STAND. COM. REP. 1625

Honolulu, Hawaii

, 2003

RE: H.C.R. No. 125

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred H.C.R. No. 125 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM TO REVIEW THE FEASIBILITY OF HAWAII BECOMING A MEMBER OF THE CHICAGO CLIMATE EXCHANGE AND THE FEASIBILITY OF REQUIRING THE PUBLIC UTILITIES COMMISSION TO ESTABLISH A RENEWABLE ENERGY CREDITS TRADING PROGRAM IN HAWAII,"

begs leave to report as follows:

The purpose of this concurrent resolution is to request the Department of Business, Economic Development, and Tourism to review the feasibility of:

(1) Hawaii's becoming a member of the Chicago Climate Exchange (CCX); and

(2) Requiring the Public Utilities Commission (PUC) to establish a renewable energy credits trading program in Hawaii.

The Sierra Club, Hawaii Chapter, Hawaii Renewable Energy Alliance, and Life of the Land supported this measure. The Department of Business, Economic Development, and Tourism (DBEDT), PUC, Hawaiian Electric Company, Inc., Hawaii Electric Light Company, Inc., and Maui Electric Company, Ltd., submitted comments.

Your Committee finds that with worldwide environmental and economic pressures being caused by global climate change, governments and businesses are recognizing the need to work proactively to reduce carbon emissions. A mechanism to quantify, value, and trade units of carbon emissions is a crucial component for such activity. Carbon trading will assist Hawaii in its compliance with renewable portfolio standards and place the State in a position to participate in national and international carbon trading programs as they evolve.

Upon careful consideration, your Committee has amended this concurrent resolution by:

(1) Changing the title to read: "REQUESTING THE LEGISLATIVE REFERENCE BUREAU TO PREPARE A PRIMER AND POLICY ANALYSIS ON CARBON EMISSION REDUCTION STRATEGIES ESPECIALLY TO ENHANCE HAWAII'S RENEWABLE-ENERGY, EXPORT-MARKET POTENTIAL;

(2) Requesting the Legislative Reference Bureau (LRB) instead of DBEDT, to:

(A) Prepare a primer and policy analysis on carbon emission reduction strategies to enhance Hawaii's renewable-energy, export-market potential including an analysis of carbon taxes and carbon trading; and

(B) Review the feasibility of requiring PUC to establish a renewable energy credits trading program in Hawaii to ensure compliance with the State's renewable portfolio standards and to open new energy market opportunities; and

(3) Making technical, nonsubstantive amendments for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 125, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.C.R. No. 125, H.D. 1.

 

Respectfully submitted on behalf of the members of the Committee on Energy and Environmental Protection,

 

____________________________

HERMINA M. MORITA, Chair