STAND. COM. REP. NO. 350

Honolulu, Hawaii

, 2005

RE: H.B. No. 1435

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1435, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to encourage the use of alternative energy sources by:

(1) Increasing the tax credit amounts for solar thermal energy systems and photovoltaic energy systems; and

(2) Making the renewable energy technologies tax credit permanent by repealing its sunset date.

Hawaiian Electric Company, Hawaii Electric Light Company, Maui Electric Company, Hawaii Solar Energy Association, Inter-Island Solar Supply, Island Energy Solutions, Inc., Sierra Club, Hawaii Chapter, and R & R Solar Supply submitted testimony in support of this measure. The Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, Department of Business, Economic Development and Tourism, and Powerlight, Co. submitted testimony in support of intent. The Department of Taxation and a private citizen submitted comments.

 

Your Committee finds that Act 95, Session Laws of Hawaii 2004, mandates that renewables will provide 20 percent of each electric company's net energy sales by 2020. However, the State is dependent on expensive fossil fuels, using imported oil for 90 percent of its energy needs. To meet the goal of Act 95, the use of solar thermal, wind powered, and photovoltaic energy systems must be promoted as an alternative to fossil fuel-produced electricity.

Your Committee finds that this measure will promote a healthy environment and consistent energy policy upon which solar businesses can base long term investment decisions, create job opportunities, and lessen the demand on already overloaded electrical grids. Furthermore, the repeal of the sunset date will provide a strong policy statement in support of renewable technologies and resources.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1435, H.D. 1, and recommends that it be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

____________________________

KENNETH HIRAKI, Chair