HB2400

HOUSE OF REPRESENTATIVES	H.B. NO.	2400
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII

A BILL FOR AN ACT

relating to energy efficiency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Hawaii's energy sector is undergoing a transition to renewable energy, which is strengthening the State's economy, environment, security, and energy efficiency. In an effort to attain the State's goal of reaching one hundred per cent of the renewable portfolio standard by 2045, consumers must adopt more energy efficient practices, including switching to efficient lightbulbs, biking, driving an electric car, or simply turning off the lights in rooms that are not in use. Another option is installing a grid interactive water heater, to be used in place of a solar water heater.

Under the renewable portfolio standard goals, electric utilities must integrate increasing amounts of variable renewable energy. The legislature believes that the intermittent nature of renewable energy generation means that electricity production is not always aligned with customer demand, and there are frequent and sudden fluctuations in generation. To manage this misalignment, grid resources must provide support that can stabilize and shift the demand side to account for variability. These are valuable services that a grid interactive water heater can supply, but a solar hot water heater or a conventional hot water heater cannot.

Water heater tanks represent the potential for large-scale thermal energy storage across Hawaii. These are commercially viable technologies that offer relatively inexpensive, non-intrusive control of electric resistive water heaters. A grid interactive water heater can control the best times to activate a residential water heater, thus allowing more grid stability and renewable integration at times when the public utility needs it most.

While solar hot water heaters are required for every new residential home, they may not be as cost effective as a grid interactive water heater. Additionally, solar water heaters do not necessarily afford the grid the same flexibility that a grid interactive water heater offers, which is notable because the State is moving towards a one hundred per cent renewable portfolio standard.

The purpose of this Act is to require that a grid interactive water heater, as an alternative to a solar water heater, shall be an option for installation in new single residential family homes.

SECTION 2. Section 196-6.5, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows:

"[~~Solar~~] Renewable resourced water heater system required for new single-family residential construction. (a) On or after January 1, [~~2010,~~] 2021, no building permit shall be issued for a new single-family dwelling that does not include a solar water heater system that meets the standards established pursuant to section 269-44[,] or a grid interactive water heater system, unless the chief energy officer of the Hawaii state energy office approves a variance. A variance application shall only be accepted if submitted by an architect or mechanical engineer licensed under chapter 464, who attests that:

(1) Resource inadequacy:

[~~(1)~~ ~~Installation~~] (A) The installation of a solar hot water heater is impracticable due to poor solar resource; or

(B) The installation of a grid interactive hot water heater is impractical due to lack of inventory, space, or installer availability;

(2) Installation is cost-prohibitive based upon a life cycle cost-benefit analysis, performed separately for the new solar water heater system or the new grid interactive water heater system, that incorporates the average residential utility bill and the cost of the [~~new solar water heater system~~] proposed new systems with a life cycle that does not exceed fifteen years;

(3) A renewable energy technology system, as defined in section 235-12.5, is substituted for use as the primary energy source for heating water; or

(4) A demand water heater device approved by Underwriters Laboratories, Inc., is installed; provided that at least one other gas appliance is installed in the dwelling. For the purposes of this paragraph, "demand water heater" means a gas-tankless instantaneous water heater that is sourced from a renewable resource and provides hot water only as it is needed."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________