STAND. COM. REP. NO. 1438-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3254

S.D. 2

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 3254, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE BUDGET,"

begs leave to report as follows:

The purpose of this measure is to appropriate funds to be expended by the Department of Health as a grant for the Hawaii Primary Care Association to provide programmatic services, project management, contract management, reporting, and fiscal stewardship responsibilities and to develop future scalable plans for the development and deployment of solar-plus-storage microgrids at nonprofit community health centers in medically underserved communities.

Your Committee received testimony in support of this measure from the Hawaiʻi Climate Change Mitigation and Adaptation Commission; one member of the Maui County Council; Climate Protectors Hawaiʻi; 350Hawaii.org; Clean the Pacific; Kauai Climate Action Coalition; Green Party of Hawaiʻi; AlohaCare; Molokai Community Health Center; Hawaiʻi Primary Care Association; Waimānalo Health Center; Wahiawā Center for Community Health; Hawaiʻi Island Community Health Center; Greenpeace Hawaii; and numerous individuals. Your Committee received comments on this measure from Collective Energy and one individual.

Your Committee finds that community health centers are an essential component of Hawaii's health care system, providing primary and preventive care regardless of the person's ability to pay and serving medically underserved, low‑income, rural, and geographically isolated communities. Your Committee further finds that rising energy costs and the risk of power disruptions threaten the ability of these facilities to sustain operations, particularly during disasters and emergencies. Your Committee recognizes that solar power microgrids with energy storage can provide a reliable and cost-effective solution to ensure continuity of service during grid outages. This measure provides funds to support the implementation of solar-plus-storage microgrids at community health centers.

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. 3254, S.D. 2, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair