SB988 SD1

THE SENATE	S.B. NO.	988
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

relating to photovoltaic energy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that a commitment to fostering greater use of sustainable energy resources and energy efficient technology and products is necessary to ensure the preservation and protection of our environment and natural resources. Currently, tax credits are offered to Hawaii residents who install and place in service photovoltaic energy systems. However, the market for grid-connected photovoltaic systems is extremely limited.

The legislature further finds that the initial cost of installing a photovoltaic energy system is high, which deters home and business owners from investing in this type of renewable energy. Providing a rebate program for qualifying installations will help minimize the initial costs and encourage citizens and businesses to invest in photovoltaic energy systems. Therefore, the State will preserve and protect our environment through sustainable, renewable energy sources by reducing greenhouse gas emissions and creating greater energy security.

The purpose of this Act is to reduce greenhouse gas emissions and raise public awareness of renewable energy by establishing a photovoltaic rebate program to all grid-connected residential, community-center, and small business utility customers within electric utility service areas.

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

"§269- Photovoltaic rebate program; establishment. (a) There is established a photovoltaic rebate program to be established and administered by the public utilities commission. The commission shall require Hawaiian Electric Company, Hawaii Electric Light Company, Maui Electric Company, and Kauai Island Utility Cooperative to offer a rebate to all grid-connected residential, community center, and small business utility customers within each respective utility service area.

(b) To qualify for the photovoltaic rebate program, applicants shall demonstrate compliance with the following requirements:

(1) Electric service is provided to the applicant by Hawaiian Electric Company, Hawaii Electric Light Company, Maui Electric Company, or Kauai Island Utility Cooperative;

(2) The photovoltaic energy system shall be installed by an appropriately licensed contractor;

(3) The system being installed shall be new, unused, and meet hardware and installation standards defined by the commission;

(4) The system being installed shall have a five‑year warranty provided by the system retailer, with system components meeting national standards; and

(5) The system shall be installed with a performance meter.

(c) A rebate of $4 per watt/DC of photovoltaic cells shall be available for residential and small commercial systems and a rebate of $4.50 per watt/DC of photovoltaic cells shall be available for nonprofit organizations.

(d) The rebate shall be capped at the following maximum amounts:

(1) $10,000 for each residential system installed;

(2) $20,000 for each system installed for a nonprofit organization; and

(3) $50,000 for each small commercial system installed.

(e) The public utilities commission, by rule or order, shall carry out the purposes of this section and may adjust the rebate amount and caps specified in this section to effectuate the purposes of this section and chapter."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ 10,000,000, or so much thereof as may be necessary for fiscal year 2007-2008, and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, for the issuance of rebates pursuant to the photovoltaic rebate program.

The sums appropriated shall be expended by the public utilities commission for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2020, and shall be repealed on June 30, 2025.