STAND. COM. REP. NO. 2633

Honolulu, Hawaii

RE: S.B. No. 3103

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Health and Human Services and Commerce and Consumer Protection, to which was referred S.B. No. 3103 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish the Hawaii Home Energy Assistance Program within the Department of Human Services to assist qualifying households in paying their energy bills; and

(2) Require the Public Benefits Fee Administrator of the Public Utilities Commission to provide certain information and assistance to recipients of the program.

Your Committees received testimony in support of this measure from the Department of Human Services, Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Public Utilities Commission, Hawaiian Electric, Catholic Charities Hawaiʻi, Kauaʻi Island Utility Cooperative, Imua Alliance, and one individual.

Your Committees find that the State's electricity rates are among the highest in the nation, at close to three times the national average, and vary based on availability of renewable resources, power plants, fuel costs, and pricing regulations. Your Committees further find that the federal low-income home energy assistance program (LIHEAP) is based on a formula that is not tailored to the needs of the State's utility customers, so much so that in fiscal year 2021-2022 the State received only 0.14 percent of federal LIHEAP funds. This measure establishes a state-level home energy assistance program to provide immediate relief to struggling families, create a more equitable energy assistance framework, and reduce utility disconnections and their associated societal costs.

Your Committees note the testimony of the Department of Human Services that for Fiscal Year 2026, the Department has received $7,700,000 in LIHEAP appropriations to use for the Hawaii Home Energy Assistance Program.

Your Committees have amended this measure by:

(1) Changing the appropriation from $1,500,000 to an unspecified amount, to facilitate further discussion on the measure; and

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

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3103, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3103, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Commerce and Consumer Protection,

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ JOY A. SAN BUENAVENTURA, Chair