STAND. COM. REP. NO. 42

Honolulu, Hawaii

RE:    S.B. No. 504

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Higher Education, to which was referred S.B. No. 504 entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

begs leave to report as follows:

     The purpose of this measure is to appropriate funds to establish a sustainability internship program at the University of Hawaii at Manoa as part of the Sustainable Saunders project.

     Testimony in support of this measure was submitted by fourteen individuals.  The University of Hawaii submitted testimony in opposition.

     Your Committee finds that the appropriation in this measure will meet two critical needs at the University:

     (1)  It will facilitate the employment of students each semester and provide them with professional experience and qualifications for employment in an industry with a solid growth potential; and

     (2)  In turn, these interns will assist the University in applying no cost to low cost energy modification recommendations for application at the University of Hawaii at Manoa, other campuses, and the general community.

     Your Committee understands the fiscal constraints that the University of Hawaii faces in funding the sustainability internship program in this measure.  However, your Committee notes that the University saved approximately $100,000 as a result of the Sustainable Saunders project energy efficient initiatives and expanding the project to Hamilton Library is projected to save $700,000 annually.  Given these significant reductions in costs, which would not have realized without the work of the interns, your Committee believes it would be beneficial for the University administration to consider alternatives to fund the program.  At a minimum, the University is strongly urged to consider funding the program through cost savings realized by these energy efficiency projects.  In addition, there are a number of capital improvement project initiatives, either before the Legislature or being considered as part of the economic stimulus package, which offer opportunities for the University to realize additional energy savings that could in turn fund the sustainability internship program.

     Your Committee has amended this measure to:

     (1)  State clearly that the appropriation is to establish a sustainability internship program at the University of Hawaii at Manoa;

     (2)  Authorize the University of Hawaii to fund the program through alternative means, such as cost savings realized as a result of the program or capital improvement projects that utilize energy efficiency initiatives; provided further that if alternative means of funding are used, any unexpended and unencumbered balance of the appropriation shall lapse into the general fund; and

     (3)  Require the University to work with the Sustainable Saunders project to identify alternative methods of funding the sustainability internship program, such as through cost savings or other means, and to report to the 2010 Legislature on any additional system-wide savings generated as a result of energy efficiency initiatives and recommendations for funding the sustainability internship program through means other than general fund appropriations.

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 504, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 504, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Higher Education,

____________________________

JILL TOKUDA, Chair