STAND. COM. REP. NO. 188
Honolulu, Hawaii
, 2015
RE: H.B. No. 1509
H.D. 1
Honorable Joseph M. Souki
Speaker, House of Representatives
Twenty-Eighth State Legislature
Regular Session of 2015
State of Hawaii
Sir:
Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 1509 entitled:
"A BILL FOR AN ACT RELATING TO ENERGY,"
begs leave to report as follows:
(1) Requiring the University of Hawaii to establish a long-term goal of reducing energy consumption and energy bills to zero (net-zero goal);
(2) Establishing the University of Hawaii Net-zero Special Fund (Special Fund), which must be used for capital improvement projects that advance the University of Hawaii's net-zero goal and may be used in conjunction with the Green Energy Market Securitization program of the State Energy Office or certain comparably lower-priced financing mechanisms;
(3) Requiring that for each capital improvement project funded through the Special Fund, the University of Hawaii must annually deposit into the Special Fund the current value of the energy saved by the project during the preceding fiscal year, as measured against the current value of the energy consumed during the fiscal year prior to the execution of the project, excluding debt service; provided, among other things, that 50 percent of all moneys deposited into the Special Fund must be used annually to provide scholarships to students with the greatest demonstrated financial need;
(4) Requiring the University of Hawaii to submit an annual report to the Legislature by November 30 of each year regarding the Special Fund;
(5) Appropriating $45,500,000 out of the general fund for specified retrofit projects at the University of Hawaii at Manoa and University of Hawaii at Hilo; and
(6) Appropriating $150,000 to fund two positions within the University of Hawaii system to provide financial, technical, and other support to advance the University's net-zero goal.
Prior to the public hearing, a Proposed H.D. 1, which was substantially similar to the original bill, was circulated for public review and comment.
Your Committee has amended the Proposed H.D. 1 by, among other things:
(1) Requiring that the Special Fund must be used in conjunction with the Green Energy Market Securitization program of the State Energy Office or certain comparably lower-priced financing mechanisms;
(2) Removing student scholarships as a use of the Special Fund;
(3) Modifying the manner in which the value of the energy saved or offset by a capital improvement project is measured;
(4) Modifying some of the required information in the University of Hawaii's annual report to the Legislature regarding the Special Fund;
(5) Deleting the amounts of all appropriations in the measure;
(6) Changing the means of financing for the retrofit projects at the University of Hawaii at Manoa and University of Hawaii at Hilo from general revenues to general obligation bonds; and
(7) Making technical, nonsubstantive amendments 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. 1509, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1509, H.D. 1, and be referred to the Committee on Higher Education.
Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,
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____________________________ CHRIS LEE, Chair |
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