STAND. COM. REP. NO.  1312-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 3001

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 3001, S.D. 2, entitled:

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

begs leave to report as follows:

     The purpose of this bill is to clarify the law relating to the administration of funds collected from electric utility customers to support energy-efficiency and demand-side management programs and services.  Among other things, this bill clarifies:

     (1)  That public benefits fees collected to support these programs and services are not to be considered state or public moneys subject to appropriation by the Legislature or to be required to be deposited into the state treasury;

     (2)  That the State may participate in these programs and services on the same basis as any other electric customer; and

     (3)  The Public Utilities Commission's (PUC) ability to contract with a Public Benefits Fee Administrator who is subject to certain public utility regulations but is not an electric public utility.

     The Department of Business, Economic Development, and Tourism, Consumer Advocate, PUC, Hawaii Energy Policy Forum, Hawaii Solar Energy Association, Hawaiian Electric Company, Inc., Maui Electric Company, Ltd., and Hawaii Electric Light Company testified in support of this bill.

     Your Committee finds that this bill will help ensure that funds collected from utility customers to support energy efficiency and conservation programs and services will be used for those purposes.

     Your Committee has amended this bill by:

     (1)  Making it effective upon its approval; and

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

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3001, S.D. 2, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 3001, S.D. 2, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair