THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE HAWAII HYDROGEN STRATEGIC PLAN.
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The Hawaii natural energy institute shall conduct a study to examine the State's ability to advance hydrogen production from local renewable energy resources. The study shall consider:
(1) Hydrogen resource availability and the feasibility to produce and use hydrogen locally;
(2) Water usage needed for hydrogen production;
(3) Potential end-user markets;
(4) Permitting and regulatory hurdles, including infrastructure planning;
(5) Implementation pathways needed to facilitate the production, storage, and delivery mechanisms throughout the State;
(6) Opportunities to combine utility and resource needs for hydrogen production and usage of waste products or renewable energy resources around the State;
(7) Whether the construction of hydrogen projects in each county of the State is feasible, considering physical layouts of project sites, geographic limitations, and utility requirements; and
(8) The technical feasibility, economic viability, and permitting requirements of local hydrogen production from renewable resources and the transportation of end use points compared to the importation and distribution of bulk green hydrogen into the State from the United States and other countries.
SECTION 2. (a) The Hawaii natural energy institute shall develop a Hawaii hydrogen strategic plan utilizing the results of its study required by section 1 of this Act, which shall:
(1) Develop a long-term hydrogen plan for 2024 through 2050 that is clearly integrated with other long-term energy planning in the State. This plan shall include:
(A) Costs, benefits, and impacts;
(B) An evaluation of the use of hydrogen as both a transportation fuel and a grid-level resource;
(C) Technical and economic feasibility and environmental benefits of using hydrogen in key areas to resolve resilience issues; and
(D) Economic impact as an export commodity or other revenue generating opportunity;
(2) Field non-governmental organization stakeholder input and identify implementation and deployment strategies to successfully build hydrogen production, storage, distribution, and fueling infrastructure across the State;
(3) Review existing permitting application and review processes and identify amendments that may be necessary to develop standards for the construction of facilities that support hydrogen production, storage, transport, and dispensing;
(4) Propose policies to encourage production and usage of hydrogen utilizing economic incentives, tax credits, tariffs, or other methods, to grow the supply of available hydrogen;
(5) Provide recommendations that would facilitate implementation of the hydrogen plan, including legislation and necessary regulatory and economic investments; and
(6) Specify strategies to reduce emissions, address disproportionate energy and transportation costs in neighbor island communities, and improve resiliency for the State.
(b) The Hawaii natural energy institute shall review and update the plan required in subsection (a) every four years, beginning in 2028.
SECTION 3. In conducting the study and developing the Hawaii hydrogen strategic plan required by sections 1 and 2 of this Act, respectively, and any updates thereto, the Hawaii natural energy institute shall, as appropriate, consult with the department of business, economic development, and tourism; the state energy office; public utilities commission; or any other applicable state or county agency, which shall cooperate and provide necessary resources as requested by the Hawaii natural energy institute. The Hawaii natural energy institute shall further consult with other electric and gas utilities and industry stakeholders, who are encouraged to cooperate and provide information or input.
SECTION 4. The Hawaii natural energy institute shall submit an interim progress report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2023. The Hawaii natural energy institute shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2024, and for every year in which the Hawaii hydrogen strategic plan is reviewed, amended, or updated.
SECTION 5. This Act shall take effect on July 1, 2022.
Hawaii Hydrogen Strategic Plan; Hawaii Natural Energy Institute; Study
Requires the Hawaii Natural Energy Institute to conduct a study to examine the State's ability to advance hydrogen production from local renewable energy resources and develop the Hawaii Hydrogen Strategic Plan utilizing the results of its study, which shall be reviewed and updated every four years. Requires reports to the Legislature. (SD1)
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