Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2615, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to implement the recommendations of the Energy Efficiency Policy Task Force.

That Task Force, which was established by Act 163, Session Laws of Hawaii 1998, explored and made recommendations to the Legislature on the most cost-effective means of supporting increased energy efficiency and sustainability in Hawaii.

In particular, this measure establishes an income tax credit for renewable energy technology systems that are installed and placed in service after June 30, 2003. These systems capture and convert a renewable source of energy, such as wind, sun, and biomass, into a usable source of thermal or mechanical energy, electricity, or fuel.

In addition, this measure requires the Department of Business, Economic Development, and Tourism to provide and support efficiency and renewable energy education programs.

Your Committee agrees with the intent of this measure, and finds that the recommendations of the Energy Efficiency Policy Task Force, as implemented by this measure, will provide appropriate incentives for the purchase and use of renewable energy technology systems.

Upon further consideration, your Committee has amended this bill by making technical nonsubstantive changes for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2615, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2615, S.D. 2.