STAND. COM. REP. NO. 559

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 384
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 384 entitled: 

     "A BILL FOR AN ACT RELATING TO PUBLIC UTILITIES,"

begs leave to report as follows:

     The purpose of this measure is to require that new forty-six
kilovolt or greater high voltage electric transmission systems in
residential areas, areas viewed by visitors, or areas important
to the film industry be buried underground.

     The Life of the Land, Ho'olaulima O Palolo, and two
individuals presented testimony in support of the measure.  Na
Leo Pohai and an individual, though not present at the hearing,
submitted written testimony in support of the measure.  The
Environmental Center of the University of Hawaii presented
testimony in support of the measure's intent and proposed an
amendment.  The Democratic Party, though not present at the
hearing, submitted written testimony in support of the measure's
intent and proposed an amendment.  

     The Public Utilities Commission (PUC), the Consumer
Advocate, the Hawaiian Electric Company, the Hawaii Electric
Light Company, Maui Electric Company, and Kauai Electric
presented testimony in opposition to the measure. 

     Your Committee finds that the preservation and protection
of Hawaii's mountains, valleys, coasts, and other scenic areas
are critical to the health and vitality of the State's tourism

 
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                                   STAND. COM. REP. NO. 559
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industry.  Preservation of these resources is also important to
Hawaii's film industry since the State's unique and natural
beauty is what also draws production companies to film their
movies and television shows in the State.  

     Your Committee further finds that high-voltage overhead
transmission lines create a visual blight and detract from the
islands' natural beauty.  Requiring underground placement and
insulation of high-voltage transmission lines in scenic areas and
areas important to the film industry will help to preserve the
State's tourism and film industries. 

     Your Committee has amended this measure by:

     (1)  Replacing the word "visitors" with the word "tourists";

     (2)  Providing that the requirements implemented by the
          measure shall apply to all applications for
          construction of a forty-six kilovolt or greater high-
          voltage electric transmission system, including those
          approved by the PUC prior to the measure's effective
          date, unless construction of the system has been
          completed; and 

     (3)  Making technical, nonsubstantive amendments. 

     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 S.B. No. 384, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 384, S.D. 1, and be placed on the calendar for Third Reading.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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