STAND. COM. REP. NO. 1209

Honolulu, Hawaii

RE:    H.B. No. 1787

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Energy and Environment, 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 measure is to promote the application for energy efficiency performance contracts by state agencies.

     Specifically, this measure:

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

     (2)  Extends the maximum term of energy performance contracts from fifteen to twenty years;

     (3)  Clarifies the procurement and exemption processes; and

     (4)  Allows the Comptroller, rather than the senior agency officer, to approve any alterations of energy performance contracting with the Director of Finance.

     Testimony in support of this measure was submitted by the Department of Accounting and General Services and the Department of Business, Economic Development, and Tourism.  Testimony supporting the intent of the measure was submitted by the Hawaii Energy Policy Forum.

     Your Committee finds that the extension of time of energy performance contracts from fifteen to twenty years and extending the exemption process in the procurement code to state energy projects are important to promoting energy efficiency within the State.  You Committee further finds that it is important to include commissioning and retro-commissioning in the definition of energy performance contracts for state facilities.  Commissioning and retro-commissioning are techniques performed to measure, implement, and monitor energy conserving design strategies and equipment to ensure the energy performance of a building. 

     This measure was amended to include commissioning and retro-commissioning in the definition of "energy performance contract" for the purposes of chapter 196, part II, Hawaii Revised Statutes, "Energy Efficiency in State Facilities."  The measure was further amended to clarify the energy performance contracting process.  Technical, nonsubstantive changes were also made for the purposes of clarity, consistency, and style.

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

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

____________________________

RON MENOR, Chair