STAND. COM. REP. NO. 390-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2242

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 H.B. No. 2242 entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Require the Public Utilities Commission to establish a streamlined grid-ready homes interconnection process;

(2) Authorize the Hawaii Electricity Reliability Administrator to recover costs under the Hawaii Electricity Reliability Surcharge for the implementation and operation of the grid-ready home interconnection process; and

(3) Expand reporting requirements of the Hawaii Electricity Reliability Administrator to include reporting on the grid-ready home interconnection process.

Your Committee received testimony in support of this measure from the Hawaii Solar Energy Association; Alternate Energy Inc.; Photonworks Engineering; Green Power Projects LLC; ELCCO Inc.; HI‑POWER Solar LLC; Malama Solar; EP Cube; Energy Advisors; Climate Protectors Hawaiʻi; Sunspear Energy; and two individuals. Your Committee received testimony in opposition to this measure from Hawaiian Electric. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Public Utilities Commission; and Kauaʻi Island Utility Cooperative.

Your Committee finds that delays, costs, and inconsistencies in interconnection and service‑upgrade processes have hindered customer adoption of distributed energy resources and created reliability challenges as electrification increases. Your Committee further finds that a standardized, transparent grid‑ready home interconnection process will reduce customer burdens, support smarter utility investments, and enhance grid reliability as Hawaii transitions toward one hundred percent renewable energy. This measure establishes procedures, timelines, cost‑sharing structures, and reporting requirements to ensure efficient, cost‑effective integration of customer‑sited and grid-tied renewable energy generation and storage systems.

Your Committee has amended this measure by:

(1) Clarifying that the purpose of the grid-ready home interconnection process is to equip existing and new homes with certain renewable energy generation and storage systems;

(2) Specifying what interconnection costs are attributable to customers and clarifying that the tiered cost sharing mechanism does not modify, waive, or shift cost causation principles and that customers remain responsible for certain interconnection costs;

(3) Clarifying that service upgrades required by distributed energy resources operation with managed power export and import shall be completed within three months of notification to the customer by the public utility;

(4) Requiring the grid-ready home interconnection process to include requirements obligating regulated public utilities to update interconnection rules to allow for vehicle-to-grid and vehicle-to-home capable electric vehicles and electric vehicle charging equipment;

(5) Removing the authorization for the Hawaii Electricity Reliability Administrator to recover costs under the Hawaii Electricity Reliability Surcharge for the grid-ready home interconnection process;

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

(7) Making technical, nonsubstantive amendments for 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 H.B. No. 2242, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2242, 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