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The Honolulu Advertiser
Posted on: Tuesday, February 13, 2007

Solar water bill shows pitfalls of legislative process

By Derrick DePledge
Advertiser Government Writer

Environmentalists and energy companies agree Hawai'i has to become more creative to solve its power needs, so, on the surface, the idea from a Kaua'i state senator to require all new homes to have solar water heaters seems like a no-brainer.

But it has run into a buzz saw of opposition, showing that even relatively simple ideas can be more complicated than they appear once they begin to work their way through the state Legislature.

The Building Industry Association of Hawai'i opposes a solar mandate because it could increase costs. The Gas Company worries it will restrict its ability to compete. Hawaiian Electric Co. warns it could undermine its utility rebate program. The Land Use Research Foundation of Hawai'i wonders if all parts of the Islands have enough sunshine.

The Hawaii Renewable Energy Alliance fears solar water heaters would be installed without adequate specifications. Even the Hawai'i Solar Energy Association, which has wanted greater use of solar power for two decades, says it could reduce consumer choice.

Gov. Linda Lingle and Democratic leaders have talked promisingly this session of trying to address complex, intractable problems such as the lack of affordable housing, the gap between rich and poor, and access to quality healthcare. But the response to the solar heating bill helps explain why lawmakers often struggle.

BILL'S CONTORTIONS

Open any hearing room door at the state Capitol, and you're likely to learn why a bill can go through so many contortions before it can become a law. You're also likely to hear two words that can doom the best of intentions: unintended consequences.

"I was flabbergasted," said state Senate Majority Leader Gary Hooser, D-7th (Kaua'i, Ni'ihau), who introduced the bill. "My initial expectation of the solar industry was that this idea would have overwhelming support."

Making the installation of solar water heaters mandatory has come up several times over the years, as the solar industry has grown from its counter-culture roots to the energy mainstream.

Hawaiian Electric says that since its utility rebate and inspection program began about a decade ago, about 20 percent of new homes have gone solar. Rebates and tax credits have made solar more attractive for consumers who want to retrofit their homes, with many paying only about a third of the cost of a $5,000 system on O'ahu.

The inspections required in the rebate program have helped ensure quality, while competition between solar and plumbing companies for retrofits has kept the cost of solar stable.

"HECO's experience is that incentives like rebates, tax credits and post-installation inspections have helped boost the high-quality, right-sized solar systems here," said Peter Rosegg, a Hawaiian Electric spokesman. "It's not about being 'pro' or 'con' mandatory solar."

Warren Bollmeier, the president of the Hawai'i Renewable Energy Alliance, said solar, like other interests, has developed its own lobby that is naturally protective of its market.

"I think what we've got is a very vibrant industry," Bollmeier said. "It's got its own constituency now."

'IT'S A CRIME'

The Sierra Club's Hawai'i chapter, which, along with the Windward Ahupua'a Alliance, is in favor of the bill, believes solar is the single best home energy alternative and could help the Islands move beyond fossil fuels.

"It's a crime that we have both the utility and the solar industry expressing opposition to the measure," said Jeff Mikulina, the chapter's executive director.

Hooser originally wanted to require solar water heaters in all new homes built after January 2008 but, after the negative reaction, agreed to a delay until January 2009. The senator also wanted to expand a tax credit for solar on older homes but agreed to the larger credit for all homeowners who choose solar, including those who install their systems after the mandate becomes law. He also made it clear that installation inspections or similar quality control assurances would continue.

Hooser thinks other senators might now object to the tax credits as too expensive but is otherwise hopeful the bill might pass. He said it fits within the Senate's broader emphasis on sustainability by reducing energy costs. "It's proven and it's inexpensive," he said. "I think It really is a no-brainer."

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com.