SB3263

SECTION 1. The legislature finds that Hawaii's electricity rates are among the highest in the nation, at close to three times the national average, and vary based on availability of renewable resources, power plants, fuel costs, and pricing regulations. The 2022 report commissioned by the Aloha United Way, "ALICE in Hawaii: 2022 Facts and Figures", states that forty-four per cent of the house holds in the State live below the ALICE (asset limited, income constrained, employed) threshold, meaning that almost of all families in Hawaii are struggling to make ends meet, even though they are employed. The number of electric utility customers in arrears and facing disconnection is higher than prior to the coronavirus disease 2019 pandemic, with thousands of customers collectively owing millions of dollars. In addition, electricity needs are expected to increase due to rising climate temperatures and associated home cooling needs.

In 2022, the legislature passed Senate Concurrent Resolution No. 242, Session Laws of Hawaii 2022, which called for the creation of a Hawaii state low-income home energy assistance program (LIHEAP) working group. As found in a December 2022 report to the legislature, the federal LIHEAP administered by the department of human services, a program designed to provide energy assistance to families, served fewer than nine thousand households in Hawaii in 2020, or about two per cent of the State's population potentially eligible for energy assistance based on income. According to estimates from the National Energy and Utility Affordability Coalition, Hawaii received 0.14 per cent of federal LIHEAP funds in fiscal year 2021-2022, the lowest amount of all states and roughly half of the next-lowest state. Funding for states is determined based on a formula developed in 1984, which inherently favors states with large heating needs and does not consider specific electricity prices within states.

In addition to the limited financial assistance available through the department of human services from the federal LIHEAP program, the public utilities commission public benefits fee administrator plays a vital role in ensuring that all available State and federal benefits and rebate programs are being utilized by providing opportunities and solutions for Hawaii residents and businesses to save money and energy.

The State must commit to providing assistance to low-income households that are directly impacted due to the high cost of electricity.

The purpose of this Act, therefore, is to establish within the department of human services a Hawaii home energy assistance program similar to the federal LIHEAP program that will allow the department of human services to provide energy assistance to more families. In addition to financial assistance from the department of services, recipients of the Hawaii home energy assistance program will receive valuable information and assistance from the public utilities commission public benefits fee administrator about making their homes more energy efficient to reduce their cost of electricity.

SECTION 2. Chapter 346, Hawaii Revised Statutes, is amended by adding to part II two new sections to be appropriately designated and to read as follows:

"§346- Hawaii home energy assistance program; established. (a) There is established within the department the Hawaii home energy assistance program. Subject to the availability of program funds, the program shall assist eligible households with payment of costs associated with meeting an eligible household's home energy needs that may include, among other things, energy bill payments, home energy crisis payments, weatherization, energy efficiency improvements, and energy-related home repairs. The public utilities commission public benefits fee administrator, in consultation with the department, shall provide information and technical assistance to recipients, including an energy audit at the request of a recipient, and assist recipients with implementation of energy efficiency improvements, in accordance with section 269-123.

(b) The department shall adopt rules pursuant to chapter 91 for purposes of this section.

§346- Hawaii home energy assistance program special fund. (a) There is established in the state treasury the Hawaii home energy assistance program special fund into which shall be deposited:

(1) Appropriations made by the legislature;

(2) All contributions to the Hawaii home energy assistance program from public or private individuals or entities;

(3) All interest earned or accrued on moneys deposited in the special fund; and

(4) Any other moneys made available to the special fund from other sources.

(b) Moneys in the Hawaii home energy assistance program special fund shall be expended by the department for the purposes of the Hawaii home energy assistance program."

SECTION 3. Section 269-123, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The public benefits fee administrator's duties and responsibilities shall be established by the public utilities commission by rule or order, and may include:

(1) Identifying, developing, administering, promoting, implementing, and evaluating programs, methods, and technologies that support energy-efficiency and demand-side management programs;

(2) Encouraging the continuance or improvement of efficiencies made in the production, delivery, and use of energy-efficiency and demand-side management programs and services;

(3) Using the energy-efficiency expertise and capabilities that have developed or may develop in the State and consulting with state agency experts;

(4) Promoting program initiatives, incentives, and market strategies that address the needs of persons facing the most significant barriers to participation;

(5) Promoting coordinated program delivery, including coordination with electric public utilities regarding the delivery of low-income home energy assistance, other demand-side management or energy-efficiency programs, and any utility programs;

(6) Consideration of innovative approaches to delivering demand-side management and energy-efficiency services, including strategies to encourage third-party financing and customer contributions to the cost of demand-side management and energy-efficiency services;

(7) Submitting, to the public utilities commission for review and approval, a multi-year budget and planning cycle that promotes program improvement, program stability, and maturation of programs and delivery resources; [~~and~~]

(8) Educating and training appliance manufacturers, distributors, and retailers of appliances covered under part VI of chapter 196 about the appliance efficiency standards established under that part to improve compliance[.]; and

(9) Providing information and technical assistance about available energy efficiency programs to recipients of the Hawaii home energy assistance program, including an energy audit if requested by the recipient, and assisting the recipients with implementation of energy efficiency improvements."

SECTION 4. In accordance with section 9 of article VII of the Hawaii State Constitution and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the appropriations contained in Act 164, Regular Session of 2023, and this Act will cause the state general fund expenditure ceiling for fiscal year 2024-2025 to be exceeded by $ or per cent. This current declaration takes into account general fund appropriations authorized for fiscal year 2024-2025 in Act 164, Regular Session of 2023, and this Act only. The reasons for exceeding the general fund expenditure ceiling are that:

(1) The appropriation made in this Act is necessary to serve the public interest; and

(2) The appropriation made in this Act meets the needs addressed by this Act

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2024-2025 to be deposited into the Hawaii home energy assistance program special fund.

SECTION 6. There is appropriated out of the Hawaii home energy assistance program special fund the sum of $10,000,000 or so much thereof as may be necessary for fiscal year 2024-2025 for purposes of the Hawaii home energy assistance program.

The sum appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2024-2025 to establish one full-time equivalent (1.0 FTE) position and two temporary positions, and to contract services as may be necessary, for the purposes of implementing the Hawaii home energy assistance program.

The sum appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 9. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3263
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII