Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 606 entitled:

begs leave to report as follows:

The purpose of this bill is to remove impediments to energy diversification by streamlining the procedure by which customer-sited net metered renewable energy systems, or "eligible customer-generators" (ECGs), interconnect with the electric grid. Specifically, this bill broadens the law by exempting all ECGs, not just ECGs of ten kilowatts or less, that meet all applicable national safety and performance standards and rules of the Public Utilities Commission (PUC), from any additional controls, tests, or liability insurance that might otherwise be required by the electric utility as a condition of interconnection.

Testimony in support of this bill was received from the Department of Business, Economic Development, and Tourism, Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Hawaii PV Coalition, PowerLight Corporation, Hawaii Solar Energy Association, Inter-Island Solar Supply, and Island Energy Solutions Inc. Testimony in support with an amendment was submitted by the Hawaii Renewable Energy Alliance. Hawaiian Electric Company, Maui Electric Company, Hawaii Electric Light Company, Hawaii Association of Electrical Workers, and a concerned individual opposed the bill. PUC commented on this measure.

Your Committee finds that simplifying the procedure for interconnecting ECG systems wherever possible will encourage businesses to invest in Hawaii's locally available energy resources and stimulate the economy by increasing the operating efficiency of businesses.

By providing objective safety and technical requirements for smaller ECG systems, the law maintains impartial and rigorous safety standards that protect ECG owners and the public, while removing unnecessary additional costs and impediments to installation of these systems.

However, your Committee recognizes that as the size of these systems increases, so do safety concerns. Your Committee also recognizes that PUC is not required to examine the issue or establish any controls in addition to national and industry standards.

For these reasons your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 606, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 606, H.D. 1.