STAND. COM. REP. NO.  1086

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 390

      S.D. 2

      H.D. 1

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 Housing, to which was referred S.B. No. 390, S.D. 2, entitled:

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

beg leave to report as follows:

     The purpose of this bill is to help increase consumer energy efficiency by amending provisions that require the installation of a solar water heater in single-family dwellings to obtain a building permit after January 1, 2010.  Specifically, this bill:

     (1)  Clarifies that the solar water heater mandate applies only to new single-family dwellings;

     (2)  Empowers the Public Benefits Fee Administrator (Administrator), rather than the Energy Resources Coordinator (Coordinator), to accept and approve variances from the solar water heater requirements;

     (3)  Accepts the attestation of a mechanical engineer for purposes of a variance application;

     (4)  Requires the Administrator to conduct post-installation verification inspections of the installed water heating technology; and

     (5)  Requires the Administrator to make applications for variances and the dispositions thereof public.

     The Department of Business, Economic Development, and Tourism supported this bill.  The Hawaiian Electric Company, Hawaii Electric Light Company, Maui Electric Company, Blue Planet Foundation, and Sierra Club – Hawaii Chapter supported this measure with amendments.  The Public Utilities Commission (PUC) supported the intent of this bill.  The Gas Company and Inter-Island Solar Supply provided comments.

     Your Committees have amended this measure by:

     (1)  Restoring variance authority to the coordinator;

     (2)  Clarifying language to more accurately describe the variance process;

     (3)  Removing the post-installation inspection;

     (4)  Requiring the Coordinator, rather than the Administrator to publicize variance applications the dispositions thereof;

     (5)  Clarifying when the Renewable Energy Technology System Tax Credit may be claimed;

     (6)  Inserting language that allows the PUC to contract with the Administrator to develop solar water heater system standards; and

     (7)  Including a purpose section to clarify the Legislature's intent as to the intended difficulty in obtaining a variance from the requirement to install a solar water heater system in a new single-family dwelling.

     As affirmed by the records of votes of the members of your Committees on Energy & Environmental Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 390, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 390, S.D. 2, H.D. 1, 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 Housing,

____________________________ RIDA CABANILLA, Chair

____________________________ HERMINA MORITA, Chair