STAND. COM. REP. NO. 2436

Honolulu, Hawaii

RE: S.B. No. 2752

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 Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2752 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to encourage state agencies and departments to preform energy efficiency retrofits by providing low-cost financing for energy efficiency measures through a sub-fund under the green energy market securitization loan fund that will be used as a revolving line of credit.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Hawaii Green Infrastructure Authority; Ulupono Initiative; and Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii. Your Committees received testimony in opposition to this measure from one individual. Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs Division of the Consumer Advocate, Tax Foundation of Hawaii, and Life of the Land.

Your Committees find that the government is a major consumer of electricity, and that a large part of the State's energy efficiency savings can be found in the government sector. Your Committees note that there is already financing for installing energy-efficient lighting and other energy efficiency measures at public schools through the Hawaii green infrastructure special fund. Your Committees received testimony from the Department of Commerce and Consumer Affairs expressing concern that this measure does not ensure that the energy efficiency measures are cost-effective, nor does it ensure that there will be no adverse impacts on the Hawaii green infrastructure special fund, general funds, or other electricity consumers.

Accordingly, your Committees have amended this measure by:

(1) Requiring that the energy efficiency measures be cost-effective;

(2) Requiring that the loans for the energy efficiency measures not adversely affect the Hawaii green infrastructure special fund, general funds, and other electricity consumers; and

(3) Making technical, nonsubstantive amendments for the purpose of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Transportation and Energy and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2752, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2752, 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 Commerce, Consumer Protection, and Health,

________________________________ ROSALYN H. BAKER, Chair

________________________________ LORRAINE R. INOUYE, Chair