The bill permits the Hawaii Technology Development Corporation to issue matching grants of up to 50% for businesses that have secured contracts from the Department of Defense's Office of Naval Research, specifically for alternative energy projects. This initiative is expected to encourage local companies to enhance their research capacities, potentially increasing their competitiveness in the growing alternative energy sector. Moreover, it reinforces Hawaii’s commitment to renewable energy initiatives and aligns with broader environmental objectives.
Summary
SB819 is a legislative proposal aimed at re-establishing the Hawaii Office of Naval Research Grant Program, which provides critical financial support through matching grants to Hawaii-based businesses engaged in alternative energy research and development. The bill reflects Hawaii's commitment to achieving 100% clean energy by 2045 while simultaneously fostering economic growth and diversification. By reinstating this program, the state aims to stimulate innovation in various energy technologies, including geothermal, solar, and wind power.
Contention
While the bill offers numerous benefits, it may face scrutiny regarding the eligibility criteria set for grants. Only businesses that are at least 60% resident-owned and have been operational in Hawaii for over a year will qualify, which could limit funding opportunities for newer ventures or those not meeting the ownership threshold. Additionally, the provision that limits grant eligibility if another state grant has been obtained may raise concerns about potential underfunding for businesses that require multiple sources of support to innovate effectively.