Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Water, Land, Energy and Environment, to which was referred S.B. No. 2243 entitled:

begs leave to report as follows:

The purpose of this measure is to establish green marketing programs for green power electricity produced by wind, solar energy, hydropower, landfill gas, waste-to-energy, geothermal resources, ocean thermal energy conversion, wave energy, biomass including municipal solid waste, biofuels or fuels derived entirely from organic sources, hydrogen fuels derived entirely from renewable energy, or fuel cells where the fuel is derived entirely from renewable sources.

Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism (DBED&T), Hawaiian Electric Company, Inc., Apollo Energy Corporation, Hawaii Renewable Energy Alliance, Life of the Land, Sierra Club Hawai`i Chapter, and one individual. The Public Utilities Commission and Kauai Electric submitted comments.

Your Committee finds that green marketing programs offer consumers the opportunity to purchase electricity from green power sources, which supports the State's energy policies. Your Committee has heard that currently about 2,700 customers are participating in a green power program, and that green marketing could increase this number significantly.

Your Committee has also heard concerns raised regarding DBED&T's ability to fund this program without additional moneys. Your Committee has addressed this and other concerns by amending this measure to:

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 S.B. No. 2243, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2243, S.D. 1, and be referred to the Committees on Economic Development and Technology and Commerce, Consumer Protection and Housing.