STAND. COM. REP. NO. 1385

Honolulu, Hawaii

RE: H.B. No. 556

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 Committee on Energy, Economic Development, and Tourism, to which was referred H.B. No. 556, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to require the Department of Business, Economic Development, and Tourism to adopt state appliance efficiency standards to protect consumers.

Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Honolulu Board of Water Supply; Office of Climate Change, Sustainability, and Resiliency of the City and County of Honolulu; Consumer Federation of America; Natural Resources Defense Council; California Energy Commission; Hawaii Reef and Ocean Coalition; Elemental Excelerator; 350Hawaii; Young Democrats of Hawaii; Sierra Club of Hawai‘i; Blue Planet Foundation; Ulupono Initiative; Organizing for Action; Hawai‘i Energy; and thirty-one individuals. Your Committee received testimony in opposition to this measure from the Association of Home Appliance Manufacturers; ITI; Plumbing Manufacturers International; Retail Merchants of Hawaii; and one individual. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs; Public Utilities Commission; and Consumer Technology Association.

Your Committee finds that the high cost of living in Hawaii adds to the importance of adopting policies that promote and encourage energy efficiency, which can provide relief for families and businesses faced with high utility bills. Without state appliance efficiency standards to provide consumer protection, appliance manufacturers may unload less efficient appliances in Hawaii that they cannot sell in other states with heightened standards and as a result, Hawaii residents risk losing as much as $1,000,000,000 in unnecessary energy waste due to inefficient appliances. This measure establishes much needed appliance efficiency standards to protect consumers against less efficient appliances, lower residents' electricity bills, reduce carbon emissions, and help the State reach its clean energy goals.

Your Committee has amended this measure by:

(1) Amending the definitions of "computer" and "computer monitor" to match the definitions in the California Code of Regulations;

(2) Establishing, instead of directing the Director of Business, Economic Development, and Tourism (Director) to adopt rules to establish, minimum appliance efficiency standards, and authorizing the Director to adopt rules to enforce the standards;

(3) Amending the appliance efficiency standards to meet the same requirements set forth in the California Code of Regulations, as amended;

(4) Removing the Director's authority to establish standards for products other than the products specifically listed in this measure;

(5) Amending the new section regarding testing, certification, labeling, and enforcement by requiring manufacturers to test, certify, and label products meeting the standards set forth in this measure and allowing manufacturers to use programs in other states and federal agencies with similar standards to comply with this measure;

(6) Adding to the Public Benefits Fee Administrator's duties and responsibilities the education and training of appliance manufacturers, distributors, and retailers about the appliance efficiency standards; and

(7) 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 Energy, Economic Development, and Tourism that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 556, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 556, H.D. 1, 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 Energy, Economic Development, and Tourism,

________________________________

GLENN WAKAI, Chair