STAND. COM. REP. NO. 3527

Honolulu, Hawaii

RE: S.R. No. 163

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 Commerce and Consumer Protection, to which was referred S.R. No. 163 entitled:

"SENATE 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 and intent of this measure is to request that the Public Utilities Commission conduct an objective, independent analysis and evaluation on the best paths to maximize cost reduction and minimize financial risk to Hawaii residents for energy while meeting the State's established goals.

Your Committee received testimony in support of this measure from Earthjustice.

Your Committee received testimony in opposition to this measure from one individual.

Your Committee received comments on this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Public Utilities Commission, and Hawaii State Energy Office.

Your Committee finds that energy-related decisions likely to be made in the coming years may either save or cost the State and its residents billions of dollars. Therefore, it is critical that the State has the most accurate and reliable information before making major decisions on Hawaii's energy future. This measure would request that the Public Utilities Commission base decisions on independent, comprehensive analysis on the optimal energy pathways for the State to meet its renewable energy mandates, uphold constitutional obligations, and lower future economic and environmental costs and risks for consumers.

Your Committee has amended this measure by:

(1) Deleting certain findings in relation to the discussion of certain fuels for power generation and certain energy storage methods in the Hawaii State Energy Office's "Alternative Fuels, Repowering, and Energy Transition Study"; and

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

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 163, as amended herein, and recommends its adoption in the form attached hereto as S.R. No. 163, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

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JARRETT KEOHOKALOLE, Chair