STAND. COM. REP. NO. 2164

Honolulu, Hawaii

RE: S.B. No. 2539

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Government Operations, to which was referred S.B. No. 2539 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require government entities in the State that issue building permits to implement SolarAPP+ or a functionally equivalent online automated permitting platform that verifies code compliance and issues permits to licensed contractors for solar distributed energy resource systems in real-time by January 1, 2025; and

(2) Require government entities in the State that issue building permits in areas served by an investor-owned electric utility to adopt a self-certification process for solar distributed energy resource systems that are not SolarAPP+ compatible.

Your Committees received testimony in support of this measure from the Hawaii State Energy Office, Hawaii Green Infrastructure Authority, Ulupono Initiative, Hawaii Solar Energy Association, Hawaii Food Industry Association, Sunnova Energy International, Greenpeace Hawaii, Tesla, 350Hawaii, Sierra Club of Hawaiʻi, Discover Energy Systems, Sunrun, Meyer Burgers America, SunPower Corporation, Blue Planet Foundation, Kauai Climate Action Coalition, Photonworks Engineering LLP, Sol-Ark, Inception Financial LLC, Canadian Solar, Sun King Inc., Pacific Resource Partnership, The Solaray Corporation dba Inter-Island Solar Supply, PV Tech, and twenty individuals.

Your Committees received comments on this measure from the Board of Professional Engineers, Architects, Surveyors, and Landscape Architects; and Associated Builders and Contractors, Hawaii Chapter.

Your Committees find that to progress towards the State's goal of a one hundred percent renewable portfolio standard by 2045, and to also encourage the timely build-out of a diverse, resilient, and reliable portfolio of low-cost renewable energy generation and storage assets, the State must lower administrative barriers that constrain deployment of residential and commercial-scale distributed energy resources. This measure addresses delays in the permitting process for solar distributed energy resource systems, saving ratepayers and contractors time and money while enabling faster reduction of carbon emissions.

Your Committees have heard the concerns raised in testimony regarding this measure's provisions that allow tying the issuance of building permits to labor standards, and whether these additional burdens help the State meet its renewable energy goals. Your Committees find that this issue merits further consideration and requests that subsequent Committees to which this measure is referred further examine this issue as this measure advances through the legislative process.

Your Committees have amended this measure by:

(1) Inserting an effective date of January 1, 2060, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments 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 Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2539, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2539, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Government Operations,

________________________________ ANGUS L.K. MCKELVEY, Chair

________________________________ LYNN DECOITE, Chair