STAND. COM. REP. NO. 2197

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2345
                                        S.D. 1




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

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 2345 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to encourage the development
of renewable energy resources in the State by requiring electric
utilities to implement renewables portfolio standards and the
Public Utilities Commission (PUC) to establish a renewable energy
credits program.

     Testimony in support of the measure was submitted by the
Department of Business, Economic Development, and Tourism,
University of Hawaii at Manoa Environmental Center, Kaua'i
Renewable Energy Hui, Renewable Energy Services, Inc., Pacific
Region Powerlight Corporation, Pacific Biodiesel, Inc., Puna
Geothermal Venture, Sierra Club, Hawai'i Chapter, Life of the
Land, Gay and Robinson, Inc., Hawaii Renewable Energy Alliance,
and several individuals.  The PUC and Hawaiian Electric Company,
Inc., submitted testimony in opposition to the measure.  The
Department of Commerce and Consumer Affairs, Office of Economic
Development of the County of Kauai, Kauai Electric, and Ogden
Energy Group, Inc., submitted comments. 

     Your Committee finds that the use of renewable energy offers
the State social, economic, and environmental benefits, and that
the development of renewable energy resources would lessen the
State's dependence on imported fossil fuels.  This measure would

 
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stimulate the demand for renewable energy generation by
establishing a market for renewable energy resources.  The
production of energy from locally available resources is one of
the goals of the State Energy Plan and the implementation of
renewables portfolio standards has been identified as the single
most effective means of accomplishing that goal.    

     Your Committee has amended this measure by:

     (1)  Revising the definition of "biomass" to include organic
          residues and to exclude a reference to coal-fired power
          plants; 

     (2)  Expanding the definition of "qualified electric utility
          company" to include utilities with electricity sales in
          excess of four hundred million kilowatt-hours per year; 
     
     (3)  Broadening the definition of "renewable energy" to be
          consistent with current usage and include waste-to-
          energy, and deleting a reference to hydropower dams
          from the definition;

     (4)  Specifying minimum renewables portfolio standard
          percentages and annual percentage point increases;

     (5)  Allowing utilities to accumulate renewable energy
          credits; and

     (6)  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. 2345, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 2345, S.D. 1, and be referred to the Committee on Ways and
Means.


 
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                                   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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