STAND. COM. REP. NO. 2329

Honolulu, Hawaii

RE: S.B. No. 2935

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Transportation and Energy, to which was referred S.B. No. 2935 entitled:

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

begs leave to report as follows:

The purpose and intent of this measure is to require the Department of Commerce and Consumer Affairs to adopt state appliance efficiency standards that are modeled after California's efficiency standards.

Your Committee received testimony in support of this measure from Hawaii Energy, Natural Resources Defense Council, Blue Planet Foundation, and two individuals. Your Committee received testimony in opposition to this measure from the Department of Commerce and Consumer Affairs and Association of Home Appliance Manufacturers.

Your Committee finds that energy efficiency standards have been adopted by a number of states. These energy efficiency standards can help lower energy bills for families. However, manufacturers might unload less efficient appliances to states that do not have energy efficiency standards, increasing utility bills for residents of these states by a considerable amount – in Hawaii, residents risk losing millions of dollars in electricity costs. By adopting energy efficiency standards, Hawaii can avoid becoming a "dumping ground" of older equipment and save its residents millions of dollars over time.

Your Committee received testimony from the Department of Commerce and Consumer Affairs expressing concern about the Department's ability to oversee the program. Your Committee also received testimony indicating that some appliances listed in this measure are not in California's efficiency standards.

Thus, your Committee has amended this measure by:

(1) Changing the agency adopting and overseeing the appliance efficiency standards from the Department of Commerce and Consumer Affairs to the Hawaii State Energy Office;

(2) Removing portable air purifiers from the list of appliances that must meet appliance efficiency standards; and

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

As affirmed by the record of votes of the members of your Committee on Transportation and Energy that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2935, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2935, S.D. 1, and be referred to your Committee on Commerce, Consumer Protection, and Health.

Respectfully submitted on behalf of the members of the Committee on Transportation and Energy,

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LORRAINE R. INOUYE, Chair