STAND. COM. REP. NO. 940

Honolulu, Hawaii

RE: S.B. No. 932

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 932, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Clean Energy and Energy Efficiency Revolving Loan Fund;

(2) Repeal the Building Energy Efficiency Revolving Loan Fund;

(3) Authorize moneys in the Green Infrastructure Special Fund to be used to finance the option to purchase solar energy systems and other clean energy equipment, including the purchase or lease of electric vehicles; and

(4) Appropriate funds out of the Clean Energy and Energy Efficiency Revolving Loan Fund. 

Your Committees received testimony in support of this measure from the Hawaii State Energy Office, Hawaii Green Infrastructure Authority, Environmental Caucus of the Democratic Party of Hawai‘i, Blue Planet Foundation, Climate Protectors Hawaii, Land Use Research Foundation of Hawaii and one individual. Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs; Department of Budget and Finance; City and County of Honolulu Office of Climate Change, Sustainability, and Resiliency; and Public Utilities Commission.

Your Committees find that the State has set important goals to reduce energy costs, drive higher-paying green job creation and retention, and save the billions of dollars currently spent on importing petroleum. Given the fiscal constraints resulting from the coronavirus disease 2019 pandemic, the Hawaii Green Infrastructure Authority (HGIA) will need to pursue outside funds besides bond financing to support a broad range of clean energy technologies. This measure establishes a new revolving loan fund to provide flexible financing and will enable HGIA to submit applications for low-cost federal loans to facilitate green infrastructure investments and help kick-start Hawaii's economy. This measure will further enable both the financing of electric vehicle charging stations and the electrification of state vehicles at no extra cost to the State by utilizing a new cash flow stream generated from the realized savings of exercising purchase options in existing power purchase agreements.

Your Committees have amended this measure by:

(1) Deleting the amount of $50,000,000 and inserting a blank dollar amount to be appropriated out of the Clean Energy and Energy Efficiency Revolving Loan Fund;

(2) Inserting an effective date of May 6, 2137, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 932, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 932, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair