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The Honolulu Advertiser
Posted on: Saturday, October 1, 2005

GOP energy plan stresses incentives

By Derrick DePledge
Advertiser Capitol Bureau

State House and Senate Republicans, who have dismissed the new wholesale price cap on gasoline as misguided, released their own energy plan yesterday that would offer incentives for people to purchase low-emission cars and energy-efficient appliances, and tax credits for companies to experiment with alternative fuels.

Republicans hope their ideas might resonate with people frustrated by high gas and electricity prices and influence majority Democrats, who will likely review the gas cap and alternative energy proposals during the next session of the state Legislature.

"It's 30 years too late. This initiative should have been launched when Hawai'i and the nation had gas lines in the 1970s," Senate Minority Leader Fred Hemmings, R-25th (Kailua, Waimanalo, Hawai'i Kai), said before a news conference announcing the plan. "We don't need a gas cap if gas is obsolete."

As part of the plan, Republicans want to provide an exemption to the state general excise tax on the sale of low-emission hybrid cars.

They would also allow people who drive hybrid cars to use car pool and Zipper lanes even if they are driving alone, while people driving regular cars would always need a minimum of three people in the car — instead of two — to use the lanes. Drivers of hybrid vehicles also would get free metered parking and a tax credit of 50 percent or up to $2,500 when purchasing low-emission equipment.

Consumers and companies would get tax credits of $50 on purchases of energy-efficient appliances over $300. An incentive program would be created for 1,000 people or companies to receive rebates on the installation of solar energy systems.

Republicans also want to offer state assistance and other incentives for companies to invest in biodiesel and hydrogen power. One proposal would create a pilot program in which the state's diesel-powered vehicles would use biodiesel fuel.

Sen. Ron Menor, D-17th (Mililani, Waipi'o), chairman of the Senate Consumer Protection and Housing Committee and one of the authors of the gas cap, said he would be open to the Republican proposals.

"Any measures the Legislature can adopt that could encourage energy conservation would be beneficial to consumers," Menor said.

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com.