SB3126.DOC

SECTION 1. This Act is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Constitution of the State of Hawaii.

SECTION 2. There is a need to install air conditioning and other heat abatement equipment in public school classrooms to preserve and promote the health and safety of students and teachers, and to foster a better and more comfortable and productive learning environment. With the current El Nino conditions, high temperatures in classrooms during the summer months will be a continuing problem that must be addressed. In order to keep the costs of operating air conditioning and heat abatement equipment in the classrooms affordable and to reduce dependence on imported fossil fuels, energy efficient lighting and other energy efficiency measures will also be necessary in conjunction with the air conditioning and other heat abatement measures.

In order to upgrade 1,000 classrooms by the end of calendar year 2016 and to cool as many classrooms as possible during the hottest months, this project must proceed as quickly as possible. Additionally, work done during the summer break will minimize classroom disruption and constraints on contractor work conditions. To facilitate this schedule, funding needs to be authorized immediately to allow the permitting and contracting to proceed.

A source of funding for this effort is currently available in the green infrastructure loan program. The funds will be loaned to the department of education and the department of budget and finance at affordable rates. General obligation bond funds are also requested for this effort.

The purpose of this Act is to: 1) appropriate special funds from the Hawaii green infrastructure special fund to provide a loan to the department of education and the department of budget and finance for the equipment and installation of air conditioning, energy efficient lighting and other energy efficiency measures; 2) authorize the department of education and the department of budget and finance to borrow from the green infrastructure loan program and authorize the department of education to expend the funds for the equipment and installation of air conditioning, heat abatement equipment, energy efficient lighting and other energy efficiency measures; 3) appropriate general obligation bond funds to the department of education for the equipment and installation of air conditioning, heat abatement equipment, energy efficient lighting and other energy efficiency measures; and 4) appropriate general funds to the department of budget and finance to make the initial loan repayment to the green infrastructure loan program.

SECTION 3. There is appropriated out of the Hawaii green infrastructure special fund the sum of $100,000,000 or so much thereof as may be necessary for fiscal year 2015 2016 and to loan such moneys to the department of education and department of budget and finance.

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

SECTION 4. The department of education and department of budget and finance, with the approval of the governor, are authorized to borrow the sum of $100,000,000 or so much thereof as may be necessary for fiscal year 2015 2016 from the green infrastructure loan program for capital improvement program equipment and installation costs for air conditioning, energy efficient lighting and other energy efficiency measures related to heat abatement at public schools. The sum of $100,000,000 or so much thereof as may be necessary is appropriated out of other funds for fiscal year 2015 2016 to allow expenditure of the funds for such purpose.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $7,000,000 or so much thereof as may be necessary for fiscal year 2016 2017 for the initial loan repayment for the moneys borrowed from the green infrastructure loan program by the department of education and department of budget and finance.

The sum appropriated shall be expended by the department of budget and finance for the purposes of this Act.

SECTION 6. The sum of $30,000,000 or so much thereof as may be necessary for fiscal year 2015 2016 in general obligation bond funds is appropriated for capital improvement program equipment and installation costs for air conditioning, other heat abatement measures, energy efficient lighting and other energy efficiency measures related to heat abatement at public schools.

The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 7. Funds appropriated or authorized by this Act that are not expended or encumbered by June 30, 2018 shall lapse as of that date, provided that funds appropriated or authorized by section 5 of this Act not expended or encumbered by June 30, 2017 shall lapse as of that date.

SECTION 8. This Act shall take effect upon its approval.

INTRODUCED BY:

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BY REQUEST

THE SENATE	S.B. NO.	3126
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII