STAND. COM. REP. NO. 388-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2390

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. 2390 entitled:

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

begs leave to report as follows:

The purpose of this measure is to limit the requirement that the Public Utilities Commission explicitly consider the effect of the State's reliance on fossil fuels on greenhouse gas emissions to the effects on only generation-based greenhouse gas emissions and give the Commission discretion to require an analysis for projects with zero generation-based greenhouse gas emissions.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Public Utilities Commission; and Hawaii Clean Power Alliance. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Hawaii State Energy Office.

Your Committee finds that under existing law, the Public Utilities Commission is required to consider the effect of the State's reliance on fossil fuels on renewable projects that do not result in generation-based greenhouse gas emissions, including routine system replacements for overhauls, overhead or underground line determinations, or determinations that do not pertain to capital improvements or operations. This measure would provide the Commission with some discretion in whether or not to require an analysis for these types of projects, as these analyses can be costly and time-consuming.

However, your Committee notes that this amendment may preclude the use of a different method of assessing the impacts of products and activities that could better capture the impacts of energy projects throughout their entire lifecycle, including extraction, distribution, use, and disposal, and finds that this type of lifecycle assessment would better inform the Commission as it exercises its authority and duties.

Your Committee has amended this measure by:

(1) Requiring the Public Utilities Commission to consider the effect of the State's reliance on fossil fuels on lifecycle greenhouse gas emissions instead of generation-based greenhouse gas emissions;

(2) Adding a definition for "lifecycle greenhouse gas emissions assessment";

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) 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 H.B. No. 2390, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2390, 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