STAND. COM. REP. NO.  559-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2042

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2042 entitled:

"A BILL FOR AN ACT RELATING TO WATER CONSERVATION,"

begs leave to report as follows:

The purpose of this measure is to encourage water conservation by creating a refundable residential water conservation system cost tax credit for newly constructed systems beginning January 1, 2017.

The Nature Conservancy, Surfrider Foundation, Surfrider Foundation Oahu Chapter, Hawaii Fresh Water Initiative, and a few concerned individuals supported this measure.  The Department of Taxation offered comments.

     Your Committee has amended this measure by amending the definition of "residential water conservation system" to include either a system that captures and reuses rainwater or a system that collects and reuses gray water.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2042, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2042, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

CHRIS LEE, Chair