| 48 | | - | SECTION 1. The legislature finds that energy efficiency is the most cost-effective way to reduce greenhouse gas emissions associated with electricity generation and consumption. The legislature further finds that maximizing efficiency and thereby reducing demand for power generation is a necessary component of reaching the State's goal of one hundred per cent renewable energy by 2045. Energy used to power buildings accounts for more than fifty per cent of the electricity consumed in the State, yet the State has not undertaken improvements for increased efficiency in many of its own facilities, forgoing millions of dollars in potential savings. The legislature further finds that the COVID-19 pandemic has devastated Hawaii's economy. With one of the State's primary areas of focus being economic recovery and resilience in the wake of COVID-19, the legislature recognizes the importance of elevating Hawaii's growing clean energy industry, which can diversify the economy, create new jobs, contribute to workforce development, and help the State to meet critical energy goals. With the budget deficit the State is currently facing, the legislature believes it is imperative for all state departments to control their energy usage and lower their utility bills. Energy efficiency is the first and most cost-effective step in smart energy management and should be prioritized by every state agency. The State should also seize this opportunity to create new jobs in the energy sector at a time when they are badly needed. It is important for the State to lead by example when it comes to energy efficiency, energy efficient new building construction, and maximizing savings of taxpayer dollars that would otherwise be spent on utility bills. Act 122, Session Laws of Hawaii 2019 (Act 122), states that "efforts taken by universities, public schools, executive departments, and other government entities have already begun to save taxpayers money by reducing the government's electricity costs. However, those efforts lack statewide coordination, preventing economies of scale to maximize savings. While some departments have made substantial progress, others have yet to commence meaningful activities." Additionally, Act 122 further states, regarding the Hawaii state energy office, that "[t]asking a single agency to plan for energy savings measures across all public facilities and assist government entities already working to reduce energy costs is a necessary step to maximize taxpayer savings" and "[t]he legislature's intent is to establish in statute an energy agency...that will assist both the public and private sectors in achieving the State's energy goals." Consistent with this, the Hawaii state energy office is working with state agencies to assess opportunities to reach a target goal of twenty-five per cent reduction by 2025, from a 2005 baseline year, through the energy efficiency in state buildings project. The purpose of this Act is to ultimately reduce greenhouse gas emissions by: (1) Requiring state facilities, with the exception of smaller facilities and facilities at Aloha Stadium, to implement cost-effective energy efficiency measures; (2) Directing the Hawaii state energy office to collect all state-owned facilities' utility bill and energy usage data and make this data publicly available; (3) Establishing a goal for the State to achieve at least a twenty-five per cent reduction in the electricity consumption of state facilities; (4) Providing that certain agencies that perform energy efficiency retrofitting may continue to receive a certain amount of appropriations for energy expenditures; and (5) Beginning July 1, 2022, requiring, where feasible and cost-effective, the design of all new state building construction to maximize water efficiency, energy efficiency, and energy generation potential, and to use building materials that reduce the carbon footprint of the project. SECTION 2. Chapter 196, Hawaii Revised Statutes, is amended by adding three new sections to part II to be appropriately designated and to read as follows: "§196- Energy efficiency implementation for state facilities. (a) State facilities shall implement cost‑effective energy efficiency measures or enter into performance contracts for the implementation of cost-effective energy efficiency measures as follows: (1) Beginning on January 1, 2023, for all state facilities that have not implemented section 36-41 since 2010; and (2) Beginning on January 1, 2025, for all other state facilities; provided that the simple payback period shall not exceed the performance period of the contract; provided further that nothing in this subsection shall prohibit facilities from implementing energy efficiency measures sooner than indicated under paragraphs (1) or (2). (b) State facilities having an area under ten thousand square feet and facilities at Aloha Stadium shall be exempt from the requirements of subsection (a). (c) For purposes of this section: "Cost-effective energy efficiency measure" means any energy efficiency measure where the cost of the energy efficiency measure shall be equal to or less than the estimated savings over a period of twenty years or the life of the installed components, whichever is less. "Energy efficiency measure" means any energy services, projects, and equipment, including but not limited to building or facility energy conservation enhancing, demand management, or demand response retrofits, which can include energy saved offsite by water or other utility enhancing retrofits, to improve the energy efficiency or reduce energy costs of the facility. "Facility" shall have the same meaning as that term is defined in section 36-41(d). §196- Utility bills and energy usage data; state-owned facilities. The Hawaii state energy office shall collect all utility bill and energy usage data for state-owned facilities monthly and shall make this information available in a publicly accessible format. §196- Reduction of electricity consumption of state facilities. It shall be the goal of the State to achieve at least a twenty-five per cent reduction in electricity consumption of state facilities, using 2005 as the baseline year." SECTION 3. Section 36-41, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) All agencies shall evaluate and identify for implementation energy efficiency retrofitting through performance contracting. Agencies that perform energy efficiency retrofitting may continue to receive budget appropriations for energy expenditures at an amount that [shall not fall below the pre-retrofitting energy budget but shall rise in proportion to any increase in the agency's overall budget for the duration of the performance contract or project payment term.] accounts for any costs, including for maintenance, contracts, or debt service for the implementation and management of energy efficiency measures." SECTION 4. Section 107-27, Hawaii Revised Statutes, is amended to read as follows: "§107-27 Design of state buildings. (a) No later than one year after the adoption of codes or standards pursuant to section 107-24(c), the design of all state building construction shall be in compliance with the Hawaii state building codes, except state building construction shall be allowed to be exempted from: (1) County codes that have not adopted the Hawaii state building codes; (2) Any county code amendments that are inconsistent with the minimum performance objectives of the Hawaii state building codes or the objectives enumerated in this part; or (3) Any county code amendments that are contrary to code amendments adopted by another county. (b) Exemptions shall include county ordinances allowing the exercise of indigenous Hawaiian architecture adopted in accordance with section 46-1.55. (c) The State shall consider hurricane resistant criteria when designing and constructing new public schools for the capability of providing shelter refuge. (d) Beginning July 1, 2022, where feasible and cost‑effective, the design of all new state building construction shall: (1) Maximize energy and water efficiency measures; (2) Maximize energy generation potential; and (3) Use building materials that reduce the carbon footprint of the project." SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 7. This Act shall take effect on July 1, 2050. |
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| 47 | + | SECTION 1. The legislature finds that there is a need for a holistic plan of action for Hawaii regarding policy, technology, funding, and facilitation of public and private actions on climate change mitigation. The Intergovernmental Panel on Climate Change's 2018 report concludes that Hawaii has less than fifteen years to address permanent climate change and sea level rise and the associated high level of disruption to the islands of Hawaii. The legislature has established requirements to: (1) Establish the greenhouse gas sequestration task force and require a plan to evaluate the feasibility and implications of establishing a carbon offset program for Hawaii pursuant to Act 15, Session Laws of Hawaii 2018; (2) Consider greenhouse gas impacts in government decisions and orders, e.g., environmental assessments, environmental impact statements, and decisions from the public utilities commission; (3) Establish the Hawaii climate change mitigation and adaptation commission; (4) Achieve a net-zero greenhouse gas emissions economy by the year 2050; (5) Establish a one hundred per cent renewable electricity portfolio standard by 2045; and (6) Resolve to integrate food, fuel, and waste reduction and re-use activities toward greater economic viability and environmental sustainability highlighted in S.C.R. No. 121, Regular Session of 2017. However, up to this point, these requirements and goals have been focused on the electricity and ground transportation sectors and on group and point sources of greenhouse emissions. These requirements do not regard the emissions from other forms of transportation or other major economic drivers. The legislature further finds that the Hawaii Aviation and Climate Action Summit held in December 2019 issued the following findings: (1) Nearly one-third of the energy consumed in the State is for jet fuel, a higher proportion of energy consumption than for any other energy sector; (2) More than one-third of the flights are to and from international destinations; (3) International flights to and from Hawaii will start to come under the mandate established by the International Civil Aviation Organization's Carbon Offset and Reduction Scheme for International Aviation to reduce their aviation greenhouse gas emission to fifty per cent below 2005 levels by 2050; (4) Transportation is the single largest producer of greenhouse gas emissions in Hawaii; (5) Renewable fuels must be part of a balanced portfolio and state action plan to effect certified greenhouse gas reduction in the near term, in addition to carbon offsets; (6) Sustainable aviation fuels have been demonstrated at commercial scale in the continental United States and can be manufactured in six different American Society for Testing Manuals approved, and Federal Aviation Administration certified, ways from agricultural, animal, municipal, and construction wastes as well as purpose-grown crops and forest materials; (7) The International Civil Aviation Organization's Carbon Offset and Reduction Scheme for International Aviation mandate is a significant requirement on airlines serving Hawaii, for which the State should establish a task force and "flight plan" to map out public and private actions to cost-effectively reduce greenhouse gas emissions; (8) The International Civil Aviation Organization's Carbon Offset and Reduction Scheme for International Aviation, United States' federal Renewable Fuel Standard, State of California's Low-Carbon Fuel Standard, and State of Oregon's Clean Fuels Program are all market-based measures to quantify, incentivize, and monetize industry action to reduce greenhouse gas emissions by the transportation sector. These measures are also flexible and effective ways to quantify and monetize the benefits of renewable fuels, carbon offsets, hydrogen and fuel cells, and transportation electrification based upon lifecycle greenhouse gas emissions performance; and (9) Market-based policy measures more directly stimulate innovation, economic growth, and meaningful behavioral change than the state-level policies Hawaii has in place today, e.g., barrel tax, carbon tax, environmental permitting statements, environmental impact statements, and incentives which require annual appropriation. The federal Renewable Fuel Standard, which Hawaii opted in to, has directly led to a reduction of greenhouse gas in the ground transportation sector by thousands of barrels per day. California's Low-Carbon Fuel Standard has reduced greenhouse gas emissions in California by over fifty million metric tons through just the second quarter of 2019. Seventy-five per cent of venture capital investment in clean transportation in the United States has been directed to California. The Low-Carbon Fuel Standard has helped investors to justify $100,000,000 and $300,000,000 investments to build new renewable fuel production plants. Low-Carbon Fuel Standard-stimulated economic development already includes over three hundred companies and twenty thousand workers and has decreased greenhouse gas emissions per gross domestic product by forty per cent. Therefore, the legislature concludes that the development of sustainable aviation fuel capability in Hawaii demonstrates the State's continued leadership in global greenhouse gas emission reduction actions, and the potential to reduce dependence on foreign sources of fossil fuels, promote economic development, and overall improvement of environmental sustainability in Hawaii. The purpose of this Act is to establish a task force to develop a state action plan to reduce the greenhouse gas emissions generated by air transportation in and from Hawaii. SECTION 2. (a) There is established a sustainable aviation fuel task force within the Hawaii natural energy institute for administrative purposes. The purpose of the sustainable aviation fuel task force shall be to: (1) Prepare a work plan and regulatory scheme for implementing the maximum practically and technically feasible and cost-effective reductions in greenhouse gas emissions from transportation sources or categories of sources of greenhouse gases to help commercial airlines serving Hawaii meet the mandate set for international commercial aviation by the International Civil Aviation Organization, specifically the Carbon Offset and Reduction Scheme for International Aviation, to reduce aviation greenhouse gas emission to fifty per cent below 2005 levels by 2050; (2) Further the development of sustainable aviation fuel as a productive industry in Hawaii, using as a foundation the results from the Hawaii Aviation and Climate Action Summit held in December 2019 and the best practices shared by the federal Aviation Administration's Aviation Sustainability Center and Commercial Aviation Alternative Fuel Initiative; (3) Facilitate communication and coordination among sustainable aviation fuel stakeholders; (4) Provide a forum for discussion and problem-solving regarding potential and current barriers related to technology development, production, distribution, supply chain development, and commercialization of sustainable aviation fuel; (5) Provide recommendations to the legislature on potential legislation that will facilitate the technology development, production, distribution, and commercialization of sustainable aviation fuel; facilitate and streamline the permitting process for new facilities and the expansion of existing facilities; and provide access to low-cost financing through the issuance of revenue bonds and matching funds through the Hawaii technology development corporation; and (6) Evaluate the prospect of Hawaii joining the Pacific Coast Collaborative, comprising the states of California, Oregon, and Washington, and British Columbia, to harmonize local carbon fuel and greenhouse gas reduction policy and market-based measures and share best practices. (b) The task force shall include but not be limited to representatives of the following, or their designees: (1) The senate, to be appointed by the president of the senate; (2) The house of representatives, to be appointed by the speaker of the house of representatives; (3) The department of agriculture, to be appointed by the chairperson of the board of agriculture; (4) The department of health, to be appointed by the director of health; (5) The department of land and natural resources, to be appointed by the chairperson of the board of land and natural resources; (6) The department of transportation, to be appointed by the director of transportation; (7) The Hawaii tourism authority, to be appointed by the director of the Hawaii tourism authority; (8) The Hawaii state energy office, to be appointed by the energy administrator of the Hawaii state energy office; (9) The university of Hawaii, to be appointed by the president of the university of Hawaii; and (10) The Hawaii natural energy institute, to be appointed by the director of the Hawaii natural energy institute. The task force shall select a chair from among the task force's membership. (c) The task force shall invite but not require representatives of the following, or their designees, to participate in the task force: (1) The Federal Aviation Administration; (2) The United States Department of Agriculture; (3) The Hawaii focal of the United States Commercial Aviation Alternative Fuels Initiative; (4) A bioeconomy advocacy organization; (5) An international airline operator; (6) A fuel refiner; (7) Biofuels feedstock producers; (8) Sustainable transportation fuel producers; (9) A sustainable energy advocacy organization; and (10) A carbon offset project practitioner. The task force may invite any other individual, agency, or organization that the task force deems necessary or prudent. (d) The Hawaii natural energy institute shall invite individuals that represent sectors involved in sustainable aviation fuel research, development, production, and utilization to serve as additional task force members. (e) The task force shall hold at least two public meetings a year. (f) The work plan of the task force shall include: (1) Consultation with applicable state and county agencies; (2) Consultation and best practice sharing with international and national organizations and other states to identify cost-effective policies and methods; (3) Harmonization of market-based measures and the measures' supporting technical and quantification methods with the International Civil Aviation Organization's Carbon Offset and Reduction Scheme for International Aviation, national, and other state peer-reviewed methods, and avoidance of a unique Hawaii method or standard wherever practicable; (4) Development of measures of effectiveness of varying techniques for greenhouse gas emissions reduction for commercial aviation; and (5) Development of a framework to evaluate the relative contribution of each method or project, relative to the method or project's cost, projected technical maturity between the years 2020 and 2050, and contributions toward other sustainability objectives, including skilled job creation, economic development, waste re-use, invasive species removal, and landscape restoration. (g) The task force shall submit an interim report of its findings and recommendations to the legislature no later than forty days prior to the convening of the regular session of 2022, and a final report of its findings and recommendations to the legislature no later than forty days prior to the convening of the regular session of 2023. (h) The task force shall cease to exist on June 30, 2023; provided that the Hawaii natural energy institute may continue the work of the task force without the effect of this Act should the Hawaii natural energy institute deem necessary. SECTION 3. Section 304A-1891, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows: "(c) The institute shall: (1) Develop renewable sources of energy for power generation and transportation fuels by working in coordination with state agencies, federal agencies, and private entities; (2) Conduct research and development of renewable sources of energy; (3) Demonstrate and deploy efficient energy end-use technologies, including those that address peak electric demand issues; (4) Aggressively seek matching funding from federal agencies and private entities for its research and development and demonstration activities; and (5) Report annually to the legislature, no later than twenty days prior to the convening of each regular session, on [its activities,] the institute's: (A) Activities, expenditures, contracts developed, advances in technology[, its work]; (B) Work in coordination with state agencies and programs[, and recommendations]; (C) Findings and recommendations regarding the sustainable aviation fuel task force convened pursuant to Act , Session Laws of Hawaii 2021, if any; (D) Data on clean transportation related to aviation transportation including: (i) Jet fuel consumption, importation, and local refining; (ii) Greenhouse gas benchmarks for jet fuel and other transportation fuels; and (iii) Sustainable aviation fuel and carbon offset projects and investments; infrastructure and financing needs; supply chain development; and other opportunities for, and challenges to, reducing the greenhouse gas impacts from commercial aviation; and (E) Recommendations for proposed legislation." SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect on July 1, 2050. |
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