Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 3053 entitled:

begs leave to report as follows:

The purpose of this bill is to give the Public Utilities Commission (PUC) additional flexibility in implementing a rate-making structure that encourages electric utilities to use cost-effective renewable resources to meet renewable portfolio standards by:

The PUC, Hawaiian Electric Company, Inc., Maui Electric Company, Hawaii Electric Light Company, Hawaii Energy Policy Forum, and Hawaii Renewable Energy Alliance testified in support of this bill. The Department of Business, Economic Development, and Tourism supported the intent of this measure. Honolulu Seawater Air Conditioning, LLC, and Life of the Land opposed this bill.

Your Committee notes that there are concerns regarding the definition of "renewable energy" and the advisability of including or excluding energy efficiency resources such as seawater air conditioning. These alternative types of renewable energy technology reduce the use of fossil fuels and provide electricity savings through energy efficiency.

Your Committee finds that Hawaii's energy future is important and that this issue deserves further consideration and discussion.

Your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3053, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 3053, H.D. 1.