HB1389.DOC

SECTION 1. The legislature finds that:

(1) In the past, the global demand for petroleum and its derivatives has caused severe economic hardships throughout the State and threatened to impair the State's public health, safety, and welfare. The State of Hawaii, with its near total dependence on imported fossil fuel, is particularly vulnerable to dislocations in the global energy market. This situation is ironic because there are few places in the world so generously endowed with natural energy: geothermal, solar radiation, ocean temperature differential, wind, waves, and currents--all potential non-polluting power sources;

(2) There is a real need for strategic comprehensive planning in the effort towards achieving full use of Hawaii's energy resource programs and the most effective allocation of energy resources throughout the State. Planning is necessary and desirable so that the State may recognize and address the major problems and opportunities in the field of energy resources. Both short-range and long-range planning will permit the articulation of:

(A) Broad policies, goals, and objectives;

(B) Criteria for measuring and evaluating accomplishments of objectives;

(D) A determination of requirements necessary for the optimum development of Hawaii's energy resources.

Such planning efforts will identify present conditions and major problems relating to energy resources, along with their exploration, development, production, and distribution. It will show the projected nature of the situation and rate of change and present conditions for the foreseeable future based on a projection of current trends in the development of energy resources in Hawaii;

(3) There are many agencies of the federal, state, and county governments in Hawaii, as well as many private agencies, engaged in, or expressing an interest in, various aspects of the exploration, research, distribution, conservation, and production of all forms of energy resources in Hawaii. Some of these agencies include the University of Hawaii, the department of land and natural resources, the department of business, economic development, and tourism, the division of consumer advocacy, the federal energy office, and various county agencies, as well as oil companies, gas stations, and other private enterprises; and

(4) There is an immediate need to coordinate the efforts of all these agencies, establish and coordinate programs to effectuate the conservation of fuel, provide for the equitable distribution thereof, and formulate plans for the development and use of alternative energy sources. There is a need for such coordination so that there will be maximum conservation and use of energy resources in the State.

The purpose of this Act is to establish an office of energy to assist in the development of a long range, comprehensive, and strategic energy plan for Hawaii.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

office of energy

§ -1 Purpose. The purpose of this chapter is to establish an office of energy to assist the governor and the director of business, economic development, and tourism in maintaining an overall framework to guide the development of the State through a continuous process of comprehensive, long-range, and strategic planning to meet the energy needs of Hawaii's people, and provide for the wise use of Hawaii's resources in a coordinated, efficient, and economical manner.

§ -2 Office of energy; establishment. There is established within the department of business, economic development, and tourism an office of energy. The head of the office shall be known as the director of the office of energy, referred to in this chapter as director. The director shall have:

(1) Training in the field of energy resources, public administration, or other related fields;

(2) Experience in programs or services related to energy resources and resource coordination; and

(3) Experience in a supervisory, consultative, or administrative capacity.

The director shall be nominated by the governor and, by and with the advice and consent of the senate, appointed by the governor without regard to chapter 76, and shall be compensated at a salary level set by the governor. The director shall hold office for a term to expire at the end of the term for which the governor was elected, unless removed sooner by the governor. The director shall be included in any benefit program generally applicable to the officers and employees of the State. The director shall retain staff as may be necessary for the purposes of this chapter, in accordance with chapter 76. The director shall report to the director of business, economic development, and tourism and shall not be required to report directly to any other principal executive department.

§ -3 Duties and responsibilities. The office of energy shall:

(1) Formulate plans, including objectives, criteria to measure accomplishment of objectives, programs through which the objectives are to be attained, and financial requirements for the optimum development of Hawaii's energy resources;

(2) Develop a strategic comprehensive plan in the effort to achieve full use of Hawaii's energy resource programs and the most effective allocation of energy resources throughout the State. Short-range and long-range plans shall articulate:

(A) Broad policies, goals, and objectives;

(B) Criteria for measuring and evaluating accomplishments of objectives;

(D) A determination of requirements necessary for the optimum development of Hawaii's energy resources;

(3) Conduct, collect, and disseminate research and statistics on energy resource trends and developments;

(4) Develop benchmarks for energy resource development and policy-making;

(5) Conduct systematic analysis of existing and proposed energy resource programs, evaluate the analysis conducted by government agencies and other organizations, and recommend to the governor and to the legislature programs that represent the most effective allocation of resources for the development of energy sources;

(6) Formulate and recommend specific proposals, as necessary, for conserving energy and fuel, including the allocation and distribution thereof, to the governor and to the legislature;

(7) Assist public and private agencies in implementing energy conservation and related measures;

(8) Coordinate the State's energy conservation and allocation programs with that of the federal government, other state governments, governments of nations with an interest in common energy resources, and the political subdivisions of the State;

(9) Develop programs to encourage private and public exploration and research of alternative energy resources that will benefit the State;

(10) Conduct public-education programs to inform the public of an energy situation that may exist from time to time and of the government actions taken to address such a situation;

(11) Serve as consultant to the governor, public agencies, and private industry on matters related to the acquisition, use, and conservation of energy resources;

(12) Contract for services, when required, for implementation of this chapter;

(13) Review proposed state actions that the director finds to have a significant effect on energy consumption and report to the governor their effect on the energy conservation program, and perform such other services as may be required by the governor and the legislature;

(14) Prepare and submit an annual report and any other reports as may be requested to the governor and to the legislature on the implementation of this chapter and all matters related to energy resources; and

(15) Adopt rules for the administration of this chapter pursuant to chapter 91.

§ -4 Cooperation. The office of energy shall seek the widest possible cooperation from public and private agencies and individuals and the federal government to achieve the purposes of this chapter. It shall work closely with the energy resources coordinator under section 196-3 to achieve an optimal level of resource planning and research. It shall work closely with and assist the counties in the promotion of coordinated state and county planning efforts on energy resources.

Every state department, county agency, or other public or private agencies or individuals providing energy resource programs and services shall be encouraged to participate actively in the activities of the office of energy. The executive heads of all state departments and agencies shall cooperate with the office of energy by providing information as the governor and the director of business, economic development, and tourism deem necessary for the effective discharge of its duties.

Nothing in this chapter shall be deemed to delegate or detract in any way from the functions, powers, and duties conferred by law on any department or agency of the State or county.

§ -5 Allocation of funds. Any of the agencies of the State to which general or special appropriations are made, or a part of whose budget contains an allocation, or that makes an allocation of funds for energy resource planning and research, shall consult with the office of energy to ensure that all expenditures are in accordance with, or in furtherance of, the goals and objectives of the office of energy. After first consulting with the director of business, economic development, and tourism, the governor may withhold the expenditure of these funds by any agency until the governor is satisfied that the expenditures will implement those goals and objectives."

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2011-2012 for the establishment of the office of energy.

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

SECTION 3. This Act shall take effect on July 1, 2011.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1389
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII