STAND. COM. REP. NO. 2518

Honolulu, Hawaii

RE:    S.B. No. 2985

       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 S.B. No. 2985 entitled:

"A BILL FOR AN ACT RELATING TO PHOTOVOLTAIC SYSTEMS FOR PAY AS YOU SAVE,"

begs leave to report as follows:

     The purpose of this measure is to expand the successful "Pay As You Save" solar water heater program to include photovoltaic systems that convert sunshine into electricity.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development and Tourism, Department of Commerce and Consumer Affairs, Sierra Club, Hawaii Renewable Energy Alliance, Hawaii Solar Energy Association, and one individual.  Hawaiian Electric Company, Hawaii Electric Light Company, and Maui Electric Company submitted testimony with reservations.

     Your Committee finds that inclusion of photovoltaic systems in the Pay As You Save Program will make the purchase of these renewable energy systems more accessible to homeowners.  Under the Pay As You Save Program, homeowners do not have to pay the full cost of their residential photovoltaic systems upfront.  Instead, they can spread the cost over time by paying in installments through their electricity bills.  This will result in lower electricity bills for these homeowners, reduced reliance on generation from fossil fuels, and increased sustainability throughout the State.

     Your Committee has amended this measure by:

     (1)  Requiring implementation by December 31, 2009, to provide the electric utilities with sufficient time to have tariffs in place and to comply with the notice requirements of section 269-12(b), Hawaii Revised Statutes; and

     (2)  Making technical nonsubstantive amendments for the purposes of clarity and style.

     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 S.B. No. 2985, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2985, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection, and Affordable Housing.

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

____________________________

RON MENOR, Chair