STAND. COM. REP. NO. 1563

Honolulu, Hawaii

, 2001

RE: H.B. No. 173

H.D. 2

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 173, H.D. 2, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to require qualified electric utilities to possess unspecified minimum percentages of renewable energy resources within their overall resource portfolios and to provide for the issuance of renewable energy credits to renewable energy generators.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism, the Consumer Advocate, the University of Hawaii at Manoa Environmental Center, a member of the Kauai County Council, Apollo Energy Corporation, Life of the Land, Sierra Club Hawaii Chapter, and sixteen businesses and individuals. The Public Utilities Commission submitted testimony in opposition. Hawaiian Electric Company, Inc., and Kauai Electric, submitted comments.

Your Committee finds that the production of energy from locally available sources has long been a State objective, and instituting a renewables portfolio standard has been identified as the single most effective means of accomplishing that and Hawaii's other energy objectives.

Your Committee further finds that recently completed analyses have confirmed that a standard of 10.5% by the end of 2010 would be reasonable and cost effective. Analysis also shows that such a standard is not likely to result in increased costs, and could very well reduce costs to taxpayers through decreased reliance on imported oil.

Your Committee has amended the measure by:

(1) Substantially recasting the purpose section of the measure;

(2) Deleting the phased implementation of renewables portfolio standards contained in section 3 and leaving the percentage blank;

(3) Deleting the remaining portions of the measure;

(4) Inserting general provisions on the implementation of renewable portfolio standards that:

(A) Allow an electric utility company and its electric utility affiliates to aggregate their renewable portfolios including demand-side management and energy efficiency programs in order to achieve the renewable portfolio standard;

(B) Require that any electric utility company not meeting the renewable portfolio standard report to the Public Utilities Commission within ninety days of December 31, 2010, with an explanation; and

(C) Enable the Public Utilities Commission to either grant a waiver from the renewables portfolio standard or an extension for meeting the prescribed standard;

(5) Inserting provisions that provide net energy metering for eligible customer-generators and to provide for monthly billing and an annual reconciliation period;

(6) Changing the effective date to July 1, 2050; and

(7) Making technical amendments for the purposes of conformity and clarity.

Your Committee finds that net energy metering would support Hawaii's energy objectives by encouraging the use of renewable energy through the diversification of our energy sources, reduction of the need for imported oil, support of local businesses, and reduction of pollution and greenhouse gas emissions. To date, net energy metering legislation has been enacted in thirty other states.

Your Committee further finds that it would allow Hawaii's regulated monopoly system to provide some flexibility to customers. This would encourage small renewable energy systems, with a minimum of cost, effort, or government intervention.

Your Committee believes that the amended measure supports a diverse energy resource portfolio as a prudent response to rising consumer costs and growing energy needs.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 173, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 173, H.D. 2, S.D. 2.

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

____________________________

RON MENOR, Chair