STAND. COM. REP. NO. 332-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1884
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Energy and Environmental Protection, to
which was referred H.B. No. 1884 entitled: 

     "A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

     The purpose of this bill is to enhance the development of
alternative energy in the State.  This bill establishes a two-
year net energy metering project within the Public Utilities
Commission (PUC).

     Net metering allows consumers to offset the cost of
electricity they buy from a utility by selling renewable electric
power generated at their homes or businesses.  In essence, a
customer's electric meter can run both forward and backward in
the same metering period, and the customer is only charged for
the net amount of power used.

     The Hawaii Renewable Energy Alliance, the Apollo Energy
Corporation, Life of the Land, Malama o Manoa, a member of the
Maui County Council, and one individual testified in support of
this measure.  The Department of Business, Economic Development,
and Tourism and the Sierra Club, Hawaii Chapter, supported the
intent of this bill.  The PUC, the Consumer Advocate, Kauai
Electric, and Hawaiian Electric Company and its subsidiary
utilities, Maui Electric Company and Hawaii Electric Light
Company opposed passage of this measure.


 
 
 
                                 STAND. COM. REP. NO. 332-00
                                 Page 2

 
     Some testified that Chapter 269, Hawaii Revised Statutes,
already provides for a net energy metering program.  However,
others indicated that Hawaii's program differs from those in
other states, because Hawaii requires two meters:

     (1)  One meter to measure the electricity supplied by a
          utility; and

     (2)  A second meter to measure the electricity generated by
          an eligible customer-generator and fed back to the
          utility.

     Your Committee recognizes that H.B. No. 2701 establishes a
renewable energy demonstration project in the Department of
Education (DOE).  As part of this project, photovoltaic systems
and energy storage devices will be installed in selected public
schools.  In order to measure net electricity flow, the
participating public schools may use single, reversible, non-
time-differentiated meters.

     This demonstration project represents an ideal opportunity
for the PUC to gather important data on the use of net metering.
Accordingly, your Committee has amended this bill by:

     (1)  Deleting the requirement that the PUC select a utility
          to participate in its net metering pilot project;

     (2)  Directing the PUC to instead gather data on net
          metering by studying its use in DOE's renewable energy
          demonstration project;

     (3)  Requiring the DOE to assist the PUC in its study; and

     (4)  Making technical, nonsubstantive amendments for the
          purpose of consistency.

     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 1884, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
1884, H.D. 1, and be referred to the Committee on Consumer
Protection and Commerce.


 
 
 
 
 
                                 STAND. COM. REP. NO. 332-00
                                 Page 3

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



                                   ______________________________
                                   HERMINA M. MORITA, Chair