STAND. COM. REP. NO. 206-04
Honolulu, Hawaii
, 2004
RE: H.B. No. 2049
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committee on Energy and Environmental Protection, to which was referred H.B. No. 2049 entitled:
"A BILL FOR AN ACT RELATING TO ENERGY,"
begs leave to report as follows:
The purpose of this bill is to:
(1) Increase the allowable length of energy performance contracts from 15 to 18 years; and
(2) Include water saving technology retrofits in the definition of "energy performance contract."
The City Energy Coordinator of the City and County of Honolulu, Hawaiian Electric Company, Hawaii Renewable Energy Alliance, Rezachek & Associates, PowerLight Corporation, and a member of the Maui County Council testified in support of this measure. The Department of Business, Economic Development, and Tourism (DBEDT) supported the measure with amendments.
Upon consideration of this bill, your Committee finds that the proposed 18-year maximum length for energy performance contracts is arbitrary and therefore a more even 5-year increase to 20 years is preferred. Also, your Committee agrees with DBEDT's proposed amendments.
Accordingly, your Committee has amended this bill by:
(1) Increasing the maximum length of any energy performance contract from the proposed 18 years to 20 years;
(2) Expanding the specified available financing options for energy performance contracts to include lease-purchase, financing agreements, third-party joint ventures, and guaranteed savings plans;
(3) Eliminating shared savings plans from the list of specified financing options because they have not proven effective in other jurisdictions and have not been used in energy performance contracts in this State;
(4) Amending the definition of "energy performance contract" to include facility energy conservation enhancing retrofits, water saving technology retrofits, and energy saved off-site by other utility conservation enhancing retrofits;
(5) Adding requirements for energy performance contracts that are guaranteed savings plans;
(6) Specifying procedures for the payments of amounts owed to the agency by an energy service company under a guaranteed savings plan when verified savings are less than the amount guaranteed by the company; and
(7) Making technical, nonsubstantive amendments for purposes of clarity 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 H.B. No. 2049, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2049, H.D. 1, and be referred to the Committee on Consumer Protection and Commerce.
Respectfully submitted on behalf of the members of the Committee on Energy and Environmental Protection,
|
____________________________ HERMINA M. MORITA, Chair |
||