STAND. COM. REP. NO.  1051

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1787

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1787, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY RESOURCES,"

begs leave to report as follows:

     The purpose of this bill is to improve the application of energy efficiency performance contracts by state agencies.  More specifically, this bill:

     (1)  Replaces the definition of "energy-savings performance contract" with "energy performance contract";

     (2)  Extends the maximum term of an energy performance contract from 15 to 20 years;

     (3)  Deletes the provision that permits the Comptroller and the Director of Finance to exempt a state energy project from advertising and competitive bidding requirements; and

     (4)  Allows the Director of Finance and the Comptroller to approve alterations of energy-savings contracting.

     The Department of Business, Economic Development, and Tourism, Department of Accounting and General Services, and Honolulu Seawater Air Conditioning, LLC, testified in support of this bill.  The Hawaii Energy Policy Forum supported this measure with amendments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1787, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair