Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Housing, to which was referred H.B. No. 606, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to authorize the Public Utilities Commission (PUC) to establish interconnection standards for customer-sited renewable energy systems of greater than ten kilowatts.

Testimony in support of this measure was received from the Consumer Advocate, Department of Business, Economic Development, and Tourism, Hawaiian Electric Company, Inc., Hawaii PV Coalition, PowerLight Corporation, Kauai Island Utility Cooperative, and Hawaii Renewable Energy Alliance. The PUC presented comments on the measure.

Current law does not prohibit utilities from imposing additional requirements on net energy metered systems of greater than ten kilowatts. Therefore, system owners could be required to install additional controls, perform or pay for additional tests, or purchase additional liability insurance, resulting in additional costs for owners, and impeding the installation of customer-sited renewable energy systems.

This measure helps to reduce obstacles to the establishment of larger capacity customer-sited systems by authorizing the PUC to determine standards and requirements for renewable energy systems of greater than ten kilowatts. Your Committee finds that the development of standards by the PUC will facilitate the installation of renewable energy systems, which, in turn, will help to reduce the State's dependence on fossil fuels.

Your Committee has amended this measure:

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 H.B. No. 606, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 606, H.D. 1, S.D. 2.