STAND. COM. REP. NO. 2689

Honolulu, Hawaii

RE:    S.B. No. 2623

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2623 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 for photovoltaic energy systems to also cover solar thermal electric energy systems.

     The measure accordingly categorizes the tax credit for both types of systems as one for solar electric energy systems.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism, the Hawaii Energy Policy Forum, and the Hawaii Solar Energy Association.  Your Committee received testimony in opposition to this measure from the Department of Taxation, and comments from the Tax Foundation of Hawaii.

     Your Committee finds that solar energy uses both heat and light as sources of energy.  Solar thermal systems include solar water heating that use flat-plate collectors, as compared to solar thermal electric systems which uses parabolic dish troughs to generate electricity.  This measure clearly distinguishes between these types of solar energy systems and recognizes the current state of renewable energy technologies in use in Hawaii.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2623 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair