SB994

SECTION 1. The legislature finds that Hawaii's electricity rates are among the highest in the nation, close to three times the national average, and vary based on the availability of renewable resources, power plants, fuel costs, and pricing regulations. The 2022 report commissioned by the Aloha United Way, "ALICE in Hawaii: 2022 Facts and Figures", states that forty-four per cent of the households in the State live below the ALICE (asset limited, income constrained, employed) threshold, meaning that almost half of all families in the State are struggling to make ends meet, even though they are employed. The number of electric utility customers in arrears and facing disconnection is higher than before the COVID-19 pandemic, with thousands of customers collectively owing millions of dollars. In addition, electricity needs are expected to increase due to rising climate temperatures and associated home cooling needs.

In 2022, the legislature adopted Senate Concurrent Resolution No. 242, S.D. 1, Session Laws of Hawaii 2022, that requested the creation of a Hawaii state low-income home energy assistance program (LIHEAP) working group. As noted in a December 2022 report to the legislature submitted by the public utilities commission, the federal LIHEAP administered by the department of human services, a program designed to provide energy assistance to families, served fewer than nine thousand households in Hawaii in 2020, or about two per cent of the State's population potentially eligible for energy assistance based on income. The State received the lowest amount of federal funding for federal LIHEAP of all states in fiscal year 2021-2022. According to estimates from the National Energy and Utility Affordability Coalition, Hawaii received 0.14 per cent of federal LIHEAP funds in fiscal year 2021-2022, roughly half of the next-lowest state. Funding for states is determined based on a formula developed in 1984, which inherently favors states with large heating needs and does not consider specific electricity prices within states.

The legislature further finds that, in addition to the limited financial assistance available through the department of human services from the federal LIHEAP program, the public benefits fee administrator of the public utilities commission plays a vital role in ensuring that all available state and federal benefits and rebate programs are being utilized by providing opportunities and solutions for Hawaii residents and businesses to save money and energy. The legislature also finds that the State must commit to providing assistance to low-income households that are directly impacted due to the high cost of electricity.

Accordingly, the purpose of this Act is to:

(1) Establish a Hawaii home energy assistance program, similar to the federal LIHEAP program, to allow the department of human services to provide energy assistance to more families; and

(2) Require the public benefits fee administrator of the public utilities commission to provide valuable information and assistance to recipients of the Hawaii home energy assistance program to help make recipients' homes more energy efficient to reduce their cost of electricity.

SECTION 2. Chapter 346, Hawaii Revised Statutes, is amended by adding to part II two new sections to be appropriately designated and to read as follows:

"§346- Hawaii home energy assistance program; established. (a) There is established within the department the Hawaii home energy assistance program. Subject to the availability of program funds, the program may assist eligible households with payment of costs associated with meeting an eligible household's home energy needs.

(b) Any person who is in need of public assistance as provided by this section may submit an application in a form prescribed by the department that includes, at a minimum, documentation to prove that the person:

(1) Is a resident of the State;

(2) Has an active utilities account in the State; and

(3) Satisfies the income eligibility limit and all other eligibility standards established by the department pursuant to subsection (d).

(c) The public utilities commission public benefits fee administrator, in consultation with the department, shall provide information and technical assistance about available energy efficiency programs to recipients, including an energy audit at the request of a recipient, and assist recipients with implementation of energy efficiency improvements, in accordance with section 269-123(b).

(d) The department shall adopt rules pursuant to chapter 91 for purposes of this section."

SECTION 3. Section 269-123, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The public benefits fee administrator's duties and responsibilities shall be established by the public utilities commission by rule or order, and may include:

(1) Identifying, developing, administering, promoting, implementing, and evaluating programs, methods, and technologies that support energy-efficiency and demand-side management programs;

(2) Encouraging the continuance or improvement of efficiencies made in the production, delivery, and use of energy-efficiency and demand-side management programs and services;

(3) Using the energy-efficiency expertise and capabilities that have developed or may develop in the State and consulting with state agency experts;

(4) Promoting program initiatives, incentives, and market strategies that address the needs of persons facing the most significant barriers to participation;

(5) Promoting coordinated program delivery, including coordination with electric public utilities regarding the delivery of low-income home energy assistance, other demand-side management or energy-efficiency programs, and any utility programs;

(6) Consideration of innovative approaches to delivering demand-side management and energy-efficiency services, including strategies to encourage third-party financing and customer contributions to the cost of demand-side management and energy-efficiency services;

(7) Submitting, to the public utilities commission for review and approval, a multi-year budget and planning cycle that promotes program improvement, program stability, and maturation of programs and delivery resources; [~~and~~]

(8) Educating and training appliance manufacturers, distributors, and retailers of appliances covered under part VI of chapter 196 about the appliance efficiency standards established under that part to improve compliance[.]; and

(9) Providing information and technical assistance about available energy efficiency programs to recipients of the Hawaii home energy assistance program, including an energy audit if requested by the recipient, and assisting the recipients with implementation of energy efficiency improvements."

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to:

(1) Establish one full-time equivalent (1.0 FTE) position and two temporary full-time equivalent (2.0 FTE) positions;

(2) Make system modifications; and

(3) Contract services as may be necessary,

for the purposes of implementing the Hawaii home energy assistance program established pursuant to section 346- , Hawaii Revised Statutes.

The sums appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	994
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII