STAND. COM. REP. NO. 19

Honolulu, Hawaii

RE: S.B. No. 72

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Energy, Economic Development, and Tourism, to which was referred S.B. No. 72 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:

(1) Require the Public Utilities Commission to render decisions on certain renewable projects, power purchase agreements, and cost recovery applications within one hundred eighty days of the filing of the application;

(2) Exempt certain power purchase agreement amendments from the Public Utilities Commission's review and approval process; and

(3) For ratemaking proceedings, require the Public Utilities Commission to complete its deliberations and issue its decision before six months from the date a public utility has filed its application for approval.

Your Committee received testimony in support of this measure from one individual. Your Committee received testimony in opposition to this measure from the Energy and Climate Action Committee of the Environmental Caucus of the Democratic Party of Hawai‘i, Climate Protectors Hawaii, and five individuals. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Public Utilities Commission.

Your Committee finds that continual progress and the timely approval, commencement of construction, and completion of renewable energy projects is of paramount importance to move the State closer to its one hundred percent renewable energy target as soon as possible. Despite the importance of constructing new renewable energy projects, developers currently must obtain Public Utilities Commission approval of the project and the power purchase agreement before obtaining financing or expending significant moneys to begin construction of their respective projects. Accordingly, delays in receiving approvals from the Public Utilities Commission typically results in delays to obtaining financing and the commencement of construction of the renewable energy project, which may take multiple years to develop. Your Committee believes that a procedural framework to streamline government processing and the review of proposed renewable energy projects is necessary to ensure timely progression of these important projects. This measure will more timely facilitate the approval of renewable energy projects by requiring the Public Utilities Commission to render decisions on certain renewable projects, power purchase agreements, and cost recovery applications within one hundred eighty days of the filing of the application, exempting certain power purchase agreements from the Public Utilities Commission review and approval process in certain circumstances, and for ratemaking proceedings, requiring the Public Utilities Commission to complete its deliberations and issue its decision before six months from the date a public utility has filed its application for approval.

Your Committee has amended this measure by:

(1) Deleting language that would have automatically deemed an application approved if a decision was not made by the Public Utilities Commission within the one hundred eighty-day period; and

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

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. 72, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 72, 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