STAND. COM. REP. NO. 133

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 189

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Energy and Environment, to which was referred S.B. No. 189 entitled:

 

"A BILL FOR AN ACT RELATING TO ENERGY,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to ensure that state agencies that enter into energy performance contracts continue to receive budget appropriations for energy expenditures in an amount that shall not fall below the pre-performance contract budget.

 

     Your Committee received testimony in support of this measure from Richard C. Lim, Department of Business, Economic Development, and Tourism; Bruce A. Coppa, Department of Accounting and General Services; and Jay Johnson, Noresco.  Your Committee received comments on this measure from Kalbert K. Young, Department of Budget and Finance.

 

     You Committee finds that allowing state agencies to keep their pre-performance contract budget appropriations will create an additional incentive to the agencies to continuing energy conservation in their facilities, thereby reducing the State's overall energy consumption.

 

     As a related matter, your Committee received testimony indicating ambiguity in existing law regarding the duration of energy performance contracts.  Your Committee finds that requiring contract terms to begin upon completion of the construction or installation of energy conservation features, rather than upon execution of the contract, would allow state agencies to obtain additional energy solutions over a longer period of time.

 

     Accordingly, your Committee has amended this measure by clarifying that the term of an energy performance contract begins upon the completion of construction.

 

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 189, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 189, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

 

		____________________________ MIKE GABBARD, Chair