STAND. COM. REP. NO. 3152

Honolulu, Hawaii

RE: H.B. No. 1830

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Transportation and Energy and Higher Education, to which was referred H.B. No. 1830, H.D. 2, 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:

(1) Allow the Legislature to make appropriations into the University of Hawaii green special fund;

(2) Expand the projects the special fund is allowed to support to include energy efficiency, energy conservation, and renewable energy projects;

(3) Eliminate the expenditure cap that requires approval by the Legislature; and

(4) Require the Legislature to be notified of any expenditures from the fund.

Your Committees received testimony in support of this measure from the University of Hawai‘i System, Hawaii Energy, Ulupono Initiative, O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i, Blue Planet Foundation, and Sierra Club of Hawaii. Your Committees received comments on this measure from the Department of the Attorney General.

Your Committees find that green revolving funds are a best practice used by many colleges and universities dedicated to addressing sustainable facilities, operations, and behaviors. Sustainable facilities and practices at the University of Hawai‘i, which is the second largest energy user in the State, play a critical role in achieving the State's goal of one hundred percent clean energy by 2045. Allowing the Legislature to make appropriations into the University's green special fund and expanding the types of projects the special fund is allowed to support will enhance the sustainable facilities, operations, and operations at the University.

Your Committees note a concern raised by the Department of the Attorney General about the role of the Legislature with regard to expenditures from the fund. The Department of the Attorney General suggested that "legislative notification" of expenditures from the fund could be read to violate the constitutional provision that requires appropriation of public monies be "made by law".

Accordingly, your Committees have amended this measure by:

(1) Incorporating the language recommended by the Department of the Attorney General clarifying that expenditures from the fund are made by appropriation; and

(2) Inserting an effective date of January 1, 2100, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Transportation and Energy and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1830, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1830, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________ KAIALI'I KAHELE, Chair

________________________________ LORRAINE R. INOUYE, Chair