STAND. COM. REP. NO. 2928

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 1884
                                        H.D. 2




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

Sir:

     Your Committees on Commerce and Consumer Protection and
Education and Technology, to which was referred H.B. No. 1884,
H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO ENERGY,"

beg leave to report as follows:

     The purpose of this measure is to advance the State's
knowledge and understanding of net metering systems.

     Testimony on the measure was submitted by the Public
Utilities Commission (PUC), Department of Business, Economic
Development, and Tourism, Maui County Council, Life of the Land,
Kauai Group Sierra Club, Kauai Renewable Energy Hui, Renewable
Energy Services, Inc., Melody Farm, Hawaiian Electric Company,
Inc., Kauai Electric, Hawaii Renewable Energy Alliance, and three
individuals. 

     Net metering promotes and encourages the use of renewable
energy resources by allowing consumers to offset the cost of
electricity purchased from a utility by selling renewable
electric power generated within their homes and businesses.  The
advantages to the State offered by a thriving renewable energy
industry include diversification of the State's economic base, a
decreased dependence on imported fossil fuels, and a cleaner
environment.  At least thirty states have recognized the benefits
of net metering and adopted some form of net metering program. 


 
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                                   STAND. COM. REP. NO. 2928
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     This measure intends to further the State's understanding of
net metering systems by requiring the PUC to conduct a study on
the feasibility of implementing a net metering program in the
State that includes data on the Department of Education's
renewable energy demonstration project.

     Your Committees are aware of the lack of an effective date
for this measure, but note that Attorney General Opinion No.
86-12 states that a bill without an effective date is effective
upon approval.  Your Committees have no reason to amend this bill
which would result in an unnecessary conference. 

     As affirmed by the records of votes of the members of your
Committees on Commerce and Consumer Protection and Education and
Technology that are attached to this report, your Committees are
in accord with the intent and purpose of H.B. No. 1884, H.D. 2,
and recommend that it pass Second Reading and be referred to the
Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Commerce and
                                   Consumer Protection and
                                   Education and Technology,



____________________________       ______________________________
DAVID Y. IGE, Chair                BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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