STAND. COM. REP. NO. 2411

Honolulu, Hawaii

RE:    S.B. No. 2990

       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. 2990 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to ensure that more renewable resources will be deployed in energy generation to meet the renewable portfolio standards, gain reductions in greenhouse gas emissions, replace fossil fuel oil, and achieve other economic and environmental benefits.

Specifically, this measure requires the electric utilities to achieve renewable portfolio standards strictly by increased renewable electricity generation, rather than meeting the standards by using renewable displacement or off-set technologies and energy efficiency programs.

     Testimony in support of this measure was submitted by the Director of Business, Economic Development, and Tourism; Division of Consumer Advocacy, Department of Commerce and Consumer Affairs; and the Sierra Club Hawai‘i Chapter.  Testimony in opposition to this measure was submitted by Honolulu Seawater Air Conditioning LLC.  Comments were submitted by the Hawaiian Electric Company and its subsidiary utilities, Maui Electric Company and Hawaii Electric Light Company; Hawaii Solar Energy Association; and the Hawaii Renewable Energy Alliance.

     Your Committee finds that this measure supports cost-effective, technically feasible renewable energy resources and creates incentive for the further development of renewable energy related technology.

     Your Committee further finds that this measure will ultimately diminish Hawaii's dependency on imported fossil fuels, such as petroleum.

     Your Committee has heard testimony that the language of the measure:

     (1)  Has the effect of removing solar water heating, seawater air-conditioning district cooling systems, and solar air-conditioning from the statutory definition of renewable energy technologies; and

     (2)  Leaves many issues unaddressed, including failing to sufficiently define acceptable methods of electricity generation.

     Accordingly, your Committee has amended this measure by replacing its contents with provisions that increase the renewable portfolio standard applicable to Hawaii's electric utilities from twenty to thirty per cent of net electricity sales by December 31, 2020.

     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. 2990, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2990, 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