STAND. COM. REP. NO. 111

Honolulu, Hawaii

, 2023

RE: H.B. No. 327

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Energy & Environmental Protection and Housing, to which was referred H.B. No. 327 entitled:

"A BILL FOR AN ACT RELATING TO ROOFTOP SOLAR INSTALLATION,"

beg leave to report as follows:

The purpose of this measure is to, beginning on January 1, 2024, prohibit the issuance of building permits for new single-family dwellings that are part of a development of ten or more dwellings and do not include a rooftop photovoltaic energy generating system, unless an exemption or variance is granted.

Your Committees received testimony in support of this measure from Our Revolution Hawaii, Environmental Caucus of the Democratic Party of Hawai‘i, 350Hawaii.org, Kauai Climate Action Coalition, and three individuals. Your Committees received testimony in opposition to this measure from NAIOP Hawaii, Hawai‘i Association of REALTORS, The Gentry Companies, and AAC. Your Committees received comments on this measure from the Hawaii State Energy Office, Hawaiian Electric, and Building Industry Association of Hawaii.

Your Committees find that taking advantage of available rooftop space for rooftop solar photovoltaics will be an important part of meeting Hawaii's one hundred percent renewable energy target. Additionally, adding a solar energy generation system during the construction phase significantly reduces the system installation cost for homeowners compared to adding solar photovoltaics post-construction. By adding a rooftop solar energy generation system requirement for large production home projects, this measure will help the State achieve its renewable energy goals, while potentially lowering project costs for the installation of electrical infrastructure.

Your Committees have amended this measure by:

(1) Inserting language that exempts affordable housing from the rooftop photovoltaic energy generating system requirement;

(2) Authorizing the Hawaii State Energy Office to use monies from the Energy Security Special Fund in administering variances;

(3) Changing the effective date to June 30, 3000, to encourage further discussion; and

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

Your Committees respectfully request your Committee on Consumer Protection & Commerce and your Committee on Finance, should they deliberate on this measure, to consider the concerns expressed in testimony about the impact that this measure may have on the cost of housing and that the Hawaii State Energy Office would need an expenditure ceiling increase to use monies from the Energy Security Special Fund to administer and grant variances.

As affirmed by the records of votes of the members of your Committees on Energy & Environmental Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 327, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 327, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committees on Energy & Environmental Protection and Housing,

____________________________ TROY N. HASHIMOTO, Chair

____________________________ NICOLE E. LOWEN, Chair