Honolulu, Hawaii



RE:    H.B. No. 1513

       H.D. 1

       S.D. 2




Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii




     Your Committee on Ways and Means, to which was referred H.B. No. 1513, H.D. 1, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to further strengthen and support Hawaii's companies that are conducting renewable energy research and development.


More specifically, this measure establishes a two-year alternative energy research and development pilot program to provide matching grants to qualified local companies that have existing contracts with the principal research division of the United States Department of Defense Office of Naval Research.   


     Your Committee received written comments in support of this measure from The Chamber of Commerce Hawaii, HSI Mechanical, Inc., and forty-seven individuals.  Your Committee received written comments on this measure from the Department of Budget and Finance. 


     Your Committee finds that Hawaii's dependence on imported oil to supply its energy needs threatens Hawaii's natural environment and places its economic security at risk.  To gain independence from oil, the State adopted the clean energy initiative to achieve seventy percent clean energy by the year 2030.  Your Committee further finds that there are growing numbers of Hawaii-based companies conducting research and developing clean energy technologies that may assist the State in achieving its clean energy goals.  Your Committee believes that it is in Hawaii's best interest to support and strengthen these companies and to take steps to encourage the development of high-impact clean energy solutions that promote innovative economic development.


     Your Committee has amended this measure by:


     (1)  Requiring the Department of Business, Economic Development, and Tourism to adopt administrative rules to effectuate the grant program;


     (2)  Providing that a business is ineligible for a grant through the alternative energy research and development pilot program if the business has obtained any other state tax credit or grant, other than a grant awarded by the Department of Defense Office of Naval Research, at the time of or during the duration of an alternative energy research and development pilot program grant;


     (3)  Changing the effective date to July 1, 2053, to facilitate further discussion on the measure; and


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


     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1513, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1513, H.D. 1, S.D. 2.


Respectfully submitted on behalf of the members of the Committee on Ways and Means,