STAND. COM. REP. NO. 3481

Honolulu, Hawaii

RE: S.R. No. 90

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 Energy and Intergovernmental Affairs and Agriculture and Environment, to which was referred S.R. No. 90 entitled:

"SENATE RESOLUTION REQUESTING THE HAWAII STATE ENERGY OFFICE TO CONVENE A WORKING GROUP TO STUDY THE POTENTIAL IMPACTS OF LARGE DATA CENTERS ON HAWAII'S ELECTRIC UTILITIES, RATEPAYERS, NATURAL RESOURCES, AND CLIMATE GOALS,"

beg leave to report as follows:

The purpose and intent of this measure is to request the Hawaii State Energy Office to convene a working group to study the potential impacts of large data centers on Hawaii's electric utilities, ratepayers, natural resources, and climate goals.

Your Committees received testimony in support of this measure from Climate Protectors Hawaii and one individual.

Your Committees received comments on this measure from the Public Utilities Commission and Hawaii State Energy Office.

Your Committees find that the State's isolated island grids are uniquely sensitive to large new electricity loads, given the absence of interconnections with neighboring systems and the State's goal of a one hundred percent Renewable Portfolio Standard by 2045. Your Committees further find that advancements in artificial intelligence have increased electricity and water demand, raising concerns that large new power loads may require costly investments in public utilities services and grid infrastructure. By conducting a thorough review of how data centers may impact the State, this measure ensures that future data center development in Hawaii protects ratepayers, safeguards environmental resources, and aligns with the State's renewable energy and climate goals.

Your Committees have amended this measure by:

(1) Requesting that the chair of the Working Group invite representatives from energy developers who are familiar with data center needs to serve as members of the Working Group;

(2) Inserting additional items for the Working Group to examine, including:

(A) Establishing a clear megawatt threshold definition of "large" data centers;

(B) Requirements for data centers to maintain sufficient on-site backup power and energy storage systems to reduce grid dependency and enable automatic load curtailment during grid emergencies, protecting the stability of the State's electric system;

(C) Annual public reporting requirements for centers documenting actual electricity consumption, water usage, and greenhouse gas emissions, verified by an independent third-party to ensure transparency and accountability for regulators and the public;

(D) Independent water resource impact assessment requirements before permit issuance, including a detailed water conservation plan to protect the State's water resources; and

(E) Direct integration of the findings of the Working Group with the utility integrated grid planning processes under the Public Utilities Commission's oversight; and

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

As affirmed by the records of votes of the members of your Committees on Energy and Intergovernmental Affairs and Agriculture and Environment that are attached to this report, your Committees concur with the intent and purpose of S.R. No. 90, as amended herein, and recommend its adoption in the form attached hereto as S.R. No. 90, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Energy and Intergovernmental Affairs and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ GLENN WAKAI, Chair