STAND

 

STAND. COM. REP. NO.644-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2242

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2242, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HYDROELECTRICITY,"

begs leave to report as follows:

The purpose of this bill is to support irrigation projects and low-head hydroelectric plants by:

(1) Establishing the Irrigation System Special Fund (Special Fund) into which all proceeds paid by public utilities for the purchase of electricity generated by low-head hydroelectric plants are to be deposited. Funds in this Special Fund will be used to defray the cost of operations relating to state irrigation and water utilization projects;

(2) Requiring the Public Utilities Commission (PUC) to direct public utilities to purchase the electricity to ensure that:

(A) Utility rates are just and reasonable for all rate payers; and

(B) Electric service is provided in a safe and secure manner;

(3) Conferring additional powers to the Board of Agriculture (BOA) regarding low-head hydroelectric plants, including the power to:

(A) Make preliminary surveys and engineering studies for low-head hydroelectric plants that use water from existing state irrigation projects;

(B) Construct, operate, manage, and maintain these plants; and

(C) Sell the electricity generated from these plants to public utilities;

and

(4) Authorizing the issuance of $5,000,000 in general obligation (GO) bonds to finance the construction of low-head hydroelectric plants that use water from state irrigation projects.

In addition, this bill repeals the power of the BOA to acquire by eminent domain, water and water resources, reservoir sites, rights-of-way over lands and property for paths, trails, roads, and other structures that may properly fall within the scope of BOA's activities in managing an irrigation and water utilization system.

The Representative of the 30^th District, Hawaii Farm Bureau Federation, and Hawaii Agriculture Research Center supported this measure. Ka Lahui Hawaii opposed this bill. The Department of Agriculture, Department of Budget and Finance, Public Utilities Commission, Hawaiian Electric Company, Maui Electric Company, and the Hawaii Electric Light Company commented on this bill.

Your Committee has amended this measure by:

(1) Changing the GO bond authorization to $1 for the purpose of furthering discussion; and

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

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2242, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2242, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

 

		____________________________ DWIGHT Y. TAKAMINE, Chair