Bill Text: HI HB1304 | 2010 | Regular Session | Introduced
Bill Title: Act 204, Session Laws of Hawaii 2008
Spectrum: Slight Partisan Bill (Democrat 8-4)
Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [HB1304 Detail]
Download: Hawaii-2010-HB1304-Introduced.html
Report Title:
Act 204, Session Laws of Hawaii 2008
Description:
Clarifies ambiguities in Act 204, Session Laws of Hawaii 2008.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1304 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to act 204, session laws of hawaii 2008.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Act 204, Session Laws of Hawaii 2008, was a controversial bill that created unintended consequences. While the intent of Act 204 was to mandate solar water heater installation on new homes being constructed, and that intent was undeniably an effort to move Hawaii towards energy independence by reducing electrical demand of new homes, Act 204 attempted to effectuate this intent through a combination of prohibiting the issuing of building permits and restricting tax credits.
However, the language restricting the tax credits for solar energy systems and restricting building permits was drafted ambiguously. A possible interpretation of the newly drafted language of Act 204 is to also deny tax credits and building permits for renovation projects of single-family dwellings where solar water heaters are to be installed. Clearly, Act 204 was not meant to mandate solar water heater installation on the one hand, and remove incentives for older single-family dwellings to install solar water heaters.
The legislature also finds that in the waning days of the 2008 legislative session, language was inserted into Act 204 that allowed an exception for demand water heater devices powered by natural gas. The legislature finds that while natural gas is pumped to homes on the mainland through a network of pipes that can cross state lines, in Hawaii, natural gas is refined just like gasoline or airline fuel is. In short, whether the demand water heater located in the state is powered by natural gas or electricity, both use fossil fuel, but both represent a more efficient use of that fossil fuel and deserve to remain as legitimate variances under the scheme of Act 204.
The purpose of this Act is to clarify ambiguities of Act 204, Session Laws of Hawaii 2008, to effect the original intent, to mandate solar water heater installation on new construction while allowing older dwellings to switch to solar water heating as a cost-efficient means to reduce electric bills.
SECTION 2. Section 196-6.5, Hawaii Revised Statutes, is amended to read as follows:
"[§196-6.5] Solar water heater system required for new single-family residential construction. (a) On or after January 1, 2010, no building permit shall be issued for the construction of a single-family dwelling that does not include a solar water heater system that meets the standards established pursuant to section 269-44, unless the energy resources coordinator approves a variance. A variance shall only be approved if an architect or engineer licensed under chapter 464 attests that:
(1) Installation is impracticable due to poor solar resource;
(2) Installation is cost-prohibitive based upon a life cycle cost-benefit analysis that incorporates the average residential utility bill and the cost of the new solar water heater system with a life cycle that does not exceed fifteen years;
(3) A substitute renewable energy technology system, as defined in section 235-12.5, is used as the primary energy source for heating water; or
(4) A demand water heater device approved by
Underwriters Laboratories, Inc., is installed[; provided that at least one
other gas appliance is installed in the dwelling]. For the purposes of
this paragraph, "demand water heater" means a gas-tankless
instantaneous water heater or an electric demand water heater that
provides hot water only as it is needed. In the case of a gas-tankless
instantaneous water heater, the variance under this subparagraph shall apply
only if at least one other gas appliance is installed in the dwelling.
(b) A request for a variance shall be submitted to the energy resources coordinator on an application prescribed by the energy resources coordinator and shall include, but not be limited to, a description of the location of the property and justification for the approval of a variance using the criteria established in subsection (a). A variance shall be deemed approved if not denied within thirty working days after receipt of the variance application.
(c) Nothing in this section shall preclude any county from establishing procedures and standards required to implement this section.
(d) Nothing in this section shall preclude participation in any utility demand-side management program or public benefits fund under part VII of chapter 269.
(e) The prohibition against the issuance of a building permit in subsection (a) of this chapter shall not include renovations of single-family dwellings."
SECTION 3. Section 235-12.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"§235-12.5 Renewable energy technologies; income tax credit. (a) When the requirements of subsection (c) are met, each individual or corporate taxpayer that files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual or corporate net income tax. The tax credit may be claimed for every eligible renewable energy technology system that is installed and placed in service in the State by a taxpayer during the taxable year. This credit shall be available for systems installed and placed in service in the State after June 30, 2003. The tax credit may be claimed as follows:
(1) Solar thermal energy systems for:
(A) Single-family residential property [for
which a building permit was issued prior to January 1, 2010]: thirty-five
per cent of the actual cost or $2,250, whichever is less;
(B) Multi-family residential property: thirty-five per cent of the actual cost or $350 per unit, whichever is less; and
(C) Commercial property: thirty-five per cent of the actual cost or $250,000, whichever is less;
(2) Wind-powered energy systems for:
(A) Single-family residential property: twenty per cent of the actual cost or $1,500, whichever is less;
(B) Multi-family residential property: twenty per cent of the actual cost or $200 per unit, whichever is less; and
(C) Commercial property: twenty per cent of the actual cost or $500,000, whichever is less; and
(3) Photovoltaic energy systems for:
(A) Single-family residential property: thirty-five per cent of the actual cost or $5,000, whichever is less;
(B) Multi-family residential property: thirty-five per cent of the actual cost or $350 per unit, whichever is less; and
(C) Commercial property: thirty-five per cent of the actual cost or $500,000, whichever is less;
provided that multiple owners of a single system shall be entitled to a single tax credit; and provided further that the tax credit shall be apportioned between the owners in proportion to their contribution to the cost of the system.
In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for every eligible renewable energy technology system that is installed and placed in service in the State by the entity. The cost upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined pursuant to section 235-110.7(a)."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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