SB 1220: PUC; Renewable Energy; Renewable Gas Tariff

A BILL FOR AN ACT

RELATING TO RENEWABLE GAS TARIFF.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that there must be enabling legislation establishing a renewable gas tariff with appropriate and reasonable rates to meet the demand of environmentally and socially conscious consumers.

     The legislature further finds that existing law regulates the procurement of supply and production of renewable gas.  Utilizing renewable energy resources that have the potential to contribute to renewable gas production will help the State achieve its environmental and climate resilience objectives.

     The legislature also finds that it is imperative that a renewable gas tariff be established by a gas utility and a decision be rendered by the public utilities commission as expeditiously as possible, to reduce the State's dependence on imported petroleum and minimize disruptions caused by price fluctuations.

     The legislature additionally finds that ratemaking procedures for a proposed tariff can be established as soon as thirty days after notice is given to the public utilities commission pursuant to section 269-16(b), Hawaii Revised Statutes, and section 16‑601‑111, Hawaii Administrative Rules.  However, these provisions do not require the public utilities commission to complete its review in a timely manner.  Accordingly, it is imperative to minimize the length of the public utilities commission's review of a renewable gas tariff under existing ratemaking procedures to best achieve the State's decarbonization goals; provided that the renewable gas tariff does not increase rates for other customers.

     The legislature further finds that gas utilities in the State must be required to promptly establish a renewable gas tariff to satisfy immediate demand from customers who choose to receive service under the tariff.  Under section 269-16(a), Hawaii Revised Statutes, all rates, fares, charges, classifications, schedules, rules, and practices made, charged, or observed by any public utility shall be just and reasonable.

     Accordingly, the purpose of this Act is to require:

     (1)  Gas utility companies to file a proposed initial renewable gas tariff or tariffs with the public utilities commission by August 31, 2025; and

     (2)  The public utilities commission to establish an initial or revised renewable gas tariff or tariffs no later than nine months after the filing of a completed application for a proposed renewable gas tariff if the commission finds the tariff to be just, reasonable, and in the public interest and the tariff does not increase rates for other customers.

     SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§269-    Renewable gas tariff.  (a)  Each gas utility in the State shall file a proposed initial renewable gas tariff or tariffs with the public utilities commission by August 31, 2025, to establish appropriate and reasonable rates for renewable gas for customers who choose to receive service under a renewable gas tariff.  If the public utilities commission finds that the tariff or tariffs are just, reasonable, and in the public interest, the commission shall establish an initial or revised renewable gas tariff or tariffs no later than nine months after the filing of a completed application for a proposed renewable gas tariff; provided that the renewable gas tariff shall not increase rates for other customers; provided further that all filings shall be in accordance with the Hawaii Administrative Rules.  The nine-month period in this subsection shall begin only after a completed application has been filed with the commission and a paper or an electronic copy served on the consumer advocate.  The consumer advocate may, within twenty-one days after receipt of the copy, object to the sufficiency of any application, and the commission shall hear and determine any objection within twenty-one days after it is filed.  If the commission finds that the objections are without merit, the application shall be deemed to have been completed upon original filing.  If the commission finds the application to be incomplete, it shall require the applicant to submit an amended application consistent with its findings, and the nine-month period shall not commence until the amended application is filed.

     (b)  The renewable gas tariff shall be based on eligible customers' net therm usage and as determined by the public utilities commission.

     (c)  For the purposes of this section:

     "Net therm usage" means the amount of gas a customer uses during a monthly billing period, as measured in therm units.

     "Renewable gas" means gas produced from non-petroleum feedstock, as defined in section 269-45(b), for use by a gas utility in the State, or as otherwise defined by the public utilities commission by rule or order.

     "Renewable gas tariff" means a tariff approved by the public utilities commission that allows a gas utility customer to voluntarily purchase renewable gas from a gas utility company."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

PUC; Renewable Energy; Renewable Gas Tariff

Description:

Requires gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by 8/31/2025.  Requires the Public Utilities Commission to establish a renewable gas tariff within nine months of receiving a completed application for a proposed renewable gas tariff.  (CD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO RENEWABLE GAS TARIFF.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that there must be enabling legislation establishing a renewable gas tariff with appropriate and reasonable rates to meet the demand of environmentally and socially conscious consumers.

     The legislature further finds that existing law regulates the procurement of supply and production of renewable gas.  Utilizing renewable energy resources that have the potential to contribute to renewable gas production will help the State achieve its environmental and climate resilience objectives.

     The legislature also finds that it is imperative that a renewable gas tariff be established by a gas utility and a decision be rendered by the public utilities commission as expeditiously as possible, to reduce the State's dependence on imported petroleum and minimize disruptions caused by price fluctuations.

     The legislature additionally finds that ratemaking procedures for a proposed tariff can be established as soon as thirty days after notice is given to the public utilities commission pursuant to section 269-16(b), Hawaii Revised Statutes, and section 16‑601‑111, Hawaii Administrative Rules.  However, these provisions do not require the public utilities commission to complete its review in a timely manner.  Accordingly, it is imperative to minimize the length of the public utilities commission's review of a renewable gas tariff under existing ratemaking procedures to best achieve the State's decarbonization goals; provided that the renewable gas tariff does not increase rates for other customers.

     The legislature further finds that gas utilities in the State must be required to promptly establish a renewable gas tariff to satisfy immediate demand from customers who choose to receive service under the tariff.  Under section 269-16(a), Hawaii Revised Statutes, all rates, fares, charges, classifications, schedules, rules, and practices made, charged, or observed by any public utility shall be just and reasonable.

     Accordingly, the purpose of this Act is to require:

     (1)  Gas utility companies to file a proposed initial renewable gas tariff or tariffs with the public utilities commission by August 31, 2025; and

     (2)  The public utilities commission to establish an initial or revised renewable gas tariff or tariffs no later than nine months after the filing of a completed application for a proposed renewable gas tariff if the commission finds the tariff to be just, reasonable, and in the public interest and the tariff does not increase rates for other customers.

     SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§269-     Renewable gas tariff.  (a)  Each gas utility in the State shall file a proposed initial renewable gas tariff or tariffs with the public utilities commission by August 31, 2025, to establish appropriate and reasonable rates for renewable gas for customers who choose to receive service under a renewable gas tariff.  If the public utilities commission finds that the tariff or tariffs are just, reasonable, and in the public interest, the commission shall establish an initial or revised renewable gas tariff or tariffs no later than nine months after the filing of a completed application for a proposed renewable gas tariff; provided that the renewable gas tariff shall not increase rates for other customers; provided further that all filings shall be in accordance with the Hawaii Administrative Rules.  The nine-month period in this subsection shall begin only after a completed application has been filed with the commission and a paper or an electronic copy served on the consumer advocate.  The consumer advocate may, within twenty-one days after receipt of the copy, object to the sufficiency of any application, and the commission shall hear and determine any objection within twenty-one days after it is filed.  If the commission finds that the objections are without merit, the application shall be deemed to have been completed upon original filing.  If the commission finds the application to be incomplete, it shall require the applicant to submit an amended application consistent with its findings, and the nine-month period shall not commence until the amended application is filed.

     (b)  The renewable gas tariff shall be based on eligible customers' net therm usage and as determined by the public utilities commission.

     (c)  For the purposes of this section:

     "Net therm usage" means the amount of gas a customer uses during a monthly billing period, as measured in therm units.

     "Renewable gas" means gas produced from non-petroleum feedstock, as defined in section 269-45(b), for use by a gas utility in the State, or as otherwise defined by the public utilities commission by rule or order.

     "Renewable gas tariff" means a tariff approved by the public utilities commission that allows a gas utility customer to voluntarily purchase renewable gas from a gas utility company."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

PUC; Renewable Energy; Renewable Gas Tariff

Description:

Requires gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by 8/31/2025.  Requires the Public Utilities Commission to establish a renewable gas tariff within nine months of receiving a completed application for a proposed renewable gas tariff.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO RENEWABLE GAS TARIFF.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that, to meet the demand of environmentally and socially conscious consumers, there must be enabling legislation establishing a renewable gas tariff with appropriate and reasonable rates.

     The legislature also finds that existing law regulates the procurement of supply and production of renewable gas.  Utilizing renewable energy resources that have the potential to contribute to renewable gas production will help the State achieve its environment and climate resilience objectives.

     The legislature further finds that it is imperative that a renewable gas tariff be established by a gas utility, and a decision rendered by the public utilities commission as expeditiously as possible, to reduce the State's dependence on imported petroleum and minimize disruptions caused by price fluctuations.

     The legislature also finds that ratemaking procedures for a proposed tariff can be effective as soon as thirty days after notice to the public utilities commission pursuant to section 269-16(b), Hawaii Revised Statutes, and section 16‑601‑111, Hawaii Administrative Rules.  However, these provisions do not require the public utilities commission to complete its review in a timely manner.  Accordingly, it is imperative to minimize the length of the public utilities commission's review of a renewable gas tariff under existing ratemaking procedures to best achieve the State's decarbonization goals; provided that the renewable gas tariff does not increase rates for other customers.

     The legislature further finds that gas utilities in the State must be required to promptly establish a renewable gas tariff to satisfy immediate demand from customers who choose to receive service under the tariff.  Under section 269-16(a), Hawaii Revised Statutes, all rates, fares, charges, classifications, schedules, rules, and practices made, charged, or observed by any public utility shall be just and reasonable.

     Accordingly, the purpose of this Act is to require gas utility companies to promptly file renewable gas tariffs with the public utilities commission for review and approval; provided that the public utilities commission completes its review within nine months of the filing of a proposed renewable gas tariff, the proposed tariff does not increase rates for other customers, and the public utilities commission finds the tariff to be just, reasonable, and in the public interest.

     SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§269-     Renewable gas tariff.  (a)  No later than August 31, 2025, each gas utility in the State shall file a proposed initial renewable gas tariff or tariffs with the public utilities commission to establish appropriate and reasonable rates for renewable gas for customers who choose to receive service under a renewable gas tariff.  If the public utilities commission finds that the tariff or tariffs are just, reasonable, and in the public interest, the commission shall establish an initial or revised renewable gas tariff or tariffs no later than nine months after the filing of a completed application for a proposed renewable gas tariff, the completeness of which shall be determined by the public utilities commission no later than thirty days after the application is filed; provided that the renewable gas tariff shall not increase rates for other customers; provided further that all filings shall be in accordance with the Hawaii Administrative Rules.

     (b)  The renewable gas tariff shall be based on eligible customers' net therm usage and as determined by the public utilities commission.

     (c)  For the purposes of this section:

     "Net therm usage" means the amount of gas a customer uses during a monthly billing period, as measured in therm units.

     "Renewable gas" means gas produced from non-petroleum feedstock, as defined in section 269-45(b), for use by a gas utility in the State, or as otherwise defined by the public utilities commission by rule or order.

     "Renewable gas tariff" means a tariff approved by the public utilities commission that allows a gas utility customer to voluntarily purchase renewable gas from a gas utility company."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

PUC; Renewable Energy; Renewable Gas Tariff

Description:

Requires gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by 8/31/2025.  Requires the Public Utilities Commission to establish a renewable gas tariff within 9 months of receiving a completed application for a proposed renewable gas tariff.  Provides that the Public Utilities Commission shall determine the completeness of the application no later than 30 days after the application is filed.  Effective 7/1/2050.  (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO RENEWABLE GAS TARIFF.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that there must be enabling legislation establishing a renewable gas tariff with appropriate and reasonable rates to meet the demand of environmentally and socially conscious consumers.

     The legislature also finds that existing law regulates the procurement of supply and production of renewable gas.  Utilizing renewable energy resources that have the potential to contribute to renewable gas production will help the State achieve its environment and climate resilience objectives.

     The legislature further finds that it is imperative that a renewable gas tariff be established by a gas utility, and a decision rendered by the public utilities commission as expeditiously as possible, to reduce the State's dependence on imported petroleum and minimize disruptions caused by price fluctuations.

     The legislature also finds that ratemaking procedures for a proposed tariff can be effective as soon as thirty days after notice to the public utilities commission pursuant to section 269-16(b), Hawaii Revised Statutes, and section 16‑601‑111, Hawaii Administrative Rules.  However, these provisions do not require the public utilities commission to complete its review in a timely manner.  Accordingly, it is imperative to minimize the length of the public utilities commission's review of a renewable gas tariff under existing ratemaking procedures to best achieve the State's decarbonization goals; provided that the renewable gas tariff does not increase rates for other customers.

     The legislature further finds that gas utilities in the State must be required to promptly establish a renewable gas tariff to satisfy immediate demand from customers who choose to receive service under the tariff.  Under section 269-16(a), Hawaii Revised Statutes, all rates, fares, charges, classifications, schedules, rules, and practices made, charged, or observed by any public utility shall be just and reasonable.

     Accordingly, the purpose of this Act is to require gas utility companies to promptly file renewable gas tariffs with the public utilities commission for review and approval; provided that the public utilities commission completes its review within six months of the filing of a proposed renewable gas tariff, the proposed tariff does not increase rates for other customers, and the public utilities commission finds the tariff to be just, reasonable, and in the public interest.

     SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§269-    Renewable gas tariff.  (a)  Each gas utility in the State shall file a proposed initial renewable gas tariff or tariffs with the public utilities commission by August 31, 2025, to establish appropriate and reasonable rates for renewable gas for customers who choose to receive service under a renewable gas tariff.  The public utilities commission shall establish an initial or revised renewable gas tariff or tariffs no later than six months after the filing of a proposed renewable gas tariff; provided that the renewable gas tariff shall not increase rates for other customers and the commission finds the tariff or tariffs to be just, reasonable, and in the public interest; provided further that all filings shall be in accordance with section 16-601-111, Hawaii Administrative Rules.

     (b)  The renewable gas tariff shall be based on the eligible customer's net therm usage and as determined by the public utilities commission.

     (c)  For the purposes of this section:

     "Net therm usage" means the amount of gas a customer uses during a designated time period as measured in therm units.

     "Renewable gas" means gas produced from non-petroleum feedstock, as defined in section 269-45(b), for use by a gas utility in the State, or as otherwise defined by the public utilities commission by rule or order.

     "Renewable gas tariff" means a tariff approved by the public utilities commission that allows a gas utility customer to voluntarily purchase renewable gas from a gas utility company."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

PUC; Renewable Energy; Renewable Gas Tariff

Description:

Requires gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by August 31, 2025.  Requires the Public Utilities Commission to establish a renewable gas tariff within six months of receiving a proposed renewable gas tariff.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

Relating to Renewable Gas Tariff.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that there must be enabling legislation establishing a renewable gas tariff with appropriate and reasonable rates to meet the demand of environmentally and socially conscious consumers.

     The legislature also finds that existing law regulates the procurement of supply and production of renewable gas.  Utilizing renewable energy resources that have the potential to contribute to renewable gas production will help the State achieve its environment and climate resilience objectives.

     The legislature further finds that it is imperative that a renewable gas tariff be established by a gas utility, and a decision rendered by the public utilities commission as expeditiously as possible, to reduce the State's dependence on imported petroleum and minimize disruptions caused by price fluctuations.

     The legislature also finds that ratemaking procedures for a proposed tariff can be effective as soon as thirty days after notice to the public utilities commission pursuant to section 269-16(b), Hawaii Revised Statutes, and section 16‑601‑111, Hawaii Administrative Rules.  However, these provisions do not require the public utilities commission to complete its review in a timely manner.  Accordingly, it is imperative to minimize the length of the public utilities commission's review of a renewable gas tariff under existing ratemaking procedures to best achieve the State's decarbonization goals; provided that the renewable gas tariff does not increase rates for other customers.

     The legislature further finds that gas utilities in the State must be required to promptly establish a renewable gas tariff to satisfy immediate demand from customers who choose to receive service under the tariff.  Under section 269-16(a), Hawaii Revised Statutes, all rates, fares, charges, classifications, schedules, rules, and practices made, charged, or observed by any public utility shall be just and reasonable.

     Accordingly, the purpose of this Act is to require gas utility companies to promptly file renewable gas tariffs with the public utilities commission for review and approval; provided that the public utilities commission completes its review within six months of the filing of a proposed renewable gas tariff, the proposed tariff does not increase rates for other customers, and the public utilities commission finds the tariff to be just, reasonable, and in the public interest.

     SECTION 2.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§269-    Renewable gas tariff.  (a)  Each gas utility in the State shall file a proposed initial renewable gas tariff or tariffs with the public utilities commission by August 31, 2025, to establish appropriate and reasonable rates for renewable gas for customers who choose to receive service under a renewable gas tariff.  The public utilities commission shall establish an initial or revised renewable gas tariff or tariffs no later than six months after the filing of a proposed renewable gas tariff; provided that the renewable gas tariff shall not increase rates for other customers and the commission finds the tariff or tariffs to be just, reasonable, and in the public interest; provided further that all filings shall be in accordance with section 16-601-111, Hawaii Administrative Rules.

     (b)  The renewable gas tariff shall be based on the eligible customer's net therm usage and as determined by the public utilities commission.

     (c)  For the purposes of this section:

     "Net therm usage" means the amount of gas a customer uses during a designated time period as measured in therm units.

     "Renewable gas" means gas produced from non-petroleum feedstock, as defined in section 269-45(b), for use by a gas utility in the State, or as otherwise defined by the public utilities commission by rule or order.

     "Renewable gas tariff" means a tariff approved by the public utilities commission that allows a gas utility customer to voluntarily purchase renewable gas from a gas utility company."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

PUC; Renewable Energy; Renewable Gas Tariff

Description:

Requires gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by August 31, 2025.  Requires the Public Utilities Commission to establish a renewable gas tariff within six months of receiving a proposed renewable gas tariff.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

CONFERENCE COMMITTEE REP. NO. 196

Honolulu, Hawaii

                 , 2025

RE:    S.B. No. 1220

       S.D. 2

       H.D. 1

       C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir and Madam:

     Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1220, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE GAS TARIFF,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

     The purpose of this measure is to:

     (1)  Require gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by August 31, 2025; and

     (2)  Require the Public Utilities Commission to establish a renewable gas tariff within nine months of receiving a completed application for a proposed renewable gas tariff.

     Your Committee on Conference finds that the existing regulatory process in the State requires gas utility companies to file an application for proposed renewable gas tariffs with the Public Utilities Commission to review through the process of a general rate case.  General rate cases typically take two years to complete and can cost between two and three million dollars.  Without an accelerated regulatory process in place, gas utility companies will try to keep rates stable for as long as possible by delaying rate cases.

     Your Committee on Conference further finds that this measure will facilitate the timely consideration of tariff approvals by requiring gas utility companies to file an application for a proposed initial renewable gas tariff by August 31, 2025, and requiring the Public Utilities Commission to make a decision on their applications within nine months if certain requirements are met.  Streamlining the review process for renewable gas tariffs will enable customers to choose a cleaner energy option, support consumer demand for sustainable alternatives, and ensure just and reasonable rates.  Your Committee on Conference therefore finds that this measure will help to ensure that renewable gas tariffs do not lead to increased costs for non-participating ratepayers and maintain equity throughout the process.

     Your Committee on Conference has amended this measure by making it effective upon its approval.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1220, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1220, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

STAND. COM. REP. NO.  1968

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1220

      S.D. 2

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred S.B. No. 1220, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE GAS TARIFF,"

begs leave to report as follows:

     The purpose of this measure is to require:

     (1)  Gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by August 31, 2025; and

     (2)  The Public Utilities Commission to establish an initial or revised renewable gas tariff or tariffs no later than nine months after the filing of a completed application for a proposed renewable gas tariff if the Commission finds that the tariff meets certain conditions and standards.

     Your Committee received testimony in support of this measure from the Makakilo/Kapolei/Honokai Hale Neighborhood Board No. 34; Ulupono Initiative; Climate Future Forum; Hawaiʻi Gas; Hawaii Resource Strategy Group, LLC; Kapolei Chamber of Commerce; Land Use Research Foundation of Hawaii; Hawaiʻi Restaurant Association; Coalition for Renewable Natural Gas; Hawaii Bioeconomy Trade Organization; and Chamber of Commerce Hawaii.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Public Utilities Commission.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1220, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  1476

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1220

      S.D. 2

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1220, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE GAS TARIFF,"

begs leave to report as follows:

     The purpose of this measure is to require:

     (1)  Gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by August 31, 2025; and

     (2)  The Public Utilities Commission to establish an initial or revised renewable gas tariff or tariffs no later than nine months after the filing of a completed application for a proposed renewable gas tariff if the Public Utilities Commission finds that the tariff meets certain conditions and standards.

     Your Committee received testimony in support of this measure from the Makakilo/Kapolei/Honokai Hale Neighborhood Board No. 34; Ulupono Initiative; Hawaiʻi Gas; Simonpietri Enterprises LLC; Hawaiʻi Restaurant Association; Coalition for Renewable Natural Gas; Kapolei Chamber of Commerce; and Land Use Research Foundation of Hawaii.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Public Utilities Commission.

     Your Committee finds that environmentally conscious customers are seeking the option to purchase renewable gas through a renewable gas tariff.  However, the existing regulations require a general rate case to create a renewable gas tariff, a process costing $2,000,000 to $3,000,000 and taking an average of two years.  This measure accelerates the process for timely approval.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1220, S.D. 2, H.D. 1, and recommends that it be referred to your Committee on Finance.

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

STAND. COM. REP. NO.  1251

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1220

      S.D. 2

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 1220, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE GAS TARIFF,"

begs leave to report as follows:

     The purpose of this measure is to require:

     (1)  Gas utility companies to file a proposed initial renewable gas tariff or tariffs with the Public Utilities Commission by August 31, 2025; and

     (2)  The Public Utilities Commission to establish an initial or revised renewable gas tariff or tariffs no later than nine months after the filing of a completed application for a proposed renewable gas tariff if the Public Utilities Commission finds the tariff to meet certain conditions and standards.

     Your Committee received testimony in support of this measure from the Makakilo/Kapolei/Honokai Hale Neighborhood Board No. 34; Ulupono Initiative; Hawaiʻi Gas; Coalition for Renewable Natural Gas; Kapolei Chamber of Commerce; Land Use Research Foundation of Hawaii; and Hawaiʻi Bioeconomy Trade Organization.  Your Committee received testimony in opposition to this measure from Life of the Land.  Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Public Utilities Commission.

     Your Committee finds that utilizing renewable energy resources that have the potential to contribute to renewable gas production will help the State achieve its environmental and climate resilience goals.  Your Committee further finds that by establishing an accelerated timeline for the Public Utilities Commission to review and approve any proposed renewable gas tariff, this measure would expedite the availability of renewable gas service in the State, in furtherance of greater renewable energy deployment and the State's decarbonization goals.

     Your Committee has amended this measure by:

     (1)  Authorizing the Consumer Advocate to object to the sufficiency of any application for a proposed renewable gas tariff and requiring the Public Utilities Commission to hear and determine any objection in determining the completeness of an application and thereby the date of commencement of the nine-month period;

     (2)  Changing the effective date to July 1, 3000, to encourage further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1220, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1220, S.D. 2, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

STAND. COM. REP. NO. 835

Honolulu, Hawaii

RE:    S.B. No. 1220

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1220, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE GAS TARIFF,"

begs leave to report as follows:

     The purpose and intent of this measure is to facilitate the establishment of a renewable gas tariff.

     More specifically, the measure:

     (1)  Requires gas utility companies to promptly file renewable gas tariffs with the Public Utilities Commission for review and approval;

     (2)  Requires the Public Utilities Commission to complete the Commission's review within six months of the filing of a proposed renewable gas tariff; and

     (3)  Requires that a renewable gas tariff be just, reasonable, and in the public interest and not increase rates for other customers.

     Your Committee received written comments in support of this measure from the Hawaii State Energy Office, Hawaii Gas, Ulupono Initiative, Land Use Research Foundation of Hawaii, Simonpietri Enterprises LLC, Hawaii Resource Strategy Group, Climate Future Forum, and Kapolei Chamber of Commerce.

     Your Committee received written comments on this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs and the Public Utilities Commission.

     Your Committee finds that the renewable gas tariff supported by this measure will help increase the amount of renewable energy that can be incorporated into the State's utility gas supplies, while also supporting investment in locally-sourced feedstocks, encouraging the development of local markets, and protecting other customers from rate increases.

     Your Committee has amended this measure by:

     (1)  Making amendments recommended by the Public Utilities Commission, specifically:

          (A)  Extending from six months to nine months the deadline by which the Commission must complete its review;

          (B)  Requiring the Commission to determine the completeness of an application for a proposed renewable gas tariff no later than thirty days after the application is filed; and

          (C)  Clarifying the definition of "net therm usage"; and

     (2)  Making technical, nonsubstantive edits for purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1220, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1220, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

STAND. COM. REP. NO. 538

Honolulu, Hawaii

RE:    S.B. No. 1220

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs, to which was referred S.B. No. 1220 entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE GAS TARIFF,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require gas utility companies to submit proposed renewable gas tariffs to the Public Utilities Commission by August 31, 2025; and

     (2)  Require the Public Utilities Commission to establish a renewable gas tariff within six months of receiving a proposed renewable gas tariff.

     Your Committees received testimony in support of this measure from the Hawaii State Energy Office, Kapolei Chamber of Commerce, Hawaiʻi Gas, Ulupono Initiative, Simonpietri Enterprises, and one individual.

     Your Committees received testimony in opposition to this measure from Life of the Land.

     Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs and the Public Utilities Commission.

     Your Committees find that the existing regulatory process in the State requires gas utility companies to file an application for a renewable gas tariff with the Public Utilities Commission, which then makes a decision on the application through the process of a general rate case.  General rate cases cost between two and three million dollars and typically take two years to complete.  Since customers ultimately pay this cost, and gas utility companies try to keep rates stable for as long as possible by delaying rate cases, an accelerated regulatory process is needed.

     Your Committees find that this measure facilitates the timely consideration of tariff approvals.  The requirement that gas utility companies file an application for a renewable gas tariff by August 31, 2025, coupled with the requirement that the Public Utilities Commission rule on an application within six months if provisions are met by the gas utility company, will help to prevent unnecessary delays in implementing a critical component of the State's decarbonization strategy.  Streamlining the ability to establish a renewable gas tariff will enable customers to choose a cleaner energy option, supporting consumer demand for sustainable alternatives while providing a regulatory framework that ensures just and reasonable rates.  Finally, this measure ensures that renewable gas tariffs do not lead to increased costs for non‑participating ratepayers, maintaining equity in the energy transition. 

     Your Committees have amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

     As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1220, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1220, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Energy and Intergovernmental Affairs,