Transcript Highlights:

• That's what our whole state university system, our whole workforce system in higher education, is all
• There's $10 million to continue the electro and start. the state's accounting system.
• This addresses an unfunded actuarial liability with the FRS system.
• This addresses an unfunded actuarial liability with the FRS system.
• As you know, I've been very involved in improving our system of educating our nurses.

Summary: The Senate took up the 2026-2027 budget package, beginning with an overview of the $115 billion General Appropriations Bill (SB 2500/HB 500). Appropriations Chair Hooper said the budget is smaller than last year’s, maintains strong reserves, and includes a 3% pay raise for all state employees and 5% raises for state law enforcement, firefighters, correctional officers, and park rangers. Committee chairs then highlighted major spending in their areas, including $34.9 billion for Pre-K-12 education, $11.9 billion for higher education, a $2.1 billion-plus increase in health and human services, $7.9 billion for criminal and civil justice, $16.8 billion for transportation/tourism/economic development, and major environmental and regulatory investments such as Everglades restoration, water quality, and land acquisition. Members asked detailed questions about several items. Topics included the Emergency Management Trust Fund, arts and cultural grants, Florida Forever land acquisition versus conservation easements, teacher salaries and charter school funding, New College funding, ADAP/HIV drug assistance, Medicaid rate reductions for non-critical access hospitals, DOC operational deficits and inmate health/food costs, judicial staffing, and school enrollment supplements. Chairs explained that some reductions reflected shifts in how scholarship and categorical funds are tracked, that the ADAP appropriation would take effect immediately upon enactment but would only cover part of the year, and that hospital reductions were tied to a broader DPP funding increase. Questions also covered lottery staffing, concealed carry licensing workload, and whether vacant positions were being eliminated as part of budget right-sizing. After the budget discussion, the Senate substituted House bills for the Senate budget bills and adopted amendments placing the Senate language onto the House vehicles. The chamber then passed HB 500, HB 503, and HB 5201, and agreed to conference on each. It also passed SB 7028/HB 5205 on retirement, SB 2506 on fuel taxes, SB 2508 on the state agency law enforcement radio system, SB 2510/HB 5401 on court trust funds, SB 2512 on judgeships, SB 2514 on K-12 education, SB 2516 on higher education, and SB 2518 on health, with each bill passing by unanimous or near-unanimous votes and then being sent to conference or requested of the House for concurrence.

Transcript Highlights:

• The comprehensive literacy program must also include instruction that is systemic, sequential, direct
• . ...asking educators to determine how legislation impacts the K-12 system.
• Flexible and equitable education system. Thank you for your time. Thank you.
• Credits and grades are often barriers for students to succeed in our current systems.
• Credits and grades are often barriers for students to succeed in our current systems.

Summary: The committee first took up a motion from Ranking Member Root to promptly schedule public hearings on two citizens’ initiatives. Supporters argued the Constitution and public accountability required hearings so voters could hear pro and con arguments; opponents said the legislature was not obligated to act that way and the initiatives would still be heard at the ballot. On a voice vote, the motion failed. The committee then heard extensive testimony on House Bill 1295, which would require evidence-aligned, comprehensive literacy instruction for K-4 students, update teacher endorsement standards and preparation programs, and require literacy-related continuing education for some teachers. The bill also repeals several older literacy-related provisions. The sponsor and supporters said Washington’s reading results are too low and that structured literacy reflects the science of reading; districts such as Puyallup described strong gains after adopting evidence-aligned instruction. Opponents and alternative-program advocates argued the bill could narrow instructional approaches and exclude programs they say have worked well. PESB testified neutrally that much of the endorsement work is already underway but asked for clarification on recertification language. The hearing on HB 1295 was suspended and later resumed with additional pro testimony from students, parents, and literacy advocates. House Bill 2262 was then heard and completed. It would require high school civics instruction to include teaching students to produce a legible, repeatable official signature and explain how signatures are used in elections and ballot processes, while also requiring related outreach and reporting on signature mismatch ballot rejections. The sponsor and county auditor testimony emphasized that younger voters often have signatures that change over time and that better instruction could reduce ballot rejections; questions focused on whether the bill should account for printed signatures and diverse writing systems. The Secretary of State’s office and county auditors were reported as supportive, and the hearing closed after a large number of pro sign-ins. The committee also heard House Bill 2636, which would create a public education performance, operations, and funding review commission to evaluate whether education mandates and funding are effective, relevant, and adequately supported. Supporters said the bill would help identify unfunded mandates and reduce administrative burdens on districts; rural district testimony urged a narrower scope and earlier start date. Finally, House Bill 2007 was heard, proposing competency-based assessments as additional graduation pathway options in place of some existing course/exam requirements. Student testimony supported more flexible, equitable pathways, while the State Board of Education said it supports competency-based education but preferred to wait for its broader Future Ready graduation-requirements work and noted the bill would require additional rulemaking. The hearing on HB 2007 closed after testimony from students and a neutral statement from SBE.

Transcript Highlights:

• It simply makes the system work more reliably at a time when our health system is under real pressure
• I'm the chief contracting officer for the UW Medicine Health System.
• system, but they can fax, they can email, and also use this type of system.
• They reflect a systemic issue.
• They reflect a systemic issue.

Summary: The Senate Health and Long-Term Care Committee heard testimony on several bills. SB 6159 would create a public hospital infrastructure account funded by a new annual coverage assessment on insurers and other businesses subject to the premium tax, and would allow public hospital districts and other public health entities to collaborate more freely and access capital financing for major construction or modernization projects. Senator Dhingra said the bill is intended to help public hospitals compete and modernize, especially amid federal Medicaid and ACA subsidy cuts. Supporters included UW Medicine, while hospital districts supported the general concept but said Section 2 could unintentionally narrow existing cooperative agreements with nonpublic entities. Health plans and insurers opposed the bill, arguing it would raise premiums, increase consolidation, and improperly sweep in property and casualty insurers and mutual companies; testimony also raised concerns about pass-through costs and retaliatory tax effects. The hearing on SB 6159 closed with 5 pro, 74 con, and 2 other sign-ins. The committee then heard SB 5845, which would modernize timely payment rules by requiring carriers and public employee plans to pay or deny all clean claims within 30 days, require prompt notice and a single request for additional information on incomplete claims, and impose interest or penalties for missed deadlines. Senator Slaughter said the bill would reduce uncertainty for providers and stabilize payments without increasing patient costs. Hospitals, physicians, and health systems strongly supported the measure, citing large volumes of late clean claims and examples of prolonged delays, including a Harborview claim that remained unpaid more than a year after billing. Health plans opposed the bill, saying the current 95% standard is workable, that they already meet high compliance rates, and that the bill could limit fraud, waste, and abuse review on high-dollar claims; they also sought more flexibility and additional time for responses. The hearing closed with 69 pro, 4 con, and 2 other sign-ins. The committee also heard SB 5916, which would prohibit health plans from disadvantaging non-opioid pain treatments relative to opioids in formularies and utilization management, and would require a Department of Health educational pamphlet on non-opioid alternatives. Senator Harris described the bill as a response to opioid deaths and a way to encourage safer pain treatment options. Patients, recovery advocates, and rare disease advocates testified in support, saying insurance barriers and step therapy often make non-opioid care harder to access and can push patients toward opioids. The Health Care Authority and an association of health plans opposed the bill, arguing it could reduce formulary flexibility, increase costs, and limit tools such as prior authorization and step therapy. The hearing closed with 8 pro, 1 con, and 2 other sign-ins. Finally, the committee heard SB 6102 and SB 6103, both sponsored by Senator Muzzall, and SB 6071. SB 6102 would align the ambulance transport quality assurance fee with federal rules after H.R. 1 barred new provider taxes, preserving the existing fee rate and adjusting the Medicaid add-on rate annually; the Washington Ambulance Association supported it, saying the program had improved wages and benefits for EMS workers. SB 6103 would make Medicaid payments for services provided by a rural emergency hospital subject to appropriation, creating a framework for East Adams Rural Health Care to convert to the new federal rural emergency hospital model; East Adams and the Washington State Hospital Association supported it as a way to preserve rural access. SB 6071 would shorten overpayment recovery timelines for all services to six months, or nine months for coordination-of-benefits cases, matching the shorter timelines already enacted for behavioral health services; providers and specialty associations supported the bill as a way to reduce destabilizing clawbacks, while the remaining testimony was still underway when the transcript ended.

Transcript Highlights:

• You want an unequal health care system. You want people to be excluded.
• It is not a call to amend the revival system.
• And is that a weakness in the data collection system?
• And then beyond that was to come up with a common classification system.
• And we used the workers' compensation classification system as an example.

Summary: The Assembly Budget Subcommittee on Accountability and Transparency held a hearing focused on three issues: federal funding cuts and delays, possible state revenue impacts from reduced IRS enforcement, and the fiscal effects of AB 218 on local governments. The Franchise Tax Board described how state and federal tax systems are closely linked, how most returns are filed electronically through software, and how FTB relies on IRS information sharing for compliance, fraud prevention, offsets, and nonfiler work. Members raised concerns that federal staffing cuts at the IRS could weaken audits of large corporations and reduce California revenue, and asked about VITA and ITIN filers; FTB said it was not aware of VITA reductions, noted ITIN returns are processed the same as other returns, and said ITIN filing appeared slightly down this year. The Department of Finance said it is monitoring federal developments, summarized the continuing resolution and reconciliation process, and noted that California lost nearly $940 million in earmarked federal projects under the CR, while major federal budget decisions remain uncertain until the President’s budget and later congressional action. The University of California reported substantial federal pressure on research, student aid, and health care. UC said hundreds of millions of dollars in federal awards have already been canceled, with additional threats to NIH and DOE facilities-and-administration rates, graduate fellowships, student loan repayment plans, international student visas, Pell Grants, and Medicaid/Medi-Cal funding. Committee members pressed UC on the effects of DEIA-related federal restrictions, the loss of clinical trials and research staff, and the impact on low-income students and patients. UC said it is pursuing litigation with the Attorney General and other institutions, but emphasized that court action is only a temporary solution and that sustained state and private support may be needed. The second panel addressed the fiscal consequences of AB 218, which extended the statute of limitations for childhood sexual abuse claims against public agencies. FCMAT presented a report with 22 recommendations, including better statewide data collection, financing mechanisms, a possible victims compensation fund, and prevention measures. Los Angeles County described a tentative $4 billion settlement tied to AB 218 claims, saying it will require reserves, borrowing, and long-term annual payments through 2050, while also forcing curtailments and cuts to vacant positions to preserve services. Members discussed insurance pools, retroactive premiums, unidentified future claims, and the need for a compensation fund or other financing tools. No formal votes were taken; the hearing concluded with public comment, including testimony from local health officials about nearly $400 million in terminated federal public health grants and the resulting layoffs and service impacts.

Transcript Highlights:

• So, we've got some sort of a system in place now that addresses those 1 through 6.
• So, this tiered system that we're adding, they're on page three.
• This tiered system seems a little vague.
• So and We've got a system in place currently that addresses how that's known.
• A breach of the security system would be hackers.

Bills: SB1670 , SB1716 , SB1521

Committee: Senate Technology and Telecommunications

Keywords: higher education, state regents, university research, technology transfer, intellectual property, patent ownership, royalty income, commercialization, startup companies, research partnerships, public universities, faculty inventions, student inventions, innovation policy, economic development, medical technology, biotechnology, energy technology, telecommunications, aerospace and defense

Transcript Highlights:

• because we were on 11 different systems, so that was highly inefficient.
• And we applied that to the ongoing maintenance of our new one system, a single system for licensing and
• The new automated system—some I wouldn't even call it a system that existed before—meant that there were
• So the new automated system allows us... ...or time-consuming.
• So the new automated system allows us to get on one system. Everything flows through that system.

Committee: House Health and Welfare

Keywords: 989, all

Transcript Highlights:

• This concludes the findings for the University of Arkansas System.
• I'm the Chief Audit Executive for the University of Arkansas System.
• Ben Beaumont, Director of Policy for the University of Arkansas System. Good afternoon.
• And I will reiterate, the federal FAFSA system awarded them all aid.
• And I assume it's sharing across the systems, but do you know if...

Committee: All LEGISLATIVE JOINT AUDITING-EDUCATIONAL INSTITUTIONS

Summary: The House and Senate Legislative Audit committee met to approve prior minutes and review four higher education audit reports. Staff first presented the University of Arkansas System report, which included three findings that had been certified and referred to the Governmental Bonding Board, the attorney general, and the appropriate prosecuting attorney: unauthorized purchases at UAPB totaling about $37,000, a fraud scheme involving falsified FAFSA/transcript records at East Arkansas Community College with about $66,000 in losses, and unallowable charges in the Veterans Upward Bound program at UA Fayetteville totaling $8,500, of which $6,700 was recovered. Committee members praised the institutions’ internal audit and management teams for identifying the issues and asked detailed questions about how the fraud was detected, especially the online student identity-theft scheme at EACC and the safeguards now being used to verify student identity and prevent similar cases. EACC officials explained that the fraudulent admissions involved online applicants using falsified transcripts and identity-theft tactics, that 39 suspicious students were identified, and that seven slipped through far enough to receive federal aid, resulting in a $2,500 reimbursement obligation to the university. They said the college now uses a cross-departmental student validity team, extensive red-flag protocols, direct outreach to high schools, ID verification, and other checks, and that the issue has been shared across the UA system and with other campuses. UA Fayetteville also clarified that no veterans were harmed by the Veterans Upward Bound finding; the program was closed and students were redirected to other veteran support programs in the state. The committee then deferred the Northwest Arkansas Community College report. Staff next summarized two additional reports, from Southeast Arkansas College and Southern Arkansas University Tech, which contained only financial statement misstatements corrected during audit fieldwork; SAU Tech also had a finding involving unauthorized withdrawals that the college discovered and recovered. With no further questions, the committee voted without objection to file the reviewed reports and adjourned.

Transcript Highlights:

• This includes funding for a case management system for our contested cases, a task that is currently
• This system will improve data collection, provide greater transparency, and increase internal efficiency
• We'd like to build this case management system using that platform that we, OK, um, it states, um.
• They helped us reach out to a number of vendors that have case management systems of various types, sat
• in with us on the demos of various systems, and kind of help us put together the plan and kind of the

Committee: House Appropriations - S/C on Articles VI, VII, & VIII

Transcript Highlights:

• Superintendent Tyler is over the Baldwin County Public School System, which does remarkable work.
• This bill also requires... ...system.
• I do want to thank the folks at the Alabama Community College System.
• . ...through the community college system when it comes to GED.
• The bulk of what we do in GED in the state of Alabama is through the community college system.

Bills: SB140 , HB102 , SB133 , SB34

Committee: House Education Policy

Keywords: Coach Safely Act, youth athletics, noncompliance penalties, Department of Public Health, youth athlete, dual enrollment, high school, community college, university, educational access, high school credit, violence prevention, conflict resolution, mediation, public education, high school graduation, 1136, house, all

Transcript Highlights:

• </c><00:04:10.879><c> or</c> resource-based relative value system or resource-based relative value system
• </c><00:56:55.039><c> money</c> overall health care System money overall health care System money focusing
• </c><01:10:04.320><c> right</c> to tie to other than that system right to tie to other than that system
• </c> now but just understand that that system now but just understand that that system is<01:10:06.840
• </c> to be in school and our school systems to be in school and our school systems are<01:19:13.760><

Bills: HF1005

Committee: House Human Services Finance and Policy

Keywords: health insurance, medical assistance, behavioral health, reimbursement rates, primary care services, physician fee schedule, managed care, residential services, 1183, house

Transcript Highlights:

• And so in every other parish, the clerk and the court system rely upon...
• So we're going to have two systems ostensibly under one person overnight.
• He availed himself of our legal system to win back his freedom.
• And so for us, changing this system disrupts that system overnight.
• And so for us, changing this system disrupts that system overnight.

Bills: SB256

Committee: House Judiciary

Keywords: court consolidation, judicial administrative, Orleans Parish, civil district court, criminal district court, court clerk, judicial funding, 965, house, all

Transcript Highlights:

• An equally important part of our work involves making it easier for people to access the court system
• in the first place, and for them to navigate with confidence and dignity through that system.
• They are daily reminders that safeguarding the justice system requires constant vigilance.
• We surveyed court users, judges, clerks, and justice system partners about their experiences with our
• That shared responsibility remains at the heart of our constitutional system.

Summary: The House convened with roll call, prayer, and the Pledge of Allegiance, then approved the journal from the previous legislative day. In committee reports, several measures were printed and referred: House Joint Memorial 9, House Resolution 19, House Concurrent Resolution 22, and House Bills 499 through 506 were assigned to the appropriate standing committees or calendars. Later, House Bills 507 through 510 were also introduced and referred for printing, including a transportation bill on vehicle inspections, a government transparency and ethics bill, and other technical or policy measures. The House also took up House Resolution 20, a State Affairs Committee resolution condemning political violence, honoring victims, and urging Idahoans to reject political violence. During announcements, members noted the Chief Justice’s scheduled address, a birthday recognition for the Sergeant at Arms, a gallery introduction, and an invitation to a legislative reception hosted by the Idaho Association of Building Officials. Committee meeting schedules for the week were also read into the record. Chief Justice G. Richard Bevan addressed the House on the state of Idaho’s judiciary, emphasizing fiscal restraint, rising caseloads, treatment courts, mediation, access to justice, courthouse modernization, security concerns, cybersecurity threats, and civic education efforts. He highlighted the judiciary’s use of existing resources, the importance of peer support in mental health courts, and ongoing collaboration with counties and the legislature. The House responded appreciatively, and then adjourned until 11:00 a.m. on Wednesday, January 21, 2026.

Transcript Highlights:

• How many times have they had to come and ask for the increase within the system?
• “Pretrial release is an important part of our judicial system.
• system is smart.
• The judge would have would drop off the system there. I don't know.
• But I would think they're right. ...the system.

Committee: House Corrections and Public Institutions

Summary: The committee first met in executive session and adopted a House Committee substitute combining House Bills 2592, 2834, and 2787 into one measure. The combined substitute was then voted do pass by a unanimous roll call, recorded as 15 ayes and 0 noes after a brief correction to the tally. The committee then heard House Bill 1786, which would raise the Highway Patrol’s spending threshold for purchasing vehicles, watercraft, aircraft, and related specialized equipment without returning to the legislature from $100,000 to $500,000. The sponsor and Highway Patrol witnesses said the current cap is outdated because boats, armored vehicles, bomb trucks, and aircraft equipment now cost far more than $100,000, while members asked about inflation, the revolving fund, and whether a lower increase might be more appropriate. No opposition testimony was offered. Next, House Bill 2885 was heard. It would redirect the first $1 million in annual boat registration fee revenue away from general revenue and into the Missouri Water Patrol Division. The sponsor and Highway Patrol said registration revenue has declined while operating costs have risen, and the division needs the money to support enforcement, search and rescue, dive operations, and boating safety programs. Members asked how much revenue is collected and whether the change would affect other programs; testimony indicated the bill would mainly earmark existing revenue rather than increase overall department funding. The committee also heard House Bill 2694, which would exempt four fee-supported funds from the end-of-biennium sweep to general revenue: the Highway Patrol Academy Fund, the State Forensic Laboratory Account, the Boiler and Pressure Vessels Safety Fund, and the Elevator Safety Fund. The sponsor and Department of Public Safety witnesses said the sweeps make long-term planning difficult and can disrupt training, lab support, and safety inspection operations, though members raised concerns about excess balances, guardrails, and whether fee reductions should be considered if reserves grow too large. Finally, House Bill 1712 was heard; it would make intentionally failing to charge an electronic monitoring device a crime, closing a loophole in existing tampering law. The sponsor, a sheriff, and other witnesses said the bill addresses deliberate attempts to evade monitoring, while members discussed battery warnings, rural access to electricity, and the costs and benefits of pretrial release. No votes were taken on the later bills before the committee adjourned.

Transcript Highlights:

• board meeting, the board unanimously adopted a resolution to transition the Conecuh County school system
• school system from an elected<00:09:37.760><c> superintendent</c><00:09:39.040><c> to</c><00:09:39.200
• It is about doing what is right for our educational system. Thank you for your remarks.
• Okay, so how does the system work when you have a superintendent every year?
• Particular local school system wants to engage in their own search, then that will be up to them.

Bills: HB180

Committee: House Local Legislation

Keywords: education, county superintendent, appointed, elected officials, Conecuh County, local control, 1136, house, all

Transcript Highlights:

• the University System, counties, cities, and industry representatives.
• Like that system is an older system, not ADA compliant.
• Got until the judicial system gets more.
• Is there any discussion about trying to build a truly consolidated system?
• It's a compromise to make the system better, right?

Summary: The task force reviewed survey results from state agencies on potential statutory revisions, with Levi reporting 70 proposals from 20 agencies and noting that about 33 might become agency pre-file bills. Members discussed the need to share the survey more broadly within higher education and to better coordinate issues involving IT and other cross-agency functions. The task force then heard from the Office of Management and Budget on three topics: concessions, architect/engineering pre-qualification, and legal notices. OMB said the concessions law is outdated and inconsistent with current practice, and suggested a collaborative rewrite to allow best-value evaluation, raise the threshold, and standardize solicitation templates. On architect/engineering pre-qualification, OMB proposed expanding authority beyond current state-agency limits and creating uniform templates. On legal notices, OMB proposed modernizing publication requirements, exploring online and abbreviated notices, and working with newspapers and other stakeholders on technology and accessibility improvements. Members asked about where concession revenues go, whether political subdivisions must follow the same rules, and how to move from discussion to action. The task force agreed to have OMB work with Legislative Council and affected stakeholders to develop bill drafts, and the motion passed unanimously. The University of North Dakota then presented a series of proposed revisions focused on public buildings and procurement. UND asked to rework the definition of construction so routine maintenance and one-for-one replacements over $250,000 would not automatically trigger public-improvement requirements, suggested raising the threshold to $500,000, and asked for more flexibility based on project complexity and risk. UND also proposed changes to public bid advertisements to reflect electronic bidding, revisions to construction manager-at-risk selection criteria, changes to architect/engineer procurement rules, an increase in the direct-hire design threshold, and a higher legislative-consent threshold for privately funded projects. The task force supported having UND work with counsel and OMB to develop bill drafts, and that motion also passed. The Department of Public Instruction concluded with proposed cleanup to credentialing and education statutes. DPI recommended reviewing its credential categories for relevance, possibly transferring credentialing authority to the Education Standards and Practices Board, removing outdated school safety patrol language, clarifying waiver provisions, and updating dyslexia screening reporting requirements so the statute reflects current practice. Members focused mainly on whether the dyslexia reporting requirement should remain, and DPI said the screening itself would continue even if reporting language were revised. No votes were taken on DPI’s suggestions, and the task force recessed after the presentation.

Transcript Highlights:

• Uh, we got a great school system and we appreciate you, Dr.
• I was elected school system and we appreciate you, Dr. school system and we appreciate you, Dr.
• ,</c><00:36:32.640><c> the</c> that we now have within our system, the that we now have within our system
• that uh normally might be even systems that uh normally might be your<00:39:01.440><c> systems</c><00
• Well, there is real difference in school systems.

Committee: House Education Policy

Keywords: 1136, house, all

Transcript Highlights:

• . systems. systems.
• information system.
• upgrades system um for up systems upgrades system development.<00:56:40.319><c> Is</c><00:56:40.559>
• 57:11.680><c> system.
• Thank you. systems, and to communities. Now, as systems, and to communities.

Bills: HF3439 , HF3763

Committee: House Health Finance and Policy

Keywords: Medical Assistance, Medicaid, MNsure, MinnesotaCare, disability determination, expedited eligibility, state medical review team, compassionate allowance, rare disease, home and community-based services, long-term care, managed care, county-based purchasing, eligibility redetermination, periodic data matching, death master file, Social Security Administration, program integrity, income eligibility, asset test

Transcript Highlights:

• </c><00:48:18.200><c> as</c> the metro as well as rural systems as the metro as well as rural systems
• </c><01:07:26.840><c> I</c> It's old piping and sewer systems. I It's old piping and sewer systems.
• 14:48.560><c> electrical</c><01:14:49.080><c> systems</c> system, many of our electrical systems system
• . impact on the system.
• The regional park system in the metro area is our park system.

Committee: Senate Capital Investment

Keywords: 1187, senate, all

Transcript Highlights:

• systems.
• Many systems will require a phased approach to replace all necessary service lines within their system
• Many systems will to replace them.
• </c> particular service area for that system. particular service area for that system.
• </c><00:32:17.440><c> An</c> systems are all privately owned. An systems are all privately owned.

Committee: Senate Capital Investment

Keywords: 1187, senate, all

Transcript Highlights:

• </c> and other individual Wastewater systems and other individual Wastewater systems that<00:44:30.079
• </c> 734 relating to Wastewater systems 734 relating to Wastewater systems requires<01:02:20.960><c>
• </c> relating to Wastewater systems relating to Wastewater systems establishes<01:05:55.760><c> and</
• </c><01:05:58.559><c> and</c> three-year new Wastewater system and three-year new Wastewater system and
• </c> we'd have to add another septic system we'd have to add another septic system for<01:15:24.400><

Committee: House Energy & Environmental Protection

Keywords: 910, house, all

Summary: The committee heard several energy and environmental bills. On HB 974, which would authorize state step-in agreements for certain power purchase agreements and create a trust fund/reserve mechanism, the Attorney General’s office raised concern that the state should not incur liability beyond the trust fund. The Division of Consumer Advocacy said it had comments but did not take a position, while the Public Utilities Commission, Ameresco, Hawaiian Electric, and other industry groups supported the measure, saying it would help developers secure financing for renewable projects and improve reliability. Hawaiian Electric said the bill would not use state funds and that its proposed reserve account would be held in trust and returned to customers if unused. Committee members questioned whether the reserve would raise customer costs; Hawaiian Electric said the amount would be small and would be offset by avoiding higher financing costs, while Consumer Advocacy suggested the language should be strengthened to ensure unused funds are fully returned. The committee then heard HB 338, which would clarify that premium interest-rate adjustments for non-fossil fuel generation are just and reasonable and allow the PUC to include them in rates. DCCA and the State Energy Office supported the bill, and the PUC also supported it. Hawaiian Electric opposed unless amended, arguing the PUC already has discretion and warning the bill could weaken competitive procurement by encouraging higher bids tied to the utility’s credit rating. DCCA said the concern was that developers might not seek the best financing if premium rates are recoverable, but said Hawaiian Electric’s suggested amendment requiring clear and convincing evidence of unavoidable financing-cost increases would help. Members also asked about refinancing and whether developers could later lower debt costs after locking in a premium rate; DCCA said that ability exists and suggested a time limit or review mechanism. For HB 337, which would direct the PUC to establish standards requiring utilities to remove certain fossil-fuel costs from the rate base when adding renewable resources, the Department of Hawaiian Home Lands, Hawaii Clean Power Alliance, and the State Energy Office supported the measure. Hawaiian Electric opposed it, saying it misunderstood utility cost recovery and could threaten grid reliability because fossil plants provide ancillary services such as voltage regulation and balancing, not just energy. Hawaiian Electric pointed to its integrated grid plan and recent fossil-unit retirements as evidence of ongoing transition, and asked the committee to defer the bill and leave oversight to the PUC. The committee also heard HB 879 on cesspool conversions, which would raise the maximum grant from $20,000 to $30,000 and add DOH positions; DHHL, DOH, environmental groups, Hawaii Realtors, and others supported it, while DOH discussed staffing needs and the practical effect of the higher grant cap. The committee also began HB 379 on requiring denitrification capacity for certain wastewater systems near shorelines or groundwater, with DLNR testifying in support.