THE SENATE

S.C.R. NO.

203

TWENTY-THIRD LEGISLATURE, 2005

S.D. 1

STATE OF HAWAII

  
   

SENATE CONCURRENT

RESOLUTION

 

RELATING TO RENEWABLE ENERGY TECHNOLOGIES.

 

 

WHEREAS, Hawaii is heavily dependent upon fossil fuels for the generation of electricity and has the highest electricity rates in the nation; and

WHEREAS, the use of renewable energy systems advances the State's energy policy objective of decreasing our dependence on fossil fuels; and

WHEREAS, Act 95, Session Laws of Hawaii 2004, mandates that by the year 2020, twenty per cent of each electric utility company's net electricity sales is to be produced through the use of renewable energy resources; and

WHEREAS, photovoltaic systems do not produce air pollution, have been shown to improve property values, and are the most common and viable option for residential applications; and

WHEREAS, Act 163, Session Laws of Hawaii 1998, established the Energy-Efficiency Policy Task Force and charged it with exploring the most cost-effective means to increase energy efficiency and sustainability; and

WHEREAS, the price of oil has doubled since the completion of the "Final Report of the Energy-Efficiency Policy Task Force" in January 2002; and

WHEREAS, despite the advantages of renewable energy and the study and recommendations of the Energy-Efficiency Policy Task Force, relatively few systems have been installed in Hawaii; and

WHEREAS, the Database of State Incentives for Renewable Energy (DSIRE), which contains information about incentive programs at all levels of government that promote renewable energy, and various sources of information from other states that discuss incentive methods, such as property tax relief, were not evaluated by the Energy-Efficiency Policy Task Force; and

WHEREAS, other states provide as much as fifty to eighty per cent of the cost of installing a photovoltaic system while Hawaii may be providing as little as five per cent of installation cost, with a tax credit cap of $1750 per system for residential homes; and

WHEREAS, the use of tax credits may not provide an adequate incentive to portions of the population (for example, seniors and disabled homeowners) that have little or no state income tax liability; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, the House of Representatives concurring, that the Legislative Reference Bureau is requested to further expand upon that part of the Energy-Efficiency Policy Task Force study regarding incentives for residential photovoltaic systems by preparing a report comparing Hawaii's program to the incentive programs provided by other states, such as California; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to recommended, based on its study, the more practical incentive options that should be pursued in the State of Hawaii in order to increase photovoltaic generation of electricity in Hawaii's homes; and

BE IT FURTHER RESOLVED that the Director of Taxation is requested to prepare a report on the projected cost implications to the State of implementing each of the following:

(1) Tax credits of ten, twenty, thirty, forty, and fifty per cent, respectively, of the cost of installing a residential photovoltaic system; and

(2) A refund of the tax credit amount for senior citizens and disabled homeowners who have little or no state income tax liability; and

BE IT FURTHER RESOLVED that the Legislative Reference Bureau and the Director of Taxation are requested to submit their respective reports, including findings and any recommendations they may have, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2006; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Acting Director of the Legislative Reference Bureau, the Director of Taxation, and the Chair of the Public Utilities Commission.

Report Title:

Renewable Energy; Photovoltaic Installations; Tax Credit