Establishes a buydown renewable energy program and a rebate program for purchasers of photovoltaic energy-generating systems.

A BILL FOR AN ACT

SECTION 1. The legislature finds that few photovoltaic (PV) electric energy systems have been installed in Hawaii since the adoption of state tax incentives under section 235-12.5, Hawaii Revised Statutes, as enacted by Act 207, Session Laws of Hawaii 2003. The legislature further finds that the continuing shortage of petroleum-based energy sources, and the high cost of oil, makes promotion of alternative energy sources, including PV energy, a priority goal. One of the impediments to the adoption of PV sources for residential and small business users has been the high initial investment required to purchase and install a PV system.

The legislature further finds that a buydown renewable energies program, or in the alternative, a rebate renewable energies program for the purchase and installation of a PV energy supply will result in:

(1) Lessened dependence on oil for energy;

(2) Lessened pollution;

The purpose of this Act is to create buydown and rebate renewable energies programs as alternative programs for the purchase and installation of a PV energy supply by commercial and residential users to encourage and expand the use of renewable energies in Hawaii.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

§269-   Photovoltaic energy buydown program established; eligibility. There is established a buydown program for the installation of new photovoltaic, self-generation systems to be administered by the commission. A purchaser of a photovoltaic energy-generation unit for a residential or commercial unit shall be eligible for a buydown amount under this program, subject to any conditions placed upon eligibility by the commission.

§269-   Amount of buydown; funding. (a) The commission shall establish the requirements for the granting of a rebate under the buydown renewable energies program for the purchase and installation of a PV energy-generation unit. These requirements shall include, but not be limited to:

(b) Funding for the rebates shall be paid from the photovoltaic energy buydown special fund.

§269-   Photovoltaic energy buydown special fund. (a) There is created a special fund in the state treasury to be known as the photovoltaic energy buydown special fund. Moneys in the fund shall be administered and expended by the commission for the purpose of rebating moneys to eligible consumers under this part.

(b) Moneys derived from utility rates, in an amount determined by the commission, shall be deposited into the fund. For purposes of this subsection, the commission may establish by rules adopted pursuant to chapter 91 a monthly surcharge in an amount sufficient to fund the photovoltaic energy buydown program.

§269-   Photovoltaic voltaic energy rebate program. (a) There is established a rebate program for the installation of new photovoltaic, self-generating systems to be administered by the commission.

(b) The amount of the rebate shall be $4.50 per watt of generating capacity of each new unit purchased.

(c) The rebate moneys shall be paid directly by the public utility to the consumer from revenues received by the utility from installation of a photovoltaic energy-generation unit; provided that the rebate moneys may be factored into the ratemaking process.

(d) A purchaser of a photovoltaic energy-generation unit for a residential or commercial unit shall be eligible for a rebate amount under this program, subject to any conditions placed upon eligibility by the commission.

§269-   Buydown exclusive of rebate program. The photovoltaic energy buydown program and the photovoltaic energy rebate program shall be exclusive of one another, so that a consumer may claim moneys only under one of the programs." SECTION 3. This Act shall take effect on July 1, 2005.