STAND. COM. REP. 226

Honolulu, Hawaii

, 2003

RE: H.B. No. 288

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Energy and Environmental Protection, to which was referred H.B. No. 288 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY CONSERVATION INITIATIVES,"

begs leave to report as follows:

The purpose of this bill is to encourage the use and development of renewable energy in this State by:

(1) Authorizing the issuance of $25,000,000 in general obligation bonds to finance the incorporation of solar energy facilities and equipment in state facilities;

(2) Allocating $250,000 per year of the State's portion of the geothermal royalties to the Department of Business, Economic Development, and Tourism (DBEDT) to fund hydrogen research and development;

(3) Requiring the State Auditor, with the assistance of the National Conference of State Legislatures, to conduct a statewide audit of Hawaii's energy situation;

(4) Creating a Statewide Energy Audit Special Fund (Fund);

 

(5) Appropriating $50,000 for a statewide energy audit; and

(6) Extending the energy conservation income tax credit to July 1, 2005.

Life of the Land, R&R Services, and Hawaii Solar Energy Association, Inc., supported this bill.

The Public Utilities Commission, DBEDT, Powerlight Corporation, Hawaii Renewable Energy Alliance, and Hawaii Solar Energy Association supported the intent of this bill.

The Department of Taxation, Board of Land and Natural Resources, Gas Company, Tax Foundation of Hawaii, Hawaii Electric Company, Inc., Hawaii Electric Light Company, Inc., and Maui Electric Company, Inc. commented on this bill.

Your Committee finds that Hawaii's dependence on imported oil must be decreased to protect the health, security, and welfare of our State. Your Committee believes that this measure will help the State lead the way in encouraging renewable energy development and use.

Your Committee has amended this measure by:

(1) Expanding the application of the general obligation bonds from just solar energy facilities and equipment to renewable energy and energy efficient technologies;

(2) Expanding the statewide energy audit to include an evaluation of the findings and recommendations of the Energy Policy Forum and its integration into the State's energy objectives and regulatory reform;

(3) Deleting the provision that extended the energy conservation income tax credit to July 1, 2005;

(4) Inserting the contents of H.B. No. 1250 (2003), which establishes a renewable energy technologies tax credit;

(5) Requiring the energy resources coordinator to review and evaluate the renewable energy technologies tax credit;

and

(6) Making technical, nonsubstantive amendments for purposes of style and clarity.

As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 288, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 288, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

HERMINA M. MORITA, Chair