STAND. COM. REP. NO. 3109

Honolulu, Hawaii

RE:    H.B. No. 2505

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Energy and Environment, to which was referred H.B. No. 2505, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

     The purpose of this measure is to appropriate funds to establish a full-time, permanent renewable energy facilitator position in the Department of Business, Economic Development, and Tourism.

     Your Committee received testimony in support of this measure from Castle & Cooke Hawai‘i; UPC Hawaii Wind Management, LLC; Hawaii Renewable Energy Alliance; and Hawaii Energy Policy Forum.  Comments were received from the Department of Business, Economic Development, and Tourism.

     Your Committee finds that renewable energy resources offer Hawaii important economic, environmental, and energy security benefits, especially since Hawaii's dependency on petroleum is the highest in the nation, accounting for approximately ninety per cent of the State's energy needs.  This high petroleum dependency makes consumers extremely vulnerable to any oil embargo, supply disruption, international market dysfunction, and many other factors beyond Hawaii's control.

     Your Committee further finds that there is a need to streamline the permitting process to provide predictability and to encourage private companies to commit the substantial amounts of capital, time, and effort necessary to develop such projects.  Therefore, investment in additional personnel is essential.

     Your Committee has amended this measure by deleting its contents and inserting the provisions of S.B. No. 2844, a similar measure that does not include a separate section to establish a position for a renewable energy facilitator.  As amended, this measure makes an appropriation of $122,904, for fiscal year 2008‑2009, to establish one full-time permanent position for a renewable energy facilitator in the Department of Business, Economic Development, and Tourism.  The facilitator would facilitate the efficient permitting of renewable energy projects and initiate the implementation of key renewable energy projects permitting efficiency improvement strategies identified by the Department.  Your Committee has also changed the effective date to July 1, 2008.

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2505, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2505, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

RON MENOR, Chair