STAND. COM. REP. 489
Honolulu, Hawaii
, 2003
RE: H.B. No. 1392
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 Economic Development and Business Concerns, to which was referred H.B. No. 1392, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY,"
begs leave to report as follows:
The purpose of this bill is to actively promote the use of renewable energy resources to lessen the State's dependence on imported oil by:
(1) Requiring the Department of Business, Economic Development, and Tourism (DBEDT), with the cooperation of the Department of Land and Natural Resources (DLNR), to update and conduct a new geothermal resource assessment study;
(2) Appropriating $75,000 from the Special Land and Development Fund to pay for the geothermal resource assessment study;
(3) Making affordable loans available to homeowners for the purchase and installation of solar water heating systems; and
(4) Enabling businesses that produce electricity from renewable energy for sale primarily to public utilities for resale to the public to take advantage of the benefits of being in an enterprise zone from July 1, 2003, until June 30, 2006.
R&R Services, Inc., Sierra Club, Hawaii Chapter, Powerlight Corporation, and an individual supported the bill. DBEDT, Hawaii Renewable Energy Alliance, and Hawaii Solar Energy Association supported the intent of this bill.
DLNR opposed the bill.
The Department of Taxation, Hawaiian Electric Company, Maui Electric Company, and Hawaii Electric Light Company submitted comments.
Concerns were raised that this bill limits the sale of energy by renewable energy producers primarily to a utility, and this may restrict the market opportunities of renewable energy producers in enterprise zones. Although it may not be feasible to do so at the present time, your Committee agrees that renewable energy producers should also be allowed to sell electricity directly to consumers.
Your Committee hopes that future discussions of this bill will consider this possibility, as well as ongoing discussions between DBEDT and DLNR.
As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1392, H.D. 1, and recommends that it be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,
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____________________________ BRIAN SCHATZ, Chair |