STAND. COM. REP. NO. 2723

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2345
                                        S.D. 2




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2345, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to require qualified electric
utility companies to implement "renewables portfolio standards".

     In addition, this bill requires these utilities to possess a
minimum percentage of minimum energy resources within their
overall resource portfolios, and requires the Public Utilities
Commission to establish a program to issue renewable credits to
renewable energy generators by January 1, 2001.  The bill also
requires, beginning in the year 2002, that each qualified
electric utility company submit an application to the Commission
containing evidence of ownership of sufficient renewable energy
credits to satisfy the renewables portfolio standard for the
previous year, and allows the Commission to impose administrative
penalties for violations.  The Commission is also required to
report annually to the Legislature regarding the implementation
of the program, including any recommendations to achieve
increased use and availability of renewable energy in the State.

     Your Committee finds that "renewables portfolio standards"
are a flexible, market-driven policy that seeks to ensure that a

 
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                                   STAND. COM. REP. NO. 2723
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minimum amount of wind, solar, biomass, geothermal, and other
renewable energies are included in the portfolio of electricity
resources serving the State through the establishment of
renewable energy credits.  Your Committee finds that by
increasing the required percentages of these renewable energies
over time, the standard seeks to increase the sustainability of
the electricity industry in Hawaii.  Renewables portfolio
standards rely almost entirely on the private market for its
implementation, which will result in increased competition,
efficiency, and innovation that seeks to deliver renewable energy
at the lowest possible cost.

     Your Committee finds that requiring electric utilities to
implement renewables portfolio standards and the Public Utilities
Commission to establish a renewable energy credits program will
help to encourage the development of renewable energy resources
in the State, and establish a market for renewable energy in
Hawaii using the State's significant renewable energy resources
to drive down the cost of renewable energy to consumers.

     Upon further consideration, your Committee has amended
section 3 of the bill to replace the 14.5 per cent benchmark to
be achieved by January 1, 2020, with a blank percentage in order
to facilitate further discussion on this issue.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2345, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2345, S.D.
2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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