STAND. COM. REP. NO.  43

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 484

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 484 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure is to make the benefits of renewable energy more accessible to a greater number of Hawaii residents by, among other things:

     (1)  Requiring the Public Utilities Commission to establish a community-based renewable energy tariff or tariffs, to take effect no later than January 1, 2016;

     (2)  Providing that community-based renewable energy projects:

          (A)  Equal to or less than one megawatt in size are subject to the interconnection processes approved by the Public Utilities Commission; and

          (B)  Greater than one megawatt in size are subject to the Public Utilities Commission's review and approval;

     (3)  Allowing an electric utility to develop and implement its own community-based renewable energy project or projects, as along as the project or projects are subject to the Public Utilities Commission's review and approval; and

     (4)  Requiring that the community-based renewable energy tariff and related interconnection processes be, to the extent possible, standardized.

The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Blue Planet Foundation, Hawaii Solar Energy Association, and numerous concerned individuals supported this measure.  A concerned individual opposed the measure.  The Department of Business, Economic Development, and Tourism; Public Utilities Commission; Hawaiian Electric Company; Hawaii Electric Light Company; Maui Electric Company; Hawaii Renewable Energy Alliance; and a concerned individual submitted comments.

     Your Committee has amended the bill by:

     (1)  Requiring the Public Utilities Commission, in establishing the community-based renewable energy tariff or tariffs, to ensure that there is no cross-subsidy by or shifting of costs to non-participants to fund any part of the community-based renewable energy program;

     (2)  Adding a definition of "wheeling" to clarify the allowable methods of energy distribution by community-based renewable energy projects; and

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

     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 H.B. No. 484, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 484, 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,

____________________________

CHRIS LEE, Chair