STAND. COM. REP. NO. 861-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1946
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
1946, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Require all state agencies to evaluate and identify
          energy efficiency retrofitting (retrofitting) options;
          and

     (2)  Require those agencies that implement retrofitting to
          continue to receive energy expenditure appropriations
          that are proportionally equal to those received prior
          to the implementation of retrofitting.

     The Department of Business, Economic Development, and
Tourism, Sierra Club, Hawai'i Chapter, and Hawaii Renewable
Energy Alliance supported this bill.  Hawaiian Electric Company,
Inc., and its subsidiaries, Hawaii Electric Light Company and
Maui Electric Company supported this bill with amendments.  The
Department of Accounting and General Services and the Attorney
General supported the intent of this bill.

     Your Committee has amended this bill to:

     (1)  Allow rather than require that agencies that implement
          retrofitting will continue to receive appropriations
          that are proportionally equal to those received prior
          to the implementation of retrofitting; 

 
                                 STAND. COM. REP. NO. 861-00
                                 Page 2

 

     (2)  Amend the definition of "energy performance contract"
          by providing that level of payments under the contract
          is contingent on stipulated rather than measured
          savings from retrofitting; and 

     (3)  Making technical amendment to terminology to change
          "energy cost savings" to "energy savings".

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1946, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1946, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair