Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Water, Land, Energy and Environment, to which was referred H.B. No. 1385, H.D. 3, entitled:

begs leave to report as follows:

The purpose of this measure is to provide net energy metering for eligible customer-generators and to provide for monthly billing and an annual reconciliation period.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development and Tourism, Public Utilities Commission, Consumer Advocate, the Council Chair and five Members of Maui County Council, a Member of Kauai County Council, Hawaiian Electric Company, Inc., Hawaii Renewable Energy Alliance, Maui Recycling Group, Sierra Club Hawaii Chapter, Kelso Starrs & Associates LLC, Hiluhilu Development LLC, Energy Conservation Hawaii, Wholesale Motors, Inc., Pau Mau Place, Mauna Lani Resort, and nine individuals. Kauai Electric submitted testimony in opposition.

Your Committee finds that net energy metering would support Hawaii's energy objectives by encouraging the use of renewable energy through the diversification of our energy sources, reduction of the need for imported oil, support of local businesses, and reduction of pollution and greenhouse gas emissions. To date, net energy metering legislation has been enacted in thirty other states.

Your Committee further finds that it would allow Hawaii's regulated monopoly system to provide some flexibility to customers. This would encourage small renewable energy systems, with a minimum of cost, effort, or government intervention.

Your Committee has amended this measure to change the capacity from ten to fifty kilowatts in the definition of "eligible customer-generator" and to change the unspecified percentage to 1 per cent.

As affirmed by the record of votes of the members of your Committee on Water, Land, Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1385, H.D. 3, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1385, H.D. 3, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.