STAND. COM. REP. NO.  592-12


Honolulu, Hawaii

                , 2012


RE:   H.B. No. 2121

      H.D. 1





Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii




     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 2121 entitled:




begs leave to report as follows:


     The purpose of this measure is to promote the government's use of renewable energy technologies by:


     (1)  Prohibiting government agencies from contracting with private energy providers that claim the renewable energy technologies tax credit; and


     (2)  Authorizing the issuance of general obligation bonds to purchase renewable energy systems for state facilities.


     The Department of Education, the Office of the Mayor of the City and County of Honolulu, City and County of Honolulu Department of Design and Construction, the Mayor of the County of Maui, County of Hawaii Department of Research and Development, County of Hawaii Department of Water Supply, County of Kauai Office of Economic Development, University of Hawaii, Hawaii Renewable Energy Alliance, and Hawaii Solar Energy Association opposed this measure.  The Department of Business, Economic Development, and Tourism; the Office of Hawaiian Affairs; and the Hawaii Community Development Authority provided comments on this measure.


     Your Committee has amended this measure by:


     (1)  Deleting the sum of the general obligation bonds that the director of finance is authorized to issue;


     (2)  Changing the effective date to January 1, 2013;


     (3)  Clarifying that the purpose of this measure is to ensure the cost effectiveness of renewable energy technology projects; and


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


     Your Committee notes that despite negative testimony on this measure, it has value to the State.  The State is currently investing 24.5 per cent on each of the projects that receive the renewable energy tax credit, which the testimony does not address.  These projects may not be paying for themselves and may not ever produce a reasonable return on investment.  Your Committee believes that by removing the state tax credit, the projects will be forced to stand on their own merits and with the existing federal tax credits.


     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 H.B. No. 2121, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2121, H.D. 1, and be referred to the Committee on Finance.


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