STAND. COM. REP. NO. 2306

Honolulu, Hawaii

RE:    S.B. No. 3001

       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. 3001 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to clarify provisions of chapter 269, part VII, Hawaii Revised Statutes, relating to the administration and use of moneys supporting energy-efficiency and demand-side management programs and services.

     Specifically, this measure clarifies the Public Utilities Commission's administration of moneys collected by Hawaii's electric utilities from its ratepayers through the demand-side management surcharge known as the public benefits fee, by allowing the demand-side management surcharge proceeds to be transferred to and managed by a third party administrator appointed by the Public Utilities Commission.

     Testimony in support of this measure was submitted by the Public Utilities Commission; Department of Business, Economic Development & Tourism; Department of Commerce and Consumer Affairs, Department of Commerce and Consumer Affairs; Hawaiian Electric Company Inc. and its subsidiary utilities, Maui Electric Company Ltd, and Hawaii Electric Light Company; and the Hawaii Solar Energy Association.

     Your Committee finds that this clarification of the statute will assist the Public Utilities Commission in the administration of the demand-side management surcharge by allowing State agencies to participate in energy efficiency and demand-side management programs and services and clarify the law with respect to the processes and procedures applicable to administration of the moneys collected and dispersed for these programs and services.

     Your Committee has amended this measure by 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. 3001, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3001, S.D. 1, and be referred to the Committees on Commerce, Consumer Protection, and Affordable Housing and Ways and Means.

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

____________________________

RON MENOR, Chair