Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Energy, Environment, and International Affairs, to which was referred H.B. No. 606, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require the Public Utilities Commission (PUC) to adopt rules:

Testimony in support of the measure was received from the Department of Business, Economic Development, and Tourism, the Hawaii PV Coalition, the Sierra Club, the Hawaii Renewable Energy Alliance, the Hawaii Solar Energy Association, and PowerLight Corporation. Hawaii Electric Company, Inc., while supporting the intent of net energy metering, testified in opposition to the measure. The Department of Commerce and Consumer Affairs and the Public Utilities Commission offered comments.

Your Committee finds that the net energy metering program shows much promise in encouraging the use of renewable energy. Your Committee also finds that removing uncertainties in regulation in this area as quickly as possible will lead to faster growth in the construction and interconnection of renewable energy systems.

Your Committee has amended this measure by allowing the PUC to effectuate the requirements, standards, and guidelines, by decision and order or by tariff adoption instead of through the adoption of administrative rules, in order to expedite the process.

As affirmed by the record of votes of the members of your Committee on Energy, Environment, and International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 606, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 606, H.D. 1, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection, and Housing.