STAND. COM. REP. 2555
Honolulu, Hawaii
, 2004
RE: S.B. No. 2470
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committees on Energy and Environment and Science, Arts, and Technology, to which was referred S.B. No. 2470 entitled:
"A BILL FOR AN ACT RELATING TO ENERGY,"
beg leave to report as follows:
The purpose of this measure is to increase the term limit of performance contracts from fifteen to eighteen years and to amend the definition of "energy performance contract" to include water saving technology retrofits.
Testimony in support of the measure was submitted by the Department of Business, Economic Development, and Tourism, PowerLight Corporation, Hawaiian Electric Company, and Hawaii Renewable Energy Alliance. The City and County of Honolulu submitted comments on the measure.
Your Committees find that performance contracting is an important mechanism for implementing energy efficiency projects in the State. Your Committees further find that water saving technologies play an important role in energy conservation efforts and are often inextricably linked with energy savings technologies in resource conservation projects. Including water saving technologies with energy savings projects will conform to federal practices and facilitate financing for the State's resource conservation projects. In addition, your Committees agree with the comments from the City and County of Honolulu that increasing the term limit of performance contracts from fifteen to twenty years will promote greater use of those contracts.
Accordingly, your Committees have amended this measure by:
(1) Adding a preamble section reciting the need to include water saving technology;
(2) Clarifying the financing options for energy performance contracts to more accurately reflect current state financing practices;
(3) Increasing the contract term limits from 18 to 20 years;
(4) Clarifying that energy saved off-site by water or other utility conservation enhancing retrofits are included in the definition of "energy conservation retrofits";
(5) Including "site" in the definition of "facility";
(6) Changing "shared savings plan" to "guaranteed-savings plan";
(7) Limiting the amount payable under the contract to the verified energy cost savings amount; and
(8) Making the measure effective upon approval.
As affirmed by the records of votes of the members of your Committees on Energy and Environment and Science, Arts, and Technology that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2470, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2470, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Science, Arts, and Technology,
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____________________________ DAVID Y. IGE, Chair |
____________________________ J. KALANI ENGLISH, Chair |
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