STAND. COM. REP. NO. 3161

Honolulu, Hawaii

RE: H.B. No. 2075

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Economic Development, Tourism, and Technology, to which was referred H.B. No. 2075, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish a two-year alternative energy research and development program to provide matching grants to qualified businesses that have been awarded a competitive contract from the United States Department of Defense Office of Naval Research to conduct research and development in alternative energy; and

(2) Establish the alternative energy research and development revolving fund to promote alternative energy research and development in Hawaii.

Your Committee received testimony in support of this measure from the Hawaii Technology Development Corporation; Makai Ocean Engineering, Inc.; Chamber of Commerce Hawaii; Navatek; O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, and four individuals. Your Committee received comments on this measure from Oceanit Laboratories, Inc.

Your Committee finds that research focused on creating new forms of alternative energy is in line with the State's clean energy goal of one hundred percent renewable energy by the end of 2045. Your Committee further finds that Act 159, Session Laws of Hawaii 2015 (Act 159), established a matching grant pilot program to support local companies that are conducting research on renewable energy through existing contracts with the United States Department of Defense, Office of Naval Research. Your Committee notes that the program established by Act 159 expired on June 30, 2017. Your Committee believes that this program has the potential to elevate Hawaii as a leader in renewable energy and that it should be reestablished.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Economic Development, Tourism, and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2075, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2075, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Economic Development, Tourism, and Technology,

________________________________

GLENN WAKAI, Chair