HB2608 HD1

HOUSE OF REPRESENTATIVES	H.B. NO.	2608
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO WATER HEATING SYSTEMS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Hawaii has long been a national leader in solar water heating adoption and clean energy policy. Since the enactment of the State's solar water heating requirements and incentives, electric heat pump water heater technology has advanced significantly. Simultaneously, the cost of this technology has dropped significantly, allowing substantial reductions in utility bills, energy use, and greenhouse gas emissions while supporting grid reliability and renewable energy integration. The legislature further finds that past implementation of the solar water heating requirement and variance processes resulted in widespread approval of fossil fuel–based water heating systems, including gas-fired demand water heaters, despite Hawaii having no indigenous or reliable in-state supply of natural gas or propane. This furthers the State's dependence on imported fossil fuels and undermines clean energy goals.

The legislature additionally finds that high-efficiency electric heat pump water heaters provide a clean energy alternative that avoids continued reliance on fossil fuel combustion for water heating and aligns with statutory commitments to decarbonization, energy security, and reduced household energy costs. Unlike rooftop solar water heating systems, high-efficiency electric heat pump water heaters can be utilized in a broader range of housing types, including rental units, townhomes, and multifamily dwellings, thereby expanding access to clean energy technologies and energy cost savings for residents who may otherwise be unable to benefit from rooftop-based systems.

The legislature also finds that federal incentives previously supported the adoption of high-efficiency electric heat pump water heaters, including a rebate of up to $2,000 authorized under the Inflation Reduction Act, which expired on December 31, 2025, resulting in the loss of a significant financial incentive for Hawaii households.

The legislature further finds that modern high-efficiency electric heat pump water heaters can provide energy savings comparable to those of solar water heating systems, while expanding access to clean water heating options for households and housing where new solar water heating systems are impractical or impossible.

Accordingly, the purpose of this Act is to authorize building permit variances for certain high-efficiency electric water heating systems utilizing heat pump technology.

SECTION 2. Section 196-6.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) On or after January 1, 2010, no building permit shall be issued for a new single-family dwelling that does not include a solar water heater system that meets the standards established pursuant to section 269-44, unless the chief energy officer of the Hawaii state energy office approves a variance. A variance application shall only be accepted if submitted by an architect or mechanical engineer licensed under chapter 464, who attests that:

(1) Installation is impracticable due to poor solar resource;

(2) Installation is cost-prohibitive based upon a life cycle cost-benefit analysis that incorporates the average residential utility bill and the cost of the new solar water heater system with a life cycle that does not exceed fifteen years;

(3) A renewable energy technology system, as defined in section 235-12.5, is substituted for use as the primary energy source for heating water; [or]

(4) A demand water heater device approved by Underwriters Laboratories, Inc., is installed; provided that at least one other gas appliance is installed in the dwelling. For the purposes of this paragraph, "demand water heater" means a gas-tankless instantaneous water heater that provides hot water only as it is needed[.]; or

(5) A high-efficiency electric water heating system utilizing heat pump technology, as defined in section 235-12.5, when installed in conjunction with a photovoltaic system, is substituted as the primary energy source for heating water."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 3000.