STAND. COM. REP. NO. 649

Honolulu, Hawaii

RE: S.B. No. 1289

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Housing, to which was referred S.B. No. 1289 entitled:

"A BILL FOR AN ACT RELATING TO ROOFTOP SOLAR INSTALLATION,"

beg leave to report as follows:

The purpose and intent of this measure is to prohibit the issuance of building permits for new single-family dwellings beginning on January 1, 2022, that do not include a rooftop solar energy generation system, unless the Energy Resources Coordinator has approved a variance.

Your Committees received testimony in support of this measure from 350 Hawaii; We Are One, Inc.; Our Revolution Hawaii; Organizing for Action; Green Power Projects LLC; O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i; the Alliance for Solar Choice; Ulupono Initiative; Blue Planet Foundation; Hawaii Solar Energy Association; Energy Toolbase; and thirty-nine individuals. Your Committees received testimony in opposition to this measure from the Building Industry Association of Hawaii and Hawai‘i Association of REALTORS. Your Committees received comments on this measure from the Department of Business, Economic Development, and Tourism; Hawaiian Electric Companies; and two individuals.

Your Committees find that rooftop solar photovoltaics are an important part of Hawaii's one hundred percent renewable energy target. Adding a rooftop solar energy generation system requirement for new, single-family homes will help Hawaii achieve its renewable energy goals. Your Committees also find that adding a solar energy generation system during the construction phase significantly reduces the system installation cost for homeowners, compared to adding solar photovoltaics post-construction. Additionally, solar installation during construction allows home buyers to finance systems at traditional, low mortgage rates. This measure effectively requires new single-family homes to install rooftop solar energy generation systems, thereby helping Hawaii reduce its dependence on nonrenewable energy sources.

Your Committees have amended this measure by:

(1) Amending one of the conditions for which a variance application may be accepted; more specifically, the amendment increases the maximum life cycle of a new rooftop solar energy generation system, the cost of which must be incorporated into a life cycle cost-benefit analysis that is determined to make installation of the system cost-prohibitive; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1289, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1289, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ GLENN WAKAI, Chair