STAND. COM. REP. NO. 218

Honolulu, Hawaii

RE: S.B. No. 1520

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Higher Education, to which was referred S.B. No. 1520 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII PACIFIC HYDROGEN HUB,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Department of Business, Economic Development, and Tourism to work with the University of Hawaii on workforce development activities that support the development of the Hawaii Pacific Hydrogen Hub and other related aspects of the State's hydrogen energy industry; and

(2) Appropriate funds for the Hawaii Pacific Hydrogen Hub.

Your Committees received testimony in support of this measure from the Hawaii State Energy Office, University of Hawai‘i System, Sustainable Energy Hawai‘i, and four individuals.

Your Committees find that the United States Department of Energy Regional Hydrogen Hubs Program is providing $7,000,000,000 to establish up to ten regional clean energy hubs across America. As part of a larger $8,000,000,000 hydrogen hub program funded through the Infrastructure Investment and Jobs Act, the Regional Hydrogen Hubs Program will be a central driver in helping communities across the country benefit from clean energy investments, good-paying jobs, and improved energy security. Your Committees further find that the United States Department of Energy selected Hawaii as one of thirty—three public—private consortiums to compete for the federal funding. Proposed as the Hawaii Pacific Hydrogen Hub, the Department of Business, Economic Development, and Tourism is leading the consortium to leverage $500,000,000 in private investment for $500,000,000 in matching funds from the United States Department of Energy that will drive production, processing, delivery, storage, and end—use of clean hydrogen, including innovative uses in the industrial sector. Your Committees believe that if fully built and implemented, the Hawaii Pacific Hydrogen Hub will become a major industry and job center for the State.

This measure will allow the State to leverage critical federal funds and transition to sustainable, renewable energy by requiring the Department of Business, Economic Development, and Tourism to work with the University of Hawaii on workforce development activities that support the development of the Hawaii Pacific Hydrogen Hub and other related aspects of the State's hydrogen energy industry, and appropriates funds for the Hawaii Pacific Hydrogen Hub.

Your Committees have amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1520, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1520, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Higher Education,

________________________________ DONNA MERCADO KIM, Chair

________________________________ LYNN DECOITE, Chair