STAND. COM. REP. NO. 1218-20

Honolulu, Hawaii

, 2020

RE: S.B. No. 2561

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 S.B. No. 2561 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 available energy efficiency rebates and state-specific energy operation costs for operation.

Your Committees received testimony in support of this measure from the Hawaii State Energy Office, Public Utilities Commission, and Blue Planet Foundation. 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 Hawaii Energy.

Your Committees find that supplying information about available energy efficiency rebates and energy costs for household appliances in Hawaii will present accurate information on savings available to households and how much households in the State can realistically expect to spend in operating those appliances, which will enable consumers to make more informed choices and choose products that yield long-term savings as opposed to lowest initial cost.

Your Committees have amended this measure by:

(1) Deleting the font size requirement for the required signage or text on household appliances;

(2) Clarifying that the signage or text on household appliances shall inform consumers of available energy efficiency rebates funded by the public benefits fee and of Hawaii-specific energy costs for operation based on a statewide average residential electricity cost for the prior calendar year;

(3) Applying the requirements for the signage or text to only those household appliances that appear on a retailer's showroom floor and that are required, as of October 1, 2020, to display the Federal Trade Commission's EnergyGuide label;

(4) Requiring the displayed signage or text to be updated at a minimum of once every five years;

(5) Requiring new household appliances entering the Hawaii market within the five-year update cycle to be appropriately labeled with the required signage or text upon appearance on a retailer's showroom floor;

(6) Requiring the public benefits fee administrator to create a template for the displayed signage or text and make the template available to retailers no later than July 1, 2021, and at least once every five years thereafter, with retailers to display the required signage or text by January 1 of the following calendar year; and

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

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 S.B. No. 2561, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2561, 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