STAND. COM. REP. NO. 2054

Honolulu, Hawaii

RE:    S.B. No. 2111

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Energy and Environment and Public Safety, Intergovernmental and Military Affairs, to which was referred S.B. No. 2111 entitled:

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

beg leave to report as follows:

     The purpose and intent of this measure is to require new duplexes to include a solar water heater system in order to receive a building permit and clarify that gas variance requirements apply only to the ultimate occupant of the dwelling unit.

     Your Committees received testimony in support of this measure from the Hawaii Solar Energy Association and Blue Planet Foundation.  Your Committees received testimony in opposition to this measure from Hawaii Gas and one individual.  Your Committees received comments on this measure from two individuals.

     Your Committees find that the installation of solar water heaters on new single-family and duplex homes is one of the most cost-effective and efficient ways to remove Hawaii's families' dependence on fossil fuels.  A conventional electric water tank accounts for thirty to thirty-five percent of a household's electric bill.  It is estimated that by relying on the sun for ninety percent of a household's hot water demand, a family could save enough money to pay for the solar water heater system in three to five years.

     Your Committees further find that in 2008 the Legislature passed Act 204, Session Laws of Hawaii 2008, requiring solar water heaters on new single-family homes.  However, Act 204 allows variances, such as for tankless gas water heaters, under vague and unjustified circumstances such that the purpose of Act 204 is being thwarted in many instances.

     Your Committees have amended this measure by:

     (1)  Deleting language to allow a variance application for a demand water heater device to be accepted only if submitted by an architect or mechanical engineer who attests that the demand water heater device is installed;

     (2)  Deleting language that would have established a gas variance if the applicant met certain conditions;

     (3)  Inserting language to establish a gas variance on the basis of the home having a gas-tankless instantaneous water heater only if:

          (A)  The water heater has been approved by Underwriters Laboratories, Inc.;

          (B)  The applicant signs an affidavit that the applicant has read a flyer issued by the Department of Business, Economic Development, and Tourism showing the life cycle costs comparisons of a solar water heater and a gas-tankless instantaneous water heater; and

          (C)  The applicant will be the buyer of the new dwelling unit; and

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Energy and Environment and Public Safety, Intergovernmental and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2111, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2111, S.D. 1, and be referred to the Committee on Economic Development, Government Operations and Housing.

Respectfully submitted on behalf of the members of the Committees on Energy and Environment and Public Safety, Intergovernmental and Military Affairs,

____________________________ WILL ESPERO, Chair

____________________________ MIKE GABBARD, Chair