STAND. COM. REP. NO. 1045

Honolulu, Hawaii

RE:    H.B. No. 592

       H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Transportation and Energy and Economic Development, Tourism, and Technology, to which was referred H.B. No. 592, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

beg leave to report as follows:

     The purpose and intent of this measure is to extend the sunset date of the alternative energy research and development pilot program to June 30, 2019, and appropriate funds for the program.

     Your Committees received testimony in support of this measure from the High Technology Development Corporation, Chamber of Commerce Hawaii, Navatek, Oceanit, and five individuals.

     Your Committees find that achieving the stated goal of transitioning Hawaii to a clean energy economy is essential for the State's future sustainability.  Despite progress toward developing an entirely renewable energy economy, the State maintains an unsustainable dependence on imported fossil fuels as its primary energy source.  Effectively transitioning to one hundred percent clean energy will require the continued research and development of alternative energy technologies.  The Legislature has long recognized this critical need and in 2015, established a matching grant program to support the State's local companies that were conducting renewable energy research and development through existing contracts with the principal research division of the United States Department of Defense, Office of Naval Research.  That program is set to expire on June 30, 2017.  Your Committees find that the alternative energy research and development pilot program has been successful and remains a necessary component in aiding the State in developing desperately needed alternative energy technologies.  Accordingly, it is necessary to extend the pilot program for an additional two years.

     As affirmed by the records of votes of the members of your Committees on Transportation and Energy and Economic Development, Tourism, and Technology that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 592, H.D. 1, and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Energy and Economic Development, Tourism, and Technology,

________________________________ GLENN WAKAI, Chair

________________________________ LORRAINE R. INOUYE, Chair