STAND. COM. REP. NO.1143

Honolulu, Hawaii

, 2003

RE: H.B. No. 288

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Energy and Environment and Commerce, Consumer Protection and Housing, to which was referred H.B. No. 288, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY CONSERVATION INITIATIVES,"

beg leave to report as follows:

The purpose of this measure is to promote energy conservation through a variety of initiatives, including general obligation bonds to finance the incorporation of renewable energy efficient technologies in state facilities, funding for hydrogen research, and a statewide energy audit.

Additionally, this measure requires the energy resources coordinator (the Director of Business, Economic Development, and Tourism) to review and evaluate the renewable technologies tax credit and extends the current energy conservation income tax credit for certain energy conservation devices to July 1, 2007.

Testimony supporting this measure was submitted by Building Industry Association Hawaii; Sierra Club Hawaii Chapter; Plumbers and Fitters Local 675 United Association; Scheibert Energy Company; R&R Services, Inc.; Subcontractors Association of Hawaii; Life of the Land; American Society of Heating; Refrigerating and Air-Conditioning Engineers, Inc.; Plumbing & Mechanical Contractors Association of Hawaii; Honolulu Painting Co., Ltd.; Acutron Co. Inc.; Hawaii Solar Energy Association; Iolani School; Inter-Island Solar Supply; The Chamber of Commerce of Hawaii; and three individuals. The Department of Business, Economic Development, and Tourism and the Public Utilities Commission submitted testimony supporting the intent of this measure. The Department of Accounting and General Services, PowerLight, and one individual submitted testimony opposing this measure. Comments on this measure were submitted by the Department of Taxation, Board of Land and Natural Resources, Kona Blue Water Farms, Tax Foundation of Hawaii, Hawaiian Electric Company, Inc., Energy Efficiency Policy Task Force, HTH Corporation, and an individual.

Your Committees find that substantial improvement of Hawaii's environment and its efficient use of energy resources requires a variety of innovative strategies. This measure provides several diverse provisions to encourage and promote energy conservation and technologies with general obligation bonds, research, a task force, and auditing.

Your Committees have amended this measure by:

(1) Inserting $100,000,000 as the general obligation bond amount for renewable energy efficient technologies in state facilities;

(2) Deleting the requirement that the State identify, evaluate, and prioritize qualifying projects that should be improved with renewable energy and energy efficient technologies;

(3) Specifying and listing the energy efficiency projects in state facilities for issuance of general obligation bonds;

(4) Inserting $50,000 in to the appropriation for a statewide energy audit;

(5) Deleting the establishment of a temporary renewable energy technologies tax credit;

(6) Deleting the requirement that the resources coordinator review and evaluate the renewable technologies tax credit;

(7) Deleting the extension of the current energy conservation income tax credit;

(8) Establishing an emissions task force to measure the State's power plant and motor vehicle emissions and to develop appropriate strategies for emissions reductions;

(9) Authorizing the Kahoolawe Island Reserve Commission to develop and implement a strategy for the use of alternative energy resources to address the current and future energy needs of the island of Kahoolawe; and

(10) Making technical, nonsubstantive amendments for the purposes of clarity.

As affirmed by the records of votes of the members of your Committees on Energy and Environment and Commerce, Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 288, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 288, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair

____________________________

J. KALANI ENGLISH, Chair