Senate Standing Committee on Energy and Intergovernmental Affairs

K. We are convening our committee on energy and intergovernmental affairs on this Tuesday, March 17 in Room 224 at a little after 03:01. This hearing is being streamed live on YouTube. If we have any kind of short circuit, we will put public notice out as to when we're gonna reconvene. We ask that those who are testifying, keep their testimony to a minute.

First on our agenda is HB 2,140 HD two relating to essential permitting positions. On our testifiers list, we have Mary Alice Evans or someone from the office of planning. Hello, Chair. Regent King from the office of planning and development. The office stands on its relevant testimony with the search.

I have a bit of further questions to you.

Great. Thanks, Regent. Lee Wen from the Housing Hawaii's Future has submitted testimony support. That's all I have for those indicating that desire desire to testify. Is there anyone else in the room that wants to testify on 2140? If that member oh, I'm alone. Oh, I'm not alone. Welcome. Nice jacket. You don't have any questions on 2140.

Right? It was amazing. Okay. So we're gonna move on to the next measure that is 2241 HD one relating to renewable energy. On our testifiers list, we have Department of Taxation.

Good afternoon, Chair Vice, Chairman. Clinton Piper, Department of Taxation. We'll stand on our written comments.

Thank you, Clinton. Mark Glick or someone from the energy office? Oh, Annie.

Chair, Vice Chair, Members of the Committee, Monique Zanfes for the Hawaii State Energy Office. We stand on our written testimony providing comments. I'm available for questions. Thank you.

Thank you, Monique. Rocky Mould?

Hello, Chair, Vice Chair, Members of the Committee.

Rocky Mould, Hawaii Solar Energy Association. I'll stand on my written comments. A written testimony in opposition is this issue.

Great. Thank you, Rocky. And I believe we have the tax foundation online.

Not present on Zoom Chair.

Okay. Is there anyone else wishing to testify on House Bill 2241? Members, any questions? Okay. We're gonna move on to the next measure that is House Bill 2608 relating to water heating systems. On our testifiers list, we have Mark Lick or Monique.

Chair, Vice Chair, Members of the Committee, Monique Campos, Hawaii State Energy Office. We stand on our written comments providing a few amendments and suggestions. I can also say we've communicated with solar ray, and we do agree with their removal of the fifteen year. Time frame to that particular amendment. We are okay with available for questions. Thank you.

Thank you, Monique. Julie Yunker, Hawaii Gas.

Hi. Good afternoon, chair, vice chair, members of the committee. Julie Yunker with Hawaii Gas. We stand on our written testimony commenting on this bill. And while we take no position on heat pumps, we do want to point out that the preamble mischaracterizes the variance approval rates for on demand water heaters.

These appliances have served a great need in times of no electricity, poor solar resource, and cost effectiveness. There is an existing rigorous process by HSCO to ensure that there is not widespread approvals of these, and in fact variances have been declining. Heat pump water heaters are already receiving variances. And based on recent data that we have seen, electric heat pumps receive more variances than on demand gas water heaters in the past year, leading to question the necessity of this bill. Additionally, based on extensive stakeholder engagement and industry data, including the HSEA white paper referencing warranties for solar watt heaters between six to twelve years depending on the system, we believe the current agreed upon life cycle of fifteen years is more than generous.

Thank you for the opportunity.

Thank you, Julie. On Zoom, we have William Giese from the Solar Ray Corporation.

Hi. Good afternoon, chair. Can you hear me okay?

Yes. We can.

Hi. Good afternoon, committee. My name is Will Giese with Solaray Corporation. My comments are actually specifically about the fifteen year statutory lifespan and one other amendment. Generally, we're supportive of the bill as it's written, for heat pumps.

Our company, does solar water heating and heat pumps. I've been involved on the solar water heating mandate in various capacities in Hawaii for almost a decade now and most recently worked with, folks at the HSCO on updating the LCC life cycle cost analysis tool. My comments are specifically about removing the statutory life limit for solar water heating and letting it compete, with any other water heating technology, either by setting that limit through warranties or through kind of publicly available data. Right now, solar water heating is the only water heating technology that has a life limit that's in statute, and that that life limit cannot be exceeded even if warranty terms were to say otherwise. My other comment and suggested amendment is to direct the Public Utilities Commission to reopen an existing, regulatory proceeding that they opened in 2010, and then I don't think that they've updated since.

And it has to do with, setting standards for the efficiency of solar water heating systems. Part of the reason that solar water heating systems are expensive for smaller homes in single family settings is that they have to meet a very, very high solar fraction efficiency setting. So this is good in general for the life of the system, but it's bad for system cost effectiveness. But, generally, we're supportive of of including heat pumps in the way that this is structured here. And I also just wanna shout out Monique at HSCO.

I we spoke with her via email earlier today, and I had a really productive discussion with their office. And they've been super helpful over the last year in working through the LCC tools too, so we appreciate their involvement on this bill. Thank you very much.

Great. Thank you, mister Giese. Also online, Harley Broless?

Not present on Zoom, Chair.

Okay. Is there anyone else wishing to testify on HB 2608? If not, members, any questions? K. We're gonna move into a pair of resolutions on the agenda that is SCR 9 and SR, 11. For the first two resos, we have two pieces of supportive testimonies. Anybody here interested in testifying on these two resolutions? Okay. Now we're gonna move on to the last pair of resolutions. Those being Senate Concurrent Resolution 20 and SR 17.

It's for our friends on the Big Island at Kealakehe Regional Park. And on our testifiers list, we have Ryan Kanakoli or someone from DLNR. No? Has suggested amendments. We have Craig Bo Kahui. Mister Kahui. It's the Big Island, Brazil. Yeah? Yep. Welcome.

I have a another that's submitted. We have we have apologize for that. Wait. Let me let me just double check. I think we oh, no. No. We don't have we only have DLNR's testimony. Yeah. I'll share it with the members.

Hello, senator Polakai and members of the committee. On behalf of West Hawaii Parks and Athletic Corporation, we strongly we are in strong support of Senate concurrent Resolution 20. We have attached a brief to this cover letter explaining who we are, and we applaud this committee for recognizing the needs of our community for a comprehensive regional park. Our attachment our attachment to this our support letter helps in detail our effort to bring to fruition a world class facility that could generate a strong tax base, providing a world class facility to host state and international sporting and community events. Yeah, I have for now since 2009 been working on this plan with with the county.

And over time, we've gone through several administrations, maybe four, in in an effort to bring a sports complex, a recreational complex, a complex for healing, a complex for health, complex for to to to our community. Kailua Kona is the fastest growing community, I would say, statewide. We're currently, the Department of Hawaiian Homelands has, in the queue, somewhere about 500 more homes that is gonna be built in the next three years. Along with already the 300 homes, HHFDC has a housing plan along to include its effort to bring affordable housing and public housing in our region. So much there's much to be said about bringing a facility that can accommodate our communities as we expand in Kona.

Kona is growing leaps and bounds. You know, up until recently, the department hadn't had an opportunity to do any growth in that region because they didn't have water. But lucky for one of its, community stakeholders, along with the department, we're able to secure water to build 800 more units in that area given the estimated credits that will yield out of that water source. So as we look and look in the context of of of that region, that, like, Kealakehe and the Ahupua of Kealakehe and the adjacent communities, We're gonna see the kind of growth that's that's gonna require a a comprehensive facility such as this. Attached to the back of your packet is a map.

And I've written down, our email, where you can go to look.

Yeah. Please. So in summary, we support this. We're working with the county to bring this park to fruition. Thank you so much.

Great. Thank you for joining us. Is there anyone else wishing to testify on these two resolutions, 20 and SR 17? Oh, we have somebody online. Hi. Could you introduce yourself?

Hi. My name is Jeffrey Kimoto. I am the, senior softball USA director for the state of Hawaii, and I'm I'm glad Craig was there to comment on a lot of what I was gonna say. I'll just add a few small things, to support that project that's much needed on the Big Island. As you can tell, Patsy Mink Sports Complex or regional park is very similar to what they need.

And The Big Island needs something like that. I held an event last week for senior softball players. I had over 700 players attend from the Mainland and Hawaii. The economic impact on just those six days was close to $800,000. So if you have a facility like this, it would really help out the area, the Kona people in the area for cultural events, sports activities, and everything else that the community needs.

Thank thank you, Jeffrey. Is there anyone else wishing to testify on these two resolutions? If not, members, any questions for Jeffrey or for Craig? Yes.

anybody here from Hawaii County?

No. Only got Craig and Jeffrey.

Okay. That's it. Thank you.

Okeydoke. Members, if you don't mind, we're just gonna go straight into decision making on our agenda. For the first measure, h b 2140 h d two, relating to essential permitting positions. I'd like to move this measure out as is, but note in the committee report that, the counties raised some concerns with regard to how is this gonna get paid for, wage disparities, but those are issues that I believe our friends from the Ways and Means Committee can contemplate. So as they marinate over that, we're gonna send them over something to marinate on, and we'd like to pass this measure out as is.

Any discussion? If not, senator Chang, I vote yes.

Chair's recommendation for House bill 2140 is to pass unamended. Chair votes yes, vice chair votes aye. Senator De Coit? Aye. Senator Richards? Aye. Senator Fevella's excused the recommendation is adopted.

Thank you. The next measure is House bill 2241 HD1 relating to renewable energy. Like this measure because it helps kinda skinny down the tax credits and the monies that are siphoned off by those who put in solar devices Any discussion? If not, Senator Chang, I vote yes.

Chair's recommendation for HB 2241 is to pass with amendments. Are the members present? Are there any objections or reservations? Seeing none, the recommendation is passed.

Okay. On House bill 2608 HD one relating to water heating systems. This bill has gone through a lot of changes. I know it wants to promote, solar water heating, but it kinda puts off, like, other options, one of which is gas water heater. Not everybody in the state has a luxury of having access to solar power and electric power.

Sometimes it's gas is what is essential for them. So I'd like to defer any action on this particular measure. The next two measures are resolutions SCR nine and SCR 11, for counties and property taxes being frozen for our, Kupuna. Would like to pass this measure out as is. Any discussion? If not, Senator Chang, I vote yes on these two measures.

Chair's recommendation for SCR nine and SCR 11 is to pass unamended. If the members present, are there any objections or reservations? Hearing none, the recommendation is adopted.

Great. Thank you. The last two measures are SCR 20 and SR 17 to help support our friends on the big island at Keala Kehei Regional Park. Would wanna make one change, taking into account the testimony from DLNR about, changing it from a county owned to state owned land set aside to the county of Hawaii, and also make some technical non substantive amendments. Any discussion? If not, Senator Chang for these two measures, I vote yes.

Chair's recommendation for SCR 20 and SR 17 is to pass with amendments. Is there any other questions or reservations? Hearing none, the recommendation is adopted.

Great. Thank you, everyone. We're adjourned. Happy Saint Patrick's Day.