HI SB704

Exempts third-party owners and operators of on-site renewable energy systems from regulation as public utilities by the Public Utilities Commission.

Defines "renewable energy system" as any facility or equipment that converts renewable energy to useful thermal or electrical energy for heating, cooling, or reducing fossil fuel-dependent energy use.

Applies exemption to persons who own, control, operate, or manage renewable energy systems located on a customer's property and provide or sell the generated power to an electric utility or the customer.

Clarifies that customer property includes all contiguous property owned or leased by the customer, regardless of interruptions caused by easements, public thoroughfares, transportation rights-of-way, and utility rights-of-way.

Takes effect July 1, 2011.