STAND. COM. REP. NO.  877-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2255

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2255 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY PERFORMANCE CONTRACTING FOR PUBLIC BUILDINGS,"

begs leave to report as follows:

The purpose of this measure is to facilitate the use of energy performance contracts by government agencies to finance improvements to their facilities and operations by clarifying the statutory provisions relating to energy performance contracts, including by specifying that:

     (1)  Agencies entering into energy performance contracts may continue to receive budget appropriations and have access to financing options;

     (2)  An energy performance contract have a maximum term of 25 years, including the construction period; and

     (3)  Agencies implementing the performance contracts provide annual reports to the Energy Resources Coordinator.

The Department of Business, Economic Development, and Tourism; Department of Accounting and General Services; Sierra Club of Hawaii; and Ulupono Initiative provided testimony in support of this measure.  The Department of Transportation provided comments on this measure.

     Your Committee has amended this measure by:

     (1)  Changing its effective date to July 1, 2030, for the purpose of facilitating further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2255, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2255, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair