HB2739

SECTION 1. The legislature finds that Hawaii's electricity rates are among the highest in the nation, at close to three times the national average, and vary based on availability of renewable resources, power plants, fuel costs, and pricing regulations. The 2022 report commissioned by the Aloha United Way, "ALICE in Hawaii: 2022 Facts and Figures", states that forty-four per cent of households in the State live below the ALICE (asset limited, income constrained, employed) threshold, meaning that almost half of all families in Hawaii are struggling to make ends meet, even though they are employed. The number of electric utility customers in arrears and facing disconnection is higher than before the COVID-19 pandemic, with thousands of customers collectively owing millions of dollars. In addition, electricity needs are expected to increase due to rising climate temperatures and associated home cooling needs.

During the Regular Session of 2022, the legislature adopted Senate Concurrent Resolution No. 242, S.D. 1, that requested the creation of a Hawaii state low-income home energy assistance program (LIHEAP) working group. As noted in a December 2022 report to the legislature submitted by the public utilities commission, the federal LIHEAP administered by the department of human services, a program designed to provide energy assistance to families, served fewer than nine thousand households in Hawaii in 2020, or about two per cent of the State's population potentially eligible for energy assistance based on income. The State received the lowest amount of federal funding for federal LIHEAP of all states in fiscal year 2021-2022. According to estimates from the National Energy and Utility Affordability Coalition, Hawaii received 0.14 per cent of federal LIHEAP funds in fiscal year 2021-2022, roughly half of the next-lowest state. Funding for states is determined based on a formula developed in 1984, which inherently favors states with large heating needs and does not consider specific electricity prices within states.

The legislature further finds that in addition to the limited financial assistance available through the department of human services from the federal LIHEAP program, the public utilities commission public benefits administrator plays a vital role in ensuring that all available State and federal benefits and rebate programs are being utilized by providing opportunities and solutions for Hawaii residents and business to save money and energy. The legislature also finds that the State must commit to efforts that provide assistance to low-income households that are directly impacted due to the high cost of electricity.

The purpose of this Act is to establish within the department of human services a Hawaii home energy assistance program similar to the federal LIHEAP program that will allow the department of human services to provide energy assistance to more families. In addition to financial assistance from the department of human services, recipients of the Hawaii home energy assistance program will receive valuable information and assistance from the public utilities commission public benefits administrator about making their homes more energy efficient to reduce their cost of electricity.

SECTION 2. Chapter 346, Hawaii Revised Statutes, is amended by adding two new sections to part II to be appropriately designated and to read as follows:

"§346- Hawaii home energy assistance program; established. (a) There is established within the department the Hawaii home energy assistance program. Subject to the availability of program funds, the program shall be authorized to assist eligible households with payment of the costs associated with meeting an eligible household's home energy needs that may include, among other things, energy bill payments, home energy crisis payments, weatherization, energy efficiency improvements, and energy-related home repairs.

(b) The public utilities commission public benefits administrator, in consultation with the department, shall provide information and technical assistance to recipients, including an energy audit at the request of a recipient, and assist recipients with implementation of energy efficiency improvements, in accordance with section 269-123(b).

§346- Hawaii home energy assistance program special fund. (a) There is established in the state treasury the Hawaii home energy assistance program special fund, to be administered by the department, into which shall be deposited:

(1) Appropriations made by the legislature;

(2) All contributions to the Hawaii home energy assistance program from public or private individuals or entities;

(3) All interest earned on or accrued to moneys deposited in the special fund; and

(4) Any other moneys made available to the special fund from other sources.

(b) Moneys in the Hawaii home energy assistance program special fund shall be expended by the department for the purposes of the Hawaii home energy assistance program under section 346- ."

SECTION 3. Section 269-123, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The public benefits fee administrator's duties and responsibilities shall be established by the public utilities commission by rule or order, and may include:

(1) Identifying, developing, administering, promoting, implementing, and evaluating programs, methods, and technologies that support energy-efficiency and demand-side management programs;

(2) Encouraging the continuance or improvement of efficiencies made in the production, delivery, and use of energy-efficiency and demand-side management programs and services;

(3) Using the energy-efficiency expertise and capabilities that have developed or may develop in the State and consulting with state agency experts;

(4) Promoting program initiatives, incentives, and market strategies that address the needs of persons facing the most significant barriers to participation;

(5) Promoting coordinated program delivery, including coordination with electric public utilities regarding the delivery of low-income home energy assistance, other demand-side management or energy-efficiency programs, and any utility programs;

(6) Consideration of innovative approaches to delivering demand-side management and energy-efficiency services, including strategies to encourage third-party financing and customer contributions to the cost of demand-side management and energy-efficiency services;

(7) Submitting, to the public utilities commission for review and approval, a multi-year budget and planning cycle that promotes program improvement, program stability, and maturation of programs and delivery resources; [~~and~~]

(8) Educating and training appliance manufacturers, distributors, and retailers of appliances covered under part VI of chapter 196 about the appliance efficiency standards established under that part to improve compliance[.]; and

(9) Providing information and technical assistance about available energy efficiency programs to recipients of the Hawaii home energy assistance program, including an energy audit if requested by the recipient, and assisting the recipients with implementation of energy efficiency improvements."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2024-2025 to establish one full-time equivalent position (1.0 FTE) and two temporary full-time equivalent positions (2.0 FTE) and to contract for services for the purposes of implementing the Hawaii home energy assistance program.

The sum appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the Hawaii home energy assistance program special fund.

SECTION 6. There is appropriated out of the Hawaii home energy assistance program special fund the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2024-2025 for the purposes of the Hawaii home energy assistance program.

The sum appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 7. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37‑91 and 37‑93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in H.B. No. , will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. In addition, the appropriations contained in this Act will cause the general fund expenditure ceiling for fiscal year 2024‑2025 to be further exceeded by $ or per cent. The combined total amount of general fund appropriations contained in only these two Acts will cause the state general fund expenditure ceiling for fiscal year 2024‑2025 to be exceeded by $ or per cent. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriations made in this Act is necessary to serve the public interest; and

(2) The appropriations made in this Act meets the needs addressed by this Act.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2739
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII