STAND. COM. REP. 846

Honolulu, Hawaii

, 2003

RE: H.B. No. 288

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 288, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY CONSERVATION INITIATIVES,"

begs leave to report as follows:

The purpose of this bill is to promote energy conservation and renewable energy use by implementing a variety of energy-related initiatives. Specifically, this bill:

(1) Authorizes the issuance of $25,000,000 in general obligation (GO) bonds to finance the acquisition, construction, rehabilitation, and installation of renewable energy and energy efficient technologies in state facilities;

(2) Requires the Department of Accounting and General Services to submit a report to the Legislature and Governor regarding the acquisition, construction, rehabilitation, installation, and improvement of renewable energy and energy efficient technologies in state facilities;

(3) Requires $250,000 per year of the State's portion of the royalties from geothermal resources to be allocated to the Department of Business, Economic Development, and Tourism (DBEDT) to fund hydrogen research and development as an alternative energy source;

(4) Requires the Auditor to contract with the National Conference of State Legislatures (NCSL) to conduct a statewide energy audit;

(5) Establishes the Statewide Energy Audit Special Fund (SEASF) and appropriates $50,000 out of the SEASF to fund the statewide energy audit;

(6) Appropriates $50,000 out of the Public Utilities Commission (PUC) Special Fund to be paid into the SEASF;

(7) Establishes an income tax credit for renewable energy technologies; and

(8) Requires the Energy Resources Coordinator to review and evaluate the income tax credit for renewable energy technologies.

The Hawaii Renewable Energy Alliance, Sierra Club, Hawaii Chapter, Life of the Land, R&R Services, Inc., Hawaii Solar Energy Association, Inc., Vote Solar Initiative, and an assemblyman of the California Legislature supported this bill. DBEDT, The Gas Company, and a concerned citizen supported the intent of this bill. PowerLight Corporation opposed this bill. The Department of Taxation, PUC, Hawaiian Electric Company, Inc., Hawaii Electric Light Company, and Maui Electric Company, Ltd., offered comments.

Your Committee has amended this measure by:

(1) Changing the amount of the GO bond issuance for the acquisition, construction, rehabilitation, and installation of renewable energy and energy efficient technologies in state facilities to $1 to promote further discussion;

(2) Deleting the SEASF;

(3) Requiring the Auditor to contract with a consultant, instead of NCSL, to conduct the statewide energy audit;

(4) Deleting the $50,000 appropriation out of the PUC Special Fund to be paid into the SEASF and deleting the $50,000 appropriation out of the SEASF to fund the statewide energy audit;

(5) Appropriating $1 in general funds for the statewide energy audit;

(6) Extending the energy conservation income tax credit for wind and solar energy systems, heat pumps, and ice storage systems that are installed and placed in service before July 1, 2007;

(7) Establishing that the income tax credit for renewable energy technologies shall be repealed on January 1, 2007; and

(8) Making technical, nonsubstantive amendments for purposes of style and clarity.

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 H.B. No. 288, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 288, H.D. 2.

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

 

____________________________

DWIGHT Y. TAKAMINE, Chair