STAND. COM. REP. NO. 652-20

Honolulu, Hawaii

, 2020

RE: H.B. No. 1604

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committees on Economic Development & Business and Energy & Environmental Protection, to which was referred H.B. No. 1604 entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

beg leave to report as follows:

The purpose of this measure is to require retailers of household appliances to conspicuously display on household appliances available energy efficiency rebates and Hawaii-specific energy costs for operation.

Your Committees received testimony in support of this measure from the Hawaii State Energy Office, Blue Planet Foundation, 350Hawaii, and twelve individuals. Your Committees received testimony in opposition to this measure from the Association of Home Appliance Manufacturers and Retail Merchants of Hawaii. Your Committees received comments on this measure from the Public Utilities Commission.

Your Committees find that supplying information about available rebates and energy costs in the State will present a more accurate picture of how much an appliance will cost to operate by a household in Hawaii and enable consumers to make more informed choices by choosing products that yield long-term savings as opposed to choosing primarily on lowest initial cost.

Your Committees have amended this measure by:

(1) Clarifying that the signage or text on household appliances shall inform consumers of available energy efficiency rebates funded by the public benefits fee;

(2) Changing its effective date to July 1, 2112, to encourage further discussion; and

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

Your Committees respectfully request the Hawaii State Energy Office to begin reaching out to affected retailers on this proposal on how to seamlessly implement this measure should it be enacted. Your Committees are concerned that without a financial or regulatory scheme in place to ensure that Hawaii data is included in the cost of usage, businesses may simply choose to ignore this measure.

As affirmed by the records of votes of the members of your Committees on Economic Development & Business and Energy & Environmental Protection that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1604, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1604, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committees on Economic Development & Business and Energy & Environmental Protection,

____________________________ NICOLE E. LOWEN, Chair

____________________________ ANGUS L.K. McKELVEY, Chair