STAND. COM. REP. NO. 193

Honolulu, Hawaii

, 2021

RE: H.B. No. 550

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 550 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY EFFICIENCY,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Require and establish deadlines for state facilities, except smaller facilities and facilities at Aloha Stadium, to implement cost-effective energy efficiency measures;

(2) Direct the Hawaii State Energy Office to collect and make publicly available utility bill and energy usage data for state-owned buildings;

(3) Provide that certain agencies that perform energy efficiency retrofitting may continue to receive appropriations for energy expenditures at an amount that accounts for any costs or debt service for the implementation and management of energy efficiency measures; and

(4) Beginning July 1, 2021, require, where feasible and cost-effective, the design of all new state building construction to maximize energy and water efficiency, maximize energy generation potential, and use building materials that reduce the carbon footprint of the project.

Your Committee received testimony in support of this measure from the Climate Protectors of Hawaii, Ulupono Initiative, Blue Planet Foundation, Hawai‘i Energy, International Brotherhood of Electrical Workers Local 1260, and one individual. Your Committee received comments on this measure from the Department of Accounting and General Services, Department of Education, Hawaii State Energy Office, and Johnson Controls, Inc.

Your Committee finds that with the budget deficit the State is currently facing, it is imperative for all state departments to control their energy usage and lower their utility bills. This measure would prioritize energy efficiency as the first and most cost-effective step in smart energy management and generates new jobs in the energy sector at a time when they are badly needed.

Your Committee has amended this measure by:

(1) Including findings relating to the functions of the Hawaii State Energy Office;

(2) Deleting provisions that would have specified the simple payback period;

(3) Amending the definitions of "cost-effective energy efficiency measure" and "energy efficiency measure";

(4) Inserting language that establishes a goal for the State to achieve at least a twenty-five percent reduction in the electricity consumption of state facilities;

(5) Allowing costs for maintenance of energy efficiency measures by agencies that perform energy efficiency retrofitting to be covered by budget appropriations;

(6) Specifying that the design requirements for all new state building construction shall begin on July 1, 2022;

(7) Changing the effective date to July 1, 2050, to encourage further discussion; and

(8) 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 Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 550, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 550, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair