Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred S.B. No. 2682, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require energy efficient water heating in new construction of dwelling units.

Testimony in support of the measure was received from the Department of Commerce and Consumer Affairs, Division of Consumer Advocacy; the Public Utilities Commission; the Sierra Club; and a Kauai Council member. Testimony in opposition to the measure was received from the Hawaiian Electric Company. Offering comments on the measure were the Department of Business, Economic Development, and Tourism; the Hawaii Solar Energy Association; and the Gas Company.

Your Committee finds that this measure will decrease Hawaii's dependence on imported fossil fuels and encourage the increased used of renewable energy by requiring the installation of solar panel hot water systems in newly constructed dwelling units.

Your Committee has amended this measure by removing the section directing the Public Utility Commission to change its utility rebate rules, requirements, and programs to exclude new residential construction and by changing the effective date to July 1, 2030 in order to promote continuing discussion.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2682, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2682, S.D. 2.