STAND. COM. REP. NO. 2134

Honolulu, Hawaii

RE:    S.B. No. 2934

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Energy and Environment and Commerce and Consumer Protection, to which was referred S.B. No. 2934 entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to establish the Hawaii community-based renewable energy program to make the benefits of renewable energy more accessible to a greater number of Hawaii residents.

     Your Committees received testimony in support of this measure from Blue Planet Foundation, Sierra Club of Hawaii, Hawaii Solar Energy Association, Inter-Island Solar Supply, SolarCity, and three individuals.  Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism; Department of Commerce and Consumer Affairs; Public Utilities Commission; and Hawaii Electric Company, Inc.

     Your Committees find that localized renewable energy generation has become increasingly attainable for all types of customers over the past several years.  However, despite residential solar energy use statewide doubling in 2012, many individuals and households are currently unable to directly participate in renewable energy because of their location, building type, access to the electric utility grid, and other impediments.

     Your Committees further find that creating a community-based renewable energy tariff structure will increase access to renewable generation, however your Committees also caution that this measure may have unintended program design consequences that would require future and untimely statutory amendments resulting in implementation barriers.

     Accordingly, your Committees have amended this measure by:

     (1)  Deleting its contents and inserting language to allow the Public Utilities Commission to establish community-based renewable energy tariffs on services provided to customers by an electric utility for the purpose of encouraging the widespread adoption of cost-competitive renewable energy technology in the State; and

     (2)  Inserting an effective date of July 1, 2050, to encourage further discussion.

     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. 2934, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2934, S.D. 1, 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