STAND. COM. REP. NO. 145-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1996

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 Energy & Environmental Protection, to which was referred H.B. No. 1996 entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY,"

begs leave to report as follows:

The purpose of this measure is to authorize independent generators of renewable energy to wheel the renewable energy transmitted and used to produce hydrogen, provided that any third-party electric utility whose transmission lines, distribution lines, and other facilities are utilized for retail wheeling is fairly compensated at a rate in accordance with a renewable energy tariff adopted by the Public Utilities Commission.

Your Committee received testimony in support of this measure from the Hawaii Center for Advanced Transportation Technologies. Your Committee received testimony in opposition to this measure from Hawaiian Electric; Kauaʻi Island Utility Cooperative; and the Environmental Caucus of the Democratic Party of Hawaiʻi. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Public Utilities Commission; Ulupono Initiative; Life of the Land; and one individual.

Your Committee finds that green hydrogen can be produced from renewable sources like solar, geothermal, and wind creating the potential for near-zero greenhouse gas emissions. Your Committee further finds that wheeling can facilitate the production of clean hydrogen by allowing hydrogen electrolyzers to access inexpensive electricity; however, the practice of retail wheeling is not authorized. Your Committee believes that this measure addresses this need by authorizing independent generators of renewable energy to be fairly compensated for transmitting their energy using the electric utility's infrastructure, to ultimately produce hydrogen.

Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

Your Committee notes that the term "independent renewable energy generator" needs to be defined.

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 H.B. No. 1996, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1996, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

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

____________________________

NICOLE E. LOWEN, Chair