STAND. COM. REP. NO.89

Honolulu, Hawaii

, 2003

RE: S.B. No. 487

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Energy and Environment, to which was referred S.B. No. 487 entitled:

"A BILL FOR AN ACT RELATING TO A GEOTHERMAL-TO-HYDROGEN TAX CREDIT,"

begs leave to report as follows:

The purpose of this measure is to promote the use of geothermal-to-hydrogen systems to produce energy.

Specifically, the measure provides for a tax credit of twenty per cent of the total cost of a geothermal-to-hydrogen system erected or placed in service after December 31, 2003, but before January 1, 2012, that has an unspecified nameplate capacity. The system must be located on the same or immediately adjacent parcel of land.

Testimony in support of this measure was submitted by the Department of Business, Economic Development, and Tourism, Hawaiian Electric Company, Inc., and Vertical Wind Turbine Technologies, LLC. Comments on this measure was submitted by the Department of Taxation and the Tax Foundation of Hawaii.

Your Committee finds that Hawaii has access to clean renewable energy resources, including geothermal wells, yet relies heavily on imported fossil fuels. With nationally recognized expertise in hydrogen/fuel cell technologies, and a wealth of indigenous energy resources, Hawaii can be a leader in the development of advanced energy systems that utilize renewable resources. The proposed tax credit can stimulate needed research and commercialization of these advanced systems, and benefit Hawaii's energy security, environment, and economy.

As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 487 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

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J. KALANI ENGLISH, Chair