Specifies that Model Energy Code standards for residential buildings shall apply to previously unoccupied new residential real property sold after 07/01/02.

A BILL FOR AN ACT

SECTION 1. The legislature finds that the development, management, efficient consumption, and conservation of residential energy resources are of prime importance throughout Hawaii. Energy is a key factor shaping Hawaii's economy, environment, and standard of living. In 1997, isle residents and businesses spent about $2,760,000,000 on energy, or eight per cent of the $34,000,000,000 gross state product. This amounts to $2,139 per capita, or 8.2 per cent of Hawaii's average per capita annual income. Hawaii residents paid the fifth highest overall energy prices in the nation in 1995, thirty-three per cent higher than the national average. Moreover, Hawaii ranked third highest in electricity prices, thirty-four per cent above the national average.

Some implications of Hawaii's energy situation are not as obvious as direct energy costs. Hawaii depends on oil for eighty-eight per cent of its energy, more than any other state. World oil supplies are finite and prices are subject to sudden, extreme fluctuations which can threaten the health of Hawaii's economy. Oil endangers Hawaii's fragile environment more than most other fuels. Dollars spent for imported energy leave the islands and are not available to the local economy.

While the State has long recognized its dependence on oil and the need to diversify its energy base, and much progress has been made, more constructive steps need to be taken. When reductions in energy use are accomplished through increases in efficiency, the economy may continue to expand. In order to provide a stable foundation for Hawaii's economy, diversification of energy supplies and a continued emphasis on efficiency of energy use are essential.

The legislature finds that one way to increase energy efficiency is to require the standards for residential buildings in the Model Energy Code to apply to all new residential real property. Hawaii's Model Energy Code is a building energy efficiency standard for the State. Many parts of the code have been developed specifically for the unique conditions of the islands. The code includes a set of requirements for the energy-efficient design of buildings and building systems. These requirements assure the application of cost-effective design practices and technologies which minimize energy consumption without sacrificing either the comfort or productivity of the occupants.

The underlying intent of the code is to save energy in buildings. Since increases in oil prices can quickly and dramatically impact the State's economy, it is sound public policy to encourage the design of the most efficient buildings possible. While the code stops short of requiring the most efficient design possible, it does require a minimum level of energy efficiency that is easily cost effective in all sectors of the economy.

The requirements developed for the code are based on cost effectiveness. The requirements are intended to provide a simple payback period of less than ten years, meaning that the additional cost due to a requirement is less than ten times the annual energy savings. The code is expected to save about $1,100,000 per year in consumer energy costs. These savings are roughly equivalent to eleven thousand six hundred megawatt-hours of electricity or twenty-one thousand barrels of oil per year. The cumulative energy savings are estimated to reach one hundred seventy-four thousand barrels per year in the year 2001 and three hundred fifty thousand barrels in 2011.

In addition, as the State continues to grow, there will be new demands for energy resources that must be met through the construction of new electric generating facilities or alternatively through energy efficiency measures. The peak electricity demand savings are estimated to be about 2.8 megawatts per year, reaching twenty-five megawatts by 2001 and fifty megawatts in 2011. The savings cancel out the need to supply an equivalent amount of new electric power.

Despite these savings, Hawaii's model energy code has not been generally implemented by all of the counties with respect to residential buildings. The legislature finds that the overall cost savings that could be achieved through the implementation of the code by each of the counties for residences far outweighs the minimal additional up front charges in building materials that would be required to implement these provisions. Accordingly, the purpose of this Act is to require the implementation of Hawaii's Model Energy Code by the counties with respect to previously unoccupied new residential buildings.

SECTION 2. Section 46-19.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Energy efficiency building standards based on the design requirements for improvements of energy utilization in buildings developed and approved by the American Society of Heating, Refrigerating and Air-Conditioning Engineers, Incorporated (ASHRAE 90.1), shall be incorporated by each county into its building code by October 24, 1994. The standards shall apply to all buildings, including state buildings; provided that [the]:

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

SECTION 4. This Act shall take effect upon its approval.