STAND. COM. REP. NO. 2855

Honolulu, Hawaii

RE: S.B. No. 2092

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 2092, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC UTILITIES,"

begs leave to report as follows:

The purpose and intent of this measure is to require the Public Utilities Commission to direct each electric utility company in the State to file proposals for programs to provide certain benefits to residential property owners in fire-prone areas that install electric infrastructure improvements to reduce or eliminate the impacts of wildfires on their residential properties or purchase emergency equipment or supplies for use in deenergization events.

Your Committee received testimony in opposition to this measure from the Kauaʻi Island Utility Cooperative and Life of the Land.

Your Committee received comments on this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Public Utilities Commission, Hawaiian Electric, and Maui Chamber of Commerce.

Your Committee finds that for those who reside in fire-prone areas, contingency planning is essential to preventing and minimizing the damages from wildfires. While many homeowners have already taken steps to prepare themselves in the event of a wildfire by upgrading certain electric infrastructure or installing a home backup solar generator, these types of improvements can be expensive and cost-prohibitive for others, especially lower-income households. Therefore, this measure will engage the State's public utilities to develop innovative fire mitigation benefit programs for certain homeowners to incentivize and assist Hawaii's residents in creating safer and more fire-wise communities.

Your Committee has amended this measure by:

(1) Amending the language to allow, rather than require, the benefits provided to residential property owners under each electric utility company's proposed benefits program to include financial assistance, rebates, subsidized tariffs or rates, and payment programs; and

(2) Inserting an effective date of July 1, 2040, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2092, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2092, S.D. 2.

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

________________________________

JARRETT KEOHOKALOLE, Chair