STAND. COM. REP. NO. 2678

Honolulu, Hawaii

RE: S.B. No. 3195

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 3195 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to amend the definition of "renewable energy producer" in section 171-95, Hawaii Revised Statutes, to allow renewable energy producers to sell to entities other than an electric utility company regulated under chapter 269, Hawaii Revised Statutes.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office; Department of Land and Natural Resources; and Tigershark, LLC.

Your Committee received testimony in opposition to this measure from the International Brotherhood of Electrical Workers Local Union 1260.

Your Committee received comments on this measure from the Public Utilities Commission, Hawaiian Electric, and Ulupono Initiative.

Your Committee finds that it is the goal of the State to achieve a one hundred percent renewable energy portfolio standard by 2045, which includes reducing greenhouse gas emissions to at least fifty percent below 2005 levels. Greenhouse gas emissions are not just the result of electricity generation but are also the result of transportation and aviation sectors, which utilize fossil fuels. With the advancement of various technologies, there are now more renewable fuel options available to help facilitate the replacement of fossil fuels and mitigate carbon emissions, including those produced by transportation and aviation that can help the State reach its renewable energy goals. This measure will further the State's renewable energy goals by allowing renewable energy producers to sell to entities other than an electric utility.

Your Committee has 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.

Your Committee notes the Public Utility Commission's concern that, to the extent this measure enables, the Commission underscores the need to carefully identify and examine the policies and procedures required to implement retail wheeling. Your Committee requests these matters be further considered by subsequent committees who may choose to deliberate on this measure.

As affirmed by the record of votes of the members of your Committee on Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3195, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3195, S.D. 1, and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Energy, Economic Development, and Tourism,

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LYNN DECOITE, Chair