STAND. COM. REP. NO.856-02
Honolulu, Hawaii
, 2002
RE: S.B. No. 2179
S.D. 2
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Energy and Environmental Protection, to which was referred S.B. No. 2179, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO ENERGY RESOURCES,"
begs leave to report as follows:
The purpose of this bill is to improve energy management in state facilities by:
(1) Providing incentives and goals; and
(2) Requiring state agencies to comply with energy efficiency standards, strategies, criteria, and practices.
Hawaiian Electric Company, Hawaii Electric Light Company, Maui Electric Company, and a concerned citizen supported this bill. The Department of Business, Economic Development, and Tourism (DBEDT) supported the intent of this measure. The Office of Environment Quality Control commented on this bill. The Department of Accounting and General Services opposed this measure.
Your Committee finds that the State government, which spends hundreds of millions of dollars annually for products and services, should lead by example in the promotion of energy efficiency, water conservation, usage of renewable energy resources, markets for emerging technologies, and employment and economic development opportunities.
Your Committee also finds that in addition to efficient energy management, the price of gasoline is another pivotal component in determining the future of the State's total energy situation. The cost of gasoline permeates through every aspect of Hawaii's energy economy from the petroleum manufacturer to the company or dealer operated gas station and finally to the ultimate payer, the people of Hawaii. Your Committee finds that the fact that no one in this State, resident or visitor, can escape the impact of the cost of gasoline, requires that this indispensable commodity be regulated.
Your Committee has amended this measure by:
(1) Placing the Public-Private Advisory Committee in DBEDT for administrative purposes;
(2) Authorizing Department of Accounting and General Services and the Department of Budget and Finance to exempt an agency from advertising and competitive bidding requirements to give the agency flexibility in structuring agreements, if appropriate:
(A) For projects with proprietary technology; or
(B) To meet the Legislature's goals;
(3) Where ENERGY STAR-labeled energy efficient products are not available, giving an agency the discretion to select products in the upper 25 percent of energy efficiency as designated by the Federal Energy Management Program;
(4) Deleting the sections repealing sections 36-4 and 103D-410, Hawaii Revised Statutes;
(5) Requiring DBEDT to determine the maximum wholesale price of gasoline, on a quarterly basis, based on certain criteria, including the cost of a barrel of site-specific crude oil;
(6) Prohibiting petroleum manufacturers or jobbers from selling gasoline to a dealer operated retail service station for more than the maximum wholesale price;
(8) Providing for treble damages or $500,000, whichever is greater, for violations by manufacturers or jobbers;
(9) Providing for a price-readjustment procedure for manufacturers and jobbers; and
(10) Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Energy and Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2179, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2179, S.D. 2, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Energy and Environmental Protection,
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____________________________ HERMINA M. MORITA, Chair |
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