STAND. COM. REP. NO.  906-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2121

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2121, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to promote the government's use of renewable energy technologies and ensure that such projects are cost effective by:

     (1)  Prohibiting government agencies from contracting with private energy providers that claim the renewable energy technologies tax credit; and

     (2)  Authorizing the issuance of general obligation bonds to purchase renewable energy systems for state facilities.

An individual supported this measure.  The Department of Business, Economic Development, and Tourism; the County of Kauai; the Hawaii County Department of Water Supply; the Hawaii PV Coalition; Kairos Energy Capital, LLC; and an individual opposed this measure.  The Office of Hawaiian Affairs, the Department of Education, and the Hawaii Community Development Authority commented on this measure.

     Your Committee has amended this measure by:

(1)  Recasting the ban against a government agency entering into an energy agreement with a taxpayer who claims the renewable energy technologies income tax credit with instead a disallowance of the tax credit to any taxpayer who installs a renewable energy system for or enters into an energy agreement with a government agency;

(2)  Changing the lapse date for the general obligation bonds to June 30, 2014; and

(3)  Changing the effective date to July 1, 2030.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2121, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2121, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair