STAND. COM. REP. NO. 2838

Honolulu, Hawaii

RE: S.B. No. 3254

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3254, S.D. 1, 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 strengthen the resilience of medically underserved communities across the State.

Specifically, this measure appropriates moneys as grants pursuant to Chapter 42F, Hawaii Revised Statutes:

(1) For the development and deployment of solar-plus-storage microgrids at nonprofit community health centers located in medically underserved communities across the State; and

(2) To the Hawaii Primary Care Association to provide programmatic, project management, contract management, reporting and fiscal stewardship, and planning for the projects described in paragraph (1).

Your Committee received written comments in support of this measure from Waimanalo Health Center, 350Hawaii, Hawaii Primary Care Association, Hana Health, and two individuals.

Your Committee received written comments on this measure from the Department of the Attorney General and Collective Energy.

Your Committee finds that rising energy costs and increasing risks of power disruptions threaten the ability of nonprofit community health centers to sustain operations and deliver critical services, particularly during disasters and emergencies. Your Committee further finds that deploying solar power microgrids with energy storage in medically underserved areas would help to ensure continuity of health care services during power outages, reduce long-term operating costs, and strengthen community health and resilience.

Your Committee has amended this measure by:

(1) Clarifying that the moneys appropriated as a grant pursuant to Chapter 42F, Hawaii Revised Statutes, to the Hawaii Primary Care Association shall be used to provide certain support and services for the development and deployment of solar-plus-storage microgrids at nonprofit community health centers located in medically underserved communities across the State; and

(2) Changing the amounts appropriated throughout the measure to unspecified amounts to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3254, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3254, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair