Bill Text: HI HB1366 | 2012 | Regular Session | Amended

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Bill Title: Energy Efficiency Retrofitting; State Agencies; Budget

Spectrum: Moderate Partisan Bill (Democrat 7-1)

Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB1366 Detail]

Download: Hawaii-2012-HB1366-Amended.html

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STAND. COM. REP. NO.  40

 

Honolulu, Hawaii

                , 2011

 

RE:   H.B. No. 1366

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1366 entitled:

 

"A BILL FOR AN ACT RELATING TO ENERGY,"

 

begs leave to report as follows:

 

     The purpose of this bill is to work towards improving the energy efficiency of state facilities by ensuring that state agencies that enter into energy performance contracts continue to receive budget appropriations for energy expenditures in an amount that does not fall below the funds appropriated and budgeted for that purpose prior to entering into the performance contract.

 

     The Department of Accounting and General Services, Department of Business, Economic Development, and Tourism, and Noresco testified in support of this bill.  The Department of Budget and Finance supported the intent of this measure.

 

     Currently, a number of state agencies have shown interest in retrofitting and upgrading their facilities to improve the energy efficiency of these facilities.  However, difficulties have been faced when determining how to pay for these facility improvements.  One method currently available to finance these improvements is through energy savings performance contracting.  Energy savings performance contracting is a method of paying for facility improvements using energy and operational savings through a contracting vehicle that provides an opportunity to turn wasted energy and operating cost into capital improvements.  Typically, the energy cost savings generated by conservation and alternative energy measures are used to pay off the original investment, plus financing and maintenance costs, over the term of the contract.  Although this option is currently available to state agencies, uncertainty continues to exist regarding whether the agencies that perform energy efficiency retrofitting will continue to receive budget appropriations for energy expenditures at an amount that does not fall below the pre-retrofitting energy budget. This measure removes this uncertainty by requiring the continued receipt of budget appropriations at no lower than pre-retrofitting energy budget levels.

 

     Additionally, your Committee was informed that clarification is needed with regard to the term of an energy performance contract; if the term included the construction period, agencies would be able to obtain additional solutions with longer payback periods.

 

     Accordingly, your Committee has amended this bill by clarifying that the term of energy performance contracts shall not exceed 20 years following completion of construction.

 

     Technical, nonsubstantive amendments were also made for 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 H.B. No. 1366, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1366, H.D. 1, and be referred to the Committee on Finance.

 

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

 

 

		____________________________ HERMINA MORITA, Chair