STAND. COM. REP. NO.  376

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 1513

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1513 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this measure is to support local companies in Hawaii that conduct renewable energy research and development through existing contracts with the principal research division of the United States Department of Defense, Office of Naval Research, by establishing a matching grant program.

     Specifically, the measure:

     (1)  Establishes a two-year alternative energy research and development pilot program under the Department of Business, Economic Development, and Tourism to provide grants to qualified businesses that conduct research and development on alternative energy;

     (2)  Establishes the alternativee energy research and development revolving fund; and

     (3)  Appropriates $5,000,000 from the general fund to the revolving fund in fiscal years 2015-2016 and 2016-2017 to be used for providing grants during the two-year pilot program.

The High Technology Development Corporation, HSI Mechanical, Inc., Pacific Shipyards International, Navatek, Ltd., and twelve individuals submitted testimony in support of this measure.  The Department of Budget and Finance submitted comments on this measure.

     Your Committee finds that the establishment of a two-year alternative energy research and development pilot program and an alternative energy research and development revolving fund will promote alternative energy research and development in Hawaii and strengthen Hawaii's economy.  Your Committee further finds that providing matching grants to Hawaii's local qualified businesses will encourage development of clean energy technologies.

     Your Committee has amended this measure by:

     (1)  Changing the appropriation from the general fund to the alternative energy research and development revolving fund to an unspecified amount; and

     (2)  Changing the appropriation from the alternative energy research and development revolving fund for the purpose of providing matching grants to qualifying local businesses to an unspecified amount.

     Should the Committee on Finance decide to hear this measure, your Committee respectfully requests that it consider providing an appropriation of $5,000,000 to adequately fund the pilot program established in this measure.

     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. 1513, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1513, 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,

____________________________

CHRIS LEE, Chair