HOUSE OF REPRESENTATIVES

H.C.R. NO.

212

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

  
   

HOUSE CONCURRENT

RESOLUTION

 

requesting the department of business, economic development, and tourism to conduct a study on the future of photovoltaic electricity in hawaii.

 

 

WHEREAS, Hawaii is the most dependent state in the nation on imported petroleum, the source of fuel for the majority of its electric power plants; and

WHEREAS, Hawaii has the highest electric utility rates in the country; and

WHEREAS, photovoltaic electricity -- the theory of which was formulated by Albert Einstein exactly one hundred years ago in 1905 -- is a modular, independent power source with a reduced environmental lifecycle burden, when compared with fossil fuel-generated electricity generation; and

WHEREAS, in a manner similar to cellular telephones and wireless internet, photovoltaic electricity is ideally positioned to become a "disruptive technology" that significantly alters our conventional approach to electricity production and distribution; and

WHEREAS, the electric utility that services the island of Oahu is currently completing their integrated resource plan to identify the energy needs and supply sources for the island for the next twenty years; and

WHEREAS, that integrated resource plan calls for the construction of a new petroleum-based generating facility to be built on Oahu in 2009; and

WHEREAS, it is unclear whether petroleum-derived electricity will be the lowest-cost option for Hawaii residents twenty years hence; and

WHEREAS, between the years 1972 and 2003, the average price per kilowatt-hour of residential electricity in Hawaii has grown an average of 6.5 per cent annually; and

WHEREAS, between the years 1975 and 2001, the average cost of a photovoltaic module decreased an average of 7.5 per cent annually; and

WHEREAS, these two converging cost trends suggest that Hawaii may experience a significantly different energy future than the one envisioned by utility planners; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, the Senate concurring, that the Department of Business, Economic Development, and Tourism is requested to prepare a report examining and discussing:

(1) The historical price trend for photovoltaic electricity use in Hawaii and the mainland United States;

(2) The historical price trend for utility-provided electricity in Hawaii;

(3) The date when these two trends are likely to converge; and

(4) A sensitivity analysis of the previous trends for both financed and non-financed photovoltaic systems, a high and low future price of petroleum, and other factors as determined by the Department; and

BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism is requested to submit its report, including findings and any recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2006; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development, and Tourism and the Chair of the Public Utilities Commission.

Report Title:

Renewable Energy; Photovoltaic Installations; Tax Credit