STAND. COM. REP. NO. 3289

Honolulu, Hawaii

RE: S.B. No. 1431

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1431, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY TECHNOLOGIES TAX CREDITS,"

begs leave to report as follows:

The purpose and intent of this measure is to encourage investment in the deployment of seawater air conditioning as a renewable energy technology by expanding the renewable energy technologies income tax credit to include commercial seawater air conditioning systems that are connected to a seawater air conditioning district cooling system.

Your Committee received written comments in support of this measure from Honolulu Seawater Air Conditioning LLC, Ulupono Initiative, 350 Hawaii, and one individual.

The Department of Taxation, Hawaii State Energy Office, and Tax Foundation of Hawaii submitted written comments on this measure.

Your Committee finds that expanding the application of the tax credit to include commercial seawater air conditioning systems will promote the adoption of commercial seawater air conditioning systems and thus further the State's clean energy goals by decreasing electricity use and reducing demand for fresh water.

Your Committee has amended this measure by:

(1) Specifying that the Hawaii State Energy Office shall certify tax credits for commercial seawater air conditioning systems;

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

(3) Making technical nonsubstantive changes for 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. 1431, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1431, 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