STAND. COM. REP. NO. 2564

Honolulu, Hawaii

RE: S.B. No. 2770

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Government Operations and Energy, Economic Development, and Tourism, to which was referred S.B. No. 2770 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to authorize the counties to establish, by ordinance, an opt-in program that allows an annual payment in lieu of real property taxes on the land or improvements thereon that are actively used to produce or store renewable energy that is sold to an electric utility.

Your Committees received testimony in support of this measure from the Hawaii State Energy Office; City and County of Honolulu's Department of Budget and Fiscal Services; Ulupono Initiative; Longroad Energy; Hawaiian Electric; Clearway Energy Group.; and Tigershark, LLC.

Your Committees find that Act 97, Session Laws of Hawaii 2015, requires electric utilities in the State to achieve a one hundred percent renewable portfolio standard by 2045. To achieve this ambitious mandate, your Committees find that authorizing the counties the flexibility to accept payments in lieu of real property tax for renewable generation improvements upon real property may incentivize more property owners to utilize clean energy resources while keeping revenue generation for counties predictable. This measure aligns with the State's long-term clean energy goals and ensures a cleaner future for Hawaii's people.

As affirmed by the records of votes of the members of your Committees on Government Operations and Energy, Economic Development, and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2770 and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Government Operations and Energy, Economic Development, and Tourism,

________________________________ LYNN DECOITE, Chair

________________________________ ANGUS L.K. MCKELVEY, Chair