STAND. COM. REP. NO.  41

 

Honolulu, Hawaii

                , 2011

 

RE:   H.B. No. 1517

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1517 entitled:

 

"A BILL FOR AN ACT RELATING TO THE PUBLIC UTILITIES COMMISSION,"

 

begs leave to report as follows:

 

     The purpose of this bill is to work toward reducing Hawaii's dependence on fossil fuels by:

 

     (1)  Requiring the Public Utilities Commission (PUC) to consider:

 

          (A)  The need to reduce the State's reliance on fossil fuels through energy efficiency and increased renewable energy generation when exercising its statutory authority; and

 

          (B)  The consequences of importing fossil fuels when making determinations about the reasonableness of costs of utility system capital improvements and operations;

 

and

 

     (2)  Allowing PUC to determine that short-term or direct costs of alternative energies that are higher than costs associated with fossil fuel are reasonable, considering the consequences of using fossil fuels.

 

     The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Sierra Club-Hawaii Chapter, Hawaii Renewable Energy Alliance, Hawaii Solar Energy Association, Blue Planet Foundation, and a concerned individual testified in support of this bill.  PUC provided comments.

 

     Hawaii relies heavily on fossil fuels for the generation of its energy needs.  Altogether, oil and coal account for 92 percent of the resources needed to supply this energy despite the fact that Hawaii has an abundance of renewable energy resources.  Dependence on fossil fuels not only leaves our state vulnerable to the fluctuation of global oil and coal markets, but also affects Hawaii's natural environment by producing greenhouse gases and other environmental pollutants.  Reducing the State's reliance on fossil fuels will help Hawaii more adequately plan for its energy future as well as protect the natural beauty of our islands.

 

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1517 and recommends that it pass Second Reading and be referred to the Committee on Consumer Protection & Commerce.

 

 

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

 

 

 

 

____________________________

HERMINA MORITA, Chair