STAND. COM. REP. NO. 3145

 

Honolulu, Hawaii

                   

 

RE:     H.B. No. 2110

        H.D. 2

        S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sir:

 

     Your Committees on Transportation and Energy and Commerce, Consumer Protection, and Health, to which was referred H.B. No. 2110, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO RESILIENCY,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to encourage and facilitate the development and use of microgrids by establishing a standard microgrid services tariff.

 

     Your Committees received testimony in support of this measure from Hawaiian Electric Company, Inc.; Hawaii Energy Policy Forum; Energy Research Systems; Life of the Land; Hawaii Solar Energy Association; Ulupono Initiative; Blue Planet Foundation; Distributed Energy Resources Council of Hawaii; Organizing for Action; 350Hawaii.org; Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii; Sierra Club of Hawaii; Sierra Student Coalition; and ten individuals.  Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs Division of Consumer Advocacy and Kauai Island Utility Cooperative.

 

     Your Committees find that microgrids have a significant role to play in achieving Hawaii's clean energy policies.  Furthermore, microgrids increase resiliency and allow for faster recovery in the event of natural disasters and other emergencies.  However, your Committees note that microgrids could adversely affect other energy consumers.  In order to promote the development of microgrids that are fair to electric utilities, microgrid operators, and ratepayers, it is necessary to establish a tariff that standardizes and streamlines projects.

 

     Your Committees have amended this measure by:

 

     (1)  Adding language to clarify that the microgrid services tariff will not make a microgrid a public utility;

 

     (2)  Expanding the scope of information the Public Utilities Commission is required to consider for the microgrid services tariff to include microgrids in all jurisdictions, as opposed to just Puerto Rico; and

 

     (3)  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 Transportation and Energy and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2110, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2110, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Transportation and Energy and Commerce, Consumer Protection, and Health,

 

________________________________

ROSALYN H. BAKER, Chair

 

________________________________

LORRAINE R. INOUYE, Chair