STAND. COM. REP. NO. 1292-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 2963

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Energy & Environmental Protection, to which was referred S.B. No. 2963, S.D. 2, entitled:

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

begs leave to report as follows:

The purpose of this measure is to:

(1) Require state facilities, with the exception of smaller facilities and facilities within the Stadium Development District, to implement cost-effective energy efficiency measures;

(2) Direct the Hawaii State Energy Office, in consultation with the Research and Economic Analysis Division of the Department of Business, Economic Development, and Tourism, to collect all state-owned facilities' electric utility and energy usage data and make this data publicly available;

(3) Direct and appropriate funds for positions to assist the Hawaii State Energy Office to collect all state-owned facilities' water utility and water usage data and make this data publicly available;

(4) Establish a goal for the State to achieve at least a twenty-five percent reduction in the electricity consumption of state facilities;

(5) Provide that certain agencies that perform energy efficiency retrofitting may continue to receive budget appropriations for energy expenditures; and

(6) Beginning July 1, 2023, where feasible and cost-effective, require the design of all new state building construction to maximize energy generation, water efficiency, energy efficiency, and energy generation potential, and to use building materials that reduce the carbon footprint of the project.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services, Hawaii State Energy Office, Climate Protectors Hawai‘i, Kauai Women's Caucus, Ulupono Initiative, 350Hawaii.org, Environmental Caucus of the Democratic Party of Hawai‘i, Blue Planet Foundation, and nineteen individuals. Your Committee received comments on this measure from the Department of Budget and Finance and Department of Transportation.

Your Committee finds that maximizing efficiency and reducing demand for power generation are necessary components of reaching the State's clean energy and decarbonization goals. Your Committee further finds that it is also important for the State to lead by example when it comes to energy efficiency. This measure establishes a coordinated effort toward energy efficiency throughout the State, resulting in savings of taxpayer dollars that would otherwise be spent on electricity, water, and other utility bills.

Your Committee has amended this measure by:

(1) Clarifying certain findings;

(2) Clarifying provisions that require state facilities to implement cost-effective energy efficiency measures, including amending timelines, clarifying certain restrictions, and removing certain exemptions;

(3) Clarifying provisions directing the Hawaii State Energy Office to collect all utility bill and energy usage data for state-owned facilities;

(4) Deleting language that would have required the Hawaii State Energy Office to collect all water utility and water usage data for state-owned facilities and make this data publicly available;

(5) Deleting language that would have established a goal for the State to achieve at least a twenty-five percent reduction in electricity consumption of state-owned facilities, using 2005 as the baseline year;

(6) Deleting language that would have appropriated funds for positions for the Hawaii State Energy Office to collect and make available all water utility and water usage data for state-owned facilities; and

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

As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2963, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2963, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,

____________________________

NICOLE E. LOWEN, Chair