STAND. COM. REP. NO. 1127

Honolulu, Hawaii

RE:    H.B. No. 794

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Higher Education and Transportation and Energy, to which was referred H.B. No. 794, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY AT THE UNIVERSITY OF HAWAII,"

beg leave to report as follows:

     The purpose and intent of this measure is to fund energy conservation measures to reduce the University of Hawaii's energy consumption and costs by:

     (1)  Establishing the University of Hawaii green special fund; and

     (2)  Requiring the University to submit an annual report to the Legislature with information about the monies in the special fund.

     Your Committees received testimony in support of this measure from the University of Hawai‘i System, Ulupono Initiative, and one individual.  Your Committees received comments on this measure from the Department of Budget and Finance.

     Your Committees find that green revolving funds are common at many college and university campuses across the country that are dedicated to addressing sustainable facilities, operations, and behaviors.  According to the Association for the Advancement of Sustainability in Higher Education, at least eighty-five universities have such funds as part of their sustainability programs.  Your Committees further find that green revolving funds are typically managed by the university to fund energy-efficient projects, reduce resource use, and other sustainable efforts that repay the fund either through savings realized by the project or other sources of income.

     Your Committees additionally find that the University of Hawaii has established the Office of Energy Management to, among other efforts, address the high energy consumption across all ten university campuses.  The University has indicated that a green special fund is necessary to support multiple methods of financing and the repayment of debt service from special funds, private donations, and energy rebates.

     Your Committees have amended this measure by:

     (1)  Removing appropriations made by the Legislature as a source of funds for the University of Hawaii green special fund;

     (2)  Adding as a source of funds for the University of Hawaii green special fund:

          (A)  Capital appropriations for energy conservation measures;

          (B)  Funds from special and revolving funds for energy conservation measures projects at the University of Hawaii; provided that this source of funding will only be available until June 30, 2020; and

          (C)  Proceeds from University of Hawaii revenue bonds;

     (3)  Inserting language authorizing the Chief Financial Officer of the University of Hawaii to manage the University of Hawaii green special fund and garner monetary savings realized from campus energy conservation measures projects;

     (4)  Inserting an appropriation of $10,000,000 of general revenues to the University of Hawaii for energy efficiency, renewable energy, and sustainability projects and services that may be funded by the special fund;

     (5)  Inserting an effective date of July 1, 2017; and

     (6)  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 Higher Education and Transportation and Energy that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 794, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 794, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Higher Education and Transportation and Energy,

________________________________ LORRAINE R. INOUYE, Chair

________________________________ KAIALI'I KAHELE, Chair