STAND

STAND. COM. REP. NO. 520-04

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 Consumer Protection and Commerce, to which was referred H.B. No. 2049, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this bill is to help our State meet its goal of energy self-sufficiency by amending the public facility energy retrofit and performance contracting law to:

(1) Increase the term limits of energy performance contracts from 15 to 20 years;

(2) Amend "energy performance contract" to include facility energy conservation enhancing retrofits, water saving technology retrofits, and energy saved off-site by other conservation enhancing retrofits;

(3) Eliminate shared savings plans in favor of guaranteed savings plans;

(4) Broaden the financial options for energy performance contracts to include lease-purchase, financing agreements, third-party joint ventures, and guaranteed savings plans; and

(5) Specify 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.

Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism, City and County of Honolulu, Sierra Club, Hawaii Chapter, Powerlight, and Hawaii Renewable Energy Alliance.

Your Committee finds that a longer term for energy performance contracts is advisable and agrees that the water saving technology retrofits should be included in the definition of energy performance contract.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2049, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,

		____________________________ KENNETH T. HIRAKI, Chair