STAND. COM. REP. NO. 1272-20

Honolulu, Hawaii

, 2020

RE: S.B. No. 2820

S.D. 2

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 2820, S.D. 2, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to continue the support of utility-scale renewable energy projects that benefit residents and ratepayers and further the goal of one hundred percent renewable energy by 2045 by:

(1) Repealing the renewable energy technologies income tax credit for certain solar energy systems while grandfathering in other solar energy systems; and

(2) Making the renewable energy technologies income tax credit inapplicable to taxable years beginning after December 31, 2045.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office, Kauai Island Utility Cooperative, 174 Power Global, Hawaii Clean Power Alliance, Hawaii Solar Energy Association, AES Distributed Energy, and Clearway Energy Group. Your Committee received comments on this measure from the Department of Taxation; Hawaiian Electric Company, Inc.; Blue Planet Foundation; and Adon Renewables.

Your Committee has amended this measure by:

(1) Deleting language making the renewable energy technologies income tax credit inapplicable for taxable years beginning after December 31, 2045; 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 Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2820, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2820, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair