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Governor Linda Lingle today signed into law an energy bill that she claims, as part of the Lingle-Aiona Administration’s 'Energy for Tomorrow' plan, will help reduce dependence on imported oil. The bill (SB 2957) is part of a plan that encourages and supports market-based development of renewable energy for Hawaii.
“This new law marks the final legislative component of my Administration’s ‘Energy for Tomorrow’ initiatives which will help Hawai reduce dependence on imported oil,” said Governor Lingle.
SB2957 SD2 HD2 CD1 (Act 240) along with three other bills the Governor has already signed into law (SB3185 – Act 162, HB2848 – Act 163, and HB2175 – Act 96), represents the Governor's attempt to create a fertile seed-bed for the growth of renewable fuels in the state.
This new law emphasizes energy self-sufficiency by increasing the income tax credit for renewable energy technologies for biofuels, solar-thermal, wind-powered, and photovoltaic energy systems.
Specific provisions in the bill are as follows:
- establishes state support for achieving a new statewide alternate fuel standard of 10 percent of highway fuel in use by 2010, 15 percent by 2015, and 20 percent by 2020. To contribute to the achievement of this goal, the state has established a bio-diesel preference in the state procurement law
- providing funding to increase the use of biomass resources for energy by assisting the agricultural community interested in developing energy projects, especially in the production of biodiesel and cellulosic ethanol from agricultural waste streams. In addition, the funds will be used to conduct a statewide, multi-fuel, biofuels production assessment
- commercial biofuel, wind-powered and photovoltaic systems are eligible for credits of up to $500,000, a 100 percent increase
- the dollar cap for tax credits for single-family residential solar thermal systems is now $2,250, a nearly 30 percent increase, while single-family residential photovoltaic systems can now claim up to $5,000, a 240 percent increase
- removal the 2008 sunset date for these energy tax credits
- establishes a “pay-as-you-save” pilot project to provide a financing mechanism to make purchases of residential solar hot water heater systems more affordable. The pilot project will allow a residential electric utility customer to avoid the barrier of upfront payments for the installation of these important energy-saving devices by allowing them to pay for the cost over time on their electricity bill
- establishing a Hawai`i 'Renewable Hydrogen Program' to manage the state’s transition to a renewable hydrogen economy. The bill provides seed and venture capital for investments in private sector and federal projects for research, development, and testing of hydrogen power
The bill-signing ceremony took place yesterday at the Gay & Robinson Sugar Plantation on Kaua`i.
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