STAND

STAND. COM. REP. 3032

Honolulu, Hawaii

, 2004

RE: H.B. No. 2969

H.D. 1

S.D. 1

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Energy and Environment, to which was referred H.B. No. 2969, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO SOLAR ENERGY DEVICES,"

begs leave to report as follows:

The purpose of this measure is to allow for the installation of solar energy devices on any privately owned single-family residential dwelling or townhouse, with limited restrictions.

Testimony in support of the measure was submitted by the Sierra Club, Hawaii Chapter; Hawaii Solar Energy Association; Hawaii Renewable Energy Alliance; and Powerlight Solar Electric Systems. Testimony in opposition to the measure was submitted by Hawaii Council of Associations of Apartment Owners, and Pacific Village. The Department of Business, Economic Development and Tourism submitted comments on the measure.

Your Committee finds that use of clean renewable energy systems should be encouraged to reduce the State's reliance on petroleum-based power sources. Solar water heaters are the best means for reducing electricity demands of homeowners. Your Committee believes that obstacles to those uses, such as restrictive covenants, need to be removed and greater use of those renewable energy systems should be mandated in construction of new dwellings.

Accordingly, your Committee amended the measure by:

(1) Reformatting the measure into three parts;

(2) Requiring private entities to adopt rules by June 30, 2005 that are not unduly or unreasonably restrictive for the placement of solar energy devices;

(3) Changing the party responsible for damages related to the solar energy device from the person who installed the device to the owner of the dwelling unit or townhouse;

(4) Excluding skylights and windows from the definition of "solar energy device";

(5) Defining "townhouse" as that term is defined in section 502C-1, Hawaii Revised Statutes;

(6) Making the installation of solar energy devices not subject to approval of the board of directors of an association of apartment owners;

(7) Adding a new part requiring the use of a conventional solar panel hot water system, or its equivalent in energy efficiency, in the construction of all new dwelling with sufficient insolation;

(8) Requiring the Public Utilities Commission to amend its utility rules and requirements to exclude new residential construction from any rebates and report to the 2005 Legislature;

(9) Making the new Part II effective as of July 1, 2006; and

(10) Making a technical, nonsubstantive grammatical change.

As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2969, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2969, H.D. 1, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

		____________________________ J. KALANI ENGLISH, Chair