HB431.DOC

PART I.

SECTION 1. The legislature finds that a review of the energy efficiency standards used in building construction in the State is essential to determine whether maximum energy efficiency is being achieved. The purpose of this part is to direct the energy resources coordinator to review energy efficiency in building design and construction in the State.

SECTION 2. Chapter 196, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . ENERGY EFFICIENT BUILDINGS

§196-A Energy efficiency review. (a) The energy resources coordinator shall initiate an ongoing review of energy efficiency in building construction throughout the State. As part of the review, the energy resources coordinator shall:

(1) Evaluate buildings and homes constructed in the State pursuant to county building codes or the state building code to determine overall energy efficiency in design and construction;

(2) Evaluate buildings and homes constructed in the State pursuant to county building codes or the state building code to determine compliance with energy efficiency provisions of either code;

(3) Consult with the counties to survey builders to determine the actual costs of complying with energy efficiency requirements of building codes;

(4) Assess the feasibility of establishing a net-zero energy building code for residential and commercial construction;

(5) Recommend energy efficiency standards for construction of new and renovation of older single family homes, duplexes, and low-rise multi-unit residential buildings, less than three stories in height, to be included in county building codes and the state building code;

(6) Recommend amendments to county building codes and the state building code that are consistent with the International Energy Conservation Code and which also maximize the advantages of Hawaii's climate;

(7) Evaluate the costs and benefits of requiring advanced meters and energy "dashboard" technologies that allow building occupants to understand and manage energy use and to monitor and improve energy efficiency;

(8) Evaluate the feasibility of requiring all new homes constructed in the State to incorporate "cool-roof" technology;

(9) Evaluate the feasibility of requiring all new homes constructed in the State to have roofs that are equipped for installation of photovoltaic energy devices; and

(10) Evaluate the feasibility of requiring all new homes constructed in the State, or all older homes renovated in the State, to have an energy efficiency certification.

(b) The energy resources coordinator shall submit a report of its findings and recommendations, including recommended amendments to county building codes or the state building code and proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2010 and shall submit updated reports to the legislature before the convening of each regular legislative session thereafter.

§196-B Commissioning guidelines; commercial buildings. No later than January 1, 2010, the energy resources coordinator shall develop commissioning guidelines for construction of commercial buildings in the State. The guidelines shall:

(1) Require building permit applicants to designate a commissioning agent who has experience in energy efficiency and building design;

(2) Require a building owner, prior to receiving a certificate of occupancy, to submit a building commissioning report prepared by the designated commissioning agent; and

(3) Require a building owner to remedy any deficiencies indicated in the commissioning report within sixty days of receiving the report, and authorize the counties to assess fines and penalties against a building owner that does not comply.

As used in this section, "commissioning" shall have the same meaning as in section 196-11."

SECTION 3. Section 107-25, Hawaii Revised Statutes, is amended to read as follows:

"[[]§107-25[]] State building code; requirements. There is established a state building code applicable to all construction in the State of Hawaii. The state building code shall include:

(1) The latest edition of the state fire code as adopted by the state fire council;

(2) The latest edition of the Uniform Plumbing Code, as copyrighted and published by the International Association of Plumbing and Mechanical Officials, including its appendices;

(3) The latest edition of the International Building Code, as published by the International Code Council;

(4) Hawaii design standards implementing the criteria pursuant to Act 5, Special Session Laws of Hawaii, 2005, as applicable to:

(A) Emergency shelters built to comply with hurricane resistant criteria, including enhanced hurricane protection areas capable of withstanding a five hundred year hurricane event as well as other storms and natural hazards; and

(B) Essential government facilities requiring continuity of operations; [~~and~~]

(5) Code provisions based on nationally published codes or standards that include, but are not limited to, residential and hurricane resistive standards for residential construction, fire, elevator, electrical, plumbing, mechanical, flood and tsunami, existing buildings, and energy conservation standards for building design and construction, and onsite sewage disposal[.]; and

(6) The latest edition of the International Energy Conservation Code within six months of its adoption by the International Code Council."

SECTION 4. Section 107-28, Hawaii Revised Statutes, is amended to read as follows:

"[[]§107-28[]] County building code authority to amend the state model building code without state approval. (a) The governing body of each county shall amend the state building code as it applies within its respective jurisdiction, in accordance with section 46-1.5(13), without approval of the council. Each county shall use the model codes and standards listed in section 107-25, as the referenced model building codes and standards for its respective county building code ordinance, no later than two years after the adoption of the state building code[.]; provided that each county shall use the International Energy Conservation Code, as updated, no later than six months after the adoption of the state building code.

(b) If a county does not amend the statewide model code within the two-year timeframe, the state building code shall become applicable as an interim county building code until the county adopts the amendments[.]; provided that if a county does not amend the statewide model code with regard to energy efficiency within six months, the sections of the state building code that include provisions of the International Energy Conservation Code shall become applicable as part of the county building code until the county adopts the amendments."

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $600,000 or so much thereof as may be necessary for fiscal year 2009-2010 for the purposes of initiating an energy efficiency review pursuant to section 196-A, Hawaii Revised Statutes.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of part I of this Act.

PART II.

SECTION 6. The legislature finds that state government should be a leader in building energy efficiency. Public buildings can be a proving ground for energy efficiency technologies and performance. The legislature further finds that government agencies have a greater level of certainty about the length of time that they will occupy buildings, so the lifecycle savings realized from low operating costs are more assured for public investments than private investments.

The purpose of this part is to require state agencies to adopt energy efficiency standards in existing state buildings.

SECTION 7. Chapter 196, Hawaii Revised Statutes, is amended by adding two new sections to part II to be appropriately designated and to read as follows:

"§196-C Existing buildings; retro-commissioning. (a) No later than December 31, 2010, the department of accounting and general services and the energy resources coordinator shall benchmark each existing state building that has more than five thousand square feet of interior floor space or that uses more than eight thousand kilowatt-hours of electricity per year and shall use the results to determine measures that may be implemented to improve building energy efficiency. Benchmarking shall be conducted using the ENERGY STAR portfolio management tool or an equivalent tool, as determined by the energy resources coordinator. The energy resources coordinator shall provide training, as necessary, to affected agencies on the ENERGY STAR portfolio management tool or an equivalent tool.

(b) The energy resources coordinator shall establish performance targets for energy efficiency in existing state buildings that are thirty per cent higher than the most recent guideline established by the International Energy Conservation Code for that type of building.

(c) No later than January 1, 2010, the energy resources coordinator shall develop guidelines for the retro-commissioning of state government buildings. After that date, all state government buildings shall be retro-commissioned no less than every five years.

(d) Existing state buildings that undergo a major retrofit or renovation, including other existing buildings that are retrofitted using public moneys to finance more than fifty per cent of the total cost of the retrofit or renovation, shall achieve energy efficiencies that meet or exceed the performance targets established in subsection (b), provided that the cost of retrofit or renovation can be recovered by the State within twenty years.

§196-D Reporting. (a) No later than December 31 of each year, the energy resources coordinator shall publish a report on the energy efficiency of state buildings. The report may include input from the counties as necessary and shall include:

(1) Energy used in state buildings by each agency;

(2) Steps taken to reduce energy usage; and

(3) Savings achieved from energy efficiency measures.

(b) The annual report shall establish benchmarks for reducing energy use in state and county buildings."

SECTION 8. Section 196-21, Hawaii Revised Statutes, is amended to read as follows:

"§196-21 Financing mechanisms. (a) Agencies shall maximize their use of available alternative financing contracting mechanisms, including energy-savings contracts, when life-cycle cost-effective, to reduce energy use and cost in their facilities and operations. Energy-savings contracts shall include:

(1) Energy performance contracts; provided that the terms of an energy performance contract for retro-commissioning or a major retrofit or renovation of a state building shall require that the state building meets or exceeds the performance targets established pursuant to section 196-C(b);

(2) Municipal lease and purchase financing; and

(3) Utility energy-efficiency service contracts.

Energy-savings contracts shall provide significant opportunities for making state facilities more energy efficient at no net cost to taxpayers. The comptroller shall establish guidelines for energy-savings contracts and shall prepare model energy-savings contracts that any agency may use for purchasing and contracting. The comptroller may review and exempt specific projects as necessary to take into account cost effectiveness.

(b) Agencies that perform energy efficiency and renewable energy system retrofitting may continue to receive budget appropriations for energy expenditures at an amount that will not fall below the pre-retrofitting energy budget but will rise in proportion to any increase in the agency's overall budget for the duration of the performance contract or project payment term. [~~A portion~~] Fifty per cent of the moneys saved through efficiency and renewable energy system retrofitting shall be set aside to pay for any costs directly associated with administering energy efficiency and renewable energy system retrofitting programs incurred by the agency.

(c) Notwithstanding any law to the contrary relating to the award of public contracts, any agency desiring to enter into an energy performance contract shall do so in accordance with guidelines established by the comptroller and the following provisions:

(1) The agency shall issue a public request for proposals, advertised in the same manner as provided in chapter 103D, concerning the provision of energy-efficiency services or the design, installation, operation, and maintenance of energy equipment. The request for proposals shall contain terms and conditions relating to submission of proposals, evaluation, and selection of proposals, financial terms, legal responsibilities, and other matters as may be required by law and as the agency determines appropriate;

(2) Upon receiving responses to the request for proposals, the agency shall select the most qualified proposal or proposals and may base its determination on the basis of the experience and qualifications of the proposers, the technical approach, the financial arrangements, the overall benefits to the agency, or other factors determined by the agency to be relevant and appropriate;

(3) The agency thereafter may negotiate and enter into an energy performance contract with the person or company whose proposal is selected as the most qualified based on the criteria established by the agency;

(4) The term of any energy performance contract entered into pursuant to this section shall not exceed twenty years;

(5) Any energy performance contract may provide that the agency ultimately shall receive title to the energy system being financed under the contract; and

(6) Any energy performance contract shall provide that total payments shall not exceed total savings."

PART III.

SECTION 9. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 10. In codifying the new sections added by this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act shall take effect upon its approval, provided that section 5 shall take effect on July 1, 2009.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	431
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII