STAND. COM. REP. NO.  1063-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 988

      S.D. 2

      H.D. 2

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. 988, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this bill is to encourage the use of renewable energy by authorizing the Public Utilities Commission (PUC), after first assessing beneficial impacts to ratepayers, to establish a photovoltaic rebate program for grid-connected customers within electric utility service areas.

     The Hawaii Renewable Energy Alliance, Island Pacific Energy, LLC, ProVision Technologies, Inc., and a concerned individual testified in support of this bill.  The Consumer Advocate, PUC, Hawaiian Electric Company, Hawaii Electric Light Company, and Maui Electric Company submitted comments.

     Photovoltaic energy is a type of renewable energy technology that converts light directly into electricity.  This bill seeks to expand the use of this technology, and thereby reduce dependence on imported fossil fuels, by providing rebates to lower the costs associated with these energy systems.

     Your Committee has amended this bill by replacing its substance with similar provisions that give PUC greater discretion in establishing a photovoltaic rebate program.  As amended, this bill mainly differs from the draft received by your Committee by:

     (1)  Specifying that the photovoltaic rebate program is to be ratepayer-funded;

     (2)  Requiring the decision to establish the rebate program to be based on a finding that such a program is in the public interest; and

     (3)  Replacing the specific requirements for the rebate program with a broad authorization for PUC to determine applicant eligibility, rebate amounts, and other program specifications.

     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. 988, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 988, S.D. 2, H.D. 2.

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

____________________________

ROBERT N. HERKES, Chair