STAND. COM. REP. 2322

Honolulu, Hawaii

, 2004

RE: S.B. No. 2682

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Energy and Environment, to which was referred S.B. No. 2682 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY EFFICIENCY,"

begs leave to report as follows:

The purpose of this measure is to require energy efficient water heating in new construction of dwelling units and to direct the Public Utilities Commission (PUC) to change its utility rebate rules and requirements to exclude new residential construction.

Sierra Club, Hawaii Chapter, Division of Consumer Advocacy, and Life of the Land submitted testimony supporting the measure. The Gas Company submitted testimony opposing the measure. The Director of Business, Economic Development and Tourism; Chairperson of the PUC; Hawaiian Electric Company, Inc.; Hawaii Solar Energy Association; and Building Industry Association of Hawaii submitted comments.

Your Committee acknowledges the concerns of the Gas Company regarding the chilling effect this measure may have on the water heating market for residential households. Your Committee also notes its concerns for residents in remote areas that rely primarily on gas water heaters due to cost limitations and unavailability of other utility and energy infrastructures. Your Committee further notes the PUC Chairperson's suggestion that "programs" be included in the description of its activities concerning residential construction rebates and that the term "solar roof panels" be replaced with "solar energy devices" to conform with existing statutory language. Your Committee, however, was concerned that the required changes to the PUC's rules, requirements, and programs would not be completed in a timely manner without a deadline stated in the measure.

Accordingly, your Committee amended the measure by:

(1) Providing that a standard propane gas water heater may be used as a primary hot water system;

(2) Replacing the term "solar roofing panels" with "solar energy devices";

(3) Adding "programs" to the list of PUC functions relating to residential construction rebates; and

(4) Requiring that changes to the PUC functions relating to residential construction rebates be completed by December 31, 2005.

As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2682, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2682, S.D. 1, and be referred to the Committee on Commerce, Consumer Protection and Housing.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

____________________________

J. KALANI ENGLISH, Chair