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 S.B. No. 2474 entitled:

begs leave to report as follows:

The purpose of this measure is to require electric utility companies to establish additional renewable portfolio standard goals of fifteen per cent of net electricity sales by December 31, 2015 and twenty per cent of net electricity sales by December 31, 2020; and to direct the Public Utility Commission to study the feasibility of implementing a rate structure to encourage the use of renewable energy and an incentives program to reward electric utility companies meeting renewable portfolio standard goals.

Sierra Club, Hawaii Chapter, Hawai`i PV Coalition, and PowerLight Solar Electric Systems submitted testimony supporting the measure. Comments were received from Life of the Land, Hawaii Renewable Energy Alliance, the Department of Business, Economic Development and Tourism, the Public Utilities Commission, Hawaii Solar Energy Association, and Honolulu Seawater Air Conditioning LLC.

Your Committee heard the concerns of several testifiers regarding the need for mandating renewable portfolio standards to ensure compliance and noted Honolulu Seawater Air Conditioning LLC's suggestion that their technology be included in the definition of "renewable energy." Your Committee was impressed with the Director of Business, Economic Development and Tourism's confidence that the electric utility companies can achieve the goals stated in the measure. Given the optimism of the Director, your Committee believes even higher standards could be met by the electric utility companies.

Accordingly, your Committee amended the measure by:

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 S.B. No. 2474, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2474, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.