STAND. COM. REP. NO. 2220-26

Honolulu, Hawaii

, 2026

RE: S.C.R. No. 172

S.D. 1

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.C.R. No. 172, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE PUBLIC UTILITIES COMMISSION TO CONDUCT A COMPREHENSIVE ANALYSIS ON THE BEST PATHS TO MAXIMIZE COST REDUCTION AND MINIMIZE FINANCIAL RISK TO HAWAII RESIDENTS WHILE MEETING STATE GOALS,"

begs leave to report as follows:

The purpose of this measure is to request the Public Utilities Commission to:

(1) Contract and engage with experts to develop two separate independent analyses that:

(A) Examine the best potential paths for Hawaii to maximize cost reduction and minimize financial risk to Hawaii residents for energy while meeting established state goals, from now through 2055, accounting for what costs or savings Hawaii residents will bear in a period beyond 2045 based on the paths evaluated; and

(B) At minimum, consider the latest strategies, technologies, innovations, and options being developed and implemented in Hawaii and other states and jurisdictions that are proving most successful and may help Hawaii maximize cost reduction and minimize financial risk to Hawaii residents while meeting established state goals; and

(2) Submit a preliminary and final report to the Legislature.

Your Committee received testimony in support of this measure from Climate Protectors Hawaiʻi and Earthjustice. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Hawaiʻi State Energy Office; and Public Utilities Commission.

Your Committee finds that Hawaii's reliance on imports to meet its energy needs makes the State vulnerable to sudden and severe cost increases as a result of forces outside the State's control. Your Committee further finds that decisions likely to be made in the next few years may lock Hawaii and its residents into energy commitments that will either reduce or escalate the State's reliance on imports and fossil fuels. This measure encourages proper planning for the State's energy future by requesting the Public Utilities Commission to conduct analyses on best paths to reduce costs and minimize financial risk for ratepayers while meeting the State's energy goals.

Your Committee has amended this measure by:

(1) Clarifying that the Public Utilities Commission is requested to conduct a single independent and objective analysis, rather than two analyses;

(2) Clarifying the requested minimum requirements for the design of the analyses;

(3) Requesting the Public Utilities Commission to use open and transparent methods to conduct the analyses;

(4) Requesting the Public Utilities Commission to implement the analyses, findings, and recommendations to inform certain decisions resulting in long-term contractual or financial obligations; and

(5) 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 concurs with the intent and purpose of S.C.R. No. 172, S.D. 1, as amended herein, and recommends that it be referred to your Committee on Consumer Protection & Commerce in the form attached hereto as S.C.R. No. 172, S.D. 1, H.D. 1.

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

____________________________

NICOLE E. LOWEN, Chair