STAND. COM. REP. NO. 2403

Honolulu, Hawaii

RE: S.B. No. 2963

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Energy, Economic Development, and Tourism and Government Operations, to which was referred S.B. No. 2963 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require and establish deadlines for state facilities, except smaller facilities and facilities within the stadium development district, to implement cost-effective energy efficiency measures;

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

(3) Allow the Department of Accounting and General Services to opt out of the cost-effective energy efficiency measures if a facility will be demolished within five years;

(4) Direct the Hawaii Natural Energy Institute to collect utility bill and energy usage data for state-owned buildings and to make the data publicly available;

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

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

Your Committees received testimony in support of this measure from the Department of Accounting and General Services; Office of Planning and Sustainable Development; Hawai‘i Natural Energy Institute; Hawaii State Energy Office; Ulupono Initiative; Johnson Controls, Inc.; Blue Planet Foundation; and eleven individuals. Your Committees received comments on this measure from the Department of Transportation.

Your Committees find that this measure supports green building management and the sustainable development and operations of state-owned buildings and facilities. According to testimony received from the Department of Accounting and General Services, additional time is needed for all agencies to establish and implement cost-effective energy efficiency measures.

Your Committees note that although the Hawaii State Energy Office currently collects and reports on the energy usage of state-owned buildings on an annual basis, it has no experience or expertise in water efficiency management.

Accordingly, your Committees have amended this measure by:

(1) Requiring the Hawaii State Energy Office, instead of the Hawaii Natural Energy Institute, to collect utility bill and energy usage data for state-owned buildings and to make the data publicly available;

(2) Transfer the water efficiency management portion of this measure to the Office of Planning and Sustainable Development by:

(A) Specifying that the Hawaii State Energy Office shall collect electric utility bill and energy usage data for state-owned buildings and make this data publicly available, while the Office of Planning and Sustainable Development shall collect water utility bill and water usage data for state-owned buildings and make that data publicly available; and

(B) Appropriating an unspecified amount of funds for an unspecified amount of full-time equivalent positions at the Office of Planning and Sustainable Development for the collection and publication of water utility bill and water usage data for state-owned buildings;

(3) Extending the deadlines for certain state facilities to implement cost-effective energy efficiency measures; and

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

Your Committees note that as your Committee on Ways and Means considers the amount of funds and positions for Office of Planning and Sustainable Development to carry out its water management duties under this measure, it may also consider expanding the Office's responsibilities to include facilitating the use of reclaimed water for uses other than drinking and for potable water needs in one hundred percent of state and county facilities by December 31, 2045, pursuant to the Hawaii Water Plan in section 174C-31(g)(6), Hawaii Revised Statutes.

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 S.B. No. 2963, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2963, 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,

________________________________ SHARON MORIWAKI, Chair

________________________________ GLENN WAKAI, Chair