STAND. COM. REP. NO. 1299

Honolulu, Hawaii

, 2019

RE: S.B. No. 1163

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 1163, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to replace the current renewable energy technologies income tax credit with tax credits for solar energy systems, wind energy systems, and commercial seawater air conditioning systems.

Clearway Energy Group; Honolulu Seawater Air Conditioning, LLC; Innergex Renewables USA LLC; Adon Renewables; and an individual supported this measure. Sun King Inc.; Photonworks Engineering LLP; Grand Solar Inc.; Solar Services Hawaii LLP; CED Greentech-Hawaii; Vivint Solar; Alternate Energy Inc.; Hawaii Energy Connection, LLC; Neighborhood GP, LLC; Green Power Projects LLC; Tesla; Affordable Solar Contracting; Sun King Inc.; Hawaii Solar Energy Association; The Alliance for Solar Choice; Inter-Island Solar Supply; 350Hawaii.org; PV Tech; Organizing for Action; Sierra Club of Hawai‘i; and many individuals opposed this measure. The Department of Taxation; Department of Business, Economic Development & Tourism; Ulupono Initiative; and Tax Foundation of Hawaii provided comments.

Your Committee has amended this measure by:

(1) Removing the amendments which replaced the current renewable energy technologies income tax credit with tax credits for solar energy systems, wind energy systems, and commercial seawater air conditioning systems;

(2) Establishing a sunset date for the renewable energy technologies income tax credit to July 1, 2045;

(3) Changing its effective date to July 1, 2100, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for clarity, consistency, and style.

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 S.B. No. 1163, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1163, S.D. 2, H.D. 1, and be referred to your Committee on Legislative Management.

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

____________________________

NICOLE E. LOWEN, Chair