STAND. COM. REP. NO. 749

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1164

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1164, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO ENTERPRISE ZONES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to increase the use of renewable energy by amending the definition "eligible business activity" within state enterprise zones to include:

 

     (1)  The production of certain electric power from renewable energy; and

 

     (2)  The ownership, control, operation, or management of a seawater air conditioning district cooling project.

 

     Your Committee received written comments in support of this measure from Richard C. Lim, Interim Director, Department of Business, Economic Development, and Tourism; Warren Bollmeier, Hawaii Renewable Energy Alliance; and Arthur Seki, Director, Renewable Technology Hawaiian Electric Company, Inc.

 

     Your Committee received written comments on this measure from the Tax Foundation of Hawaii.

 

Your Committee finds that this measure will support Hawaii's clean energy initiatives by assisting developers of renewable energy projects in Hawaii.  By amending the definition of "eligible business activity" to include the production of electric power from renewable energy, this measure provides incentives for the creation of new Hawaii-based renewable energy companies and the expansion of existing ones.

 

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure and making technical, nonsubstantive amendments for style, clarity, and consistency.

 

     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 S.B. No. 1164, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1164, S.D. 2.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair