Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Energy, Environment, and International Affairs, to which was referred S.B. No. 1556 entitled:

begs leave to report as follows:

The purpose of this measure is to enable the formation of cooperatives for the purpose of generating electricity from renewable energy resources to be sold to its membership, and to authorize the issuance of revenue bonds to finance the costs associated with electrical generation for cooperatives.

Testimony in support of the measure was received from the Public Utilities Commission, Life of the Land, and PowerLight Corporation. Testimony supporting the intent of the measure and providing comments was received from the Department of Commerce and Consumer Affairs and the Hawaii Renewable Energy Alliance.

Your Committee finds that laws enabling renewable energy cooperatives will provide a vehicle for citizens to help reduce energy dependency and contribute to a cleaner environment while enjoying the economic efficiency that a cooperative would bring.

Your Committee has amended this measure by substituting language to make the nonprofit corporation laws of the State apply to a renewable energy cooperative unless otherwise addressed in the measure. Your Committee believes this will clear up what type of corporation law applies, as the measure classifies the cooperative as a nonprofit corporation. Your Committee has also made a technical, nonsubstantive amendment to provide clarity.

As affirmed by the record of votes of the members of your Committee on Energy, Environment, and International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1556, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1556, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection, and Housing.