STAND. COM. REP. NO.  1368

Honolulu, Hawaii

                , 2013

RE:   H.R. No. 84

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committees on Agriculture and Energy & Environmental Protection, to which was referred H.R. No. 84 entitled:

"HOUSE RESOLUTION URGING THE PUBLIC UTILITIES COMMISSION TO CONSIDER THE ESTABLISHMENT OF PREFERENTIAL RATES FOR THE PURCHASE OF ENERGY THAT IS USED OR CONSUMED FOR AGRICULTURAL ACTIVITIES,"

beg leave to report as follows:

The purpose of this measure is to support the agricultural industry by encouraging the Public Utilities Commission to establish preferential rates for the purchase of energy used or consumed for agricultural activities, including eligible agricultural activities of the Department of Agriculture, in order to lower the costs in the business of agriculture.

4 Ag Hawaii; Hawaii Cattlemen's Council, Inc.; Ulupono Initiative; Hawaii Farm Bureau Federation; and one concerned individual supported this measure.  The Public Utilities Commission opposed this measure.  The Department of Agriculture offered comments.

     Your Committees have amended this measure by:

     (1)  Removing provisions urging the Public Utilities Commission to establish and determine criteria for preferential rates for agricultural activities including eligible activities of the Department of Agriculture;

     (2)  Removing provisions that specified that the provision of preferential rates be based on a decision and order by the Public Utilities Commission on an application by a public utility that includes a request and documentation by the agricultural ratepayer;

     (3)  Amending its title to reflect amended content and to read:  "URGING THE PUBLIC UTILITIES COMMISSION TO ESTABLISH ENERGY efficiency and conservation programs and appropriate RATE design incentives FOR electricity USED OR CONSUMED FOR AGRICULTURAL ACTIVITIES";

     (4)  Inserting new provisions to urge the Public Utilities Commission to work with the Public Benefit Fee Administrator and electric utility providers to establish energy efficiency and conservation programs and rate design incentives for energy used or consumed for agricultural activities, including eligible activities of the Department of Agriculture;

     (5)  Adding the Program Director of the Public Benefits Fee Administrator and the President of each electric utility company operating in the state to the list of persons who shall receive a copy of this measure; and

     (6)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the records of votes of the members of your Committees on Agriculture and Energy & Environmental Protection that are attached to this report, your Committees concur with the intent and purpose of H.R. No. 84, as amended herein, and recommend that it be referred to the Committee on Consumer Protection & Commerce, in the form attached hereto as H.R. No. 84, H.D. 1.

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

____________________________ CHRIS LEE, Chair

____________________________ JESSICA WOOLEY, Chair