utility companies to file an application for a proposed initial renewable gas tariff by August 31, 2025, and requiring the Public Utilities Commission to make a decision on their applications within nine months if certain requirements are met. Streamlining the review process for renewable gas tariffs will enable customers to choose a cleaner energy option, support consumer demand for sustainable alternatives, and ensure just and reasonable rates. Your Committee on Conference therefore finds that this measure will help to ensure that renewable gas tariffs do not lead to increased costs for non-participating ratepayers and maintain equity throughout the process.

Your Committee on Conference has amended this measure by making it effective upon its approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1220, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1220, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ NICOLE E. LOWEN Co-Chair	____________________________ JARRETT KEOHOKALOLE Chair
____________________________ SCOT Z. MATAYOSHI Co-Chair	____________________________ GLENN WAKAI Co-Chair
____________________________ JENNA TAKENOUCHI Co-Chair	____________________________ DRU KANUHA Co-Chair