STAND. COM. REP. NO.  1226

Honolulu, Hawaii

                , 2015

RE:   S.B. No. 1050

      S.D. 2

      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 Consumer Protection & Commerce, to which was referred S.B. No. 1050, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure is to enhance resident accessibility to the benefits of renewable energy by, among other things:

     (1)  Requiring the Public Utilities Commission to establish a community-based renewable energy tariff or tariffs;

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

          (A)  Equal to or less than one megawatt in size be subject to streamlined and standardized interconnection approval processes established by the Public Utilities Commission; and

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

     (3)  Allowing an electric utility to develop and implement its own community-based renewable energy project or projects, as long 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 Department of Commerce and Consumer Affairs, Hawaiian Electric Company, Inc., Blue Planet Foundation, Ulupono Initiative, Hawaii Solar Energy Association, Democratic Party of Hawaii, Hawaii Green Growth, and numerous individuals testified in support of this measure.  The Public Utilities Commission and Hawaii Renewable Energy Alliance testified in support of the intent of this measure.  The Department of Business, Economic Development and Tourism testified in support of this measure and provided amendments.  The Office of Hawaiian Affairs provided comments.

     Your Committee has amended this measure by:

     (1)  Requiring that each electric utility in the State file a proposed community-based renewable energy tariff with the Public Utilities Commission by October 1, 2015;

     (2)  Removing provisions regarding wattage requirements that would trigger the need for streamlined and standardized interconnection processes;

     (3)  Defining the types of projects that qualify as a community-based renewable energy project;

     (4)  Amending the definition of "community-based renewable energy tariff" to consider the standardization of interconnection processes for community-based renewable energy projects; and

     (5)  Changing its effective date to July 1, 2015.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1050, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 1050, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ANGUS L.K. McKELVEY, Chair