SB2283 SD2

SECTION 1. Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to part I, subpart N, to be appropriately designated and to read as follows:

"§304A- Hydrogen strategic plan. (a) The Hawaii natural energy institute shall conduct a study to examine the State's ability to advance hydrogen production from local renewable energy resources. The study shall consider:

(1) The availability of hydrogen resources and feasibility of producing and using hydrogen locally;

(2) Water usage needed for hydrogen production;

(3) Potential end-user markets;

(4) Permitting and regulatory hurdles, including infrastructure planning;

(5) Implementation pathways needed to facilitate production, storage, and delivery mechanisms throughout the State;

(6) Opportunities to combine utility and resource needs for hydrogen production and usage of waste products or renewable energy resources around the State;

(7) The feasibility of constructing hydrogen projects in each county of the State, considering the physical layouts of project sites, geographic limitations, and utility requirements; and

(8) A comparison of the technical feasibility, economic viability, and permitting requirements of local hydrogen production from renewable resources and transportation of end use points, with the importation and distribution of bulk green hydrogen into the State from the continental United States and from other countries.

(b) The Hawaii natural energy institute shall:

(1) Utilize the results of the study required by subsection (a) to develop a long-term hydrogen plan for 2024 through 2050 that is clearly integrated with other long-term energy planning in the State. The Hawaii hydrogen strategic plan shall include:

(A) A discussion of costs, benefits, and impacts;

(B) An evaluation of the feasibility of using hydrogen as both a transportation fuel and a grid-level resource;

(C) A discussion of the technical and economic feasibility and environmental benefits of using hydrogen in key areas to resolve resilience issues; and

(D) An analysis of the economic impact of using hydrogen as an export commodity or other revenue generating opportunity;

(2) Field non-governmental organization stakeholder input and identify implementation and deployment strategies to successfully build hydrogen production, storage, distribution, and fueling infrastructure across the State;

(3) Review existing permitting application and review processes and identify any amendments that may be necessary to develop standards for constructing facilities that support hydrogen production, storage, transportation, and dispensation;

(4) Propose policies to encourage the production and usage of hydrogen-utilizing economic incentives, tax credits, tariffs, or other methods, to grow the supply of available hydrogen consistent with the strategic plan developed under subsection (b)(1);

(5) Provide recommendations to facilitate the implementation of the hydrogen plan, including any proposed legislation and any necessary regulatory or economic investments; and

(6) Specify strategies to reduce emissions, address disproportionate energy and transportation costs in neighbor island communities, and improve the State's resiliency.

(c) The Hawaii natural energy institute shall review and update the plan required by subsection (b) every four years, beginning in 2028.

(d) In conducting the study and developing the Hawaii hydrogen strategic plan required by subsections (a) and (b), respectively, and any updates thereto, the Hawaii natural energy institute shall consult as appropriate with the department of business, economic development, and tourism; state energy office; public utilities commission; or any other applicable state or county agency, which shall cooperate and provide any necessary resources or information requested by the Hawaii natural energy institute. The Hawaii natural energy institute shall further consult with electric and gas utilities and industry stakeholders, who are encouraged to cooperate and provide information or input.

(e) The Hawaii natural energy institute shall submit to the legislature:

(1) An interim progress report of its findings and recommendations, including any proposed legislation, no later than twenty days prior to the convening of the regular session of 2023;

(2) A final report of its findings and recommendations, including any proposed legislation, no later than twenty days prior to the convening of the regular session of 2024; and

(3) A report of its findings and recommendations, including any proposed legislation, no later than twenty days prior to the convening of each regular session for every year in which the Hawaii hydrogen strategic plan is reviewed, amended, or updated."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	2283
THIRTY-FIRST LEGISLATURE, 2022		S.D. 2
STATE OF HAWAII