STAND. COM. REP. NO.356-02
Honolulu, Hawaii
, 2002
RE: H.B. No. 2242
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committees on Agriculture and Energy and Environmental Protection and Water and Land Use, to which was referred H.B. No. 2242 entitled:
"A BILL FOR AN ACT RELATING TO HYDROELECTRICITY,"
beg leave to report as follows:
The purpose of this bill is to promote state irrigation projects and low-head hydroelectric plants by:
(1) Establishing the Irrigation System Special Fund (Special Fund) into which all proceeds paid by public utilities for the purchase of electricity generated by low-head hydroelectric plants are to be deposited. Funds in this Special Fund will be used to defray the cost of operations relating to state irrigation and water utilization projects;
(2) Requiring the Public Utilities Commission (PUC) to direct public utilities that supply electricity to the public to:
(A) Acquire electricity generated from low-head hydroelectric plants that utilize water from state irrigation projects; and
(B) Employ and dispatch the generated electricity in a manner consistent with its availability;
(3) Conferring additional powers to the Board of Agriculture (BOA) regarding low-head hydroelectric plants, including the power to:
(A) Make preliminary surveys and engineering studies for low-head hydroelectric plants that utilize water from state irrigation projects;
(B) Construct, operate, and manage these plants; and
(C) Sell electricity generated from these plants to public utilities;
and
(4) Authorizing the issuance of $5,000,000 in general obligation bonds to finance the construction of low-head hydroelectric plants that utilize water from state irrigation projects.
Testimony in support of this measure was submitted by the
Hawaii Agricultural Research Center and Hawaii Farm Bureau Federation. The Department of Agriculture, Hawaiian Electric Company, Maui Electric Company, and Hawaii Electric Light Company supported the intent of this bill. Ka Lahui Hawaii opposed this measure. The PUC, Life of the Land, and Hawaii's Thousand Friends offered comments.
Your Committees recognize the concerns raised regarding the issuance of general obligation (GO) bonds to fund the hydroelectric plants, especially in light of the recent fiscal challenges that the State faces. Suggested alternatives included issuance of revenue bonds instead of GO bonds, as the means of financing for the hydroelectric plants.
Your Committees also recognize the concerns raised regarding potential diminution of the powers of the Commission on Water Resource Management. To allay such concerns, your Committees declare that it is not the intention of your Committees to undermine the authority and responsibility of the Commission on Water Resource Management in passing out this measure.
Despite these issues, your Committees concur that the benefits of this bill in providing support for state irrigation projects and energy production outweigh such concerns.
Your Committees have amended this measure by:
(1) Deleting the provisions requiring PUC to direct public utilities that supply electricity to acquire and dispatch electricity generated from low-head hydroelectric plants that utilize water from state irrigation projects;
(2) Requiring PUC to direct public utilities to purchase electricity to ensure that:
(A) Utility rates are just and reasonable for all rate payers; and
(B) Electric service is provided in a safe and secure manner;
(3) Clarifying that BOA shall have the power to make preliminary surveys and engineering studies for the establishment of low-head hydroelectric plants that utilize water from existing state irrigation projects;
(4) Repealing the power of BOA to acquire by eminent domain, water and water sources, reservoir sites, rights-of-way over lands and property for paths, trails, roads, and other structures that may properly fall within the scope of BOA's activities in managing an irrigation and water utilization system; and
(5) Making technical, nonsubstantive amendments for the purposes of style and clarity.
As affirmed by the records of votes of the members of your Committees on Agriculture and Energy and Environmental Protection and Water and Land Use that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2242, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2242, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committees on Agriculture and Energy and Environmental Protection and Water and Land Use,
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____________________________ HERMINA M. MORITA, Chair |
____________________________ FELIPE P. ABINSAY, Chair |
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____________________________ EZRA KANOHO, Chair |