STAND. COM. REP. NO. 2077

Honolulu, Hawaii

RE: S.B. No. 2283

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 2283 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Hawaii Natural Energy Institute to:

(A) Conduct a study to examine the State's ability to advance hydrogen production from local renewable energy resources; and

(B) Develop the Hawaii Hydrogen Strategic Plan utilizing the results of its study, which shall be reviewed and updated every four years;

(2) Require a report to the Legislature; and

(3) Appropriate an unspecified amount of funds for the completion of the study and the development of the Hawaii Hydrogen Strategic Plan.

Your Committee received testimony in support of this measure from the Hawaii Center for Advanced Transportation Technologies; Hawaiian Electric Company, Inc.; Hawaii Gas; Hawaii Clean Power Alliance; Servco Pacific Inc.; Alliance for Automotive Innovators; Ulupono Initiative; Environmental Caucus of the Democratic Party of Hawai‘i; and one individual. Your Committee received testimony in opposition of this measure from six individuals. Your Committee received comments on this measure from the Department of Budget and Finance, Hawai‘i Natural Energy Institute, Hawaii State Energy Office, and three individuals.

Your Committee finds that hydrogen has the potential to be an integral component of Hawaii's energy system, whether as a carbon-free energy storage mechanism, potential means of providing grid support, or provider of pollution-free fuel for both electricity and transportation. Your Committee further finds that the long-term hydrogen plan developed by this measure should align with the State's existing energy planning goals.

According to testimony from the Hawai‘i Natural Energy Institute (HNEI); although it has sufficient funds from its portion of the State Environmental Response, Energy, and Food Security Tax revenues to conduct the study, it needs additional time to complete a report and plan of this magnitude.

Accordingly, your Committee has amended this measure by:

(1) Delaying the submission deadline for the Hawaii Hydrogen Strategic Plan for one year;

(2) Inserting language that requires:

(A) HNEI to submit an interim progress report to the Legislature no later than twenty days prior to the convening of the regular session of 2023;

(B) HNEI to also consult with gas utilities in conducting the study and developing the Hawaii Hydrogen Strategic Plan; and

(C) The Hawaii Hydrogen Strategic Plan to align with the existing long-term energy plans of the State;

(3) Relocating certain actionable considerations of the study to be required in the Hawaii Hydrogen Strategic Plan;

(4) Removing the appropriation for the completion of the study and the development of the Hawaii Hydrogen Strategic Plan; and

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

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2283, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2283, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

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GLENN WAKAI, Chair