Report Title:

Capital Improvement Projects; Energy Efficiency

Description:

Requires all state and county agencies and grant or subsidy recipients that utilize state funds for capital improvement projects to submit an energy efficiency plan with their funding request.

HOUSE OF REPRESENTATIVES

H.B. NO.

2984

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to energy efficiency.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 201G, Hawaii Revised Statutes, is amended by adding a new section to part II, subpart F, to be appropriately designated and to read as follows:

"201G- Energy efficiency in the private development of affordable housing projects consisting of one hundred or more residential units; submittal of alternate development cost scenarios; required. With respect to the private development of affordable housing projects undertaken pursuant to section 201G-122 that involve the development of one hundred or more residential units, the administration shall require the private developer to submit alternate development cost scenarios that include life-cycle cost analysis information on energy efficient products that may be utilized in a given project to meet the energy efficiency goals of section 196-13. The administration, subject to the availability of funds, shall strive to implement the energy efficiency alternatives proposed in the alternate development cost scenarios as it deems appropriate and prudent."

SECTION 2. Section 204.5, Hawaiian Homes Commission Act, is amended to read as follows:

"§204.5. Additional powers. In addition and supplemental to the powers granted to the department by law, and notwithstanding any law to the contrary, the department may:

(1) With the approval of the governor, undertake and carry out the development of any Hawaiian home lands available for lease under and pursuant to section 207 of this Act by assembling these lands in residential developments and providing for the construction, reconstruction, improvement, alteration, or repair of public facilities therein, including, without limitation, streets, storm drainage systems, pedestrian ways, water facilities and systems, sidewalks, street lighting, sanitary sewerage facilities and systems, utility and service corridors, and utility lines, where applicable, sufficient to adequately service developable improvements therein, sites for schools, parks, off-street parking facilities, and other community facilities;

(2) With the approval of the governor, undertake and carry out the development of available lands for homestead, commercial, and multipurpose projects as provided in section 220.5 of this Act, as a developer under this section or in association with a developer agreement entered into pursuant to this section by providing for the construction, reconstruction, improvement, alteration, or repair of public facilities for development, including, without limitation, streets, storm drainage systems, pedestrian ways, water facilities and systems, sidewalks, street lighting, sanitary sewerage facilities and systems, utility and service corridors, and utility lines, where applicable, sufficient to adequately service developable improvements therein, sites for schools, parks, off-street parking facilities, and other community facilities;

(3) With the approval of the governor, designate by resolution of the commission all or any portion of a development or multiple developments undertaken pursuant to this section an "undertaking" under part III of chapter 39, Hawaii Revised Statutes; and

(4) Exercise the powers granted under section 39-53, Hawaii Revised Statutes, including the power to issue revenue bonds from time to time as authorized by the legislature.

All provisions of part III of chapter 39, Hawaii Revised Statutes, shall apply to the department and all revenue bonds issued by the department shall be issued pursuant to the provisions of that part, except these revenue bonds shall be issued in the name of the department, and not in the name of the State.

With respect to the submittal of funding requests to the governor and the legislature for projects undertaken pursuant to this section, the commission shall also submit alternate budget scenarios that include life-cycle cost analysis information on energy efficient products that may be utilized in a given project to meet the energy efficiency goals of section 196-13, Hawaii Revised Statutes.

As applied to the department, the term "undertaking" as used in part III of chapter 39 shall include a residential development or a development of homestead, commercial, or multipurpose projects under this Act. The term "revenue" as used in part III of chapter 39, shall include all or any portion of the rentals derived from the leasing of Hawaiian home lands or available lands, whether or not the property is a part of the development being financed."

SECTION 3. Section 10-4, Hawaii Revised Statutes, is amended to read as follows:

"§10-4 Office of Hawaiian affairs; established; general powers. There shall be an office of Hawaiian affairs constituted as a body corporate which shall be a separate entity independent of the executive branch. The office, under the direction of the board of trustees, shall have the following general powers:

(1) To adopt, amend, and repeal bylaws governing the conduct of its business and the performance of the powers and duties granted to or imposed upon it by law;

(2) To acquire in any lawful manner any property, real, personal, or mixed, tangible or intangible, or any interest therein; to hold, maintain, use, and operate the same; and to sell, lease, or otherwise dispose of the same at such time, in such manner and to the extent necessary or appropriate to carry out its purpose; provided that, with respect to the submittal of funding requests to the governor and the legislature for any affordable housing development or improvement projects that may be undertaken by the office, the board shall also submit alternate budget scenarios that include life-cycle cost analysis information on energy efficient products that may be utilized in a given project to meet the energy efficiency goals of section 196-13;

(3) To determine the character of and the necessity for its obligations and expenditures, and the manner in which they shall be incurred, allowed, and paid, subject to provisions of law specifically applicable to the office of Hawaiian affairs;

(4) To enter into and perform such contracts, leases, cooperative agreements, or other transactions with any agency or instrumentality of the United States, or with the State, or with any political subdivision thereof, or with any person, firm, association, or corporation, as may be necessary in the conduct of its business and on such terms as it may deem appropriate;

(5) To execute, in accordance with its bylaws, all instruments necessary or appropriate in the exercise of any of its powers;

(6) To issue revenue bonds pursuant to this chapter in such principal amounts as may be authorized from time to time by law to finance the cost of an office project as authorized by law and to provide for the security thereof as permitted by this chapter;

(7) To lend or otherwise apply the proceeds of the bonds issued for an office project either directly or through a trustee or a qualified person for use and application in the acquisition, construction, installation, or modification of an office project, or agree with the qualified person whereby any of these activities shall be undertaken or supervised by that qualified person or by a person designated by the qualified person;

(8) With or without terminating a project agreement, to exercise any and all rights provided by law for entry and re-entry upon or to take possession of an office project at any time or from time to time upon breach or default by a qualified person under a project agreement, including any action at law or in equity for the purpose of effecting its rights of entry or re-entry or obtaining possession of the project or for the payments of rentals, user taxes, or charges, or any other sum due and payable by the qualified person to the office pursuant to the project agreement; and

(9) To take such actions as may be necessary or appropriate to carry out the powers conferred upon it by law."

SECTION 4. Section 37-43, Hawaii Revised Statutes, is amended to read as follows:

"[[]§37-43[]] Capital improvement project allotment process. The department of budget and finance shall carry out the capital improvement project allotment process, which shall consist of reviewing, prioritizing, and evaluating capital improvement project appropriation proposals submitted by state and county agencies to [assure] ensure conformity with statewide planning goals and objectives [and], executive priorities, and sections 196-13 and 196-19, and report its findings and recommendations to the governor in order that [such] those proposals may be considered for possible inclusion in the executive capital improvement project budget that is to be presented to the legislature. The department shall also review, analyze, and report on state and county capital improvement project appropriation proposals that extend over wide geographical areas of the State and that have significant impacts upon economic development, land use, environmental quality, construction employment, and executive policy directions."

SECTION 5. Section 37-67, Hawaii Revised Statutes, is amended to read as follows:

"[[]§37-67[]] Responsibilities of the department of budget and finance. The director of finance shall assist the governor in the preparation, explanation, and administration of the state long-range plans, the proposed six-year program and financial plan, and the state budget. To this end, subject to this part, the director shall:

(1) With the approval of the governor, develop procedures and [prescribe] adopt rules [and regulations] to guide [such] state agencies as may be assigned by the director the task of formulating and preparing the initial proposals with respect to long-range plans, program and financial plans, program budget requests, and program performance reports, and to [assure] ensure the availability of information needed for effective policy decision-making[.];

(2) Assist [such] state agencies in the formulation of program objectives, preparation of program plans and program budget requests, and reporting of program performance[.];

(3) Coordinate, analyze, and revise as necessary the program objectives, long-range plans, program and financial plans, program budget requests and program performance reports initially proposed or prepared by [such] state agencies and develop the state comprehensive program and financial plan, budget, and program performance report[.];

(4) Administer its responsibilities under the program execution provisions of this part so that the policy decisions and budget determinations of the governor and the legislature are implemented to the fullest extent possible within the concepts of proper management[.];

(5) Investigate continuously the administration of the various agencies for the purpose of advising the governor and recommending to the governor, the legislature, and the committees of the legislature concerning the duties of the various positions in these agencies, the methods of the agency, the standards of efficiency therein, and changes [which] that in the director's judgment, will produce greater effectiveness of programs and economy in the conduct of government programs and assist in the preparation of program and financial plans, budget requests, and program performance reports[.];

(6) Provide the legislature and any member or committee of either house of the legislature with [such] documents and information as may be requested concerning the programs, budget, and fiscal and management operations of the State[.]; and

(7) With respect to the submittal of capital improvement project funding requests to the governor and the legislature, the director shall also submit alternate budget scenarios that include life-cycle cost analysis information on energy efficient products that may be utilized in a given capital improvement project to meet the energy efficiency goals of section 196-13."

SECTION 6. Section 37-68, Hawaii Revised Statutes, is amended to read as follows:

"§37-68 Responsibilities of agencies. Under such rules as may be prescribed by the director of finance with the approval of the governor:

(1) Every agency assigned the task of developing programs and preparing program and financial plans, budgetary requests, and program performance reports shall develop [such] these programs and prepare [such] the plans, requests, and reports and submit the same to the director of finance at [such] times, on [such] forms, and in [such] a manner as the director may prescribe. For informational purposes, the University of Hawaii shall submit its program and financial plans, budgetary requests, and program performance reports to the legislature at the same time the university submits them to the director of finance. Where new programs are being proposed, every agency shall demonstrate that the program:

(A) Is an appropriate function of state government; and, as applicable

(B) Can be implemented by the public sector as cost-effectively as the private sector while meeting the same plans, goals, objectives, standards, measures of effectiveness, wage, salary, conditions of employment, and employee benefit programs of the State;

(2) Every agency administering state programs and every agency responsible for the formulation of programs and the preparation of program and financial plans, budgetary requests, and program performance reports, shall furnish the department of budget and finance all [such] documents and information as the department may from time to time require. Each agency shall make available to the legislature, and any member or committee of either house of the legislature, all documents and information as may be requested; [and]

(3) With respect to the submittal of capital improvement project funding requests to the director of finance, each agency shall also submit alternate budget scenarios that include life-cycle cost analysis information on energy efficient products that may be utilized in a given capital improvement project to meet the energy efficiency goals of section 196-13; and

[(3)] (4) The director of finance or any employee of the department of budget and finance, when duly authorized, for the purpose of securing information, shall have access to and may examine any books, documents, papers, or records of any agency."

SECTION 7. Section 37-71, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The display of financial requirements for the ensuing two fiscal years shall more specifically include:

(1) At the lowest level on the state program structure, for each program:

(A) The total recommended expenditures, including research and development, capital, and operating costs, by cost categories and cost elements for the ensuing biennium; and the planned allocation of the total biennial request, by cost categories, and cost elements, between the two fiscal years of the biennium. The means of financing and the number of positions included in any cost category amount shall be appropriately identified;

(B) A summary showing means of financing the total recommended expenditures, those amounts requiring and those amounts not requiring legislative appropriation or authorization for spending in each fiscal year of the biennium;

(C) A crosswalk of the total proposed biennial expenditures between the program and expending agencies. The means of financing the number of positions and the lease payments included in any cost amount, and the net amount requiring appropriation or authorization shall be appropriately identified for each expending agency; and

(D) The proposed changes in the levels of expenditures, by cost categories, between the biennium in progress and the ensuing biennium, together with a brief explanation of the major reasons for each change. The reasons shall include, as appropriate, the following:

(i) Salary adjustments to existing positions of personnel;

(ii) The addition or deletion of positions;

(iii) Changes in the number of persons being served or to be served by the program;

(iv) Changes in the program implementation schedule;

(v) Changes in the actual or planned level of program effectiveness;

(vi) Increases due to the establishment of a program not previously included in the State's program structure;

(vii) Decreases due to the phasing out of a program previously included in the State's program structure; and

  (viii) Changes in the purchase price of goods or services;

As appropriate, references to the program and financial plan shall be noted for an explanation of the changes. Notwithstanding the provisions of subsection (b)(5), the proposed changes in the levels of expenditures may be shown to the nearest thousand dollars;

(2) Appropriate summaries of paragraph (1)(A) and (C) immediately above at every level of the state program structure above the lowest level. Such summaries shall be by the major groupings of programs encompassed within the level. The summaries of paragraph (1)(A) shall identify the means of financing and the number of positions and the lease payments included in any cost category amount; and

(3) A summary listing of all capital improvement projects included in the proposed capital investment costs for the ensuing biennium. The listing shall be by programs at the lowest level of the state program structure and shall show for each project, by investment cost elements:

(A) The cost of the project;

(B) The amount of funds previously appropriated and authorized by the legislature; [and]

(C) The amount of new appropriations and authorizations proposed in each of the two fiscal years of the ensuing biennium and in each of the succeeding four years. The amount of the new appropriations and authorizations proposed shall constitute the proposed new requests for the project in each of the fiscal bienniums[.]; and

(D) Alternate budget scenarios that include life-cycle cost analysis information on energy efficient products that may be utilized in a given capital improvement project to meet the energy efficiency goals of section 196-13.

In every instance, the means of financing shall be noted."

SECTION 8. Section 42F-103, Hawaii Revised Statutes, is amended to read as follows:

"[[]§42F-103[]] Standards for the award of grants and subsidies. (a) Grants and subsidies shall only be awarded to individuals who, and organizations [which:] that:

(1) Are licensed or accredited, in accordance with federal, state, or county statutes, rules, or ordinances, to conduct the activities or provide the services for which a grant or subsidy is awarded;

(2) Comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, or disability;

(3) Agree not to use state funds for entertainment or lobbying activities; and

(4) Allow the state agency to which funds for the grant or subsidy were appropriated for expenditure, legislative committees and their staff, and the auditor full access to their records, reports, files, and other related documents and information for purposes of monitoring, measuring the effectiveness, and [assuring] ensuring the proper expenditure of the grant or subsidy.

(b) In addition, a grant or subsidy may be made to an organization only if the organization:

(1) Is incorporated under the laws of the State; and

(2) Has bylaws or policies that describe the manner in which the activities or services for which a grant or subsidy is awarded shall be conducted or provided.

(c) Further, a grant or subsidy may be awarded to a non-profit organization only if the organization:

(1) Has been determined and designated to be a non-profit organization by the Internal Revenue Service; and

(2) Has a governing board whose members have no material conflict of interest and serve without compensation.

(d) If a grant or subsidy is to be expended on a capital improvement project of the non-profit organization, then the grant or subsidy request shall include life-cycle cost analysis information on energy efficient products that shall be utilized by the non-profit organization in the capital improvement project. Notwithstanding any other law to the contrary, for the purpose of receiving a grant or subsidy under this chapter for a capital improvement project, a non-profit organization shall agree to adhere to the energy efficiency goals of section 196-13."

SECTION 9. Section 214-2, Hawaii Revised Statutes, is amended to read as follows:

"§214-2 Funds, allotment, and expenditure. (a) Money allotted under this chapter by the State shall be available to the several counties; provided that no part of state or county moneys shall be expended for capital improvement projects [which] that are not a part of the general plan of the State[,] or [which] that will not reasonably contribute to the economic development of the county. The determination of:

(1) [the] The extent of participation by the State[,]; and

(2) [what] What capital improvement projects shall reasonably contribute to the economic development of a county;

shall be made by the governor taking into consideration the State's goal for specific segments of its general plan and the financial position of the county.

(b) Each county shall include, in its grant-in-aid request to the State, alternate budget scenarios that include life-cycle cost analysis information on energy efficient products that may be utilized in a given capital improvement project to meet the energy efficiency goals of section 196-13."

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect on July 1, 2006; provided that the provisions of the amendments made by section 2 of this Act to the Hawaiian Homes Commission Act, 1920, as amended, are declared to be severable, and if any section, sentence, clause, or phrase, or the application thereof to any person or circumstances is held ineffective because there is a requirement of having the consent of the United States to take effect, then that portion only shall take effect upon the g ranting of consent by the United States and effectiveness of

the remainder of these amendments or the application thereof shall not be affected.

INTRODUCED BY:

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