Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, 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 the renewable portfolio standards, by:

This bill also redefines "renewable energy" to distinguish between standard renewable resources and energy efficiency resources such as seawater air-conditioning district cooling systems.

PUC, Hawaiian Electric Company, Maui Electric Company, Hawaii Electric Light Company, Hawaii Renewable Energy Alliance, and Rocky Mountain Institute supported this bill. The Department of Business, Economic Development, and Tourism and Sierra Club, Hawaii Chapter, supported the intent of this measure. Life of the Land and Honolulu Seawater Air Conditioning, LLC, opposed this bill. The Consumer Advocate and the Hawaii Energy Policy Forum commented.

Your Committee recognizes that there is a debate on the advisability of defining "renewable energy" to include or exclude energy efficiency resources such as seawater air conditioning, which reduces the use of fossil fuels through efficiency with a corresponding reduction in electricity sales. Your Committee believes that this issue should be further examined as this measure moves through the legislative process.

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. 3053 and recommends that it be referred to the Committee on Finance.