STAND. COM. REP. NO. 3023

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 1883
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred H.B. No. 1883, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY RESOURCES,"

begs leave to report as follows:

     The purpose of this measure is to lessen the State's
dependence on imported fossil fuels and stimulate the development
of renewable energy resources in the State by requiring electric
utilities to implement renewables portfolio standards.

     Testimony on the measure was submitted by the Consumer
Advocate, Department of Business, Economic Development, and
Tourism, Kauai County Council, Maui County Council, The Solaray
Corporation, Puna Geothermal Venture, Ogden Energy Group, Inc.,
Life of the Land, Environmental Center, Hawaiian Electric
Company, Inc., Sierra Club, Hawaii Chapter, Kauai Electric,
Hawaii Renewable Energy Alliance, Powerlight Corporation, Zond
Pacific, Inc., and an individual.

     Your Committee finds that the use of renewable energy offers
economic and environmental advantages over the use of fossil
fuels.  This measure would stimulate the demand for renewable
energy generation by establishing a market for renewable energy
resources.  The production of energy from locally available
resources is one of the goals of the State Energy Plan and the
implementation of renewables portfolio standards has been

 
a                                                     HB1883 SD1
 
                                   STAND. COM. REP. NO. 3023
                                   Page 2


identified as the single most effective means of accomplishing
that goal.

     Upon careful consideration, your Committee has amended this
measure by replacing its contents with the contents of
S.B. No. 2345, S.D. 2, a similar measure passed out earlier by
the Senate.  As amended, this measure:

     (1)  Expands the definition of "qualified electric utility
          company" to include utilities with electricity sales in
          excess of four hundred million kilowatt-hours per year;

     (2)  Includes waste-to-energy in, and excludes ocean thermal
          energy conversion from, the definition of "renewable
          energy";

     (3)  Specifies minimum renewables portfolio standard
          percentages and annual percentage point increases;

     (4)  Deletes the provisions relating to solar renewables
          portfolio standards;

     (5)  Allows utilities to accumulate renewable energy
          credits;

     (6)  Provides that the Act takes effect upon approval; and 

     (7)  Makes technical, nonsubstantive amendments for purposes
          of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1883, H.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1883, H.D. 2, S.D. 1, and be referred to the
Committee on Ways and Means.


 
a                                                     HB1883 SD1
 
 
 
 
 
 
 
 
 
                                   STAND. COM. REP. NO. 3023
                                   Page 3


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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
a                                                     HB1883 SD1