STAND. COM. REP. NO.  478

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 591

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committees on Energy & Environmental Protection and Agriculture, to which was referred H.B. No. 591 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC UTILITIES,"

beg leave to report as follows:

     The purpose of this bill is to encourage electric utilities to exceed renewable portfolio standards or meet them ahead of time by specifying the following incentives that may be provided by the Public Utilities Commission (PUC), including:

     (1)  A preferential rate for renewable electrical energy purchased from renewable energy producers associated with agriculture;

     (2)  Renewable energy credit trading programs; and

     (3)  Credits for providing certain environmental services.

     Gay & Robinson, Inc., ILWU Local 142, Hamakua Springs, Alexander & Baldwin, Inc., and Hawaiian Commercial & Sugar Company testified in support of this bill.  The Hawaii Farm Bureau Federation supported this measure with an amendment.  The PUC and Department of Commerce and Consumer Affairs Division of Consumer Advocacy offered comments.

     As affirmed by the records of votes of the members of your Committees on Energy & Environmental Protection and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 591 and recommend that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committees on Energy & Environmental Protection and Agriculture,

____________________________ CLIFT TSUJI, Chair

____________________________ HERMINA MORITA, Chair