STAND. COM. REP. NO. 1078

Honolulu, Hawaii

RE: H.B. No. 350

H.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Energy and Intergovernmental Affairs and Housing, to which was referred H.B. No. 350, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Expand the types of water heater systems required for the issuance of a building permit for new single-family dwellings to include ENERGY STAR certified heat pump water heaters;

(2) Amend the conditions for acceptance of a water heater variance application; and

(3) Define "heat pump".

Your Committees received testimony in support of this measure from the Hawaii State Energy Office, Hawaiʻi Association of REALTORS, Kauai Climate Action Coalition, and Hawaiʻi Energy.

Your Committees received comments on this measure from Inter‑Island Solar Supply and Hawaii Solar Energy Association.

Your Committees find that Hawaii's solar water heater system mandate for new single-family dwellings provides homeowners with a prudent, energy saving investment while increasing the number of renewable energy resources in the State. Your Committees note that some new single-family dwellings may have limited exposure to sunlight, which would make solar water heating less effective. Your Committees further note that the ability of ENERGY STAR certified heat pump water heaters to efficiently and flexibly use electricity makes them an excellent match for the use of excess onsite or grid-provided solar energy. According to testimony received by your Committees, ENERGY STAR certified heat pump water heaters are viable alternatives when the installation of solar or heat pump water heaters are not feasible. Your Committees believe that allowing consumers the choice of an ENERGY STAR certified heat pump water heater is consistent with the energy goals of the State.

As affirmed by the records of votes of the members of your Committees on Energy and Intergovernmental Affairs and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 350, H.D. 2, and recommend that it pass Second Reading and be referred to your Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committees on Energy and Intergovernmental Affairs and Housing,

________________________________ STANLEY CHANG, Chair

________________________________ GLENN WAKAI, Chair