SB2985 SD1

SECTION 1. Act 240, Session Laws of Hawaii 2006, is amended by amending section 13 to read as follows:

"SECTION 13. Solar [~~water heating~~] pay as you save program; purpose; establishment; tariff filing. (a) Solar water heating systems are a renewable energy technology that uses solar collectors placed on roofs to heat water. [~~These~~] Photovoltaic systems use solar collectors to generate electricity. Solar water heating systems decrease reliance on imported oil used to generate electricity to heat water because they use less energy than the electric hot water heating systems replaced. Photovoltaic systems also decrease reliance on imported oil by generating electricity on site for residential use.

The legislature finds that the up-front cost of installation is a barrier preventing many Hawaii residents from installing solar water heating systems[.] and photovoltaic systems. The legislature further finds that the renewable energy technologies income tax credit and electric utility rebates have not been enough of an incentive to overcome these up-front costs, especially for rental housing and homes in need of retrofit for these important energy-saving devices.

The purpose of this section is to authorize the public utilities commission to implement a pilot project to be called the "solar [~~water heating~~] pay as you save program".

(b) The public utilities commission shall implement a pilot project to be called the "solar [~~water heating~~] pay as you save program", which shall:

(1) Allow a residential electric utility customer to purchase a solar water heating or photovoltaic system[:], or both:

(A) With no upfront payments; and

(B) By paying the cost of the system or systems over time on the customer's electricity bill;

provided that the estimated life cycle electricity savings from the solar [~~water heating~~] system or systems exceeds the cost of the system;

(2) Provide for billing and payment of the solar [~~water heating~~] system or systems on the utility bill;

(3) Provide for disconnection of utility service for non-payment of the solar [~~water heating~~] system or systems pay as you save payments; and

(4) Allow for assignment of system or systems repayment costs attached to the meter location.

(c) The public utilities commission shall determine the time frame of the pilot program and shall gather and analyze information to evaluate the pilot program.

(d) No later than December 31, [~~2007,~~] 2009, each electric utility shall implement by tariff a pay as you save model system program for residential consumers that is consistent with this section. Each utility shall provide at least six months prior notice of its proposed tariff to the public utilities commission as prescribed in section 269-12(b), Hawaii Revised Statutes. Within the prescribed notice period, the public utilities commission shall review the proposed tariff and after a hearing may require modifications to the proposed tariff as necessary to comply with or effectuate the purposes of this section.

(e) The commission shall ensure that all reasonable costs incurred by electric utilities to start up and implement the pay as you save model system are recovered as part of the utility's revenue requirement, including necessary billing system adjustments and any costs for pay as you save model system efficiency measures that are not recovered via participating residential consumers' pay as you save model system bill payments or otherwise."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

THE SENATE	S.B. NO.	2985
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII