HOUSE OF REPRESENTATIVES	H.C.R. NO.	63
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

REQUESTING the Department of Business, Economic Development, and Tourism and the Department of Land and Natural Resources to STUDY the feasibility of creating a renewable energy sub-district classification of lands as permissible locations for renewable energy generation and to STUDY, WITH THE ASSISTANCE OF THE DEPARTMENT OF TAXATION, THE COST OF PROVIDING A non-refundable income tax credit to residents of communities OF Renewable Energy SUB-DISTRICTS that producE renewable energy.

     WHEREAS, the inevitability of global warming through human activity, primarily through the utilization of fossil fuels for energy, has come to be accepted as a real and present problem worldwide and presents the greatest challenge to be addressed in contemporary times; and

     WHEREAS, the State of Hawaii is almost entirely dependent on fossil fuels for its energy needs, and the Legislature made a finding (Act 95, Session Laws of Hawaii 2004) that Hawaii imports between $2,000,000,000 and $3,000,000,000 worth of oil annually, which could be reduced through increasing the use and development of renewable energy resources found in Hawaii such as wind, solar, ocean thermal, wave, and biomass resources; and

     WHEREAS, increasing the use of renewable energy and simultaneously decreasing the use of fossil fuels will reduce the State's production of greenhouse gases and increase the State's energy self-sufficiency; and

     WHEREAS, in recognition of the foregoing, Act 95 was enacted to decrease Hawaii's need to import large amounts of oil, and increase import substitution, economic efficiency, and productivity, by increasing the use and development of Hawaii‘s renewable energy resources through state partnerships with the private sector; and

     WHEREAS, Act 95 requires electric utility companies to establish a renewable energy portfolio standard of fifteen per cent of net electricity sales by December 31, 2015, and twenty per cent of net electricity sales by December 31, 2020; and

     WHEREAS, communities that are progressive, socially conscientious, and environmentally responsible commit to the development of renewable energy generators such as wind turbines and photovoltaic panels; and

     WHEREAS, a significant impediment to the development of renewable energy resources in communities is the objection of residents to proposals to locate renewable energy generators in their community; and

     WHEREAS, such community objection presents a challenge to the private sector in securing locations for land-based renewable energy production to comply with the mandated renewable energy portfolio standards in Act 95; and

     WHEREAS, securing locations for land-based renewable energy production is necessary to assist the private sector to achieve the renewable energy portfolio standards as stated in Act 95; and

     WHEREAS, Act 95 requires the Department of Business, Economic Development, and Tourism and the Department of Land and Natural Resources to support and facilitate achievement of the renewable energy portfolio standards (section 196-41, Hawaii Revised Statutes); and

     WHEREAS, federal legislation to create renewable energy zones, S. 2076, is presently pending in the United States Congress, and would provide for the creation of geographic renewable energy zones; and

     WHEREAS, financial incentives for community residents to accept renewable energy generators in their community may include non-refundable income tax credits; and

     WHEREAS, an example of a state-provided financial incentive is the Alaska Permanent Fund that makes payments to Alaska residents from oil proceeds, in return for the residents' acquiescence to locating oil facilities in their communities;

now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, the Senate concurring, that the Department of Business, Economic Development, and Tourism and the Department of Land and Natural Resources are requested to study the feasibility of creating a renewable energy sub-district classification of lands as permissible locations for renewable energy generation; and

      BE IT FURTHER RESOLVED that the study refer to the December 2006 report to the Department of Land and Natural Resources and the Department of Business, Economic Development, and Tourism, A Catalog of Potential Sites for Renewable Energy in Hawaii, that identifies potential sites in the State for the location of renewable energy generation; and

     BE IT FURTHER RESOLVED that the study include a cost analysis of providing a non-refundable income tax credit to residents of lands in renewable energy sub-districts; and

     BE IT FURTHER RESOLVED that the Department of Taxation is requested to assist with the income tax credit portions of the study; and

     BE IT FURTHER RESOLVED that the Departments of Business, Economic Development, and Tourism and Land and Natural Resources report their findings and recommendations, including proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2009; and

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development, and Tourism, the Chairperson of the Board of Land and Natural Resources, the Director of Taxation, and the Governor.

OFFERED BY:

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Report Title: 

Renewable Energy Land Classification Study