Energy systems development special fund

(a) There is established the energy systems development special fund for the purpose of developing an integrated approach to and portfolio management of renewable energy and energy efficiency technology projects that will reduce Hawaii's dependence on fossil fuel, imported oil, and other imported energy resources and move Hawaii toward energy self-sufficiency. (b) Deposits into the special fund may be from the following: (1) Appropriations from the legislature; (2) A portion of the environmental response, energy, and food security tax pursuant to section 243-3.5; and (3) Investment earnings, gifts, donations, or other income received by the Hawaii natural energy institute. (c) The Hawaii natural energy institute shall administer the special fund and may expend revenues of the special fund for the following activities: (1) Obtaining matching funds from federal and private sources for research, development, and demonstration of renewable energy sources; (2) Awarding contracts or grants to develop and deploy technologies that will reduce Hawaii's dependence on imported energy resources and imported oil. Projects may be commissioned that: (A) Balance the risk, benefits, and time horizons of the investment to ensure tangible benefits to the Hawaii consumer, with priority given to short-term technology development; (B) Emphasize innovative and renewable energy supply and energy efficient end use technologies focusing on environmental attributes, reliability, and affordability; (C) Enhance transmission and distribution capabilities of renewable energy supply for electricity; (D) Enhance reliability and storage capabilities of renewable energy for electricity; (E) Ensure that research, deployment, and demonstration efforts build on existing programs and resources and are not duplicated; (F) Address critical technical and scientific barriers to achieving energy self-sufficiency by reducing dependence on imported oil and imported energy resources; (G) Ensure that technology used and developed for renewable energy production and distribution will be commercially viable; and (H) Give priority to resources that are indigenous and unique to Hawaii; and (3) Managing the portfolio of projects commissioned under this subsection.