Hawaii
Financial Incentives
Tax Benefits: The Hawaii Energy Tax Credits allow individuals and corporations to claim an income tax credit of 20 percent of the cost of the purchase and installation of a wind system and
35 percent of the cost of the purchase and installation of a solar thermal or PV system if certain circumstances are satisfied.
1
Hawaii also offers a credit to taxpayers who invest in businesses that develop renewable energy technologies.
2
Loan Programs: Hawaii offers low-interest loans to farmers and aquaculturists for 85 percent of the project costs or $1.5 million, whichever is less, for the production of renewable energy through PV, hydroelectric, wind, methane, biodiesel or ethanol.
3
Grants: Hawaii is providing $2.6 million to six organizations accelerating the adoption of elective vehicles and related charging equipment in the state.
4
Other Financial Incentives: Hawaii has created a public benefits fund for energy efficiency programs that is funded by a surcharge on utility bills.
5
Programs supported by the public benefits fund include rebates for home appliances, industrial energy efficiency, and solar water heaters, as well as various other financial incentives.
Rules and Regulations
Renewable Portfolio Standard: Hawaii’s RPS requires utilities to generate 10 percent of their electricity from renewable energy sources by 2010, gradually increasing to 40 percent by 2030.
6
Eligible technologies include solar thermal and PV, landfill gas, wind, biomass (including municipal solid waste), hydro, geothermal electric and heat pumps, wave and ocean thermal energy, biofuels, renewable hydrogen, and fuels cells using renewable fuels. Electricity savings from solar heating and air conditioning and sea-water air conditioning systems also count towards the standard until January 1, 2015. Starting in 2015, these technologies will be included in a separate energy efficiency portfolio standard that requires a reduction in electricity use by
4,300 gigawatt-hours (GWh) by 2030.
7
Facility Siting and Permitting: Each county agency that issues building, construction, or development-related permits is required to give priority to permit applications for projects incorporating energy and environmental design building standards.
8
Subject to several exceptions, building permits may not be issued for new single-family homes that do not include a solar water heating system.
9
Hawaii prohibits the creation of any covenant or restriction on the installation or use of a solar energy system on a residential dwelling or townhouse.
10
Building Codes, Appliance and Equipment Standards: Hawaii has adopted the 2006 IECC, with amendments, as the state energy code.
11 Each state agency must, to the extent possible, meet the LEED Silver standard or another similar guideline approved by the state, implement energy and water conservation practices, and follow other energy conservation practices.
12
By the end of 2010, state agencies must evaluate the energy efficiency of all existing public

buildings that are larger than 5,000 square feet or use more than 8,000 kWh annually and identify opportunities for increased energy efficiency.
13
Electricity Transmission, Interconnection and Storage: Hawaii has established various simplified interconnection rules for small renewable energy facilities and separate rules for all other DG.
14 The Hawaii Public Utilities Commission (HI PUC) has established a feed-in tariff, 15 and net metering is available on a first-come, first-served basis to residential and “small commercial” customers that generate electricity using solar, wind, biomass or hydroelectric systems.
16
Fuel Standards and Transportation: Hawaii has enacted extensive energy efficiency and environmental standards for motor vehicles and transportation fuels. For example, Hawaii law requires that at least 85 percent of the state’s unleaded gasoline consist of at least 10 percent ethanol.
17
Policies, Plans, and Governmental Affiliations
Policies and Plans: The Global Warming Solutions Act of 2007 mandates that Hawaii reduce its
GHG emissions to 1990 levels by 2020.
18
GHG emissions from airplanes are exempted. By the end of 2011, the Department of Health must promulgate regulations that include mandatory reductions for large emitters, as well as reporting and monitoring requirements.
19
Through the
Hawaii Clean Energy Initiative, Hawaii has set a goal of 70 percent clean energy by 2030, with
30 percent from efficiency measures, and 40 percent coming from compliance with the state’s
RPS (discussed above).
20
Government Entities: Hawaii Department of Agriculture,
21
Hawaii Department of Business,
Economic Development & Tourism,
22
Hawaii Department of Commerce & Community
Affairs,
23
Hawaii Department of Health,
24
Hawaii Department of Taxation,
25
Hawaii Public
Utilities Commission.
26
Regional Memberships: Hawaii is a member of the WGA.
1 Haw. Rev. Stat. § 235-12.5
; http://www.hawaii.gov/dbedt/info/energy/renewable/solar .
2 Haw. Rev. Stat. § 235-110.9
; http://www.state.hi.us/tax/a2_b2_6hi_tech.htm
.
3 Haw. Rev. Stat. § 155-8 et seq.
; http://hawaii.gov/hdoa/agl/alternative-energy-loans .
4 http://hawaii.gov/dbedt/info/energy/evrebatesgrants/index_html/document_view ; Press Release .
5 Haw. Rev. Stat. § 269-121 et seq.
6 Haw. Rev. Stat. § 269-91 et seq.
7 Haw. Rev. Stat. § 269-96 et seq.
8 Haw. Rev. Stat. § 46-19.6
.
9 Haw. Rev. Stat. § 196-6.5
.
10 Haw. Rev. Stat. § 196-7 .
11 Haw. Admin, Rules § 3-181 et seq.
12 Haw. Rev. Stat. § 196-9
.
13 H.B. No. 1464 (2009) .
14 Haw. Rev. Stat. § 269-101 et seq.
; HI PUC Decision and Order No. 19773 ; HI PUC Decision and Order No.
24159 ; HI PUC Decision and Order No. 24238 .
15 HI PUC Decision and Order, Docket No. 2008-0273 ; HI PUC Order Approving FIT Tiers 1 and 2 Tariffs,
Standard Agreement, and Queuing and Interconnection Procedures, Docket No. 2008-0273 .

16 Haw. Rev. Stat. § 269-101 et seq.
; HI PUC Order, Docket No. 2006-0084 .
17 Haw. Rev. Stat. § 486J-10 ; Haw. Admin. Rules § 15-35 et seq.
18 Haw. Rev. Stat. § 342B-71
.
19 Haw. Rev. Stat. § 342B-72 .
20 http://www.hawaiicleanenergyinitiative.org/ .
21 http://hawaii.gov/hdoa/ .
22 http://hawaii.gov/dbedt .
23 http://hawaii.gov/dcca/ .
24 http://hawaii.gov/health/ .
25 http://hawaii.gov/tax/ .
26 http://puc.hawaii.gov/ .