STAND. COM. REP. NO.  1682

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 987

      S.D. 1

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Water, Land, Ocean Resources & Hawaiian Affairs, to which was referred S.B. No. 987, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY,"

begs leave to report as follows:

     The purpose of this bill is to facilitate the development of renewable energy projects and reduce the State's dependency on imported fossil fuels by:

(1)  Amending the definition of "renewable energy producer", for purposes of eligibility to obtain leases of public lands by negotiation and without public auction, to include producers of thermal energy from cold seawater that sell their thermal energy to customers of district cooling systems;

(2)  Allowing each county to grant, sell, or otherwise dispose of easements for chilled water and seawater distribution systems for renewable energy seawater air conditioning district cooling systems by negotiation without public auction; and

(3)  Requiring all state and county agencies to provide priority handling and processing of permits required for renewable energy projects, and making this a state policy in the Hawaii State Plan.

     The Hawaii Energy Policy Forum, Hawaii Renewable Energy Alliance, Honolulu Seawater Air Conditioning, LLC, and Hawaii Science and Technology Council testified in support of this bill.  The Department of Land and Natural Resources supported the intent of this measure.  Hawaiian Electric Company, Maui Electric Company, and Hawaii Electric Light Company supported this bill in part.

     Your Committee finds that this bill need not be amended to include provisions for improvements, appurtenances, and facilities located within the easement area, as the easements used for the distribution systems for thermal energy air conditioning systems will be shared with other utilities, and the users can work together to work out a mutually agreeable disposition.

     Accordingly, your Committee has amended this bill by:

     (1)  Changing the effective date to July 1, 2050, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for style, clarity, and consistency.  

     As affirmed by the record of votes of the members of your Committee on Water, Land, Ocean Resources & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 987, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 987, S.D. 1, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Ocean Resources & Hawaiian Affairs,

____________________________

KEN ITO, Chair