Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Economic Development & Business Concerns and Energy & Environmental Protection, to which was referred H.B. No. 2931 entitled:

beg leave to report as follows:

The purpose of this bill is to encourage the production of electricity through renewable means by exempting, from the general excise tax assessment, "eligible customer-generators," individuals who generate their own renewable energy and sell excess amounts to the public utility company.

Hawaiian Electric Company and the Conservation Council for Hawaii testified in support of this bill. The Department of Commerce and Consumer Affairs and the Hawaii Chapter of the Sierra Club submitted testimony supporting the intent of this bill. The Department of Taxation, Public Utilities Commission, Tax Foundation of Hawaii, and an individual offered comments on this bill.

Your Committees have amended this bill by:

As affirmed by the records of votes of the members of your Committees on Economic Development & Business Concerns and Energy & Environmental Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2931, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2931, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.