STAND. COM. REP. NO.  1004

Honolulu, Hawaii

                , 2011

RE:   S.B. No. 1482

      S.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 1482, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to require the Public Utilities Commission to consider the need to reduce the State's reliance on fossil fuels when exercising its authority under chapter 269, Hawaii Revised Statutes.

     In addition, the measure requires the Public Utilities Commission to consider the impacts of using fossil fuels when making determinations of the reasonableness of the costs of utility system capital improvements and operations.

     Your Committee received testimony in support of this measure from the Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Blue Planet Foundation, Hawaii Renewable Energy Alliance, Life of the Land, and three individuals.  Your Committee received testimony in opposition to this measure from the Western States Petroleum Association.  Your Committee received comments on this measure from the Public Utilities Commission.

     Your Committee finds that Hawaii is dangerously reliant on imported fossil fuel, which subjects the State and residents to greater oil and gas price volatility, increased air pollution, and potentially harmful climate change due to the release of harmful greenhouse gases.  Your Committee further finds that these adverse conditions carry with them hidden costs that are not always considered by the Public Utilities Commission when the Commission makes decisions regarding utility system capital improvements and operations.  This measure will assist in reducing the State's reliance on fossil fuels by requiring the Commission to factor in the hidden and long-term costs of the State's detrimental reliance on fossil fuels when exercising its statutory authority.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1482, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

DENNY COFFMAN, Acting Chair