Hawaii-2024-HB566-Introduced

SECTION 1. The legislature finds that Act 159, Session Laws of Hawaii 2015 (Act 159), authorized the high technology development corporation to provide fifty per cent matching grants of up to $500,000 to Hawaii businesses that were awarded alternative energy research grants by the Department of Defense Office of Naval Research between 2015 and 2017. The Hawaii office of naval research grant program was established to implement Act 159.

In the program's final year, the legislature passed Act 69, Session Laws of Hawaii 2017 (Act 69), which, in part, changed the name of the high technology development corporation to the Hawaii technology development corporation. In its 2017 annual report, the Hawaii technology development corporation noted that it had awarded a total of $950,000 to three local companies, which were then matched with a total of $10,200,000 in federal funds. The legislature finds that re-establishing this program would align with the State's goal to achieve one hundred per cent clean energy by the year 2045, while encouraging economic growth and diversification.

Accordingly, the purpose of this Act is to re-establish the two-year Hawaii office of naval research grant program.

SECTION 2. (a) There is established within the department of business, economic development, and tourism, a two-year Hawaii office of naval research grant program to provide grants to qualified businesses conducting research and development in alternative energy. The purpose of the program shall be to promote the research and development of alternative energy in Hawaii by authorizing the Hawaii technology development corporation to provide matching grants to businesses that meet criteria established in subsection (b).

(b) Subject to the availability of funds, the Hawaii technology development corporation may provide a grant to any business that:

(1) Has been awarded a competitive contract from the Department of Defense Office of Naval Research that is related to research on alternative energy and energy efficiency technologies in the fields of geothermal, solar, wind, ocean power, hydrodynamics, bioenergy, biomass, solid waste, smart grids, transportation, or demand response;

(2) Is sixty per cent or more resident-owned; provided that for purposes of this paragraph, "resident" shall have the same meaning as defined in section 235-1, Hawaii Revised Statutes;

(3) Is a for-profit entity organized under the laws of the State;

(4) Has been doing business in the State for not less than one year;

(5) Agrees to expend all grant funds awarded pursuant to this Act in the State; and

(6) Conducts research in alternative energy that has a high technology readiness level or high potential for implementation as evidenced by a contract, funded by moneys designated by the United States Congress as funding for alternative energy and a national defense budget funding directive, with the Department of Defense Office of Naval Research that is existing and active or was granted within three years prior to the effective date of this Act;

provided that the amount of any grant awarded pursuant to this Act shall not exceed fifty per cent of the amount of the grant awarded to the business by the Department of Defense Office of Naval Research; provided further that the business shall not be eligible for a grant pursuant to this section if the business has obtained any other state grant for the same research, other than the grant awarded to the business by the Department of Defense Office of Naval Research, at the time of or during the duration of the grant from the Hawaii office of naval research grant program.

(d) The department of business, economic development, and tourism shall adopt rules, pursuant to chapter 91, Hawaii Revised Statutes, necessary for the purposes of implementing the Hawaii office of naval research grant program.

SECTION 3. There is established the alternative energy research and development revolving fund for the purpose of promoting alternative energy research and development in Hawaii.

The alternative energy research and development revolving fund shall be abolished on June 30, 2025, and all unencumbered balances shall lapse to the credit of the general fund.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the alternative energy research and development revolving fund.

SECTION 5. There is appropriated out of the alternative energy research and development revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the purpose of the Hawaii office of naval research grant program; provided that the moneys appropriated by this Act shall not lapse at the end of the 2024-2025 fiscal year; provided further that any moneys that remain unencumbered on June 30, 2025, shall lapse on that date.

The sums appropriated shall be expended by the Hawaii technology development corporation for the purposes of this Act.

SECTION 6. This Act shall take effect on July 1, 2023.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	566
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII