STAND. COM. REP. NO. 2943

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 1946
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Economic Development, to which was
referred H.B. No. 1946, H.D. 2, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to require state agencies to
evaluate energy efficiency retrofitting options through
performance contracting with all cost savings returned to the
agency.

     Testimony in favor of this measure was submitted by the
Department of Business, Economic Development, and Tourism
(DBED&T), Department of Accounting and General Services, Hawaiian
Electric Company, Inc., Hawaii Renewable Energy Alliance, Na Leo
Pohai of The Outdoor Circle, and Sierra Club, Hawai`i Chapter.

     Your Committee finds that under current energy performance
contracting practices, a state agency would not have to bear the
up-front cost of the evaluation and identification.  Performance
contracting allows state agencies to implement energy efficiency
projects without requiring capital appropriations and provides a
means of using private financing to leverage funds routinely
appropriated for energy and energy-related measures.

     Your Committee also finds that this measure addresses
concerns heard regarding a related bill heard previously by this

 
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                                   STAND. COM. REP. NO. 2943
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Committee.  Your Committee has amended this measure to add a
definition for "verified" and to make technical changes.

     Your Committee further notes that the International
Performance Measurement and Verification Protocol of the U.S.
Department of Energy, from which this new definition is taken,
provides greater explanation of measurement and verification and
is available from the Energy, Resources, and Technology Division
of DBED&T.
 
     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1946, H.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B.
No. 1946, H.D. 2, S.D. 1, and be referred to the Committee on
Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic
                                   Development,



                                   ______________________________
                                   LORRAINE R. INOUYE, Chair

 
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