STAND. COM. REP. NO. 2946

Honolulu, Hawaii

RE:    H.B. No. 2005

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Energy and Environment, to which was referred H.B. No. 2005, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY TECHNOLOGIES,"

begs leave to report as follows:

     The purpose of this measure is to expand the renewable energy technologies tax credit to include solar electric energy systems.

     Testimony in support of this measure was submitted by the Director of Business, Economic Development, and Tourism; a Hawaii County Councilmember; the Hawaii Energy Policy Forum; SunEdison Hawaii; Suntech Hawaii; Hawaii Solar Energy Association; The Vote Solar Initiative; Sopogy Inc.; and The Solar Alliance and the Hawaii PV Coalition.  Testimony in opposition to this measure was submitted by the Director of Taxation.  Comments were submitted by the Tax Foundation of Hawaii.

     The Director of Taxation raised concerns with the way the measure defines the different types of solar energy systems.  The Director suggests that it is preferable to define a technology based upon the type of renewable resource that enters a system, rather than by the type of energy that is created by the system.  This would be consistent with existing law, which defines renewable energy technologies based upon the type of renewable resource that enters the system.  Your Committee encourages discussion to continue in this regard as the measure moves forward to the Committee on Economic Development and Taxation.

     Your Committee further finds that this measure will promote the use of renewable energy sources, and thus, support the lessening of Hawaii's dependence on imported petroleum.

     Accordingly, your Committee has amended this measure by changing the effective date to July 1, 2050, to ensure further discussion and consideration.

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2005, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2005, H.D. 1, S.D. 1, and be referred to the Committee on Economic Development and Taxation.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

____________________________

RON MENOR, Chair