STAND. COM. REP. NO.  359

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 Energy & Environmental Protection, to which was referred H.B. No. 1787 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to improve the application of energy efficiency performance contracts by state agencies.

     More specifically, this measure replaces the definition of "energy-savings performance contract" with "energy performance contract"; extends the maximum term of an energy performance contract from fifteen to twenty years; and allows the state procurement officer to exempt a state energy project from advertising and competitive bidding arrangements.

     The Department of Business, Economic Development, and Tourism, Honolulu Seawater Air Conditioning, LLC, and the Hawaii Energy Policy Forum submitted testimony in support of this measure.

     The State Procurement Office and the Department of Accounting and General Services submitted comments recommending an amendment to make the language for the exemption of energy project procurements clearer.

     Accordingly, your Committee has amended this measure to make it consistent with existing provisions of the state procurement code and allow the Director of Finance and the Comptroller to approve alterations of energy-savings contracting.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1787, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1787, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

HERMINA MORITA, Chair