STAND. COM. REP. NO. 2826

Honolulu, Hawaii

RE:    S.B. No. 2804

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2804, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY PERFORMANCE CONTRACTING FOR PUBLIC BUILDINGS,"

begs leave to report as follows:

     The purpose and intent of this measure is to incentivize the implementation of energy performance contracting projects by state agencies.

     Specifically, this measure provides that:

     (1)  Agencies entering into energy performance contracts will continue to receive pre-retrofit budget appropriation amounts and have access to financing options;

     (2)  An energy performance contract has a maximum term of twenty-five years, including the construction period; and

     (3)  Agencies implementing energy performance contracts provide annual reports to the Department of Business, Economic Development, and Tourism.

     Your Committee received written comments in support of this measure from the Department of Accounting and General Services and the Department of Business, Economic Development, and Tourism.  The Department of Transportation submitted written comments on the measure.

     Your Committee finds that incentivizing the use of energy performance contracting by state agencies will result in improved energy efficiency and reduced operating costs for the State.

     Your Committee is concerned, however, that the twenty-five year maximum term for an energy performance contract may be too long.  Accordingly, if this measure is approved by the House of Representatives, your Committee intends to further review the matter.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

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

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2804, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2804, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair