Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Water and Land Use and Energy and Environmental Protection, to which was referred H.B. No. 2544 entitled:

beg leave to report as follows:

The purpose of this bill is to encourage the development of renewable forms of energy by authorizing the Board of Land and Natural Resources to lease public lands to renewable energy producers through direct negotiations.

The Department of Land and Natural Resources, the Department of Business, Economic Development, and Tourism, the Hawaiian Electric Company and its subsidiary utilities, Maui Electric Company and Hawaii Electric Light Company, and Life of the Land testified in support of this measure.

Chapter 171, Hawaii Revised Statutes, allows for the leasing of public lands by direct negotiation to public utilities, including electric utility companies. However, the law currently excludes renewable energy producers who provide power to the electric utility companies. Accordingly, public lands can only be leased to these entities through auction. Since a substantial amount of upfront work is necessary to plan and develop these renewable energy projects, potential applicants are reluctant to go through the costly process when they are not assured of a lease. This bill seeks to eliminate this impediment.

Your Committees have amended this bill by:

As affirmed by the records of votes of the members of your Committees on Water and Land Use and Energy and Environmental Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2544, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2544, H.D. 1, and be referred to the Committee on Finance.