Report Title:

Energy Efficiency in State Facilities

Description:

Authorizes the director of finance to issue $100,000,000, in general obligation bonds for the purpose of improving energy management in state facilities in order to save taxpayer dollars and reduce emissions that contribute to air pollution and global climate change.

HOUSE OF REPRESENTATIVES

H.B. NO.

8

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to energy efficiency in state facilities.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that section 9 of Act 77, Session Laws of Hawaii 2002, now codified as part II of chapter 196, Hawaii Revised Statutes, requires state agencies to:

(1) Reduce greenhouse gas emissions attributed to facility energy use by thirty per cent by January 2012, compared to emission levels in calendar year 1990;

(2) Reduce the energy consumption of facilities by twenty per cent by January 2007, and thirty per cent by January 2012, relative to calendar year 1990;

(3) Expand the use of renewable energy by implementing renewable energy projects and by purchasing electricity from renewable energy sources; and

(4) Reduce the use of petroleum-generated energy by switching to alternative fuels or renewable energy sources, or by eliminating unnecessary fuel use.

The goal of Act 77, which is both pragmatic and idealistic, is to save taxpayer dollars and reduce emissions that contribute to air pollution and global climate change by improving energy management in state facilities.

This Act utilizes general obligation bonds—instead of revenue bonds—to fund efficient and renewable energy technologies because fluctuations in the price of fuel oil over the lifetime of these technologies could make it difficult to accurately and reliably predict future cost-savings (i.e., revenues). In theory, the interest paid on these general obligation bonds could be offset by the cost-savings generated through the use of these efficient and renewable energy technologies. As long as the amount of cost-savings generated by these technologies meets or exceeds the amount of interest paid on the bonds used to finance them, there would be no additional cost to the taxpayers of Hawaii.

Since the interest rate for general obligation bonds would be lower than the interest rate for revenue bonds, the State would continue to realize cost-savings even if the price of fuel oil were to decline substantially. Future cost-savings could be considerably less, however, if these efficient and renewable energy technologies are funded with higher interest rate revenue bonds and the price of fuel oil were to decline.

The purpose of this Act is to authorize the issuance of general obligation bonds to improve energy management in state facilities in order to save taxpayer dollars and reduce emissions that contribute to air pollution and global climate change.

SECTION 2. The director of finance is authorized to issue general obligation bonds in the sum of $100,000,000, or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal year 2003-2004 for the purpose of improving energy management in state facilities in order to save taxpayer dollars and reduce emissions that contribute to air pollution and global climate change, in accordance with part II of chapter 196, Hawaii Revised Statutes.

SECTION 3. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2005, shall lapse as of that date.

SECTION 4. The sums appropriated shall be expended by the department of accounting and general services, in consultation with the interagency energy policy committee established pursuant to section 196-17, Hawaii Revised Statutes, and the public-private advisory committee established pursuant to section 196-18, Hawaii Revised Statutes, for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

_____________________________