HB1458.DOC

SECTION 1. Chapter 196, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART . RENEWABLE ENERGY TECHNOLOGY SYSTEMS LOAN PROGRAM

§196-A Definitions. As used in this part, unless the context otherwise requires:

"Department" means the department of business, economic development, and tourism.

"Director" means the director of business, economic development, and tourism.

"Loan program" means the renewable energy technology systems loan program.

"Renewable energy technology system" means a system that captures and converts a renewable source of energy, including wind, heat (solar thermal), or light (photovoltaic) from the sun into:

(1) A usable source of thermal or mechanical energy;

(2) Electricity; or

(3) Fuel,

including solar thermal, wind-powered, and photovoltaic energy systems.

§196-B Renewable energy technology systems loan program. (a) There is established the renewable energy technology systems loan program to be administered by the department. The purpose of the loan program is to enable the department to make direct loans to eligible homeowners, as determined by the department, who seek to purchase and install renewable energy technology systems on their property.

(b) In administering the loan program, the department shall establish the terms and conditions, maturities, interest rates, collateral, and other requirements for the loans; provided that:

(1) The loan amount shall not exceed the cost of purchasing and installing a renewable energy technology system, less any applicable rebate that is provided as a result of the purchase and installation of the renewable energy technology system, as calculated at the time of installation;

(2) The interest rate on the loans may range from zero per cent to a maximum rate that shall be less than market rate; and

(3) The loan repayment schedule shall be based on the electrical usage savings expected to be realized by the eligible homeowner by using the renewable energy technology system installed using the loan funds.

(c) The department may purchase services from the electric utilities to have the loan repayment amounts billed and paid through the electric utility.

(d) The department shall establish the qualifications of the eligible homeowner. The department may consider the household income of the eligible homeowner and give priority to low- and moderate-income homeowners.

(e) The department shall establish requirements for renewable energy technology systems eligible for financing through the loan program.

(f) All renewable energy technology systems loans made shall comply with applicable state and federal laws.

§196-C Renewable energy technology systems loan revolving fund. (a) There is established in the state treasury a renewable energy technology systems loan revolving fund from which moneys shall be loaned by the department to provide financing for the purchase and installation of renewable energy technology systems as provided by the loan program established in this part, into which shall be deposited:

(1) All moneys received as repayment of loans provided by this part;

(2) Interest and fees collected by the department under this part; and

(3) Appropriations made by the legislature to the fund;

provided that the total amount of moneys in the fund shall not exceed $ at the end of any fiscal year.

(b) All moneys in the fund shall be used for the purposes provided in this part.

(c) Interest earned on funds appropriated for the revolving fund may be used by the department for the administration of the loan program established under this part. §196-D Default; security. (a) The department may take all necessary action to collect any delinquent amount in the event of a default in the payment of any installation of principal or interest on any loan made from the renewable energy technology systems loan revolving fund and to otherwise secure the loans in the manner which affords reasonable protection of the State's resources. The department may purchase services required for the purposes of this part from any state or national bank authorized to accept or hold deposits in the state.

(b) Loans made under this part shall be secured by duly recording a lien upon the real property located within the state upon which the renewable energy technology system is installed.

§196-E Rulemaking authority. The director may adopt rules pursuant to chapter 91, necessary to carry out the purposes of this part.

§196-F Reporting requirement. The department shall submit to the legislature a biennial report of the transactions of the renewable energy technology systems loan revolving fund in sufficient detail to accurately indicate the condition of the funds. The report shall be submitted to the legislature no later than twenty days prior to the convening of the regular session of odd-numbered years."

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2009-2010 to be deposited into the renewable energy technology systems loan revolving fund created in section 196-C, Hawaii Revised Statutes.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 3. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 4. This Act shall take effect on July 1, 2009.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1458
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII