STAND. COM. REP. NO. 1399

Honolulu, Hawaii

RE: H.B. No. 401

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Government Operations, to which was referred H.B. No. 401, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONTRACTING FOR PUBLIC FACILITIES,"

beg leave to report as follows:

The purpose and intent of this measure is to allow agencies to enter performance contracts to undertake or implement energy conservation or alternate energy measures for vehicles.

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Department of Transportation; Office of the Mayor of the County of Maui; Office of Climate Change, Sustainability, and Resiliency of the City and County of Honolulu; Ulupono Initiative; Hawaii Energy Policy Forum; Organizing for Action; and one individual. Your Committees received comments on this measure from the Department of Budget and Finance.

Your Committees find that utilizing cleaner alternative energy forms and reducing carbon emissions are in the best interest of the State. This measure allows agencies to enter energy performance contracts for vehicles, which will allow for increased use of more efficient, cleaner forms of ground transportation in public fleets, ultimately reducing Hawaii's dependence on imported fossil fuels.

Your Committees have amended this measure by:

(1) Clarifying certain provisions that referenced "vehicles" to mean a "vehicle fleet" and defining "vehicle fleet";

(2) Adding vehicle fueling or charging infrastructure to the definition of "energy performance contract";

(3) Adding avoided operations and avoided fuel costs as additional contingencies for the level of payments made pursuant to energy performance contracts; and

(4) Changing the effective date to upon approval.

As affirmed by the records of votes of the members of your Committees on Energy, Economic Development, and Tourism and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 401, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 401, 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 Energy, Economic Development, and Tourism and Government Operations,

________________________________ LAURA H. THIELEN, Chair

________________________________ GLENN WAKAI, Chair