STAND. COM. REP. NO. 835

Honolulu, Hawaii

RE: S.B. No. 1220

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1220, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to facilitate the establishment of a renewable gas tariff.

More specifically, the measure:

(1) Requires gas utility companies to promptly file renewable gas tariffs with the Public Utilities Commission for review and approval;

(2) Requires the Public Utilities Commission to complete the Commission's review within six months of the filing of a proposed renewable gas tariff; and

(3) Requires that a renewable gas tariff be just, reasonable, and in the public interest and not increase rates for other customers.

Your Committee received written comments in support of this measure from the Hawaii State Energy Office, Hawaii Gas, Ulupono Initiative, Land Use Research Foundation of Hawaii, Simonpietri Enterprises LLC, Hawaii Resource Strategy Group, Climate Future Forum, and Kapolei Chamber of Commerce.

Your Committee received written comments on this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs and the Public Utilities Commission.

Your Committee finds that the renewable gas tariff supported by this measure will help increase the amount of renewable energy that can be incorporated into the State's utility gas supplies, while also supporting investment in locally-sourced feedstocks, encouraging the development of local markets, and protecting other customers from rate increases.

Your Committee has amended this measure by:

(1) Making amendments recommended by the Public Utilities Commission, specifically:

(A) Extending from six months to nine months the deadline by which the Commission must complete its review;

(B) Requiring the Commission to determine the completeness of an application for a proposed renewable gas tariff no later than thirty days after the application is filed; and

(C) Clarifying the definition of "net therm usage"; and

(2) Making technical, nonsubstantive edits for purposes of clarity, consistency, and style.

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

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair