STAND. COM. REP. NO. 2464

Honolulu, Hawaii

,

RE: S.B. No. 3185

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Energy, Environment, and International Affairs, to which was referred S.B. No. 3185 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure is to establish statewide energy efficiency utility and energy efficiency portfolio standards.

The Rocky Mountain Institute, the Conservation Council for Hawaii, Honolulu Seawater Air Conditioning LLC, and the Sierra Club Hawaii Chapter, and Life of the Land submitted testimony in support of this measure. Hawaii Solar Energy Association and Hawaii Electric Company submitted testimony in opposition to the measure. The Department of Business, Economic Development and Tourism, the Department of Commerce and Consumer Affairs, the Public Utilities Commission, and Hawaii Renewable Energy Alliance submitted comments.

Your Committee finds that energy efficiency is one of the most critical components in helping end Hawaii's addition to oil. An energy efficient utility is an entity that provides a comprehensive and consistent set of energy efficiency programs to electric consumers. This measure would significantly improve the energy efficiency programs delivered by individual electrical utilities operating in the State.

Upon further consideration, your Committee has amended this measure by:

(1) Adding four new sections that authorize a surcharge for a public benefits fund, authorize a fund administrator for the fund, enumerate the requirements for the fund administrator, and require the public utilities commission to develop a transition plan from utility demand-side management programs to the public benefits fund;

(2) Increasing the time by which the energy efficiency utility shall achieve certain statewide energy efficiency portfolio standards;

(3) Deleting the definitions of indigenous watts, load ratio, load ratio standard, maximum demand, minimum demand, negative watts, positive watts, and total demand;

(4) Further amending the definition of cost-effective;

(5) Including agricultural residues, animal byproducts, and waste cooking oils or greases, and making other changes, to the definition of renewable energy;

(6) Adding a penalty provision to the renewable portfolio standards section;

(7) Amending 269-27.2(c), Hawaii Revised Statutes, to provide for a methodology to establish what the fifteen and twenty-year fixed price for renewable energy power or renewable fuel for power production shall be; and

(8) Making technical, non-substantive amendments for clarity and style.

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. 3185, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3185, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection, and Housing.

Respectfully submitted on behalf of the members of the Committee on Energy, Environment, and International Affairs,

____________________________

J. KALANI ENGLISH, Chair