STAND. COM. REP. NO. 2425

Honolulu, Hawaii

RE: S.B. No. 3254

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 3254 entitled:

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

begs leave to report as follows:

The purpose and intent 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 support solar-plus-storage microgrid implementation at 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, AlohaCare, Hana Health, Molokai Community Health Center, Waimānalo Health Center, 350Hawaii.org, Hawaiʻi Primary Care Association, Wahiawā Center for Community Health, and Collective Energy.

Your Committee finds that community health centers are an essential component of the State'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 solar-powered microgrids with energy storage provide a reliable and cost-effective solution to ensure continuity of health care services during grid outages, reduce long-term operating costs, and strengthen community resilience. This measure provides a strategic investment to support health care access, workforce development, fiscal responsibility, and community resilience for the State.

Your Committee has amended this measure by:

(1) Inserting language to appropriate funds to be expended by the Department of Health as a grant for the Hawaii Primary Care Association to provide programmatic, project management, contract management, reporting and fiscal stewardship responsibilities, and developing future scalable plans for the project specified by this measure;

(2) Inserting an effective date of January 30, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3254, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3254, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

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JOY A. SAN BUENAVENTURA, Chair