STAND. COM. REP. NO. 2140

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2101

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

 

Sir:

 

     Your Committee on Transportation and Energy, to which was referred S.B. No. 2101 entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to expand the renewable energy technology tax credit to include a tax credit for ocean thermal energy conversion systems that are constructed for the purpose of research and development.

 

     Your Committee received testimony in support of this measure from the Oahu County Committee on Legislative Priorities, Ulupono Initiative, and one individual.  Your Committee received comments on this measure from the Department of Taxation, Natural Energy Laboratory of Hawaii Authority, and Tax Foundation of Hawaii.

 

     Your Committee finds that ocean thermal energy conversion systems are a source of renewable energy, producing electricity using the temperature difference between deep cold water and warm tropical surface waters.  Providing a tax credit for these systems will encourage the use of renewable energy systems and help Hawaii reach its renewable energy goals.

 

     However, your Committee finds that this measure, as written, can create issues due to the ambiguity of some language.  Interpreting what constitutes an ocean thermal energy conversion "system" can lead to taxpayers attempting to find loopholes, to receive more tax credits than are allowable.

 

     Your Committee has amended this measure by:

 

     (1)  Changing references of "system" to "facility" in the context of ocean thermal energy conversion technologies; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Transportation and Energy that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2101, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2101, S.D. 1, and be referred to your Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Transportation and Energy,

 

 

 

________________________________

LORRAINE R. INOUYE, Chair