STAND. COM. REP. NO. 990-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2470

S.D. 1

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred S.B. No. 2470, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this bill is to update the energy performance contracting statute by:

(1) Clarifying the financing options for energy performance contracts to more accurately reflect current state financing practices;

(2) Increasing the contract term limits from 15 to 20 years;

(3) Including water saving and other utility conservation enhancing retrofits in the definition of "energy conservation retrofits"; and

(4) Limiting the amount payable under the contract to the verified energy cost savings amount.

The Hawaii Renewable Energy Alliance, Powerlight, and Life of the Land supported this bill. The County of Kauai supported this measure with amendments. The Department of Business, Economic Development, and Tourism supported this bill's intent. The Department of Budget and Finance and Hawaiian Electric Company opposed this bill. The Department of Commerce and Consumer Affairs, Public Utilities Commission, and County of Maui commented.

A proposed draft which gutted this measure's contents and replaced it with a comprehensive energy omnibus package was circulated prior to the public hearing on this bill. Based on public comments, your Committee has amended the proposed draft by, among other things:

(1) Allowing the PUC to adopt tariffs to assist in its regulation of wheeling;

(2) Authorizing the Director of Budget and Finance to issue special purpose revenue bonds, instead of general revenue bonds, to assist renewable energy cooperative associations; 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 is in accord with the intent and purpose of S.B. No. 2470, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2470, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

HERMINA M. MORITA, Chair