Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Energy, Environment, and International Affairs and Business and Economic Development, to which was referred S.B. No. 1000 entitled:

beg leave to report as follows:

The purpose of this measure is to require the Public Utilities Commission to establish a renewable energy credits trading program, direct the Department of Business, Economic Development, and Tourism to analyze the feasibility of the State becoming a member of the Chicago Climate Exchange, and establish an advisory committee on renewable energy credits trading.

Testimony in support of the measure was received from the Hawaii Renewable Energy Alliance. Testimony in opposition to the measure was received from the Department of Business, Economic Development, and Tourism. The Public Utilities Commission, the Department of Commerce and Consumer Affairs, and Covanta Energy Group provided comments.

Your Committees find that the establishment of a renewable energy credits trading program locally, and investigation as to the feasibility of participating in the Chicago Climate Exchange, will help provide a market-based incentive system to reduce the production of greenhouse gases by allowing its members to bank and trade renewable energy credits. Your Committees also find that the formation of a Renewable Energy Credits Trading Program Advisory Committee, coupled with a study to determine the feasibility of the State becoming a member of the Chicago Climate Exchange, is aimed at providing further analysis so that decisions regarding these programs are made with all necessary information.

Your Committees have amended this measure by making a technical, nonsubstantive amendment for clarity and style.

As affirmed by the records of votes of the members of your Committees on Energy, Environment, and International Affairs and Business and Economic Development that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1000, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1000, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection, and Housing.