HB1520

SECTION 1. The legislature finds that improving energy efficiency is the cheapest, quickest, and cleanest way to accelerate Hawaii's transition to one hundred per cent renewable energy. Hawaii's buildings and facilities offer enormous opportunities for energy savings, yet the potential for savings is not readily apparent through current disclosure and information sharing requirements.

The legislature finds that Hawaii can accelerate progress toward its goals relating to clean energy, economic security, and greenhouse gas emission reduction by expanding the State's building energy benchmarking and energy consumption disclosure requirements beyond residential and public buildings. Building energy benchmarking is a useful starting point for nonresidential building owners and operators to target energy savings opportunities. Building energy benchmarking is the process of comparing a facility's energy usage against facilities of a similar type or function to identify opportunities for savings.

Hawaii is already a leader in driving energy transparency in single-family housing pursuant to the State's residential energy-use disclosure policy, set forth in section 508D-10.5, Hawaii Revised Statutes. Hawaii previously adopted benchmarking policies for public facilities and buildings, as provided in section 196-30, Hawaii Revised Statutes. The State recently completed a successful benchmarking project for public buildings with the support of the United States Department of Energy's state energy program. Between 2014 and 2016, the State benchmarked four hundred sixteen public facilities, including facilities that encompass multiple buildings, such as universities. This benchmarking involved more than two thousand six hundred buildings and covered more than twenty-nine million square feet. The benchmarking project found potential for all state agencies to save more than fifty-six million kilowatt hours annually. Using current electricity rates, this potential savings is equivalent to more than $25,000,000.

The legislature finds that this transparency and visibility into the potential for savings should be extended to nonresidential properties in the State, including commercial properties. Leading states, such as California and Washington, have already extended their benchmarking policies beyond public buildings to include commercial buildings. Benchmarking the energy use of this sector with regular measurement and disclosures has clear benefits for many stakeholders. Building owners understand how much gas and electricity their properties use and they may take steps to reduce wasted energy, helping to lower energy costs and stay competitive. Benchmarking data helps to fill an information gap for commercial real estate firms and investors, providing everyone with access to the same information. For tenants, benchmarking and disclosure provide valuable data to better understand energy use and make informed decisions.

The purpose of this Act is to encourage energy efficiency by requiring benchmarking for nonresidential buildings, including commercial buildings.

SECTION 2. Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§269- Nonresidential building benchmarking. (a) After December 31, 2019, electric and gas utilities shall maintain records of the energy consumption data of all nonresidential buildings to which they provide service. This data shall be maintained for at least the most recent twelve months in a format compatible for uploading to the portfolio management tool.

(b) After December 31, 2019, upon the written authorization or secure electronic authorization of a nonresidential building owner or operator, electric and gas utilities shall upload the energy consumption data for the accounts specified by the owner or operator for a building to the portfolio management tool in a form that does not disclose personally identifying information.

(c) In complying with this section, electric and gas utilities shall use any method for providing the specified data that maximizes efficiency and minimizes overall program cost. Electric and gas utilities may consult with any customer or the United States Environmental Protection Agency to develop reasonable reporting options.

(d) Disclosure of nonpublic nonresidential benchmarking data required under subsection (e) of this section shall be as follows:

(1) By January 1, 2021, for buildings greater than fifty thousand square feet; and

(2) By January 1, 2022, for buildings greater than ten thousand square feet.

(e) Based on the size specifications in subsection (d), a building owner or operator, or a designated agent of a building owner or operator, of a nonresidential building shall disclose the benchmarking data to a prospective buyer, lessee, or lender for the most recent continuously occupied twelve-month period. A building owner or operator, or a designated agent, who delivers benchmarking data to a prospective buyer, lessee, or lender is not required to provide additional information regarding energy consumption, and the information is deemed to be adequate to inform the prospective buyer, lessee, or lender of the benchmarking data for the most recent twelve month period for the building that is being sold, leased, financed, or refinanced.

(f) Notwithstanding subsections (d) and (e), nothing in this section shall alter the duty, if any, of a building owner, operator, or designated agent of any building owner or operator, under this chapter or alter the duty of a seller, agent, or broker to disclose the existence of a material fact affecting the real property."

SECTION 3. Section 269-1, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:

""Benchmark" means the energy used by a facility, as recorded monthly for at least one year, and the facility characteristics information inputs required for a portfolio management tool.

"Energy consumption data" means the monthly amount of energy consumed by a customer as recorded by the applicable energy meter for the most recent twelve month period.

"Portfolio management tool" means the United States Environmental Protection Agency's ENERGY STAR portfolio manager or an equivalent tool adopted by the energy resources coordinator."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon approval.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1520
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII