STAND. COM. REP. NO. 180

Honolulu, Hawaii

RE:    S.B. No. 1482

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committees on Energy and Environment and Commerce and Consumer Protection, to which was referred S.B. No. 1482 entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to require the Public Utilities Commission, when making determinations of the reasonableness of the costs of utility system capital improvements and operations, to consider the need to reduce the State's reliance on fossil fuels and to consider the benefits of capital improvements for renewable energy generation and energy efficiency despite the short term expense.

     Your Committees received testimony in support of this measure from Jeffrey T. Ono, Department of Commerce and Consumer Affairs; Blue Planet Foundation; Christy Imata, Hawaii Solar Energy Association; and Warren Bollmeier, Hawaii Renewable Energy Alliance.  Your Committees received comments on this measure from Carlito P. Caliboso, Public Utilities Commission.

     Your Committees find that in order to help reduce the State's dependence on fossil fuels the Public Utilities Commission needs to give consideration to the long-term benefits of projects that may incur larger short-term costs than fossil-fuel dependent or less energy efficient alternatives.  This measure gives the Public Utilities Commission specific direction to make those considerations during the performance of its duties.

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1482 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Commerce and Consumer Protection,

____________________________ ROSALYN H. BAKER, Chair

____________________________ MIKE GABBARD, Chair