STAND. COM. REP. NO. 2871

Honolulu, Hawaii

RE: S.B. No. 2100

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2100, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to update the renewable energy technologies income tax credit.

More specifically, this measure:

(1) Eliminates the term "renewable energy technology system" and amends the language of the tax credit to focus on solar energy systems, wind energy systems, and energy storage systems;

(2) Allows a tax credit to be claimed for energy storage systems; and

(3) Reduces the amount of the tax credit that may be claimed for solar energy systems used primarily to generate electricity, based on when the solar energy system is first placed into service.

Your Committee received written comments in support of this measure from the Alliance for Solar Choice; DER Council of Hawaii; Elemental Excelerator; OCC Legislative Priorities Committee, Democratic Party of Hawaii; Tesla; Ulupono Initiative; and one individual.

Your Committee received written comments in opposition to this measure from the Hawaii Solar Energy Association.

Your Committee received written comments on this measure from the Department of Business, Economic Development, and Tourism; Department of Taxation; and Tax Foundation of Hawaii.

Your Committee finds that incentivizing the adoption of energy storage systems, by inclusion in the renewable energy technologies income tax credit, will help to advance the State's goal of achieving a one hundred percent renewable energy economy by 2045.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(2) Making technical nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2100, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2100, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair