STAND. COM. REP. NO. 1133

Honolulu, Hawaii

RE: H.B. No. 550

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Government Operations, to which was referred H.B. No. 550, H.D. 2, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require state facilities, with the exception of smaller facilities and facilities at Aloha Stadium, to implement cost-effective energy efficiency measures;

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

(3) Establish a goal for the State to achieve at least a twenty-five percent reduction in the electricity consumption of state facilities;

(4) Provide that certain agencies that perform energy efficiency retrofitting may continue to receive budget appropriations for energy expenditures; and

(5) Require, beginning July 1, 2022, where feasible and cost-effective, the design of all new state building construction to maximize energy generation, water efficiency, energy efficiency, and energy generation potential, and to use building materials that reduce the carbon footprint of the project.

Your Committees received testimony in support of this measure from the Hawaii State Energy Office, Hawai‘i Energy, Plumbers and Fitters Local 675 United Association, Ulupono Initiative, Blue Plant, 350Hawaii, and three individuals. Your Committees received comments on this measure from the Department of Education, Department of Accounting and General Services, Chamber of Commerce Hawaii, and one individual.

Your Committees find that energy efficiency is the most cost-effective way to reduce emissions associated with electricity generation and that reducing the demand for power generation is a necessary component of reaching the State's goal of one hundred percent renewable energy by 2045.

Your Committees further find that energy used to power buildings accounts for more than fifty percent of electricity consumed in the State, yet the State has not undertaken improvements for increased efficiency in many of its own facilities, forgoing millions of dollars in potential savings. Your Committees believe that it is important for the State to lead by example when it comes to energy efficiency, and this measure offers a statewide coordinated approach that improves energy efficiency for state facilities through smart energy management that reduces energy usage in certain state facilities.

Your Committees have amended this measure by:

(1) Changing the term "Aloha Stadium" to the "Stadium Development District";

(2) Requiring the Hawaii Natural Energy Institute, instead of the Hawaii State Energy Office, to conduct the usage study;

(3) Allowing the Department of Accounting and General Services to opt out of the energy-efficiency requirements if the facility will be demolished within five years;

(4) Clarifying language that the facilities must be state-owned; and

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

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 550, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 550, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy, Economic Development, and Tourism and Government Operations,

________________________________ SHARON MORIWAKI, Chair

________________________________ GLENN WAKAI, Chair