THE SENATE	S.C.R. NO.	140
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII		PROPOSED

SENATE CONCURRENT

RESOLUTION

Urging THE DEPARTMENT OF EDUCATION and University of hawaii at manoa TO adopt energy SAVINGS performance contracting pursuant to section 36-41, hawaii revised statutes, as a primary strategy to address deferred maintenance and infrastructure modernization and improve energy efficiency statewide.

     WHEREAS, the State continues to face significant challenges related to aging public infrastructure and escalating deferred maintenance costs; and

     WHEREAS, the Department of Education currently faces a deferred maintenance backlog exceeding $2.4 billion, placing increasing strain on limited public resources and impacting the quality of learning environments for students and educators; and

     WHEREAS, despite substantial requests for major repair and maintenance funding for fiscal biennium 2025–2027, traditional capital improvement and repair approaches have proven insufficient, inefficient, and costly to taxpayers; and

     WHEREAS, section 36-41, Hawaii Revised Statutes, authorizes the use of energy savings performance contracting, an innovative financing model that enables government entities to implement energy efficiency and infrastructure improvements without upfront capital investment; and

     WHEREAS, under the energy savings performance contracting model, project costs are funded through guaranteed energy savings, thereby eliminating the need for significant legislative appropriations while ensuring fiscal accountability; and

     WHEREAS, energy savings performance contract projects typically include comprehensive upgrades, such as energy-efficient lighting, heating, ventilation, and air conditioning systems, water conservation measures, and renewable energy integration, all of which contribute to long-term operational savings and environmental sustainability; and

     WHEREAS, the energy savings performance contracting model has been successfully implemented by the Department of Transportation and University of Hawaii Community Colleges, with projected savings approaching $1 billion over the life of the implemented contracts and the effective elimination of their deferred maintenance backlogs; and

     WHEREAS, recommendations to adopt energy savings performance contracting methodologies were presented to the Department of Education as early as 2008, demonstrating that these approaches optimize building systems, reduce lifecycle costs, and enhance facility performance; and

     WHEREAS, transitioning to energy savings performance contracting in coordination with emerging oversight structures such as the School Facilities Authority presents a strategic opportunity to modernize school infrastructure and improve long-term fiscal sustainability; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, the House of Representatives concurring, that the Department of Education and University of Hawaii at Manoa are urged to adopt energy savings performance contracting, as authorized pursuant to section 36-41, Hawaii Revised Statutes, as a primary strategy to address deferred maintenance and infrastructure modernization and improve energy efficiency statewide; and

     BE IT FURTHER RESOLVED that the Department of Education and University of Hawaii at Manoa are encouraged to collaborate with relevant state agencies and qualified energy service companies to identify, develop, and implement energy savings performance contract projects that maximize cost savings, improve facility conditions, and enhance sustainability outcomes; and

     BE IT FURTHER RESOLVED that the Department of Education and University of Hawaii at Manoa are requested to submit a report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2027 detailing planned or implemented energy savings performance contract projects, projected savings, and timelines for reducing deferred maintenance backlogs; and

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Chairperson of the Board of Education, Superintendent of Education, Comptroller, and President of the University of Hawaii System.

Report Title: 

DOE; UH; Energy Savings Performance Contracting; Deferred Maintenance