Hawaii-2012-HR164-Introduced

WHEREAS, the Legislature finds that the use of solar power and other forms of renewable energy and the increase of energy efficiency are admirable goals which may result in reduced utility expenses for residential and commercial property owners; and

WHEREAS, the Legislature also finds that the initial capital investment required by property owners to install renewable energy systems and energy efficiency improvements on residential and commercial properties is a significant barrier to reaching the State's clean energy targets; and

WHEREAS, employing innovative financing to remove known barriers and stimulate enterprise in the clean energy sector is helpful to the public; and

WHEREAS, assisting renewable energy projects can provide increased career opportunities for Hawaii residents, attract funding and investment into the State, and produce long-term energy, environmental, and economic benefits; and

WHEREAS, jurisdictions outside of Hawaii have enabled Property Assessed Clean Energy (PACE) programs or similar programs; and

WHEREAS, under PACE programs and similar programs, property owners obtain low-interest loans to cover the upfront costs of increasing energy efficiency and installing renewable energy systems, while repayment of such loans occurs over a period of years through increased property tax assessments; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2012, that the Department of Business, Economic Development, and Tourism, and the Department of Budget and Finance are requested to establish a Task Force to study and make recommendations regarding the creation of a Clean Energy Bond Loan Program similar to PACE programs, to be administered by the Department of Business, Economic Development, and Tourism; and

BE IT FURTHER RESOLVED that, more specifically, the Task Force is requested to consider:

(1) The feasibility of the creation of a Hawaii Clean Energy Bond Loan Revolving Fund, which would be comprised of proceeds from the issuance of revenue bonds, repayments of applicable loans, and other moneys;

(2) The use of such funds to make loans to residential and commercial property owners for energy efficiency improvements and renewable energy systems;

(3) The types of energy efficiency improvements and renewable energy systems that should qualify for loans under the program;

(4) The process for determining eligibility for a loan;

(5) Appropriate rates, charges and repayment terms for the operation of the program;

(6) The mechanism by which the Department of Business, Economic Development, and Tourism would coordinate the operation of the program with the counties for the repayment of loans through increased property tax assessments;

(7) Whether a lien placed on a property pursuant to this program should be subordinate to all mortgages, in order to allay concerns about such liens taking priority over mortgages;

(8) Whether the program should be temporary or permanent;

(9) Whether the administration of the Clean Energy Bond Loan Program should be consolidated with the administration of existing loan programs of the Department of Business, Economic Development, and Tourism, such as the Hawaii Capital Loan Program and the Capital Access Program;

(10) Any other relevant factors; and

BE IT FURTHER RESOLVED that the Task Force Membership is requested to include at least the following:

(1) The Director of the Department of Business, Economic Development, and Tourism or that director’s designee;

(2) The Director of Finance or that director’s designee;

(3) The Director of the Department of Commerce and Consumer Affairs or that director’s designee;

(4) The Administrator of the Hawaii State Energy Office, Department of Business, Economic Development, and Tourism, or that administrator’s designee;

(5) One individual representing the City and County of Honolulu;

(6) One individual representing the County of Maui;

(7) One individual representing the County of Hawaii;

(8) One individual representing the County of Kauai;

(9) One individual representing Blue Planet Foundation;

(10) One individual representing Hawaii Solar Energy Association;

(11) One individual representing U.S. Green Building Council (USGBC), Hawaii Chapter; and

BE IT FURTHER RESOLVED that the Task Force members are requested to serve on a voluntary basis and to assume responsibility for any costs associated with their participation on the Task Force; and

BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism, and the Department of Budget and Finance are requested to submit a report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2013, containing the study and recommendations of the Task Force, including any proposed legislation; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of the Department of Business, Economic Development, and Tourism; the Director of Finance; the Director of the Department of Commerce and Consumer Affairs; the Administrator of the Hawaii State Energy Office, Department of Business, Economic Development, and Tourism; the Mayors of the counties of Kauai, Maui, and Hawaii; the Mayor of the City and County of Honolulu; Blue Planet Foundation; Hawaii Solar Energy Association; and U.S. Green Building Council (USGBC), Hawaii Chapter.

	OFFERED BY:	_____________________________

Report Title:

Bonds; Clean Energy; Loans

HOUSE OF REPRESENTATIVES	H.R. NO.	164
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII