STAND. COM. REP. NO. 620-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 2407

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary & Hawaiian Affairs, to which was referred H.B. No. 2407, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WILDFIRE RISK MITIGATION,"

beg leave to report as follows:

The purpose of this measure is to mitigate wildfire risk in the State by:

(1) Authorizing the Public Utilities Commission to convene workshops to assist electric utilities in developing and sharing information for the identification, adoption, and implementation of best practices regarding wildfires;

(2) Requiring electric utilities to develop and operate in compliance with wildfire protection plans; and

(3) Authorizing the recovery of related costs and expenses through securitization and wildfire protection fees to avoid a disproportionate impact on specific ratepayers or counties.

Your Committees received testimony in support of this measure from the Office of the Governor; Department of Commerce and Consumer Affairs; Department of Defense; Public Utilities Commission; Hawaii State Energy Office; Ulupono Initiative; Hawaiian Electric; Kauaʻi Island Utility Cooperative; International Brotherhood of Electrical Workers Local Union 1260; and three individuals. Your Committees received comments on this measure from the Department of Budget and Finance; Department of the Attorney General; Maui Chamber of Commerce; and one individual.

Your Committees find that the Hawaii State Energy Office conducted a comprehensive energy system risk assessment for Oahu on the interdependencies within the energy sector supply chain and the interdependencies of the energy sector with Federal Emergency Management Agency Community Lifeline services that are essential to the response and recovery from hazard events. The Office found that wildfire is one of the top two most significant threats to the State's critical energy infrastructure and the emergency response sectors that depend on it. At the same time, power infrastructure in red flag conditions can also be the cause of wildfire.

Your Committees further find that as wildfire risk has increased in a warming climate, many states are starting to adopt best practices for wildfire mitigation or protection plans. These plans are widely available and have been largely based on California's laws and regulations. These laws and regulations may serve as a model for the State and can potentially be adapted to suit the State's unique geography, culture, and overall landscape through workshops, hosted by either the electric utilities or the Public Utilities Commission. This measure moves the State forward to implement best practices in mitigating wildfire risk.

Your Committees have amended this measure by:

(1) Adopting the language proposed by the Department of the Attorney General that refines the securitization process, places additional safeguards for ratepayers, and prioritizes the public interest; and

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

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary & Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2407, H.D. 1, as amended herein, and recommend that it be referred to your Committee on Finance, in the form attached hereto as H.B. No. 2407, H.D. 2.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary & Hawaiian Affairs,

____________________________ DAVID A. TARNAS, Chair

____________________________ MARK M. NAKASHIMA, Chair