STAND. COM. REP. NO. 996-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 1242

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1242, H.D. 1, 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 a renewable portfolio standard for gas utility companies that requires one hundred percent of a gas utility company's total sales to be derived from renewable energy by December 31, 2045; and

(2) Require the Public Utilities Commission to contract with the Hawaii Natural Energy Institute of the University of Hawaii to conduct an independent renewable gas study regarding the availability, feasibility, and costs of the use of renewable gas in Hawaii by gas utility companies.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office; Hawaii Natural Energy Institute of the University of Hawaii at Manoa; Healthy Climate Communities; Blue Planet Foundation; Hawaiian Electric Company, Inc.; and three individuals. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Public Utilities Commission; Hawaii Bioeconomy Trade Organization; Chamber of Commerce Hawaii; Ulupono Initiative; Climate Protectors Coalition; 350Hawaii.org; Par Hawaii; We Are One, Inc.; Hawaii Gas; Pele Lani Farm LLC; and nineteen individuals.

Your Committee finds that the creation of a gas renewable portfolio standard is consistent with the State's goals to reduce dependence on fossil fuels and transition to energy sources that produce less greenhouse gases. To align the State's gas utilities with the transition toward renewable energy, goal setting and information regarding the availability, feasibility, and costs of the use of renewable gas in the State by gas utility companies are important. However, concerns were raised in testimony before your Committee as to whether the goal of one hundred percent renewable portfolio standard for gas utility companies would be achievable through economically feasible means. Thus, your Committee believes more information is necessary to avoid setting a standard that would be either unachievable or harmful to Hawaii consumers.

Your Committee has amended this measure by:

(1) Deleting the provisions that would have established a renewable portfolio standard for gas utility companies; and

(2) 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 Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1242, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1242, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROY M. TAKUMI, Chair