STAND. COM. REP. NO.  862

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 623

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 623, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to further reduce Hawaii's dependence on imported fossil fuels and promote the growth of the State's renewable energy industry by:

     (1)  Updating and extending renewable portfolio standards and renewable standard goals, including a 100-percent renewable energy goal by December 31, 2045;

     (2)  Applying the same renewable energy goals for electric utility companies to large self-generators, along with reporting requirements and penalties for non-compliance;

     (3)  Clarifying exemptions and qualifications for large self-generators to request waivers or extensions of time for compliance to avoid penalties; and 

     (4)  Updating the Public Utilities Commission's independent study requirement on renewable portfolio standards to include the impact of renewable standards on developers' renewable energy prices.

The Hawaiian Electric Vehicle Network; Hawaii Clean Energy Foundation; Hawaii Solar Energy Association; Sierra Club Hawaii Chapter; and many individuals provided testimony in support of this measure.  The Hawaii Renewable Energy Alliance; Hawaii Lodging & Tourism Association; Hawaii Independent Energy; Westin Maui Resort & Spa; Westin Princeville Ocean Resort Villas; Aloha Beach Hotel; Sheraton Kauai Resort; Sheraton Maui Resort & Spa; Sheraton Kona Resort & Spa at Keahou Bay; Waikiki Parc Hotel; Kaha Lani by Castle Resorts & Hotels; Pono Kai Resort Association; and many individuals opposed this measure.  The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs; Department of Business, Economic Development, and Tourism; Office of the Auditor; Public Utilities Commission; AES Hawaii, Inc.; The International Brotherhood of Electrical Workers Local Union 1260; Kauai Island Utility Cooperative; Hawaiian Electric Company; Maui Electric Company; Hawaii Electric Light Company; Starwood Hawaii; Blue Planet Foundation; Ulupono Initiative; Valley Consulting LLC, and a concerned individual provided comments.

     Your Committee has amended this measure by:

     (1)  Removing all provisions related to large scale energy generators; and

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

     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. 623, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 623, H.D. 2.

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

____________________________

SYLVIA LUKE, Chair