Senate Standing Committee on Agriculture and Environment

Foreign thank you for joining us for this Joint Committee on Energy Intergovernmental affairs and our good friends from the community on Agriculture and environment. It's Tuesday, March 11th at 3:00 in the afternoon in room 016. This hearing is being streamed live via YouTube.

If there's any kind of technical difficulties, we will post notice as to when we will reconvene. We're going to limit testifiers to 2 minutes per bill and we're going to get underway. First on our agenda is House Bill 242 HD1 relating to electric vehicle batteries.

On our testifiers list we have Kenneth Fink from the Department of Health who might be joining us via Zoom.

Good afternoon. My name is Noah Klein. I'm with the Department of Health, Solid and Hazardous Waste Branch in the Environmental Health Administration. The Department will stand on its testimony in support of this bill and I'm here if you have any questions. Thank you.

Thank you, Noa.

Rick Rochelo from HNEI has submitted commentary. Mark Glick from the State Energy Office.

Aloha, Chair, Vice Chair, Members of the Committee, Monique Schaefer on behalf of the Hawaii State Energy Office, we stand on our written testimony providing comments on the bill. I just want to note we prefer one group, working group that covers all lithium ion batteries versus just, just the Electric vehicle working group to streamline the process.

There is a bill currently active. I do reference in the testimony, HB332, but that should be SB391. That is the companion Bill that is still alive in the Senate. Available for questions. Thank you.

Thank you, Schaefer. Peter Games from SERVCO has submitted testimony and support. We have Tiffany Yajima from the Alliance for Automotive Innovation.

Aloha Chair, Stand and support. Thank you.

Oh, okay. That was quick. And that's all we have for those who have indicated desire to testify. Is there anyone else in the audience or on Zoom that wishes to testify on HB 242, if not Members, Any questions? Okay, I'm going to just hand it over to my trustee, site partner or co chair.

Okay, thank you. Chair. HB 751 HD2 relating to organic waste, establishes statewide goals for solid waste reduction and organic waste diversion. Requires each county to incorporate into its next integrated Solid Waste Management Plan revision a plan to divert certain organic waste generated within the county in alignment with established state benchmarks. And first up to testify is Department of Health.

Afternoon Chairs, Members of the Joint Committee Lino Tsu speaking for Department of Health. And we stand on our written testimony in opposition to this bill. I'm available for any questions. Thank you. Yeah.

See anyone else in person or online wanting to testify on this measure. We had 36 in support and two opposed. And I will turn it back over to you, Chair.

Okay, we are on the last measure on this agenda. That is House Bill 1020 HD1, relating to a program to characterize carbon sequestration potential and underground water resources statewide. First on our testifiers list, we have Jimmy Tokioka from DBEDT. Thank you, Dean. Mark Glick, Energy Office.

Thank you Chair Wakai, Chair Gabbard, members of the committees. Mark Glick on behalf of the Hawaii State Energy Office, we speak in strong support of House Bill 1020 HD1 and just want to reiterate this part of an important administration package.

It's a collaborative and integrated effort of DBEDT and the energy office to pursue geothermal development as a way to enhance energy security in the state and that we are unified in our attempt to look at it statewide.

DBEDT really focusing on Hawaii island and the energy office looking at all of the other islands in this effort to understand the resource base of geothermal energy so that we can become greater energy self sufficient. Thanks for the opportunity to testify. Happy to answer any questions.

Thank you Mr. Glick. Micah Munekata from Ulupono.

Afternoon chairs, members of the committees. Micah Munekata here on behalf of Ulupono Initiative. I just wanted to stand on our written testimony in strong support of this measure. I think, you know, moving in this direction and trying to find a firm renewable resource that exists here in our state is really smart policy.

Trying to find the funding necessary to move forward will be key into our energy future. So we really do support this measure moving forward. And thank you very much chairs for hearing this.

Thank you for joining us Micah. Jennifer Tse from Young Hawaii or Young Democrats of Hawaii. Ann Chung. Okay, that's all I have as individuals indicating they wanted to testify. Is there anyone else in the room or online that would like to testify testify on House Bill 1020. If not, members, any questions? Okay.

Good afternoon, sir.

I heard from Mark Glick about how DBEDT is going to take care of Big Island. HSEO is going to take care of all of the other islands and somehow that's collaboration. That seems like that's not collaboration. Shouldn't we put these, our entire geothermal plans together by one entity?

And should that one entity be you or should it be HSEO?

Okay, Chair. So putting up with DBEDT, we would work with HSEO. They are focused on Maui and Oahu and I haven't identified or had those discussions yet on the account but coming into DBEDT, we will work collaboratively with HSEO1. Our current project with the University of Hawaii is looking and focusing on the Big Island.

And so we wouldn't want to be duplicating efforts. I could understand if that is the consideration of the committee to put in a DBEDT and we would work in parallel with HSEO and not disrupt anything that they're doing with the neighbor islands off of outside of Hawaii Island.

Yeah, I mean, we had. We passed over, I think I recall, two senate bills that were regarding geothermal, and some of it was with HSEO as lead, some as US lead.

I just think that we need to like, put this all together and make sure that there's one voice speaking rather than disparate voices speaking as we chase geothermal resources. So you're okay with us having you in charge of this program versus HSEO.

For DBEDT to do the geothermal that they're working on, yes. Carbon sequestration, that's still with Hawaii State Energy Office in their plan. But for geothermal, we would work with HSEO and so we're not duplicating efforts and that we're working in alignment to achieve commercial viability.

Okay, got it. Thank you. Members, any further questions? If not, we have a quorum. Oh, okay. Mind if we just go straight into? Okay. Within the spirit of collaboration, the two chairs conferred and talked about our ideas and would like to move forward with decision making on the three items on this agenda.

Members, first on House Bill 242 HD1 relating to electric vehicle batteries, you want to take the Department of Health suggestions to replace 2026 with 2027. That's on page five.

And we will take the HNEI suggested amendments to modify the language of the bill to suggest it be given to us 29 days before the end of the 2026 session instead of the end of the 2025 session. That would be a lot of work for them to have to do quickly.

So I want to make those two changes. Any discussion? If not Senator Chang, I vote yes.

For HB 242 for the EIG Committee Chair's recommendations to pass both amendments. [Roll Call] The recommendation is adopted.

Same recommendation for AEN. Any discussion? Chair, both side.

Vice Chair on same matter. HB 242 House Draft 1. Chair votes I passing with amendments. Vice Chair, both sides. Senator decoit is excused. Senator Rhodes, Senator awa. No. Chair, you have three in favor. Motion is Adopted.

Thank you Members. And then on HB 751 HD2 establishing statewide goals for solid waste reduction and organic waste diversion. The Chair's recommendation will be to pass with amendments. We're going to take into consideration the Department of Health's concerns. So we'll be removing compostable food packaging, quote unquote from the definition of organic waste.

Because the testing is not complete, all the data is not in on PFAs. So we've decided to do that. And we'll also defect the effective date to July 1, 2050. Any discussion? Chair votes Aye. Vice Chair.

On House Bill 751. Draft two passing with amendments. [Roll Call] Motion is adopted.

Thank you Members.

For EIG same recommendation. Any discussion? If not Senator Chang?

I vote yes for HB751. Chair's recommendation is to pass with amendments noting the excusals of Senators to. And are there any objections or reservations? See none of the recommendations adopted.

Fantastic. We're going to move on to the last measure on this agenda. That is Senate. Excuse me. House Bill 1020 HD1 leading to program characterization characterized carbon sequestration potential at underground water resources statewide. The chairs have conferred and we'd like to make one change. That being replace HSCO with DBIT in the bill.

And on page two, line three, it actually has language to say that HSC has to work with DBED and collaborate. So we'll just take that out because DBIT will now be in charge. We'll also make technical non substantive amendments for clarity. Any discussion? If not Senator Chang.

I vote yes for HB 1020. Chairs recommendations passed with amendments. Of the Members present, are there any objections or reservations? Seeing none. Of the recommendations?

Same recommendation for ADN. Any discussion? Chair vote.

Chair on House Bill 1020 passing with amendments. [Roll Call] Chair, you have three in favor.

Thank you, Members.

Thank you. We are adjourned.

Thank you for joining us for this Joint Committee on Energy Intergovernmental affairs and our good friends Committee on Housing. It's close to 301 in room 016 on this Tuesday, March 11th. This hearing is being streamed live on YouTube. If there's any technical difficulties, we will post notice as to when we will reconvene.

For those who are testifying, we're going to limit your testimony to two minutes. We have one bill on this agenda. That is House Bill 350, HD2, relating to energy. First on our testifiers list, we have Mark Glick from the State Energy Office.

Aloha, Chair, Vice Chairs, Members of the Committee. Monique Schafer on behalf of the Hawaii State Energy Office. We stand on our written testimony in support of this bill. Thank you.

Lyndsey Garcia from the Realtors Association has submitted testimony in support. Steve Parsons from Kauai Climate Action Coalition has submitted testimony in support. Brian Gold from the Island Solar Supply and Solaray Company.

Thank you, Chairs, Vice Chair, Members of the Committee. My name is Brian Gold. I'm President of Inter-Island Solar Supply. We are a 50 year old local renewable energy company headquartered here in Hawaii. Stand on our written testimony. Wanted to offer two brief additional comments.

There's been a fair amount of discussion in the history of this measure regarding the cost differential between solar water heaters and heat pump water heaters. And I wanted to highlight that cost differential is because they're held to two very different standards. So solar water heaters are required to handle substantially all of a home's water heating load.

That's defined as 90 to 110% of the water heating load, whereas heat pump water heaters are not. A solar water heater can cost and be installed for the same price as a heat pump water heater if held to the same standard. So we're talking about apples and oranges here and I think that bears emphasis. The second item I wanted to highlight is that, as this mandate has developed over the years since 2010 when it was originally passed, there's been a number of proactive discussions from all involved parties.

And right now there is an informal working group and very productive discussions happening between HSEO, Hawaii Solar Energy Association, and Earth Justice. And I think it would be preliminary to move, continue to move this forward rather than letting those discussions play out behind the scenes, which would be productive. I'm available for questions if you have any. Thank you.

Thank you, Mr. Gold. Rocky Mould from the Solar Energy Association.

Thank you, Chairs, Vice Chairs. I'll stand on my written comments on this bill. And just note that in our view at HSEA, the current bill, the current law is working as intended and working well. There is an ability to get a variance when it warrants it because of economic reasons or because the roof isn't positioned right or something like that. Folks can get a variance to use a heat pump if they want. And if you look at the numbers, they actually warrant this.

There are a lot of variances that are getting out there with heat pumps as an option. So I just want to say the law is working as intended and really getting the sun directly into to heat the water like most directly really is the most beneficial way to go here in Hawaii. Here for questions, if you have them.

Thank you, Rocky. Caroline Carl from Hawaii Energy has testimony in support. Is there anyone else wishing to testify on House Bill 350? If not, Members, any questions? This bill warms our heart and our heated water. Okay. We're going to move straight into decision making if that's okay with the Members. And the Chairs have conferred and have decided that we love this bill. We're going to pass it as is. Any discussion? If not, Senator Chang. I vote yes.

HB 350, EIG Committee Chair's recommendation is to pass unamended. Chair votes aye. Vice Chair votes aye. [Roll Call] The recommendation is adopted. And so for the Committee on Housing, same recommendation to pass unamended

Members, Chair recommendation's pass HB 350 unamended. Chair votes aye. Vice Chair votes aye. [Roll Call] Chair, recommendation's adopted.

Thank you. We are adjourned.

Thank you for joining us. Like magic, it's 3:02 in room 016 on this Tuesday, March 11th with the Committee on Energy and Intergovernmental Affairs. Again, we're streaming live via YouTube. If there's any technical difficulties, we'll post notice as to when we will reconvene. For those who plan to testify, we're going to limit your testimony to two minutes.

First on our agenda is House Bill 977, HD 1, relating to energy financing. First on our testifiers list, we have Leo Asuncion from the PUC.

Good afternoon, Chair, Vice Chair, Members of the Committee. I'm Ashley Norman on behalf of Leo Asuncion from the Public Utilities Commission. We stand on our written testimony in support, and available for any questions. Mahalo.

Thank you. Michael Angelo from DCCA.

Good afternoon, Chair, Vice Chair, Members of the Committee. My name is Asami Kobayashi with the DCCA's Division of Consumer Advocacy. Here on behalf of Mike Angelo, our Executive Director, to say that the Department supports this measure and stands on its written testimony. And I can take back any questions back to our team. Thank you.

Thank you. Gwen Yamamoto Lau. Thank you, Gwen. Benjamin Sullivan from the City has submitted testimony in support. Ted Peck from Holu Hou.

Good afternoon. Ted Peck. I just wanted to reiterate in my testimony that the Hawaii Green Infrastructure Authority is an excellent mechanism for getting clean energy to lower income members of our community, either by direct purchase or by lease systems. We've done a number of projects, a large number of projects with HGIA, and one of the ones I'm most proud of is putting solar into Kunia Village, which is a 60% AMI community. And we wouldn't have been able to do that without HGIA. Available if you have any questions, sir.

Thank you for joining us, Ted. And that's all I have for those who have submitted testimony or indicating they'd like to testify. Is there anyone else in the room or online that would like to testify on House Bill 977? If not, Members, any questions? We're going to move on then to the next measure.

That is House Bill 1077, relating to the Greenhouse Gas Sequestration Task Force. And first on our testifiers list for this measure is Jimmy Tokioka from DBEDT. Thank you, Dane. Mary Alice Evans from Planning.

Thank you, Mary Alice. Is there anyone else wishing to testify on House Bill 1017? Members, any questions? We're going to move on to the next measure. That is House Bill 1051, relating to energy efficiency portfolio standards. On our testifiers list, we have Leo Asuncion, someone from the PUC. Thank you, Ashley. Mark Glick from the State Energy Office. Great. Thank you, Monique. Michael Angelo from DCCA.

Thank you, Asami. Dante Hirata-Epstein from Hawaii Green Infrastructure Authority. Okay, thank you, Gwen. Benjamin Sullivan from the City and County has submitted testimony in support. We might have Jennifer Baker from Hawaii Electric on Zoom.

Not present on Zoom, Chair.

Oh, sorry, she's here in person. Thank you, Jennifer. That's all I have for those indicating they would... Oh, no, I have Jeff Mikulina who might be here in person. Has indicated a desire to testify, but I don't see him in the room. Is there anyone else wishing to testify on House Bill 1051?

If not, members, any questions? Such solid House Bills; we're going to move on to the last one on the agenda. That is House Bill 1406 HD1 relating to government procedures. First on our testifiers list is James Tokioka from DBEDT.

Chair, DBEDT stand on testimony and support.

Thank you. Leo Asuncion from the PUC.

PUC stands on its written testimony.

Thank you, Mark Glick, State Energy Office. Yay. We're getting lonely over here. Thank you for joining us.

Of course. Chair, Vice Chair, members of the committee, Monique Schaefer, on behalf of Hawaii State Energy Office: we strongly support this bill, and we would like to be a part of this governmental task force.

We do believe that the State Energy Office's statutory duties, as well as the roles that are outlined In Governor's recent Executive Order 2501 make Hawaii State Energy Office an important member of this particular task force because there are several utility scale and distributed energy resource limiting issues that we are actively dealing with.

Thank you for your consideration and I am available for any questions. Mahalo.

Thank you, Monique. Dean Minakami from the Hawaii House Housing Finance and Development Corporation.

Good afternoon, Chair, Vice Chair, and members; HHFDC stands in its support.

Thank you, Dean. Andrew Carrera from PRP has submitted testimony support. Sherry Menor from the Chamber of Commerce.

Sherry from the Chamber of Commerce, standing on our testimony support.

Lauren Zirbel from the Food Industry Association might be joining us via Zoom.

Not present on Zoom, Chair.

Okay. Is there anyone else wishing to testify on House Bill 1406? If not, members, any questions? No. Okay. We are going to quickly move into decision making on these four measures in front of us. I've conferred with myself and came to all kinds of great conclusions here. On House Bill 977 HD1 relating to energy financing.

Have heard the testimony. Believe in in the benefits of this loan program. Would like to pass this measure out with technical, non-substantive amendments. Any discussion? If not, Senator Chang, I vote yes.

HB 977, Chair's recommendation is to pass with amendments. Chair votes aye. Vice Chair votes aye. [Roll Call] The recommendation is adopted.

Great. Thank you. On House Bill 1017, HD 1, relating to the Greenhouse Gas Sequestration Task Force. Members, we passed so many bills, we add so many laws. This is one rare example where we're actually getting rid of a law. So I'd like to pass this measure out as is. Any discussion? If not, Senator Chang, I vote yes.

For HB 1017, Chair's recommendation's to pass unamended. Noting the excuses of Senators DeCoite and Fevella. Are there any objections or reservations? Seeing none. The recommendation's adopted.

On the next measure, House Bill 1051, HD 1, relating to energy efficiency portfolio standards. Want to help us get to energy efficiency, and think that this bill helps us really get there and provide clear benchmarks. Would like to pass this measure out also as is. Any discussion? If not, Senator Chang, I vote yes.

For HB 1051, Chair's recommendation is to pass unamended. Of the Members present, are there any objections or reservations? Seeing none. The recommendation is adopted.

Okay. And on the last measure, HB 1006, HD 1, relating to government procedures. This is a bill that's going to help with the permitting process, make it easier, quicker. One of the big troubles and pain points for businesses are regulatory and permitting process that is cumbersome, and this bill looks at addressing that through a task force.

Would like to make a couple of amendments to this task force. I mean, this is a creation of the House, and as you notice, they cut us out. So we want to make sure that we have a Senate representative in this task force. That representative will be appointed by the Senate President. And we will take the HSEO suggested amendments because they want to be invited to the party as well, so we'll put them on the task force party.

And we will add a clean date to this bill, make it effective on approval. Some technical non-substantive amendments. And we'll note just in the Committee report that in previous iterations of this bill the task force was asking for $120,000 appropriation for staffing and administrative costs. We'll put that into the Committee report. Any discussion? If not, Senator Chang, I vote yes.

For HB 1406, Chair's recommendation is to pass with amendments. Of the Members present, are there any objections or reservations? Seeing none. The recommendation is adopted.

Great, thank you, Members. We are adjourned.