STAND. COM. REP. NO.  1287-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 2438

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 2438, 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 assist the Public Utilities Commission (PUC) when making its final determination on renewable energy projects by:

     (1)  Allowing the PUC to take into consideration the economic impact of the projects, including costs to consumers, job creation, capital attraction, increased revenues, and other critical indicators; and

     (2)  Requiring the Department of Business, Economic Development, and Tourism to provide the PUC with the appropriate analysis for consideration.

The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs; Department of Business, Economic Development, and Tourism; and Blue Planet Foundation testified in support of the intent of this measure.  The PUC provided comments.

     For the purposes of a public hearing on this measure, your Committee circulated proposed S.B. 2438, S.D. 2, H.D. 1 and notified the public that it would accept testimony on the proposal.  Upon careful consideration, your Committee adopted the proposed draft and amended it by:

     (1)  Adding a purpose section;

     (2)  Creating a new section in chapter 296, part V, specifying the technology readiness levels for the PUC's renewable energy projects criteria;

     (3)  Requiring the director of the Hawaii Natural Energy Institute to provide an assessment of technology readiness for a proposed renewable energy project upon the request of the PUC;

     (4)  Requiring that all proposed renewable energy projects of the PUC be of technology readiness level 7 or higher; and

     (5)  Excluding proposals, contracts, or demonstration projects of less than three years from the requirements of this measure.

     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. 2438, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2438, S.D. 1, H.D. 1, 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, Chair