STAND. COM. REP. NO. 1141-24

Honolulu, Hawaii

, 2024

RE: S.B. No. 2770

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 S.B. No. 2770 entitled:

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

begs leave to report as follows:

The purpose of this measure is to authorize the counties to establish an opt-in program that allows an annual payment in lieu of real property taxes for land or improvements that produce or store renewable energy sold to an electric utility.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office; Department of Budget and Fiscal Services, City and County of Honolulu; Ulupono Initiative; Clearway Energy Group; Longroad Energy; Hawaiian Electric; and one individual. Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that electric utilities in the State are required to achieve a one hundred percent renewable portfolio standard by December 31, 2045. Your Committee further finds that counties could assist in the transition to renewable energy through in-lieu-of-property-tax programs; however, counties lack the statutory authority to do so. Your Committee believes that this measure addresses this need and greatly reduces development risks and costs for renewable energy projects by allowing counties to enact ordinances establishing these programs in lieu of property tax assessments that may default to considerations of highest and best use.

Your Committee has amended this measure by:

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

(2) 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 S.B. No. 2770, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2770, 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