STAND. COM. REP. NO. 1295-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 2283

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 2283, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII HYDROGEN STRATEGIC PLAN,"

begs leave to report as follows:

The purpose of this measure is to require the Hawaii Natural Energy Institute to:

(1) Conduct a study to examine the State's ability to advance hydrogen production from local renewable energy resources and to use the results of its study to develop the Hawaii Hydrogen Strategic Plan; and

(2) Review and update the Hawaii Hydrogen Strategic Plan every four years beginning in 2028 and submit interim, final, and annual reports to the Legislature.

Your Committee received testimony in support of this measure from the Hawai‘i Natural Energy Institute, Hawaiian Electric Company, Servco Pacific Inc., Ulupono Initiative, Hawai‘i Gas, Alliance for Automotive Innovation, and two individuals. Your Committee received testimony in opposition to this measure from Climate Protectors Hawai‘i. Your Committee received comments on this measure from the Hawaii State Energy Office.

Your Committee finds that as the State strives to reach its renewable energy goals, it is critical to fully evaluate the potential for hydrogen to contribute to Hawaii's energy needs. Global research and development show significant progress in understanding and establishing hydrogen as a clean and reliable fuel source. This measure supports further study into the impact that hydrogen could have to reduce the State's dependence on imported fossil fuels.

Your Committee has amended this measure by:

(1) Clarifying the provisions of the study to be conducted by the Hawaii Natural Energy Institute to examine the potential for the production and use of renewable hydrogen in the State and the potential role of renewable hydrogen in achieving a local, affordable, reliable, and decarbonized energy system and economy;

(2) Specifying that the results of the study shall be used to inform energy planning, which may include a Hawaii Hydrogen Strategic Plan; decarbonization efforts; and other ongoing work being undertaken by the Hawaii State Energy Office;

(3) Inserting a definition for "renewable hydrogen";

(4) Deleting language that would have required the Hawaii Natural Energy Institute to:

(A) Review and update a hydrogen strategic plan every four years; and

(B) Submit an interim and annual report to the Legislature; and

(5) 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 Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2283, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2283, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair