STAND

STAND. COM. REP. NO. 601

Honolulu, Hawaii

, 2005

RE: H.B. No. 1017

H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Consumer Protection & Commerce and Judiciary, to which was referred H.B. No. 1017, H.D. 1, entitled:

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

beg leave to report as follows:

The purpose of this bill is to remove restrictions against installing solar energy devices in townhouses and other residential dwellings that fall within an association of homeowners, community association, cooperative, or similar entity. Specifically, this measure:

(1) Allows owners of single family residential dwellings and townhouses to install registered solar energy devices without board approval, but with limited restrictions; and

(2) Requires associations and cooperatives (private entities) to adopt rules regarding the placement of solar energy devices.

The Sierra Club, Hawaii Chapter, Hawaii Solar Energy Association, and Inter-Island Solar Supply submitted testimony in support of this measure. The Department of Business, Economic Development, and Tourism and University of Hawaii Environmental Center submitted testimony in support of the intent of the bill. The Hawaii Council of Associations of Apartment Owners commented.

Your Committees find that solar energy devices are a legitimate means of utilizing alternative energy sources, and widespread use of such devices is integral to Hawaii's energy policy objectives. This bill removes restrictive codes or covenants that owners of townhouses and single family dwellings face when investing in clean energy.

Your Committees have amended the bill by requiring a homeowner to:

(1) Obtain permission from the private entity prior to installing the solar device;

(2) Register the solar device with the private entity within 30 days of installation;

(3) Comply with rules adopted by the private entity governing placement of solar devices;

(4) Comply with any design specifications of the private entity;

(5) Engage a licensed contractor who appears on the county-approved contractors list;

(6) Provide a certificate of insurance naming the private entity as an additional insured on the homeowner's insurance policy; and

(7) Maintain a policy of insurance covering any damage caused by a solar energy device placed on common elements or limited common elements, which policy must also be maintained by each successor homeowner.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1017, H.D. 1, as amended herein, and recommend that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 1017, H.D. 2.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary,

____________________________ SYLVIA LUKE, Chair		____________________________ KENNETH HIRAKI, Chair