STAND. COM. REP. NO. 544-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1997

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1997, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE INTERISLAND TRANSPORT OF HYDROGEN,"

begs leave to report as follows:

The purpose of this measure is to authorize the Public Utilities Commission to establish a discounted rate by tariff for water carriers that engage in the interisland transport of renewable hydrogen.

Your Committee received testimony in support of this measure from the Hawaii Center for Advanced Transportation Technologies and one individual. Your Committee received testimony in opposition to this measure from 350Hawaii.org. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Hawaii State Energy Office; Hawai‘i Gas; and Young Brothers, LLC.

Your Committee finds that hydrogen can be produced from diverse domestic resources with the potential for near-zero greenhouse gas emissions. Your Committee further finds that in order for the State to develop a hydrogen industry, interisland shipping capabilities must be promoted and encouraged to transport hydrogen on an economically viable scale. Because sea transportation of hydrogen is the only viable option for the State, to capitalize and utilize the transportation infrastructure in use by countries such as Japan and Australia, a reduction in the cost for hydrogen transportation would be beneficial. This measure assists the State in moving toward more renewable energy sources and further away from being reliant on fossil fuels.

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. 1997, H.D. 1, and recommends that it be referred to your Committee on Finance.

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

____________________________

MARK M. NAKASHIMA, Chair