STAND. COM. REP. NO. 1284

Honolulu, Hawaii

RE: H.B. No. 1295

H.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Energy and Intergovernmental Affairs, to which was referred H.B. No. 1295, H.D. 2, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to require all state and county agencies to utilize applicable federal clean energy tax credits, pursuant to the Inflation Reduction Act of 2022, for the purchase and financing of capital improvement projects that use clean energy technology and zero-emission vehicles.

Your Committee received testimony in support of this measure from Ulupono Initiative, American Lung Association in Hawaii, and two individuals.

Your Committee finds that the Inflation Reduction Act of 2022 makes clean energy tax credits available to those historically excluded from claiming them, such as state and local governments, nonprofit organizations, and public utilities. According to testimony received by your Committee, requiring all state and county agencies to pursue and leverage these federal funds, to the extent that the funding remains available and accessible, for capital improvement projects that use clean energy technology will mitigate cost impacts for local projects and create an ongoing skillset to engage at the federal level to secure vital resources. Your Committee further notes that the utilization of the clean energy tax credits for zero-emission vehicles would reduce carbon emissions from ground transportation. This forward-thinking measure will further help the State meet its ambitious decarbonization goals and accelerate its transition to a clean energy economy.

As affirmed by the record of votes of the members of your Committee on Energy and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1295, H.D. 2, and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Intergovernmental Affairs,

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GLENN WAKAI, Chair