STAND. COM. REP. NO. 1343

Honolulu, Hawaii

, 2005

RE: H.R. No. 159

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.R. No. 159 entitled:

"HOUSE RESOLUTION RELATING TO RENEWABLE ENERGY TECHNOLOGIES,"

begs leave to report as follows:

The purpose of this measure is to request the Legislative Reference Bureau to prepare a report comparing the incentives provided by other states to encourage increased photovoltaic generation of electricity.

The measure also requests the Department of Taxation to prepare a report on the projected cost implications to the State of implementing tax credits of the cost of installing residential photovoltaic systems.

The Legislative Reference Bureau, the Public Utilities Commission, Hawaiian Electric Company, and the Hawaii Solar Energy Association presented comments on the measure.

Your Committee finds that the task requested of the Department of Taxation has already been completed. The information regarding the revenue implications of tax credits for photovoltaic systems is available in the Report of the Energy-Efficiency Policy Task Force of 2002. There remains, however, a need for information regarding the potential implications of residential and commercial use of photovoltaic systems on electric utilities and markets. Your Committee further finds that an analysis is needed comparing the future price trends of fossil fuels and photovoltaics, incorporating factors such as recent increases in petroleum prices and the decreasing costs of photovoltaic technology.

Your Committee has amended this measure by deleting the contents of the measure, changing the title, and inserting a provision that requests the Department of Business, Economic Development, and Tourism to prepare a four-part report discussing and examining:

(1) The historical price trend for photovoltaic electricity use in Hawaii and the mainland United States;

(2) The historical price trend for utility-provided electricity in Hawaii;

(3) The date when these two trends are likely to converge; and

(4) A sensitivity analysis of the previous trends for both financed and non-financed photovoltaic systems, a high and low future price of petroleum, and other factors as determined by the department.

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee concurs with the intent and purpose of H.R. No. 159, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.R. No. 159, H.D. 1.

 

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

 

____________________________

HERMINA MORITA, Chair