STAND. COM. REP. NO. 3219

                                   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 Ways and Means, to which was referred H.B.
No. 1946, H.D. 2, S.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 require government agencies
to evaluate the energy savings that can be achieved by hiring a
private person to finance, design, construct, install, maintain,
operate, or manage energy systems or equipment, the retrofitting
of which will improve the energy efficiency of a facility.

     In addition, this bill:

     (1)  Rewards government agencies that perform energy
          efficiency retrofitting by allowing them to retain the
          (monetary) cost savings created by improving the energy
          efficiency of a facility, in constant proportion to
          increases in their overall budgets; and

     (2)  Requires energy cost savings to be verified by
          engineering calculations, metering and monitoring,
          utility meter billing analysis, computer simulations,
          mathematical models, and agreed-upon stipulations by
          the customer and the energy service company.


 
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                                   STAND. COM. REP. NO. 3219
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     Your Committee believes that achieving energy and cost
savings through performance contracting should be investigated
and pursued where shown to be cost-effective.  Your Committee
recognizes that performance contracting is based on achieving
guaranteed savings by private contractors who would install
energy saving devices that are paid for through the energy cost
savings achieved, at no up-front cost to the State.  It is not
your Committee's intent to require that state agencies use energy
savings performance contracts for uneconomic projects.

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

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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