Honolulu, Hawaii



RE:    H.B. No. 623

       H.D. 2

       S.D. 1




Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii




     Your Committee on Energy and Environment, to which was referred H.B. No. 623, H.D. 2, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to:


     (1)  Increase the renewable portfolio standards for electric utilities to seventy percent by 2035 and one hundred percent by 2045; and


     (2)  Require the Public Utilities Commission to include the impact, if any, of renewable portfolio standards on the energy prices offered by renewable energy developers in its renewable portfolio standards study and report to the Legislature.


     Your Committee received testimony in support of this measure from the Renewable Energy Action Coalition of Hawaii; Hawaii Solar Energy Association; Hawaii Renewable Energy Alliance; International Brotherhood of Electrical Workers Local Union 1260; Ulupono Initiative; Blue Planet Foundation;; Hawaii Clean Energy Foundation; Hawaiian Electric Vehicle Network; Hawaiian Electric Company, Inc.; and sixty-three individuals.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Department of Business, Economic Development, and Tourism; Department of Commerce and Consumer Affairs Division of Consumer Advocacy; Hawaii Lodging and Tourism Association; Life of the Land; Kauai Island Utility Cooperative; and one individual.


     Your Committee finds that Hawaii's dependence on imported fuel hinders the State's economy.  A stronger local economy depends on a transition away from imported fuels and toward renewable local resources that provide a source of affordable energy.  Updating and extending Hawaii's clean energy initiative and renewable standards will benefit Hawaii's economy by ensuring that Hawaii moves beyond its dependence on imported fuels and continues to grow a local renewable energy industry.


     Your Committee has amended this measure by:


     (1)  Increasing renewable portfolio standards from twenty-five to thirty percent by 2020;


     (2)  Increasing renewable portfolio standards from forty to sixty percent by 2030;


     (3)  Requiring the Public Utilities Commission to include the cost of fossil fuel volatility in its renewable portfolio standards study and report to the Legislature; and


     (4)  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 Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 623, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 623, H.D. 2, S.D. 1, and be referred to the Committee on Commerce and Consumer Protection.


Respectfully submitted on behalf of the members of the Committee on Energy and Environment,