STAND. COM. REP. NO. 2966

Honolulu, Hawaii

RE: S.B. No. 2561

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2561 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to require retailers of household appliances to conspicuously display on the appliances information regarding available energy efficiency rebates and state-specific energy operation costs.

Your Committee received testimony in support of this measure from the Hawaii State Energy Office, Climate Protectors Coalition, Blue Planet Foundation, Pacific Resource Partnership, and three individuals. Your Committee received testimony in opposition to this measure from the Retail Merchants of Hawaii and the Association of Home Appliance Manufacturers. Your Committee received comments on this measure from the Public Utilities Commission.

Your Committee finds that Hawaii businesses and residents pay the highest electricity rates in the nation, exacerbating the already high cost of living. Supplying information about available rebates and energy costs would enable consumers to make wise choices when selecting products that yield long-term savings as opposed to choosing a product solely based on the cost. According to the American Council for an Energy-Efficient Economy, efficiency measures saved Americans $800 billion in 2014 alone. Because Hawaii's electricity rates are two and one-half times higher, this measure will help consumers make more informed decisions and save consumers money by providing more accurate cost information on available rebates in the State and will further contribute to Hawaii's clean energy and decarbonization goals.

Your Committee notes that the Public Benefits Fee Administrator (PBFA) is working with the Hawaii State Energy Office and the Public Utilities Commission to ensure that the PBFA is prepared to provide outreach, education, and assistance to retailers to help them comply with the requirements of this measure and to address any legitimate concerns of the Association of Home Appliance Manufacturers.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2561 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

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ROSALYN H. BAKER, Chair