Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Water, Land, and Agriculture and Energy, Environment, and International Affairs, to which was referred S.B. No. 1903 entitled:

beg leave to report as follows:

The purpose of this measure is to exempt seawater air conditioning district cooling systems from the Public Utility Commission regulation.

Testimony in support of this measure was submitted by the Department of Commerce and Consumer Affairs and Honolulu Seawater Air Conditioning. Comments were also submitted by the Public Utilities Commission and the City and County of Honolulu Board of Water Supply.

Seawater air conditioning district cooling systems are a renewable energy technology that has the potential to provide a contribution to Hawaii's renewable portfolio standard requirements. Your Committees find that support for the development of renewable and efficient energy systems in the State is in the public's interest.

Thus, your Committees further find that because the seawater air conditioning systems shall:

public utility regulation of these systems are not necessary. Thus, this measure exempts the systems from the Public Utility Commission's regulations.

As affirmed by the records of votes of the members of your Committees on Water, Land, and Agriculture and Energy, Environment, and International Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1903 and recommend that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection, and Housing.