This legislative session, Hawai'i took a significant step toward economic recovery and began in earnest to reduce its addiction to carbon-based fuels. The vehicle for this is SB 464, which will attract hundreds of millions in out-of-state and federal investment monies to Hawai'i and accelerate the adoption of clean, reliable, solar energy.

Introduced by Senate Energy and Environment Chairman Mike Gabbard, the bill is a win-win plan that will stimulate the economy, create green-collar jobs, reduce carbon emissions, enhance Hawai'i's energy security and help low-income residents go solar. Support for SB 464 was remarkably broad, encompassing not only the renewable energy industry, but also HECO, the IBEW and the local energy finance community. It is as popular with the Lingle administration as it is with the state Legislature.

This unique alliance reflects the fact that solar makes sense for Hawai'i. Already a $200 million industry in 2008, solar is now responsible for 2,000 jobs statewide. With SB 464 in place, the solar industry could triple in 2009, and grow still more in 2010. And, solar continues stimulating the economy after installation, by substantially reducing operating costs for homeowners and businesses.

In passing SB 464, the Legislature also moved to cut the state's own $165 million annual power bill, which is up almost 60 percent in three years even though power consumption has actually declined. State facilities with the largest power bills — schools, universities, airports — are all well-suited for solar. With SB 464 in place, Hawai'i-based renewable energy finance companies can fund power production on these roofs and sell it to the state below the cost of grid power, saving millions annually for schools and roads.

Now is the perfect time for Hawai'i to embrace solar. The Obama administration will reimburse nearly a third of the cost for as much solar as the state can build in the next 18 months.

To maximize the stimulus impact of this spending, the federal money is disbursed within two months of the project's completion. Meanwhile, the price of solar panels has touched its lowest level ever due to a simultaneous supply glut and reduced global demand. Solar investors now get excellent value while helping the state achieve its clean energy goals.

The emphasis of SB 464 is on leveraging private capital and federal stimulus funds. It works by reducing existing credit levels by 10 percent, but allowing more firms to access it. This encourages more investment in renewable energy in Hawai'i. Because of the additional construction activity generated by these projects, Hawai'i's solar stimulus bill will raise more tax revenues for the state than it pays out.

Importantly, SB 464 also makes solar more affordable for Hawai'i's low-income residents and fixed income retirees. Solar incentive programs currently do not work for either group so they are not able to reduce their energy consumption by investing in solar for their home. SB 464 corrects this imbalance and makes the state incentive available to everyone.

Passing Hawai'i's solar stimulus plan was a team effort at the Legislature. Committee chairs Sen. Donna Mercado Kim, Reps. Marcus Oshiro and Hermina Morita, and the leadership of both the House and Senate also had a hand in making the measure a success.

The broad partnership that formed to support the bill now looks forward to putting Hawai'i's solar stimulus plan into action when Gov. Lingle continues her administration's support of SB 464 by signing it into law.

Mike Gabbard is a state senator representing District 19 (Kapolei, Makakilo, Waikele) and chairman of the Senate Committee on Energy and Environment. Mark Duda is president of the Hawai'i Solar Energy Association. They wrote this commentary for The Advertiser.