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chapter-196•Hawaii Revised Statutes, Chapter 196 — [Energy Resources]
chapter-196Haw. Rev. Stat. ch. 196CodeJan 1, 1974
Division 1. Government — Title 12. Conservation and Resources
Hawaii Revised Statutes as published by the Hawaii State Legislature (files updated 1/5/2026 7:14 PM).
The legislature finds that:
(1) The global demand for petroleum and its derivatives has resulted in a significant and fundamental market escalation in oil prices, has caused severe economic hardships throughout the State, and threatens to impair the public health, safety, and welfare.
The State of Hawaii, with its near total dependence on imported fossil fuel, is particularly vulnerable to dislocations in the global energy market. This situation can be changed, as there are few places in the world so generously endowed with natural energy: geothermal, solar radiation, ocean temperature differential, wind, biomass, waves, and currents, which are all potential non-polluting power sources;
(2) There is a real need for comprehensive strategic planning in the effort towards achieving full use of Hawaii's energy resources and the most effective allocation of energy resources throughout the State. Planning is necessary and desirable in order that the State may recognize and declare the major problems and opportunities in the field of energy resources. Both short-range and long-range planning will permit the articulation of:
(A) Broad policies, goals, and objectives;
(B) Criteria for measuring and evaluating accomplishments of objectives;
(C) Identification and implementation of programs that will carry out such objectives; and
(D) A determination of requirements necessary for the optimum development of Hawaii's energy resources.
Such planning efforts will identify present conditions and major problems relating to energy resources, their exploration, development, production, and distribution. It will show the projected nature of the situation and rate of change, present conditions for the foreseeable future based on a projection of current trends in the development of energy resources in Hawaii, and include initiatives designed to fundamentally change how Hawaii consumes energy by accelerating the production of renewable and alternative energy, increasing energy efficiency, developing and adopting new technologies, and ensuring the State's energy security;
(3) The State requires an in-depth understanding of the causes and effects of any transitional issues and trends related to changes in the State's energy resources, systems, and markets;
(4) There are many agencies of the federal, state, and county governments in Hawaii, as well as many private agencies and a broad set of non-governmental entities, engaged in, or expressing an interest in, various aspects of the exploration, research, distribution, transportation, storage, conservation, and production of all forms of energy resources in Hawaii. Some of these agencies include the University of Hawaii; the department of land and natural resources; the department of business, economic development, and tourism; the division of consumer advocacy; the public utilities commission; the state emergency management agency; the federal energy office; and various county agencies, as well as Hawaii's energy and energy-related companies; and
(5) There is an ongoing need in this State to coordinate the efforts of statewide industry and government energy interests; maintain the technical capability and adequate capacity to quantitatively and qualitatively evaluate, analyze, develop, and coordinate implementation of private and public sector energy planning efforts; recommend market-based policies to develop Hawaii's energy resources, systems, and markets; establish and coordinate programs to preserve and protect the State's energy security, maintain a robust energy emergency preparedness program, and effectuate the conservation of energy resources to provide for the equitable distribution thereof; and to formulate plans for the development and use of alternative energy sources. There is a need for coordination, capability, and capacity, so that there will be maximum conservation and use of energy resources in the State.
[L 1974, c 237, §1; am L 1987, c 336, §7; am L 1990, c 293, §8; am L 2006, c 96, §5; am L 2009, c 153, §2; am L 2014, c 111, §28]
All agencies shall provide priority handling and processing for all state permits required for renewable energy projects.
For purposes of this section, "agencies" means any executive department, independent commission, board, bureau, office, or other establishment of the State, or any quasi-public institution that is supported in whole or in part by state funds.
[L 2007, c 205, §3]
As used in this chapter, unless the context requires otherwise:
"Available" means that the vehicle is physically present and not rented for the requested rental period.
"Commission" means the public utilities commission.
"Conventional vehicle" means a vehicle powered solely by an internal combustion engine.
"Distributed energy resources" means a resource sited close to customers that:
(1) Can provide all or some of the customers' immediate electric and power needs;
(2) Can be used by the system to reduce demand or provide supply to satisfy the energy, capacity, or ancillary service needs of the distribution grid; and
(3) Is connected to the distribution system and close to load, if the resource provides electricity or thermal energy.
"Distributed energy resources" includes but is not limited to solar photovoltaic and thermal, wind, combined heat and power, electrical and thermal energy storage, demand response technologies, alternative energy vehicles and related infrastructure, microgrids, energy efficiency, and advanced inverters.
"Distributor" means:
(1) Every person who refines, manufactures, produces, or compounds fuel in the State and sells it at wholesale or retail, or who uses it directly in the manufacture of products or for the generation of power;
(2) Every person who imports or causes to be imported into the State, or exports or causes to be exported from the State, any fuel;
(3) Every person who acquires fuel through exchanges with another distributor; and
(4) Every person who purchases fuel for resale at wholesale or retail rates from any person described in paragraph (1), (2), or (3).
"Electricity" means all electrical energy produced by combustion of any fuel, or generated or produced using wind, the sun, geothermal heat, ocean water, falling water, currents, and waves, or any other source.
"Electric vehicle" means a vehicle powered by an electric motor via electricity:
(1) Stored in a high capacity battery; or
(2) Generated from an onboard fuel cell.
"Energy" means work or heat that is, or may be, produced from any fuel or source whatsoever.
"Energy resources" means fuel, and also includes all electrical or thermal energy produced by combustion of any fuel, or generated, produced, or stored using wind, the sun, geothermal heat, ocean water, falling water, currents, waves, or any other source.
"Fuel" means fuels, whether liquid, solid, or gaseous, commercially usable for energy needs, power generation, and fuels manufacture, that may be manufactured, grown, produced, or imported into the State or that may be exported therefrom, including petroleum and petroleum products and gases to include all fossil fuel-based gases, coal tar, vegetable ferments, biomass, municipal solid waste, biofuels, hydrogen, agricultural products used as fuels and as feedstock to produce fuels, and all fuel alcohols.
"Hybrid vehicle" means a vehicle powered by a combination of an electric motor and a small internal combustion engine.
"Rental contractor" means an entity that rents, leases, or proposes to rent or lease, vehicles to state employees for purposes of official government business under a contract pursuant to this chapter.
"State employee" means an employee of the State, including all permanent and temporary employees of the state judicial, executive, and legislative branches and their respective departments, offices, and agencies.
"Suitable" means the vehicle has the performance capabilities needed for the intended application, including payload and weight capacity for the job or is capable of holding a charge for the time and mileage needed.
"Townhouse" means a series of individual houses, having architectural unity and a common wall between each unit.
[L 1974, c 237, §2; am L 1993, c 15, §1; am L 2009, c 153, §3; am L 2019, c 122, §4; am L 2021, c 73, §2]
L 2019, c 122, §§7, 8.
(a) No new residential type gas appliance that is equipped with a pilot light shall be sold or installed in the State after June 30, 1980. Gas appliances sold after June 30, 1980, shall be equipped with an intermittent ignition system or other ignition devices in lieu of gas pilot lights.
(b) Beginning ninety days after May 30, 1978, the chief energy officer of the Hawaii state energy office or its successor entity shall notify, in writing, all retail sellers of gas appliances doing business in the State of the provisions of this section.
(c) The provisions of this section shall not apply to any hot water heaters with pilot lights or to any gas appliance which can be conclusively demonstrated by the equipment manufacturer, to the satisfaction of the chief energy officer of the Hawaii state energy office or its successor entity, that the gas pilot device in the appliance:
(1) Has a substantial lower life cycle cost than an electric ignition or other alternate ignition system;
(2) Is more energy efficient than available alternatives; or
(3) Is necessary to safeguard public health and safety.
(d) The provisions of this section shall not apply to people living in areas that are served with unreliable electric service or where it is not available.
(e) As used in this section:
(1) "Gas appliance" includes any new residential type heater, refrigerator, stove, range, dishwasher, dryer, air conditioner, decorative fireplace, or other similar devices;
(2) "Intermittent ignition device" means an ignition device which is activated only when the gas appliance is in operation; and
(3) "Pilot light" means any gas operated device that remains continually operated or lighted in order to ignite a gas appliance to normal operation.
[L 1978, c 137, §2; am L 2019, c 122, §3]
(a) No new storage hot water heater which is not certified as meeting the energy efficiency standards of the American Society of Heating, Refrigerating and Air Conditioning Engineers, Inc., as set forth as the current ASHRAE 90 Standard, shall be sold or installed in the State after June 1, 1985; provided, however, that nothing contained herein shall prevent sales from being made in the State for use outside the State.
(b) Any violation of subsection (a) shall be a misdemeanor; provided a fine of not less than $50 nor more than $500 shall be imposed, and all fines shall be imposed consecutively. Each storage hot water heater sold in violation of this section shall constitute a separate offense.
[L 1984, c 124, §1; am L 2009, c 153, §5]
(a) On or after January 1, 2010, no building permit shall be issued for a new single-family dwelling that does not include a solar water heater system that meets the standards established pursuant to section 269-44, unless the chief energy officer of the Hawaii state energy office approves a variance. A variance application shall only be accepted if submitted by an architect or mechanical engineer licensed under chapter 464, who attests that:
(1) Installation is impracticable due to poor solar resource;
(2) Installation is cost-prohibitive based upon a life cycle cost-benefit analysis that incorporates the average residential utility bill and the cost of the new solar water heater system with a life cycle that does not exceed fifteen years;
(3) A renewable energy technology system, as defined in section 235-12.5, is substituted for use as the primary energy source for heating water; or
(4) A demand water heater device approved by Underwriters Laboratories, Inc., is installed; provided that at least one other gas appliance is installed in the dwelling. For the purposes of this paragraph, "demand water heater" means a gas-tankless instantaneous water heater that provides hot water only as it is needed.
(b) A request for a variance shall be submitted to the chief energy officer of the Hawaii state energy office on an application prescribed by the chief energy officer of the Hawaii state energy office and shall include a description of the location of the property and justification for the approval of a variance using the criteria established in subsection (a). A variance shall be deemed approved if not denied within thirty working days after receipt of the variance application. The chief energy officer of the Hawaii state energy office shall publicize:
(1) All applications for a variance within seven days after receipt of the variance application; and
(2) The disposition of all applications for a variance within seven days of the determination of the variance application.
(c) The director of business, economic development, and tourism may adopt rules pursuant to chapter 91 to impose and collect fees to cover the costs of administering variances under this section. The fees, if any, shall be deposited into the energy security special fund established under section 201-12.8.
(d) Nothing in this section shall preclude any county from establishing procedures and standards required to implement this section.
(e) Nothing in this section shall preclude participation in any utility demand-side management program or public benefits fee program under part VII of chapter 269.
[L 2008, c 204, §2; am L 2009, c 155, §14; am L 2010, c 175, §1; am L 2019, c 122, §3]
(a) Notwithstanding any law to the contrary, no person shall be prevented by any covenant, declaration, bylaws, restriction, deed, lease, term, provision, condition, codicil, contract, or similar binding agreement, however worded, from installing a solar energy device on any single-family residential dwelling or townhouse that the person owns. Any provision in any lease, instrument, or contract contrary to the intent of this section shall be void and unenforceable.
(b) Every private entity shall adopt rules by December 31, 2006, that provide for the placement of solar energy devices, and revise those rules as necessary by July 1, 2011. The rules shall facilitate the placement of solar energy devices and shall not impose conditions or restrictions that render the device more than twenty-five per cent less efficient or increase the cost of installation, maintenance, and removal of the device by more than fifteen per cent. No private entity shall assess or charge any homeowner any fees for the placement of any solar energy device.
(c) Any person may place a solar energy device on any single-family residential dwelling or townhouse unit owned by that person, provided that:
(1) The device is in compliance with the rules and specifications adopted pursuant to subsection (b);
(2) The device is registered with the private entity of record within thirty days of installation; and
(3) If the device is placed on a common element or limited common element as defined by a project's declaration, the homeowner shall first obtain the consent of the private entity; provided further that such consent shall be given if the homeowner agrees in writing to:
(A) Comply with the private entity's design specification for the installation of the device;
(B) Engage a duly licensed contractor to install the device; and
(C) Within fourteen daysof approval of the solar device by the private entity, provide a certificate of insurance naming the private entity as an additional insured on the homeowner's insurance policy.
(d) If a solar energy device is placed on a common element or limited common element:
(1) The owner and each successive owner of the single-family residential dwelling or townhouse unit on which the device is placed shall be responsible for any costs for damages to the device, the common elements, limited common elements, and any adjacent units, arising or resulting from the installation, maintenance, repair, removal, or replacement of the device. The repair, maintenance, removal, and replacement responsibilities shall be assumed by each successive owner until the solar energy device has been removed from the common elements or limited common elements. The owner and each successive owner shall at all times have and maintain a policy of insurance covering the obligations of the owner under this paragraph and shall name the private entity as an additional insured under said policy; and
(2) The owner and any successive owner of the single-family residential dwelling or townhouse unit on which the device is placed shall be responsible for removing the solar energy device if reasonably necessary or convenient for the repair, maintenance, or replacement of the common elements or limited common elements.
(e) If there is an existing contractor's guarantee or manufacturer's labor or material warranty on the roof, roofing membrane, or roofing material on a roof that is a common element or limited common element, the contractor that installs a solar energy device on the roof shall notify the private entity in writing that the installation of a solar energy device may affect or void the roofing guarantees or warranties. If the private entity chooses to forgo the roofing guarantee or warranty, the contractor that installs a solar energy device shall obtain that decision in writing. Otherwise, the contractor that installs a solar energy device shall obtain the roofing manufacturer's written approval for that project and follow the roofing manufacturer's written instructions for waterproofing roof penetrations for the specific roofing material or coordinate the waterproofing with the contractor that issued the guarantee or warranty. If the penetrations for the installation of a solar energy device are waterproofed by the roofing contractor that provided the existing guarantee or warranty, the roofing contractor shall maintain the existing guarantee or warranty; provided that if either the roofing contractor's guaranty or the roofing manufacturer's warranty is no longer in effect, the contractor who installs the solar energy device and waterproofs the penetrations in accordance with this section shall apply the contractor's or lessor's standard labor and workmanship warranty. The homeowner shall provide the private entity with a copy of the applicable guarantee or warranty.
(f) For the purposes of this section:
"Private entity" means any association of homeowners, community association, condominium association, cooperative, or any other non-governmental entity with covenants, bylaws, and administrative provisions with which the homeowner's compliance is required.
"Solar energy device" means any identifiable facility, equipment, apparatus, or the like, including a photovoltaic cell application, that is applicable to a single-family residential dwelling or townhouse and makes use of solar energy for heating, cooling, or reducing the use of other types of energy dependent upon fossil fuel for generation; provided that "solar energy device" shall not include skylights or windows.
[L 1992, c 268, §1; am L 2005, c 157, §2; am L 2010, c 201, §§1, 2; am L 2014, c 106, §2]
(a) Notwithstanding any law to the contrary, no person shall be prevented by any covenant, declaration, bylaw, restriction, deed, lease, term, provision, condition, codicil, contract, or similar agreement, however worded, from installing an electric vehicle charging system on or near the parking stall of any multi-family residential dwelling or townhouse that the person owns. Any provision in any lease, instrument, or contract contrary to the intent of this section shall be void and unenforceable.
(b) Every private entity may adopt rules that reasonably restrict the placement and use of electric vehicle charging systems for the purpose of charging electrical vehicles in the parking stalls of any multi-family residential dwelling or townhouse; provided that those restrictions shall not prohibit the placement or use of electric vehicle charging systems altogether. No private entity shall assess or charge any homeowner any fees for the placement of any electric vehicle charging system; provided that the private entity may require reimbursement for the cost of electricity used by such electric vehicle charging system.
(c) Any person may place an electric vehicle charging system on or near the parking stall of any multi-family residential dwelling or townhouse unit owned by that person; provided that:
(1) The system is in compliance with any rules and specifications adopted pursuant to subsection (b);
(2) The system is registered with the private entity of record within thirty days of installation;
(3) If the system is placed on a common element or limited common element as defined by a project's declaration, the homeowner shall first obtain the consent of the private entity; provided further that such consent shall be given if the homeowner agrees in writing to:
(A) Comply with the private entity's design specification for the installation of the system;
(B) Engage a duly licensed contractor to install the system; and
(C) Within fourteen days of approval of the system by the private entity, provide a certificate of insurance naming the private entity as an additional insured on the homeowner's insurance policy.
(d) If an electric vehicle charging system is placed on a common element or limited common element:
(1) The owner and each successive owner of the parking stall on which or near where the system is placed shall be responsible for any costs for damages to the system, common elements, limited common elements, and any adjacent units, arising or resulting from the installation, maintenance, repair, removal, or replacement of the system. The repair, maintenance, removal, and replacement responsibilities shall be assumed by each successive owner until the electric vehicle charging system has been removed from the common elements or limited common elements. The owner and each successive owner shall at all times have and maintain a policy of insurance covering the obligations of the owner under this paragraph and shall name the private entity as an additional insured under the policy; and
(2) The owner and any successive owner of the parking stall on which or near where the system is placed shall be responsible for removing the electric vehicle charging system if reasonably necessary or convenient for the repair, maintenance, or replacement of the common elements or limited common elements.
(e) For the purpose of this section:
"Electric vehicle charging system" means a system that is designed in compliance with Article 625 of the National Electrical Code and delivers electricity from a source outside an electric vehicle into one or more electric vehicles. An electric vehicle charging system may include several charge points simultaneously connecting several electric vehicles to the system.
"Private entity" means any association of homeowners, community association, condominium association, cooperative, or any other nongovernmental entity with covenants, bylaws, and administrative provisions with which a homeowner's compliance is required.
[L 2010, c 186, §1]
(a) The department of transportation shall administer a rebate program that incentivizes the purchase of new electric bicycles and new electric mopeds and may contract with a third-party administrator pursuant to subsection (i) to operate and manage the rebate program.
(b) Each eligible purchase of a new electric bicycle or new electric moped shall receive a rebate of either twenty per cent of the retail cost or $500, whichever amount is lower; provided that no individual shall receive more than $500 in total rebates each fiscal year.
(c) The department of transportation shall not issue more than $700,000 in total rebates under this section each fiscal year; provided that the electric bicycle and electric moped subaccount within the highway development special fund pursuant to section 264-122(d) contains sufficient funds to pay the rebates. The department of transportation shall not be liable to pay any refund if sufficient funds are unavailable. The department of transportation shall allow valid claims filed by eligible applicants for whom sufficient funds may not be immediately available to receive a rebate as funds may be available in a subsequent year.
(d) The department of transportation shall:
(1) Prepare any forms that may be necessary for an applicant to claim a rebate pursuant to this section; and
(2) Require each applicant to furnish reasonable information to ascertain the validity of the claim, including but not limited to the signature of the buyer and individual responsible for the sale on behalf of a retail store at the time of sale, a copy of valid government issued photo identification of the buyer at the time of the sale, receipt of purchase, name and address of the retail store, verification of eligibility, and any other documentation necessary to demonstrate the legitimate purchase of a new electric bicycle or new electric moped.
(e) This section shall apply to new:
(1) Electric bicycles capable of speeds of no more than twenty-eight miles per hour; and
(2) Electric mopeds,
purchased at a retail store after July 1, 2022.
(f) Applicants shall submit an application to the department of transportation within twelve months of the date of purchase to claim a rebate from the electric bicycle and electric moped rebate program. Failure to apply within twelve months of the date of purchase shall constitute a waiver of the right to claim the rebate.
(g) Nothing in this section shall alter taxes due on the original purchase. Any rebate received pursuant to this section shall not be considered income for the purposes of state or county taxes.
(h) In administering the electric bicycle and electric moped rebate program, the department of transportation shall provide rebates to persons eighteen years or older who:
(1) Are eligible for:
(A) The Supplemental Nutrition Assistance Program;
(B) The free and reduced price lunch program;
(C) Section 8 of the United States Housing Act of 1937, as amended; or
(D) Similar low-income assistance programs identified by the department of transportation;
(2) Do not own a registered motor vehicle with four or more wheels, as demonstrated by an affidavit signed by the applicant at the time of sale of the new electric bicycle or electric moped, which may be audited by the department of transportation; or
(3) Are enrolled in school, community college, or university.
(i) The department of transportation may contract with a third-party administrator to operate and manage the electric bicycle and electric moped rebate program. The third-party administrator shall not be deemed to be a "governmental body" as defined in section 103D-104; provided that all moneys transferred to the third-party administrator shall have been appropriated by the legislature or shall be from moneys provided by the federal government or private funding sources. The third-party administrator shall not expend more than ten per cent of the amounts appropriated for the rebate program, or any other reasonable percentage determined by the department of transportation, for administration of the electric bicycle and electric moped rebate program.
[L 2022, c 306, §2]
[Repealed]
[L 2006, c 96, §14]
[§196-8.5] Placement of clotheslines. (a) Notwithstanding any law to the contrary, no person shall be prevented by any covenant, declaration, bylaws, restriction, deed, lease, term, provision, condition, codicil, contract, or similar binding agreement, however worded, from installing a clothesline on any single-family residential dwelling or townhouse that the person owns. Any provision in any lease, instrument, or contract contrary to the intent of this section shall be void and unenforceable.
(b) Every private entity may adopt rules that reasonably restrict the placement and use of clotheslines for the purpose of drying clothes on the premises of any single-family residential dwelling or townhouse; provided that those restrictions do not prohibit the use of clotheslines altogether. No private entity shall assess or charge any homeowner any fees for the placement of any clothesline.
(c) For the purposes of this section:
"Clothesline" means a rope, cord, wire, or similar device on which laundry is hung to dry.
"Private entity" means any association of homeowners, community association, condominium association, cooperative, or any other nongovernmental entity with covenants, bylaws, and administrative provisions with which the homeowner's compliance is required.
[L 2009, c 192, §2]
(a) Each agency is directed to implement, to the extent possible, the following goals during planning and budget preparation and program implementation.
(b) With regard to buildings and facilities, each agency shall:
(1) Design and construct buildings meeting the Leadership in Energy and Environmental Design silver or two green globes rating system or another comparable state-approved, nationally recognized, and consensus-based guideline, standard, or system, except when the guideline, standard, or system interferes or conflicts with the use of the building or facility as an emergency shelter;
(2) Incorporate energy-efficiency measures to prevent heat gain in residential facilities up to three stories in height to provide R-19 or equivalent on roofs, R-11 or equivalent in walls, and high-performance windows to minimize heat gain and, if air conditioned, minimize cool air loss. R-value is the constant time rate resistance to heat flow through a unit area of a body induced by a unit temperature difference between the surfaces. R-values measure the thermal resistance of building envelope components such as roof and walls. The higher the R-value, the greater the resistance to heat flow. Where possible, buildings shall be oriented to maximize natural ventilation and day-lighting without heat gain and to optimize solar for water heating. This provision shall apply to new residential facilities built using any portion of state funds or located on state lands;
(3) Install solar water heating systems where it is cost-effective, based on a comparative analysis to determine the cost-benefit of using a conventional water heating system or a solar water heating system. The analysis shall be based on the projected life cycle costs to purchase and operate the water heating system. If the life cycle analysis is positive, the facility shall incorporate solar water heating. If water heating entirely by solar is not cost-effective, the analysis shall evaluate the life cycle, cost-benefit of solar water heating for preheating water. If a multi-story building is centrally air conditioned, heat recovery shall be employed as the primary water heating system. Single family residential clients of the department of Hawaiian home lands and any agency or program that can take advantage of utility rebates shall be exempted from the requirements of this paragraph so they may continue to qualify for utility rebates for solar water heating;
(4) Implement water and energy efficiency practices in operations to reduce waste and increase conservation;
(5) Incorporate principles of waste minimization and pollution prevention, such as reducing, revising, and recycling as a standard operating practice in programs, including programs for waste management in construction and demolition projects and office paper and packaging recycling programs;
(6) Use life cycle cost-benefit analysis to purchase energy efficient equipment such as ENERGY STAR products; use public benefits fee administrator and utility rebates where available to reduce purchase and installation costs; and prioritize appliances that meet the standards required to qualify for public benefits fee administrator rebates; and
(7) Procure environmentally preferable products, including recycled and recycled-content, bio-based, and other resource-efficient products and materials.
(c) With regard to motor vehicles and transportation fuel, each agency shall:
(1) Comply with title 10 Code of Federal Regulations part 490, subpart C, "Mandatory State Fleet Program", if applicable;
(2) Comply with all applicable state laws regarding vehicle purchases;
(3) Once federal and state vehicle purchase mandates have been satisfied, purchase the most fuel-efficient vehicles that meet the needs of their programs; provided that the life cycle cost-benefit analysis of vehicle purchases shall include projected fuel costs;
(4) Purchase alternative fuels and ethanol blended gasoline when available;
(5) Evaluate a purchase preference for biodiesel blends, as applicable to agencies with diesel fuel purchases;
(6) Promote efficient operation of vehicles, including efficient planning of charging system locations and efficient utilization of renewable energy for charging electric vehicles;
(7) Use the most appropriate minimum octane fuel; provided that vehicles shall use 87-octane fuel unless the owner's manual for the vehicle states otherwise or the engine experiences knocking or pinging;
(8) Beginning with fiscal year 2005-2006 as the baseline, collect and maintain, for the life of each vehicle acquired, the following data:
(A) Vehicle acquisition cost;
(B) United States Environmental Protection Agency rated fuel economy;
(C) Vehicle fuel configuration, such as gasoline, diesel, flex-fuel gasoline/E85, and dedicated propane;
(D) Actual in-use vehicle mileage;
(E) Actual in-use vehicle fuel consumption;
(F) Actual in-use annual average vehicle fuel economy; and
(G) Hourly charging data by electric vehicle and electric vehicle charging system;
(9) Beginning with fiscal year 2005-2006 as the baseline with respect to each agency that operates a fleet of thirty or more vehicles, collect and maintain, in addition to the data in paragraph (8), the following:
(A) Information on the vehicles in the fleet, including vehicle year, make, model, gross vehicle weight rating, and vehicle fuel configuration;
(B) Fleet fuel usage, by fuel;
(C) Fleet mileage;
(D) Overall annual average fleet fuel economy and average miles per gallon of gasoline and diesel; and
(E) Hourly charging data by electric vehicle and electric vehicle charging system;
(10) Adopt a preference for the rental of electric vehicles or hybrid vehicles; provided that:
(A) All agencies, when renting a vehicle on behalf of a state employee in the discharge of official government business, shall rent a vehicle of one of the following types, listed in order of preference:
(i) Electric vehicle; or
(ii) Hybrid vehicle;
provided further that the vehicle is available and suitable for the specific travel requirements;
(B) The agency may rent a conventional vehicle only if:
(i) An electric vehicle or hybrid vehicle is not suitable; or
(ii) Neither an electric vehicle nor a hybrid vehicle is available;
(C) An agency shall exercise the policy preference for rental of an electric vehicle or hybrid vehicle notwithstanding the potential higher cost associated with renting an electric vehicle or hybrid vehicle; provided that the rental rate for the electric vehicle or hybrid vehicle is comparable to that of a conventional vehicle of similar class; provided further that the cost premium is consistent with any budgetary constraints and not contradicted by an existing state contract with the rental business entity from which the vehicle is rented; and
(D) To the extent practicable, all agencies shall rent a vehicle pursuant to subparagraph (A) from a rental contractor; and
(11) Plan and coordinate vehicle acquisition to meet the following clean ground transportation goals:
(A) One hundred per cent of light-duty motor vehicles that are passenger cars in the State's fleet shall be zero-emission vehicles by December 31, 2030; and
(B) One hundred per cent of light-duty motor vehicles in the State's fleet shall be zero-emission vehicles by December 31, 2035.
For the purposes of this subsection:
"Light-duty motor vehicle" shall have the same meaning as contained in title 10 Code of Federal Regulations part 490.
"Passenger car" shall have the same meaning as contained in title 49 Code of Federal Regulations section 571.3.
"Zero-emission vehicle" shall have the same meaning as contained in title 40 Code of Federal Regulations section 88.1.
[L 2006, c 96, §4; am L 2021, c 73, §3 and c 74, §5; am L 2022, c 188, §1; am L 2025, c 21, §4]
There is established, within the department of business, economic development, and tourism, a Hawaii renewable hydrogen program to manage the State's transition to a renewable hydrogen economy. The program shall design, implement, and administer activities that include:
(1) Strategic partnerships for the research, development, testing, and deployment of renewable hydrogen technologies;
(2) Engineering and economic evaluations of Hawaii's potential for renewable hydrogen use and near-term project opportunities for the State's renewable energy resources;
(3) Electric grid reliability and security projects that will enable the integration of a substantial increase of electricity from renewable energy resources on the island of Hawaii;
(4) Hydrogen demonstration projects, including infrastructure for the production, storage, and refueling of hydrogen vehicles;
(5) A statewide hydrogen economy public education and outreach plan focusing on the island of Hawaii, to be developed in coordination with Hawaii's public education institutions;
(6) Promotion of Hawaii's renewable hydrogen resources to potential partners and investors;
(7) A plan, for implementation during the years 2007 to 2010, to more fully deploy hydrogen technologies and infrastructure capable of supporting the island of Hawaii's energy needs, including:
(A) Expanded installation of hydrogen production facilities;
(B) Development of integrated energy systems, including hydrogen vehicles;
(C) Construction of additional hydrogen refueling stations; and
(D) Promotion of building design and construction that fully incorporates clean energy assets, including reliance on hydrogen-fueled energy generation;
(8) A plan, for implementation during the years 2010 to 2020, to transition the island of Hawaii to a hydrogen-fueled economy and to extend the application of the plan throughout the State; and
(9) Evaluation of policy recommendations to:
(A) Encourage the adoption of hydrogen-fueled vehicles;
(B) Continually fund the hydrogen investment capital special fund; and
(C) Support investment in hydrogen infrastructure, including production, storage, and dispensing facilities.
[L 2006, c 240, §6]
(a) There is established within the department of business, economic development, and tourism, a Hawaii clean energy initiative program to manage the State's transition to a clean energy economy. The clean energy program shall design, implement, and administer activities that include:
(1) Strategic partnerships for the research, development, testing, deployment, and permitting of clean and renewable technologies;
(2) Engineering and economic evaluations of Hawaii's potential for near-term project opportunities for the State's renewable energy resources;
(3) Electric grid reliability and security projects that will enable the integration of a substantial increase of electricity from renewable-energy resources;
(4) A statewide clean energy public education and outreach plan to be developed in coordination with Hawaii's institutions of public education;
(5) Promotion of Hawaii's clean and renewable resources to potential partners and investors;
(6) A plan, to be implemented from 2011 to 2030, to transition the State to a clean energy economy; and
(7) A plan, to be implemented from 2011 to 2030, to assist each county in transitioning to a clean energy economy.
(b) Prior to the initiation of any activities authorized under subsection (a), the department of business, economic development, and tourism shall develop a plan of action with the intent of promoting effective prioritization and focusing of efforts consistent with the State's energy programs and objectives.
(c) The chief energy officer shall submit a report to the legislature no later than twenty days prior to the convening of each regular session on the status and progress of new and existing clean energy initiatives. The report shall also include:
(1) The spending plan of the Hawaii clean energy initiative program;
(2) All expenditures of energy security special fund moneys; and
(3) The targeted markets of the expenditures, including reasons for selecting those markets, the persons to be served, specific objectives of the program, and program expenditures, including measurable outcomes.
[L 2010, c 73, §8; am L 2024, c 55, §2]
(a) Energy systems and technology training courses shall be established as needed to educate relevant officers and employees of the counties on the various standards and requirements for renewable energy systems and related distributed electricity technologies, including energy storage. The courses, including any materials necessary to implement the courses, shall be developed, designed, prepared, and conducted by the University of Hawaii community colleges, or by a public or private entity contracted by the University of Hawaii community colleges.
(b) The energy systems and technology training courses may include information on:
(1) New innovations in energy systems and technology, such as recent advancements in distributed electricity technologies and related interaction of these systems and technologies with the electrical grid;
(2) The implementation of new and existing energy systems and technology in compliance with international, national, state, and county standards, including building and fire codes; and
(3) Any other relevant topic pertaining to the various standards and requirements for renewable energy systems and related technology.
(c) The University of Hawaii community colleges shall:
(1) Administer the energy systems and technology training courses;
(2) Provide notifications or advertisements of the courses to relevant county officers and employees, including employees at county public works departments, planning and permitting departments, fire departments, and others involved in the permitting, inspection, licensing, and approval of construction projects; and
(3) Provide the courses at no cost to the participants or for a fee, which may be refunded; provided that funds are available for that purpose.
(d) The University of Hawaii community colleges may designate its staff to conduct the energy systems and technology training courses or contract with a public or private entity to conduct the courses.
(e) Either the University of Hawaii community colleges or an entity designated by the University of Hawaii community colleges shall establish a committee composed of stakeholders, including local and national industry representatives from distributed energy systems providers, including solar and energy storage systems, and county representatives from each county who are familiar with the job duties performed by county officers and employees who permit, inspect, license, approve, or otherwise work with energy systems and technology. The committee shall work closely with the staff of the University of Hawaii community colleges and subject-matter experts to:
(1) Provide input and guidance on identifying the necessary training areas in which to provide practical training relevant to the range of duties performed by county officers and employees in order to help to eliminate unnecessary delays in permitting, inspection, licensing, or approvals caused by a lack of knowledge and training about energy systems and technology;
(2) Provide input and guidance on identifying the related and required training equipment to be incorporated into the training program; and
(3) Assist with outreach and buy-in from county officers and employees and constituents to enhance participation in the training.
[L 2019, c 145, §2]
As used in this part:
"Acquisition" means acquiring by contract supplies or services, including construction, by and for the use of the State through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, or evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract.
"Agency" means any executive department, independent commission, board, bureau, office, or other establishment of the State, or any quasi-public institution that is supported in whole or in part by state funds.
"Commissioning" means a quality-oriented process, which takes place during design and construction, for achieving, verifying, and documenting that the performance of facilities, systems, and assemblies meets defined objectives and criteria with regards to energy conservation design strategies and the energy performance of buildings.
"Energy performance contract" shall have the same meaning as in section 36-41(d), and shall additionally include commissioning and retro-commissioning.
"ENERGY STAR" means a labeling program introduced by the United States Environmental Protection Agency in 1992 as a voluntary labeling program designed to identify and promote energy-efficient products, in order to reduce carbon dioxide emissions.
"Exempt facility" or "exempt mobile equipment" means a facility or mobile equipment for which an agency utilizes criteria established by the chief energy officer of the Hawaii state energy office to determine that compliance with this part is not practical.
"Facility" means a building or buildings or similar structure owned or leased by, or otherwise under the jurisdiction of, an agency.
"Life-cycle cost-effective" means the life-cycle costs of a product, project, or measure that are estimated to be equal to or less than the base case, i.e., current or standard practice or product.
"Life-cycle costs" means the sum of the present values of investment costs, capital costs, installation costs, energy costs, operating costs, maintenance costs, and disposal costs, over the lifetime of the project, product, or measure.
"Mobile equipment" means any state-owned vessel, aircraft, or off-road vehicle.
"Renewable energy" means energy produced by solar, energy conserved by passive solar design/daylighting, ocean thermal, wind, wave, geothermal, waste-to-energy, or biomass power.
"Renewable energy technology" means technology that uses renewable energy to provide light, heat, cooling, or mechanical or electrical energy for use in facilities or other activities. The term includes the use of integrated whole-building designs that rely upon renewable energy resources, including passive solar design/daylighting.
"Retro-commissioning" means a quality-oriented process, which takes place after systems have been placed in operation, for achieving, verifying, and documenting that the performance of facilities, systems, and assemblies perform as closely as possible to defined performance criteria, with regards to energy conservation design strategies and the energy performance of buildings.
"Source energy" means the energy that is used at a site and consumed in producing and delivering energy to a site, including power generation, transmission, and distribution losses, and that is used to perform a specific function, such as space conditioning, lighting, or water heating.
"Utility" means a public utility as defined in section 269-1. Utility includes federally owned nonprofit producers, county organizations, and investor or privately owned producers regulated by the state or federal government, cooperatives owned by members and providing services mostly to their members, and other nonprofit state and county agencies serving in this capacity.
"Utility energy-efficiency service" means demand-side management services provided by a utility to improve the efficiency of use of the commodity, such as electricity and gas being distributed. Services may include energy efficiency and renewable energy project auditing, financing, design, installation, operation, maintenance, and monitoring.
[L 2002, c 77, pt of §9; am L 2007, c 157, §§1, 2; am L 2019, c 122, §3]
L 2006, c 96, §§15 to 20.
[Repealed]
[L 2008, c 25, §1]
Agencies shall use life-cycle cost analysis in making decisions about their investments in products, services, construction, and other projects to lower the State's costs and to reduce energy and water consumption. Where appropriate, agencies shall consider the life-cycle costs of combinations of projects, particularly to encourage bundling of energy efficiency projects with renewable energy projects.
Agencies shall retire inefficient equipment on an accelerated basis where replacement results in lower life-cycle costs. Agencies that minimize life-cycle costs with efficiency measures shall be recognized in their scorecard evaluations established under section 196-17(a).
[L 2002, c 77, pt of §9]
[Repealed]
[L 2006, c 96, §21]
(a) Agencies shall maximize their use of available alternative financing contracting mechanisms, including energy-savings contracts, when life-cycle cost-effective, to reduce energy use and cost in their facilities and operations. Energy-savings contracts shall include:
(1) Energy performance contracts;
(2) Municipal lease and purchase financing; and
(3) Utility energy-efficiency service contracts.
Energy-savings contracts shall provide significant opportunities for making state facilities more energy efficient at no net cost to taxpayers.
(b) Agencies that perform energy efficiency and renewable energy system retrofitting may continue to receive budget appropriations for energy expenditures at an amount that will not fall below the pre-retrofitting energy budget but will rise in proportion to any increase in the agency's overall budget for the duration of the performance contract or project payment term. A portion of the moneys saved through efficiency and renewable energy system retrofitting shall be set aside to pay for any costs directly associated with administering energy efficiency and renewable energy system retrofitting programs incurred by the agency.
(c) Notwithstanding any law to the contrary relating to the award of public contracts, any agency desiring to enter into an energy performance contract shall do so in accordance with the following provisions:
(1) The agency shall issue a public request for proposals, advertised in the same manner as provided in chapter 103D, concerning the provision of energy-efficiency services or the design, installation, operation, and maintenance of energy equipment. The request for proposals shall contain terms and conditions relating to submission of proposals, evaluation, and selection of proposals, financial terms, legal responsibilities, and other matters as may be required by law and as the agency determines appropriate;
(2) Upon receiving responses to the request for proposals, the agency shall select the most qualified proposal or proposals and may base its determination on the basis of the experience and qualifications of the proposers, the technical approach, the financial arrangements, the overall benefits to the agency, or other factors determined by the agency to be relevant and appropriate;
(3) The agency thereafter may negotiate and enter into an energy performance contract with the person or company whose proposal is selected as the most qualified based on the criteria established by the agency;
(4) The term of any energy performance contract entered into pursuant to this section shall not exceed twenty years;
(5) Any energy performance contract may provide that the agency ultimately shall receive title to the energy system being financed under the contract; and
(6) Any energy performance contract shall provide that total payments shall not exceed total savings.
[L 2002, c 77, pt of §9; am L 2006, c 96, §7; am L 2007, c 157, §3]
State energy projects may be implemented under this chapter with the approval of the comptroller and the director of finance or their designees. In addition, this section shall be construed to provide the greatest possible flexibility to agencies in structuring agreements so that economic benefits and existing energy incentives may be used and maximized, and financing and other costs to agencies may be minimized. The specific terms of energy performance contracting under section 36-41 may be altered if deemed advantageous to the agency and approved by the director of finance and the comptroller.
[L 2002, c 77, pt of §9; am L 2004, c 216, §21; am L 2006, c 96, §8; am L 2007, c 157, §4]
(a) Agencies shall select, when life-cycle cost-effective, ENERGY STAR and other energy efficient products when acquiring energy-using products. For product groups where ENERGY STAR labels are not yet available, agencies may select products that are in the upper twenty-five per cent of energy efficiency as designated by the United States Department of Energy, Office of Energy Efficiency and Renewable Energy, federal energy management program.
(b) Agencies shall incorporate energy-efficient criteria consistent with designated energy-efficiency levels into product specification language developed for all purchasing procedures.
(c) The State shall consider the creation of financing agreements with private sector suppliers to provide private funding to offset higher up-front costs of efficient products.
(d) Agencies entering into leases, including the renegotiation or extension of existing leases, shall:
(1) Incorporate lease provisions that encourage energy and water efficiency wherever life-cycle cost-effective. Build-to-suit lease solicitations shall contain criteria encouraging sustainable design and development, energy efficiency, and verification of facility performance;
(2) Include a preference for facilities having an ENERGY STAR building label in their selection criteria for acquiring leased facilities; and
(3) Encourage lessors to apply for an ENERGY STAR building label and to explore and implement projects that will reduce costs to the State, including projects carried out through the lessors' energy-savings contracts.
[L 2002, c 77, pt of §9; am L 2006, c 96, §9]
L 2006, c 96, §§22 to 27.
(a) By December 31, 2010, each state department with responsibilities for the design and construction of public buildings and facilities shall benchmark every existing public building that is either larger than five thousand square feet or uses more than eight thousand kilowatt-hours of electricity or energy per year and shall use the benchmark as a basis for determining the State's investment in improving the efficiency of its own building stock. Benchmarking shall be conducted using the ENERGY STAR portfolio management or equivalent tool. The chief energy officer of the Hawaii state energy office shall provide training to affected departments on the ENERGY STAR portfolio management or equivalent tool.
(b) Public buildings shall be retro-commissioned no less often than every five years. The chief energy officer of the Hawaii state energy office shall establish retro-commissioning guidelines by January 1, 2010.
(c) Departments may enter into energy savings performance contracts with a third party to cover the capital costs of energy-efficiency measures and distributed generation provided the terms of the energy savings performance contracts conform to the benchmark standard. The comptroller may review and exempt specific projects as appropriate to take into account cost-effectiveness.
Energy savings performance contracts shall be executed according to state guidelines issued by the comptroller, and the contracts shall be reviewed by the comptroller. To expedite energy savings performance contracting for public buildings, the department of accounting and general services shall develop a master energy savings performance contracts agreement that any department may use to contract with an energy savings performance contracts provider for energy-efficiency and renewable energy services.
(d) For existing public buildings that undergo a major retrofit or renovation, the department or departments responsible for design and construction shall make investments in efficiency; provided that the cost of the measures shall be recouped within twenty years.
[L 2009, c 155, pt of §11; am L 2019, c 122, §3]
(a) State facilities shall implement cost-effective energy efficiency measures as follows:
(1) Beginning on January 1, 2024, for all state facilities that have not implemented section 36-41 since 2010; and
(2) Beginning on January 1, 2026, for all other state facilities;
provided that no entity shall claim tax credits or deductions, or depreciate assets under title 14 for implementing energy efficiency measures pursuant to this section; provided further that nothing in this subsection shall prohibit facilities from implementing energy efficiency measures sooner than indicated under paragraph (1) or (2).
(b) State facilities with an area under ten thousand square feet 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 is 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 may include energy saved offsite by water or other utility enhancing retrofits, to improve the energy efficiency or reduce energy costs of the facility.
[L 2022, c 239, pt of §2]
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.
[L 2022, c 239, pt of §2]
(a) The department of land and natural resources and department of business, economic development, and tourism shall facilitate the private sector's development of renewable energy projects by supporting the private sector's attainment of the renewable portfolio standards in section 269-92. Both departments shall provide meaningful support in areas relevant to the mission and functions of each department as provided in this section, as well as in other areas the directors of each department may deem appropriate.
(b) The department of land and natural resources shall:
(1) Develop and publish a catalog by December 31, 2006, and every five years thereafter, of potential sites for the development of renewable energy; and
(2) Work with electric utility companies and with other renewable energy developers on all applicable planning and permitting processes to expedite the development of renewable energy resources.
(c) The chief energy officer shall:
(1) Develop a program to maximize the use of renewable energy and cost-effective conservation measures by state government agencies;
(2) Work with federal agencies to develop as much research, development and demonstration funding, and technical assistance as possible to support Hawaii in its efforts to achieve its renewable portfolio standards; and
(3) Biennially, beginning in January 2006, issue a progress report to the governor and legislature.
[L 2004, c 95, pt of §2; am L 2024, c 55, §3]
(a) The State shall facilitate the development of alternate fuels and support the attainment of a statewide alternate fuels standard of ten per cent of highway fuel demand to be provided by alternate fuels by 2010, fifteen per cent by 2015, twenty per cent by 2020, and thirty per cent by 2030. For purposes of the alternate fuels standard, ethanol produced from cellulosic materials shall be considered the equivalent of two and one-half gallons of noncellulosic ethanol. "Alternate fuels" shall have the same meaning as contained in title 10 Code of Federal Regulations part 490; provided that it shall also include liquid or gaseous fuels produced from renewable feedstocks such as organic wastes, or from water using electricity from renewable energy sources.
(b) The State shall support the attainment of the clean ground transportation target established pursuant to section [196-9(c)(11)].
[L 2006, c 240, §5; am L 2010, c 175, §2; am L 2021, c 74, §6]
§196-61 Definitions. As used in this part:
"Assessment" means a financing assessment imposed by the authority on a benefitted commercial property pursuant to section 196-64.5.
"Authority" means the Hawaii green infrastructure authority as established under section 196-63.
"Bond" means any bond, note, and other evidence of indebtedness that is issued by the State pursuant to part X of chapter 269.
"Clean energy investments" means the purchase, installation, or both, of clean energy technology, including energy-efficiency measures, green transportation infrastructure, recycling, and renewable energy technology.
"Clean energy technology" means any technology as defined in section 269-121(b).
"Commercial property" means:
(1) Any existing or new non-residential real property, including any property where there is a leasehold or possessory interest in the property;
(2) Any multi-family dwelling or townhouse consisting of five or more units;
(3) Any condominium organized under chapter 514B consisting of six or more units; provided that individual residential condominium units shall not be considered commercial property and shall be ineligible to apply for commercial property assessed financing under this part; or
(4) Agricultural property.
"Commercial property assessed financing assessment" or "financing assessment" means the annual assessment, secured by a lien on a property, for the repayment of financing obtained by an owner of commercial property for a qualifying improvement that is billed and collected by the authority.
"Commercial property assessed financing assessment contract" means the financing contract, under the commercial property assessed financing program, by and among one or more commercial property assessed financing lenders, one or more commercial property owners, and the authority as the administrator of the commercial property assessed financing program for the acquisition or installation of qualifying improvements.
"Commercial property assessed financing lender" means a financial institution as defined pursuant to section 412:1-109, or a private or public lender approved by the authority, as the administrator of the commercial property assessed financing program, to originate commercial property assessed financing assessment contracts, and that may include any successor or assignee of the lender as provided in the commercial property assessed financing assessment contract.
"Commercial property assessed financing program" means a program to finance qualifying improvements on commercial properties that are repaid through an assessment imposed by the authority on the commercial property owner's property.
"Cost-effective" means that utility bill savings are achieved by the installation of an energy-efficiency measure; provided that the utility bill savings exceed the energy-efficiency measure's installation and carrying costs in an amount sufficient to repay a loan issued pursuant to section 196-62.5 and in the manner required by that section.
"Department" means the department of business, economic development, and tourism, or any successor by law.
"Director" means the director of business, economic development, and tourism, or the director's designee.
"Electric vehicle" has the same meaning as defined in section 291-71.
"Electric vehicle charging system" has the same meaning as defined in section 291-71.
"Energy-efficiency measure" means any type of project conducted, or technology implemented, to reduce the consumption of energy in a public building. The types of projects conducted or technology implemented may be in a variety of forms but shall be designed to reduce electric utility costs.
"Energy performance contract" has the same meaning as defined in section 36-41.
"Financing order" means the same as defined in section 269-161.
"Financing party" means the same as defined in section 269-161.
"Green energy money saver on-bill program" means the tariff-based on-bill repayment mechanism approved for the exclusive use of the authority by the commission.
"Green infrastructure bond fund" means the special fund created pursuant to section 196-67.
"Green infrastructure charge" means the on-bill charges for the use and services of the loan program, including the repayment of loans made under the loan program, as authorized by the public utilities commission to be imposed on electric utility customers.
"Green infrastructure costs" means costs incurred or to be incurred by the electric utility customers to pay for clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure including, without limitation, the purchase or installation of green infrastructure equipment, programs, and services authorized by the loan program.
"Green infrastructure equipment" means infrastructure improvements, equipment, and personal property to be installed to deploy clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure.
"Green infrastructure fee" means the same as defined in section 269-161.
"Green infrastructure loan program" and "green infrastructure loans" means the program established by this part under section 196-62 and capitalized by the issuance of green energy market securitization bonds to finance the purchase or installation of green infrastructure equipment for clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure, programs, and services as authorized by the public utilities commission using the proceeds of bonds.
"Green infrastructure loan program order" means the same as defined in section 269-161.
"Green infrastructure property" means the same as defined in section 269-161.
"Green infrastructure special fund" means the special fund created pursuant to section 196-65.
"Limited liability company" means a limited liability company formed under chapter 428.
"Loan fund program" means the clean energy and energy efficiency revolving loan fund program.
"Option to purchase" means a legally binding agreement between a buyer and a seller that gives the buyer the option, but not the obligation, to purchase the solar energy system or other installed equipment at an agreed upon price, prior to the maturity date of the power purchase agreement or energy performance contract.
"Power purchase agreement" means a contract between two parties, one that generates electricity, or the seller, and one that seeks to purchase electricity, or the buyer, that defines all of the commercial terms for the sale of electricity between the two parties.
"Property owner" or "owner" means the owner or owners of record of commercial property, except that in the case of a condominium, "owner" shall mean the condominium association and not the owner or owners of individual residential condominium units.
"Qualified security" shall have the same meaning as defined in section 227D-1.
"Qualifying improvement" means a septic system or aerobic treatment unit system or connection to sewer systems, clean energy technology, efficiency technology, resiliency measure, or other improvement approved by the authority.
"Renewable energy" shall have the same meaning as defined in section 269-91.
"Renewable energy technology" means the equipment and related accessories required to generate or produce renewable energy.
"Revolving line of credit" means a type of credit in which loan advances are made for eligible purposes and where repaid principal deposited back into the sub-fund may be re-borrowed.
"Special purpose entity" means a legal entity created to fulfill narrow, specific, or temporary objectives and is typically used by companies to isolate the firm from financial risk.
"Subaccount" means a fund that is established within, but separate from, another fund and is reserved for a specific purpose.
"Sub-fund" means a separate fund established within the Hawaii green infrastructure special fund for a specific purpose.
[L 2013, c 211, pt of §2; am L 2018, c 121, §3; am L 2021, c 107, §3; am L 2022, c 183, §4; am L 2024, c 41, §3]
§196-62 Hawaii green infrastructure loan program. There is established a Hawaii green infrastructure loan program, which shall be a loan program as defined under section 39-51. The program shall be administered by the authority on behalf of the department in a manner consistent with chapter 39, part III. This loan program may include loans made to government entities and private entities, whether corporations, partnerships, limited liability companies, or other persons, which entities may lease or provide green infrastructure equipment to electric utility customers, as well as direct loans to electric utility customers, on terms approved by the authority.
[L 2013, c 211, pt of §2; am L 2018, c 121, §4]
(a) Any state agency may apply for financing, subject to availability under the revolving line of credit for fiscal year 2021-2022, and annually thereafter, from the green infrastructure loan program pursuant to section 196-65(b)(2), upon terms and conditions as are agreed to between the department or agency and the Hawaii green infrastructure authority; provided that the loans shall be issued at an interest rate of 3.5 per cent a year; provided further that the loans shall not adversely affect the sustainability of the sub-fund or Hawaii green infrastructure special fund such that the replenishment of funds requires a higher interest rate in other financing agreements or an appropriation from the general fund.
(b) As may be applicable, an agency shall consult with the public benefits fee administrator of the commission before planning an energy-efficiency measure subject to this section. The agency's proposed energy-efficiency measures shall meet or exceed the public benefits fee administrator's enhanced efficiency levels and requirements to be eligible for the Hawaii green infrastructure loan program. The agency shall coordinate with the public benefits fee administrator throughout the entire project cycle to ensure that energy efficiency is maximized. All supporting documentation required by the public benefits fee administrator shall be provided by the agency to ensure compliance with the State's energy-efficiency portfolio standards under section 269-96.
(c) An agency shall submit an expenditure plan to the executive director of the Hawaii green infrastructure authority, who shall serve as the fiscal administrator for the loans issued pursuant to subsection (a) and shall make payment on behalf of the agency, as appropriate, upon submission of requests for payment from the agency.
(d) Beginning with fiscal year 2021-2022, and annually thereafter, an agency shall repay a loan issued pursuant to subsection (a) using general revenue savings that result from reduced energy costs due to financing the purchase of solar energy systems or other clean energy equipment, implementing energy-efficient lighting and other energy-efficiency measures, as well as operational and fuel cost savings achieved by the conversion of internal combustion vehicles to electric vehicles.
[L 2018, c 121, §2; am L 2021, c 107, §4; am L 2025, c 272, §2]
§ 196-63 Hawaii green infrastructure authority. There is established the Hawaii green infrastructure authority as an instrumentality of the State comprising five members. The director, the director of finance, and the chief energy officer of the Hawaii state energy office shall be members of the authority. The governor shall appoint the other two members, pursuant to section 26-34. The director shall be the chairperson of the authority. The authority shall be placed within the department for administrative purposes, pursuant to section 26-35; provided that until the authority is duly constituted, the department may exercise all powers reserved to the authority and shall perform all responsibilities of the authority.
[L 2013, c 211, pt of §2; am L 2019, c 122, §3]
§ 196-64 Functions, powers , and duties of the authority. (a) In the performance of, and with respect to the functions, powers, and duties vested in the authority by this part, the authority, as directed by the director and in accordance with a green infrastructure loan program order or orders under section 269-171 or an annual plan submitted by the authority pursuant to this section, as approved by the commission for the green infrastructure loan program, may:
(1) Make loans and expend funds to finance the purchase or installation of green infrastructure equipment for clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure, programs, and services;
(2) Hold and invest moneys in the green infrastructure special fund in investments as permitted by law and in accordance with approved investment guidelines established in one or more orders issued by the commission pursuant to section 269-171;
(3) Hire employees necessary to perform its duties, including an executive director. The executive director shall be appointed by the authority, and the employees' positions, including the executive director's position, shall be exempt from chapter 76;
(4) Enter into contracts for the service of consultants for rendering professional and technical assistance and advice, and any other contracts that are necessary and proper for the implementation of the loan program;
(5) Enter into contracts for the administration of the loan program, without the necessity of complying with chapter 103D;
(6) Establish loan program guidelines to be approved in one or more orders issued by the commission pursuant to section 269-171 to carry out the purposes of this part;
(7) Be audited at least annually by a firm of independent certified public accountants selected by the authority, and provide the results of this audit to the department and the commission; and
(8) Perform all functions necessary to effectuate the purposes of this part.
(b) The authority shall submit to the commission an annual plan for the green infrastructure loan program for review and approval no later than ninety days prior to the start of each fiscal year. The annual plan submitted by the authority shall include the authority's projected operational budget for the succeeding fiscal year.
(c) In the performance of the functions, powers, and duties vested in the authority by this part, the authority shall administer the clean energy and energy efficiency revolving loan fund pursuant to section 196-65.5 and may:
(1) Make loans and expend funds to finance the purchase or installation of clean energy technology and services;
(2) Implement and administer loan programs on behalf of other state departments or agencies through a memorandum of agreement and expend funds appropriated to the department or agency for purposes authorized by the legislature;
(3) Utilize all repayment mechanisms, including the green energy money saver on-bill program, financing tools, servicing and other arrangements, and sources of capital available to the authority;
(4) Exercise powers to organize and establish special purpose entities as limited liability companies under the laws of the State;
(5) Acquire, hold, and sell qualified securities;
(6) Pledge unencumbered net assets, loans receivable, assigned agreements, and security interests over equipment financed, as collateral for the authority's borrowings from federal, county, or private lenders or agencies;
(7) Utilize the employees of the authority, including the executive director;
(8) Enter into contracts for the service of consultants for rendering professional and technical assistance and advice and any other contracts that are necessary and proper for the implementation of the loan fund program;
(9) Enter into contracts for the administration of the loan fund program exempt from chapter 103D;
(10) Establish loan fund program guidelines;
(11) Be audited at least annually by a firm of independent certified public accountants selected by the authority and provide the results of the audit to the department and legislature; and
(12) Perform all functions necessary to effectuate the purposes of this part.
(d) The authority shall submit an annual report for the clean energy and energy efficiency revolving loan fund to the legislature no later than twenty days prior to the convening of each regular session describing the projects funded and the projected energy impacts.
[L 2013, c 211, pt of §2; am L 2021, c 107, §5]
(a) There is established a commercial property assessed financing program to be administered by the authority to enable owners of qualifying property to access non-traditional financing for qualifying improvements. Program financing shall be secured by a voluntary assessment imposed on the benefitted property that is secured by a statutory lien; provided that the statutory lien shall have priority over all other liens except the liens for property taxes and other assessments lawfully imposed by a governmental authority against the property.
(b) In administering the commercial property assessed financing program, the authority may impose a governmental lien to secure commercial property assessed financing against real property specially benefitted pursuant to the program established by this section. Commercial property assessed financing shall be secured by the voluntary governmental lien and repaid in assessment installments in accordance with the commercial property assessed financing assessment contract and billed and collected by the authority. The principal amount of financing made pursuant to this section shall be a governmental lien against each lot or parcel of the property, or in the case of a condominium, a governmental lien against the condominium association, assessed for a period beginning on the date of the notice of the assessment and ending once payment is made in full or otherwise satisfied in accordance with the commercial property assessed financing assessment contract; provided that the lien shall have priority over all other liens except the liens for property taxes and other assessments lawfully imposed by governmental authority against the property; provided further that for multiple liens of assessments, the earlier lien shall have priority over the later lien. Neither the governmental lien nor the assessment for repayment on a benefitted commercial property pursuant to this section shall constitute a tax upon the real property within the meaning of any constitutional or statutory provision. The requirement of lender consent pursuant to subsection (c)(7) shall be satisfied for the priority of the lien to be valid.
(c) The authority shall design the commercial property assessed financing program authorized under this section to address market needs while attracting private capital; provided that the program, at minimum, shall include the following elements:
(1) A commercial property owner of qualifying property in the State may apply to the authority for approval to use commercial property assessed financing to pay the cost of qualifying improvements and enter into a commercial property assessed financing contract with an approved commercial property assessed financing lender and the authority;
(2) A commercial property assessed financing lender may enter into a commercial property assessed financing assessment contract to finance or refinance a qualifying improvement only with the owner of the commercial property and the authority. Each commercial property assessed financing assessment contract shall be executed by the authority as the administrator of the commercial property assessed financing program. A commercial property assessed financing assessment contract shall require the authority to assign, pledge, and transfer revenues to be derived from commercial property assessed financing assessments to one or more commercial property assessed financing lenders as security for their direct financing of qualifying improvements. The obligation of the authority to transfer the revenues to one or more commercial property assessed financing lenders shall be evidenced by the commercial property assessed financing assessment contract as an instrument of indebtedness in a form as may be prescribed by the authority. No other bonds shall be required to be issued by the State, the authority, any county, or any other public entity in order to cause qualifying improvements to be funded through a commercial property assessed financing assessment contract;
(3) Qualifying improvements shall be affixed to a building or facility or affixed to real property, subject to the commercial property assessed financing assessments;
(4) Before entering into a commercial property assessed financing assessment contract, the commercial property assessed financing lender shall reasonably determine that:
(A) The commercial property owner is able to borrow the amount of the property assessed financing using reasonable commercial underwriting practices;
(B) All property taxes applicable to the commercial property, and any other assessments levied on the same bill as property taxes, are paid; and
(C) There are no involuntary liens applicable to the commercial property, including but not limited to construction liens, that will not be paid or satisfied upon the closing of the financing;
(5) The commercial property assessed financing assessment contract shall include the amount of an annual assessment, including interest, over a fixed term that shall be billed annually or as otherwise specified by the authority and collected by the authority in accordance with the commercial property assessed financing lender's amortization schedule;
(6) The commercial property assessed financing assessment contract, or summary memorandum of the contract, shall be recorded by the commercial property assessed financing lender in the public records of the State within five days after execution by the parties to the contract. The recorded contract shall provide constructive notice of the lien and obligation of the commercial property owner to pay the commercial property assessed financing assessment. The entire principal amount of the commercial property assessed financing assessment contract shall be a governmental statutory lien against the commercial property that shall be assessed for a period beginning on the date of recordation entered into pursuant to this section and ending once paid or satisfied in accordance with the commercial property assessed financing assessment contract; provided that the lien shall have priority over all other liens except the liens for property taxes and other assessments lawfully imposed by a governmental authority against the property;
(7) Before entering into a commercial property assessed financing assessment contract for any commercial property, the commercial property owner shall:
(A) (i) Provide the authority and the commercial property assessed financing lender with evidence of the written consent of each holder or loan servicer of any mortgage that encumbers or otherwise secures the commercial property, where the consent is in the sole and absolute discretion of each holder or loan servicer of a mortgage on the commercial property, at the time of the execution of the commercial property assessed financing assessment contract by the parties; provided that the consents shall be in a form prescribed by the authority; and
(ii) For a commercial property that is a condominium organized under chapter 514B, or preceding state law governing condominium property regimes, as an alternative to clause (i), the condominium association shall provide the authority and the commercial property assessed financing lender with evidence of the written consent of each creditor with a valid Uniform Commercial Code financing statement or mortgage recorded with the bureau of conveyances that encumbers or otherwise secures the condominium, where the consent is in the sole and absolute discretion of each creditor, at the time of the execution of the commercial property assessed financing assessment contract by the parties; provided that the consents shall be in a form prescribed by the authority; or
(B) Agree to the commercial property assessed financing lender's remedies if a default occurs, including foreclosure, in accordance with the terms and conditions of the commercial property assessed financing contract;
(8) At or before the time a purchaser executes a contract for the sale and purchase of any commercial property for which a statutory lien has been recorded under this part and has an unpaid balance due, the seller shall give the prospective purchaser a written disclosure statement notifying the prospective purchaser of the commercial property assessed financing assessment;
(9) The term of the commercial property assessed financing assessment contract shall not exceed the useful life of the qualifying improvement being installed or the weighted average useful life of all qualifying improvements being financed if multiple qualifying improvements are being financed, as determined by the authority;
(10) Except as otherwise provided for commercial property assessed financing assessments under chapter 514B, the authority shall bill and collect any approved commercial property assessed financing assessment. Each commercial property assessed financing assessment that is approved for collection shall be billed and collected in accordance with the commercial property assessed financing lender's amortization schedule. The authority may charge interest or other fees on assessment amounts not paid on a timely basis. The authority shall develop guidelines and procedures providing for the method of undertaking and financing qualifying improvements as well as penalties, collection processes, sale, and lien priority, in the case of delinquency as is provided in this section. The authority shall remit any commercial property assessed financing assessments collected, less any reasonable administrative costs to pay each commercial property assessed financing lender in accordance with each commercial property assessed financing assessment contract. For the benefit of any commercial property assessed financing lender, the authority shall commence and diligently pursue to completion the foreclosure of delinquent commercial property assessed financing assessments and any penalty, interest, and costs by advertisement and sale and with the same effect as provided by general law for sales of real property pursuant to chapter 667 and in accordance with the terms of the commercial property assessed financing contract. Any guidelines and procedures developed pursuant to this paragraph shall specify a deadline for commencement of the foreclosure sale and any other terms and conditions the authority determines reasonable regarding the foreclosure sale. For commercial property assessed financing assessments levied but not paid when due pursuant to a commercial property assessed financing assessment contract, the foreclosure of the lien of the commercial property assessed financing assessment, lien of general real property taxes or any other assessments levied under section 46-80, or any other lien foreclosed, shall not accelerate or extinguish the remaining term of the commercial property assessed financing assessment as approved in the commercial property assessed financing assessment contract; and
(11) All moneys collected for assessments for the commercial property assessed financing program, including any interest accrued and fee revenues collected, shall be deposited in a separate subaccount in the clean energy and energy efficiency revolving loan fund established pursuant to section 196-65.5 and expended only for the administration of the commercial property assessed financing program; provided that any surplus moneys remaining at the end of each fiscal year after the payment of expenses of the commercial property assessed financing program shall be transferred and credited to the Hawaii green infrastructure special fund established pursuant to section 196-65 and may be expended for the administration of the commercial property assessed financing program.
[L 2022, c 183, §2; am L 2024, c 41, §4]
§ 196-65 Hawaii green infrastructure special fund. (a)There is established the Hawaii green infrastructure special fund into which shall be deposited:
(1) The proceeds of bonds net of issuance costs and reserves or overcollateralization amounts;
(2) Green infrastructure charges received for the use and services of the loan program, including the repayment of loans made under the loan program;
(3) All other funds received by the department or the authority and legally available for the purposes of the green infrastructure special fund;
(4) Interest earnings on all amounts in the green infrastructure special fund; and
(5) Such other moneys as shall be permitted by an order of the public utilities commission.
The Hawaii green infrastructure special fund shall not be subject to section 37-53. Any amounts received from green infrastructure charges or any other net proceeds earned from the allocation, use, expenditure, or other disposition of amounts approved by the public utilities commission and deposited or held in the Hawaii green infrastructure special fund in excess of amounts necessary for the purposes of subsection (b) shall be credited to electric utility customers as provided in a green infrastructure loan program order or orders. Funds that are transferred back to the electric utility in order to credit electric utility customers under this subsection shall not be considered revenue of the electric utility and shall not be subject to state or county taxes.
(b) Moneys in the Hawaii green infrastructure special fund may be used, subject to the approval of the commission, for the purposes of:
(1) Making green infrastructure loans, including for installation costs for energy-efficient lighting and other energy-efficiency measures, to finance the option to purchase solar energy systems and other clean energy equipment under existing power purchase agreements and energy performance contracts, finance the purchase or lease of electric vehicles, and to install electric vehicle charging systems;
(2) Creating a $50,000,000 sub-fund, as a revolving line of credit within the Hawaii green infrastructure special fund, for any state agency to obtain financing to implement cost-effective energy-efficiency measures, finance the option to purchase solar energy systems and other clean energy equipment under existing power purchase agreements and energy performance contracts, finance the purchase or lease of electric vehicles, and install electric vehicle charging systems;
(3) Paying administrative costs of the Hawaii green infrastructure loan program;
(4) Paying any other costs related to the Hawaii green infrastructure loan program; or
(5) Paying financing costs, as defined in section 269-161, to the extent permitted by the commission in a financing order issued pursuant to section 269-163.
(c) The authority may invest funds held in the Hawaii green infrastructure special fund in investments as permitted by law, and in accordance with approved investment guidelines established in one or more orders issued by the public utilities commission pursuant to section 269-171. All amounts in the Hawaii green infrastructure special fund shall be exempt from all taxes and surcharges imposed by the State or the counties.
[L 2013, c 211, pt of §2; am L 2017, c 57, §2; am L 2018, c 121, §5; am L 2021, c 107, §6]
. (a) There is established in the Hawaii green infrastructure special fund established under section 196-65, the clean energy and energy efficiency revolving loan fund, similar to a revolving line of credit, which shall be administered by the authority. Funds deposited into the clean energy and energy efficiency revolving loan fund shall not be under the jurisdiction of, nor be subject to approval by, the commission and shall include:
(1) Any amounts, up to a total amount not to exceed $50,000,000, of moneys borrowed by the authority, with the approval of the governor, from federal, county, private, or other funding sources, pursuant to part III of chapter 39;
(2) Funds from federal, state, county, private, or other funding sources;
(3) Investments from public or private investors;
(4) Moneys received as repayment of loans and interest payments; provided that the repayment of loans and interest payments under this paragraph shall not include repayment of loans and interest collected as a result of funds advanced from proceeds of the green energy market securitization bonds; and
(5) Any fees collected by the authority under this section; provided that moneys collected as a result of the funds advanced from proceeds of the green energy market securitization bonds shall be kept separate from fees collected as a result of funds advanced from proceeds of the clean energy and energy efficiency revolving loan fund.
(b) Moneys in the clean energy and energy efficiency revolving loan fund shall be used to provide low-cost loans at below-market rates or other authorized financial assistance to eligible public, private, and nonprofit borrowers for clean energy investments or other authorized uses, or both, on terms approved by the authority. Moneys from the fund may be used to cover administrative and legal costs of fund management and management associated with individual loans, which include personnel, services, technical assistance, data collection and reporting, materials, equipment, and travel for the purposes of this section.
(c) Funds appropriated or authorized from the clean energy and energy efficiency revolving loan fund shall be expended by the authority. The authority may contract with other public or private entities for the provision of all or a portion of the services necessary for the administration and implementation of the loan fund program. The authority may set fees or charges for fund management and technical site assistance provided under this section.
(d) All interest earned on the loans, deposits, or investments of the moneys in the fund shall become part of the fund.
(e) The authority may establish subaccounts within the fund as necessary; provided that in accordance with section 196-64.5(c)(11), the authority shall establish a subaccount within the fund into which shall be deposited all moneys, including any interest accrued and fee revenues, collected as assessments under the commercial property assessed financing program established pursuant to section 196-64.5.
(f) The authority may adopt rules pursuant to chapter 91 to carry out the purposes of this section.
[L 2021, c 107, §2; am L 2024, c 41, §5]
(a) The authority shall apply to the public utilities commission for one or more orders to effectuate the Hawaii green infrastructure loan program, pursuant to section 269-170.
Nothing herein shall preclude the department from applying for a financing order, pursuant to section 269-162, prior to the issuance of an order or orders to effectuate the Hawaii green infrastructure loan program under section 269-171, nor from requesting consolidation of the proceeding for a financing order with such a loan program implementation order.
(b) An application shall be submitted by the authority to the public utilities commission in accordance with section 269-170.
(c) In accordance with an approved green infrastructure loan program order or orders, the authority shall utilize the proceeds of bonds and other amounts deposited in the Hawaii green infrastructure special fund pursuant to [section] 196-65, or to the extent permitted by a financing order, to pay financing costs, as defined in section 269-161.
(d) Within the order or orders issued by the public utilities commission under section 269-171, the authority shall obtain approval from the public utilities commission requiring the electric utilities to serve as agents to bill and collect the green infrastructure charge imposed to repay green infrastructure costs and transfer all green infrastructure charges collected to the authority on behalf of the department. Notwithstanding anything to the contrary, electric utilities shall not be obligated to bill, collect, or remit green infrastructure charges from nonutility customers.
[L 2013, c 211, pt of §2]
(a) There is established the Hawaii green infrastructure bond fund as a special fund into which all proceeds of the green infrastructure fee established pursuant to section 269-166 and any other proceeds of green infrastructure property shall be paid. The Hawaii green infrastructure bond fund may also receive other moneys as the department may determine and as provided in a financing order, including, without limitation, green infrastructure charges.
(b) Moneys in the Hawaii green infrastructure bond fund shall be impressed with the lien created by, and shall be used solely for purposes set forth in, section 269-164. Upon payment or defeasance of all bonds and financing costs, moneys in the fund, at the direction of the department, may be transferred into the Hawaii green infrastructure special fund established pursuant to section 196-65 or other purpose as the department shall specify.
(c) The Hawaii green infrastructure bond fund shall be audited at least annually by a firm of independent certified public accountants selected by the department, and the results of this audit shall be provided to the department and the public utilities commission.
(d) Pursuant to section 39-68, the department shall appoint a trustee to receive, hold, and disburse all amounts required to be held in the Hawaii green infrastructure bond fund upon terms and conditions as set forth in a certificate, indenture, or trust agreement.
The Hawaii green infrastructure bond fund shall not be subject to section 37-53.
[L 2013, c 211, pt of §2]
[§ 196-68] Compliance with revenue bond law. For purposes of assuring conformity of and compliance with part III of chapter 39, it is determined as follows:
(1) For purposes of section 39-51, "revenues" shall include the green infrastructure fee and the proceeds of green infrastructure property; "loan program" shall include the loan program authorized under section 196-62; and "undertaking" shall include financing of the loan program through the issuance of green infrastructure revenue bonds;
(2) In addition and supplemental to any covenants recognized under section 39-60, any resolution, certificate, or indenture approved by the department may have additional or alternative covenants as may be consistent with this chapter, and the department may enter into a trust indenture, servicing agreement, or other financing documents having terms and conditions consistent with the financing order issued under section 269-163;
(3) In addition and supplemental to the power to impose rates, rentals, fees, or charges required under section 39-61, the department shall impose, adjust, and collect the green infrastructure fee as provided in section 269-166 and the financing order issued pursuant thereto; and
(4) In addition and supplemental to the uses specified in section 39-62, the green infrastructure fee shall be applied as provided in this chapter, the financing order, the certificate issued by the department, and any financing documents executed by the department in connection with the bonds.
[L 2013, c 211, pt of §2]
[§ 196-69 ] Reporting; annual report . The authority shall submit a report to the legislature on the authority's activities in administering the loan program no later than twenty days prior to the convening of each regular session beginning with the regular session of 2015. The report shall include a description and uses of the loan program; summary information and analytical data concerning the implementation of the loan program; summary information and analytical data concerning deployment of clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure, programs, and services; and repayments made or credits provided to electric utility customers under this part or chapter 269, part X.
[L 2013, c 211, pt of §2]
. If any provision of this part is held to be invalid or is superseded, replaced, repealed, or expires for any reason:
(1) That occurrence shall not affect any action allowed under this part that is taken prior to that occurrence by the public utilities commission, an electric utility, the department, the authority, a bondholder, or any financing party, and any such action shall remain in full force and effect; and
(2) The validity and enforceability of the rest of this part shall remain unaffected.
[L 2013, c 211, pt of §2]
(a) There is established the Hawaii state energy office, which shall be a public body politic and an instrumentality and agency of the State. The office shall be placed within the department of business, economic development, and tourism for administrative purposes, pursuant to section 26-35. The purpose of the Hawaii state energy office shall be to promote energy efficiency, renewable energy, and clean transportation to help achieve a resilient clean energy economy.
(b) The Hawaii state energy office shall:
(1) Provide analysis and planning to actively develop and inform policies to achieve energy efficiency, renewable energy, energy resiliency, and clean transportation goals with the legislature, public utilities commission, state agencies, and other relevant stakeholders;
(2) Lead efforts to incorporate energy efficiency, renewable energy, energy resiliency, and clean transportation to reduce costs and achieve clean energy goals across all public facilities;
(3) Provide renewable energy, energy efficiency, energy resiliency, and clean transportation project deployment facilitation to assist private sector project completion when aligned with state energy goals; and
(4) Engage the private sector to help lead efforts to achieve renewable energy and clean transportation goals through the Hawaii clean energy initiative.
(c) The Hawaii state energy office shall be the State's primary government entity for supporting the clean energy initiative.
(d) No later than twenty days prior to the convening of each regular session, the Hawaii state energy office shall submit a report to the legislature that includes:
(1) A description of the activities of the Hawaii state energy office in response to the directives established pursuant to subsection (b) and section 196-72(d), along with progress in meeting any of the Hawaii state energy office goals established in or pursuant to this part;
(2) Progress by the State in meeting its energy efficiency, renewable energy, and clean transportation goals; and
(3) Proposed legislation, if any.
[L 2019, c 122, pt of §2]
(a) The Hawaii state energy office shall be led by the chief energy officer, who shall be nominated and, by and with the advice and consent of the senate, appointed by the governor; provided that the term of the chief energy officer shall be coterminous with the term of the governor.
(b) The chief energy officer shall have:
(1) Experience, knowledge, and expertise in policy, programs, or services related to energy efficiency, renewable energy, clean transportation, and energy resiliency related activities and development; and
(2) Experience in a supervisory or administrative capacity.
(c) The chief energy officer shall hire staff necessary to carry out the purposes of this part. The chief energy officer and employees of the Hawaii state energy office shall be exempt from chapter 76 and shall not be considered civil service employees but shall be entitled to any employee benefit plan normally inuring to civil service employees.
(d) Subject to the approval of the governor, the chief energy officer shall:
(1) Formulate, analyze, recommend, and implement specific policies, strategies, and plans, in coordination with public and private sector stakeholders, to cost-effectively and equitably achieve the State's energy goals;
(2) Identify, track, and report key performance measures and milestones related to the State's energy and decarbonization goals;
(3) Provide technical assistance to state and county agencies to assess and implement projects and programs related to energy conservation and efficiency, renewable energy, clean transportation, energy resiliency, and related measures;
(4) Coordinate the State's energy programs with those of the federal government, other territory and state governments, the political subdivisions of the State, departments of the State, and governments of nations with interest in common energy resources;
(5) Identify market gaps and innovation opportunities, collaborate with stakeholders, and facilitate public-private partnerships to develop projects, programs, and tools to encourage private and public exploration, research, and development of energy resources, distributed energy resources, and data analytics that will support the State's energy and decarbonization goals;
(6) Create and review proposed state actions that may have a significant effect on the State's energy and decarbonization goals, report to the governor their effect on the energy program, and perform other services as may be required;
(7) Evaluate, recommend, and participate in the development of incentives and programs that encourage the development of energy efficiency, renewable energy, energy resiliency, distributed energy resources, and clean transportation resources;
(8) Assess and evaluate the effectiveness and continued necessity of existing energy related incentives, tax credits, and programs, and provide recommendations and proposed changes;
(9) Develop and maintain a comprehensive and systematic quantitative and qualitative capacity to analyze the status of energy resources, systems, and markets, both in-state and in other states and countries, particularly in relation to the State's economy, and to recommend, develop proposals for, and assess the effectiveness of policy and regulatory decisions, and energy emergency planning;
(10) Develop and recommend programs for, and assist public agencies in the implementation of, energy assurance and energy resilience;
(11) Support the development, evaluation, revision, and adoption of energy-related codes and standards that advance the State's energy goals;
(12) Act as the State's energy data clearinghouse by identifying, collecting, compiling, analyzing, publishing, and where possible, monetizing energy and clean transportation data and analyses;
(13) Advocate for the State's energy and decarbonization goals at relevant venues and departments, including but not limited to the public utilities commission, legislature, and division of consumer advocacy, to ensure that state energy policies and regulations align with the state strategic goals and are data-driven;
(14) Support economic development and innovation initiatives related to and resulting from the State's renewable energy and distributed energy resources experience, capabilities, and data analyses;
(15) Facilitate the efficient, expedited permitting of energy efficiency, renewable energy, clean transportation, and energy resiliency projects by:
(A) Coordinating and aligning state and county departments and agencies to support, expedite, and remove barriers to deployment of energy initiatives and projects; and
(B) Identify and evaluate conflicting or onerous policies and rules that unreasonably impede project development and deployment and propose regulatory, legislative, administrative, or other solutions to applicable stakeholders;
(16) Identify and recommend policies to align utility goals with those of ratepayers, including evaluating utility models that best support state energy goals;
(17) Prepare and submit an annual report and other reports as may be requested to the governor and to the legislature on the implementation of this part;
(18) Contract for services when required for the implementation of this part; and
(19) Adopt rules, pursuant to chapter 91, for the administration of this part.
[L 2019, c 122, pt of §2]
As used in this part:
"Chief energy officer" means the chief energy officer of the Hawaii state energy office.
"Compensation" means money or any other valuable thing, regardless of form, received or to be received by a person for services rendered.
"Computer" has the same meaning as in California Code of Regulations, Title 20, Section 1602(v), as amended.
"Computer monitor" has the same meaning as in California Code of Regulations, Title 20, Section 1602(v), as amended.
"Faucet" means a lavatory faucet, kitchen faucet, metering faucet, or replacement aerator for a lavatory or kitchen faucet.
"High color rendering index fluorescent lamp" means a fluorescent lamp with a color rendering index of eighty-seven or greater that is not a compact fluorescent lamp.
"Plumbing fixture" means an exchangeable device that connects to a plumbing system to deliver and drain away water and waste.
"Portable electric spa" means a factory-built electric spa or hot tub, which may include any combination of integral controls, water heating, or water circulating equipment.
"Residential ventilating fan" means a ceiling or wall-mounted fan, or remotely mounted in-line fan, designed to be used in a bathroom or utility room for the purpose of moving air from inside the building to the outdoors.
"Showerhead" means a device through which water is discharged for a shower or bath. "Showerhead" includes handheld showerheads and any other showerhead, except a safety showerhead.
"Spray sprinkler body" means the exterior case or shell of a sprinkler incorporating a means of connection to the piping system designed to convey water to a nozzle or orifice.
"Toilet" or "water closet" means a plumbing fixture that includes a water-containing receptor that is designed to receive liquid and solid human waste through an exposed integral trap into a drainage system. "Toilet" or "water closet" includes a dual-flush toilet.
"Trough-type urinal" means a urinal designed for simultaneous use by two or more persons.
"Urinal" means a plumbing fixture that is designed to receive only liquid body waste and conveys the waste through a trap into a drainage system. "Urinal" includes a trough-type urinal.
"Water cooler" means a freestanding device that consumes energy in order to dispense cold water, room-temperature water, hot water, or any combination thereof. "Water cooler" includes a storage-type water cooler and an on-demand water cooler.
[L 2019, c 141, pt of §2; am L 2023, c 224, §2]
The purpose of this part is to establish minimum appliance efficiency standards for certain products sold or installed in the State.
[L 2019, c 141, pt of §2]
The chief energy officer may adopt rules pursuant to chapter 91 to:
(1) Enforce the minimum efficiency standards set forth in section 196-85; and
(2) Adopt or amend efficiency standards for any products as the chief energy officer deems appropriate, including but not limited to those products listed or incorporated in section 196-84(a); provided that the chief energy officer shall set efficiency standards upon a determination that new or increased efficiency standards would serve to promote energy or water conservation in the State and would be cost-effective for consumers who newly purchase and use those products; provided further that no new or increased efficiency standards shall become effective within one year following the adoption of any amended rules establishing the new or increased efficiency standards.
[L 2019, c 141, pt of §2; am L 2023, c 224, §3]
(a) Minimum efficiency standards are established under this part for the following products, if standards for these products are not preempted by federal law:
(1) Computers and computer monitors;
(2) Faucets;
(3) High color rendering index fluorescent lamps;
(4) Portable electric spas;
(5) Residential ventilating fans;
(6) Showerheads;
(7) Spray sprinkler bodies;
(8) Toilets;
(9) Urinals; and
(10) Water coolers.
(b) This section shall apply to the sale and offering for sale, lease, or rent of appliances under subsection (a) in the State.
(c) This section shall not apply to:
(1) New products manufactured in the State and sold outside the State;
(2) New products manufactured outside the State and sold at wholesale inside the State for final retail sale and installation outside the State;
(3) Products installed in mobile manufactured homes at the time of construction; or
(4) Products designed expressly for installation and use in recreational vehicles.
If any standard established under this part is subsequently preempted by federal law, all other state appliance efficiency standards not preempted shall remain in effect.
[L 2019, c 141, pt of §2; am L 2023, c 224, §4]
The following minimum efficiency standards shall apply to products listed or incorporated in section 196-84:
(1) Computers and computer monitors shall meet the requirements set forth in California Code of Regulations, Title 20, Section 1605.3, as amended;
(2) Faucets shall meet the minimum efficiency standards set forth in California Code of Regulations, Title 20, Section 1605.1, as amended;
(3) High color rendering index fluorescent lamps shall meet the minimum efficacy requirements contained in title 10 Code of Federal Regulations section 430.32(n)(4), as in effect on January 3, 2017, as measured in accordance with title 10 Code of Federal Regulations part 430, appendix R to subpart B--"Uniform Test Method for Measuring Average Lamp Efficacy (LE), Color Rendering Index (CRI), and Correlated Color Temperature (CCT) of Electric Lamps"--as amended;
(4) Portable electric spas shall meet the requirements of the American National Standard for Portable Electric Spa Energy Efficiency (ANSI/APSP/ICC 14-2019);
(5) In-line residential ventilating fans shall have a fan motor efficacy of not less than 2.8 cubic feet per minute per watt. All other residential ventilating fans shall have a fan motor efficacy of not less than 1.4 cubic feet per minute per watt for airflows less than ninety cubic feet per minute and not less than 2.8 cubic feet per minute per watt for other airflows when tested in accordance with Home Ventilation Institute Publication 916 "HVI Airflow Test Procedure";
(6) Showerheads shall meet the minimum efficiency standards set forth in California Code of Regulations, Title 20, Section 1605.1, as amended;
(7) Spray sprinkler bodies that are not specifically excluded from the scope of the Environmental Protection Agency's WaterSense Specification for Spray Sprinkler Bodies, Version 1.0, shall include an integral pressure regulator and shall meet the water efficiency and performance criteria and other requirements of that specification, as amended;
(8) Toilets, water closets, and urinals, other than those designed and marketed exclusively for use at prisons or mental health facilities, shall meet the standards shown in subparagraphs (A) to (D) when tested in accordance with title 10 Code of Federal Regulations Part 430, appendix T to subpart B -- "Uniform Test Method for Measuring the Water Consumption of Water Closets and Urinals" -- and toilets shall pass the waste extraction test for water closets (Section 7.9) of the American Society of Mechanical Engineers A112.19.2/CSA B45.1-2018:
(A) Wall-mounted urinals, except for trough-type urinals and urinals designed and marketed exclusively for use in prisons and mental health care facilities, shall have a maximum flush volume of 0.5 gallon per flush;
(B) Floor-mounted urinals, except for trough-type urinals and urinals designed and marketed exclusively for use in prisons and mental health care facilities, shall have a maximum flush volume of 0.5 gallon per flush;
(C) Toilets, except for dual-flush tank-type toilets and toilets designed and marketed exclusively for use in prisons and mental health care facilities, shall have a maximum flush volume of 1.28 gallons per flush; and
(D) Dual-flush tank-type toilets shall have a maximum dual-flush effective flush volume of 1.28 gallons per flush. As used in this subparagraph, "dual-flush effective flush volume" means the average flush volume of two reduced flushes and one full flush; and
(9) Water coolers included in the scope of the ENERGY STAR Program Requirements Product Specification for Water Coolers, Version 2.0, shall have an on mode with no water draw energy consumption less than or equal to the following values as measured in accordance with the test requirements of that program:
(A) 0.16 kilowatt-hour per day for cold-only units and cook and cold units. As used in this subparagraph, "cold-only units" means water cooler units that dispense cold water only;
(B) 0.87 kilowatt-hour per day for storage-type hot and cold units. As used in this subparagraph:
"Hot and cold units" means water coolers that dispense hot and cold water.
"Storage-type" means water cooler units in which thermally conditioned water is stored in a tank in the water cooler and is available instantaneously, including point-of-use, dry storage compartment, and bottled water coolers; and
(C) 0.18 kilowatt-hour per day for on-demand hot and cold units. As used in this subparagraph:
"Hot and cold units" means water coolers that dispense both hot and cold water.
"On-demand" means a water cooler unit in which water is heated as it is requested, which typically takes a few minutes to deliver.
[L 2019, c 141, pt of §2; am L 2023, c 224, §5]
(a) On or after January 1, 2021, no new computer or computer monitor, faucet, high color rendering index fluorescent lamp, showerhead, or spray sprinkler body shall be sold or offered for sale, lease, or rent in the State unless the efficiency of the new product meets or exceeds the efficiency standards provided in section 196-85.
(b) On or after January 1, 2025, no new portable electric spa, residential ventilating fan, toilet, urinal, or water cooler that is manufactured on or after January 1, 2025, shall be sold or offered for sale, lease, or rent in the State unless the efficiency of the new product meets or exceeds the minimum efficiency standards provided in section 196-85.
(c) One year after the date upon which the sale or offering for sale of certain products becomes subject to the requirements of subsections (a) and (b), these products shall not be installed for compensation in the State unless the efficiency of the new product meets or exceeds the minimum efficiency standards provided in section 196-85.
[L 2019, c 141, pt of §2; am L 2023, c 224, §6]
(a) If any of the energy or water conservation standards issued or approved for publication by the Office of the United States Secretary of Energy as of January 19, 2017, pursuant to the Energy Policy and Conservation Act (Parts 430-431 of Title 10 of the Code of Federal Regulations), are withdrawn, repealed, or otherwise voided, the minimum energy or water efficiency level permitted for products previously subject to federal energy or water conservation standards shall be the previously applicable federal standards, and no such new product may be sold or offered for sale, lease, or rent in the State unless it meets or exceeds such standards.
(b) This section shall not apply to any federal energy or water conservation standard set aside by a court upon the petition of a person who will be adversely affected, as provided in Section 6306(b) of Title 42 of the United States Code.
[L 2019, c 141, pt of §2]
Manufacturers shall test, certify, and label products meeting the minimum efficiency standards set forth in section 196-85 and may utilize testing, certification, and labeling programs of other states and federal agencies with similar standards, including the Home Ventilating Institute's certified products directory certification program, for purposes of compliance under this part. Products listed in California's Modernized Appliance Efficiency Database System shall be deemed to be in compliance with this part.
[L 2019, c 141, pt of §2; am L 2023, c 224, §7]
As used in this part, unless the context otherwise requires:
"Compact fluorescent lamp" means a compact low-pressure, mercury-containing, electric-discharge light source in which a fluorescent coating transforms some of the ultraviolet energy generated by the mercury discharge into visible light, and includes the following characteristics:
(1) One base (end cap) of any type, including but not limited to screw, bayonet, two pins, and four pins;
(2) Integrally ballasted or non-integrally ballasted;
(3) Light emission between a correlated color temperature of one thousand seven hundred Kelvin and twenty-four thousand Kelvin and a Duv of +0.024 and -0.024 in the International Commission on Illumination Uniform Color Space;
(4) All tube diameters and all tube lengths; and
(5) All lamp sizes and shapes for directional and nondirectional installations, including but not limited to plug-in, spiral, twin tube, triple twin, 2D, U-bend, and circular.
"Linear fluorescent lamp" means a low-pressure, mercury-containing, electric-discharge light source in which a fluorescent coating transforms some of the ultraviolet energy generated by the mercury discharge into visible light, and includes all of the following characteristics:
(1) Two bases (end caps) of any type, including but not limited to single-pin, two-pin, and recessed double contact;
(2) Light emission between a correlated color temperature of one thousand seven hundred Kelvin and twenty-four thousand Kelvin and a Duv of +0.024 and -0.024 in the International Commission on Illumination Uniform Color Space;
(3) All tube diameters, including but not limited to T5, T8, T10, and T12;
(4) All tube lengths from 0.5 to eight feet, inclusive; and
(5) All lamp shapes, including but not limited to linear, U-bend, and circular.
[L 2023, c 225, pt of §2]
It shall be unlawful to sell, offer for sale, or distribute for sale in the State as a new manufactured product:
(1) Beginning January 1, 2025, a screw or bayonet base type compact fluorescent lamp; and
(2) Beginning January 1, 2026, a pin-base type compact fluorescent lamp or linear fluorescent lamp.
[L 2023, c 225, pt of §2]
This part shall not apply to a lamp:
(1) Used for image capture and projection, including photocopying; printing, directly or in preprocessing; lithography; film and video projection; and holography;
(2) That has a high proportion of ultraviolet light emission and is one of the following:
(A) A lamp with high ultraviolet content that has ultraviolet power greater than two milliwatts per kilolumen;
(B) A lamp for germicidal use, such as the destruction of DNA, that emits a peak radiation of approximately 253.7 nanometers;
(C) A lamp used for disinfection or fly trapping from which either the radiation power emitted between two hundred fifty and three hundred fifteen nanometers represents at least five per cent of, or the radiation power emitted between three hundred fifteen and four hundred nanometers represents at least twenty per cent of, the total radiation power emitted between two hundred fifty and eight hundred nanometers;
(D) A lamp used for the generation of ozone where the primary purpose is to emit radiation at approximately 185.1 nanometers;
(E) A lamp used for coral zooxanthellae symbiosis from which the radiation power emitted between four hundred and four hundred eighty nanometers represents at least forty per cent of the total radiation power emitted between two hundred fifty and eight hundred nanometers; or
(F) Any lamp used in a sunlamp product. For the purposes of this subparagraph, "sunlamp product" has the same meaning as defined in title 21 Code of Federal Regulations section 1040.20(b)(9);
(3) Used for medical or veterinary diagnosis or treatment or used in a medical device;
(4) Used in pharmaceutical product manufacturing or quality control;
(5) Used for spectroscopy and photometric applications, such as ultraviolet-visible spectroscopy, molecular spectroscopy, atomic absorption spectroscopy, nondispersive infrared, Fourier transform infrared, medical analysis, ellipsometry, layer thickness measurement, process monitoring, or environmental monitoring;
(6) Used by academic and research institutions exclusively for conducting research projects and experiments; or
(7) Used to replace a lamp in previously manufactured motor vehicles.
[L 2023, c 225, pt of §2]
As used in this part, unless the context otherwise requires:
"Authority" means the Hawaii green infrastructure authority as established under section 196-63.
"Energy services agreement" means the Green Energy Money $aver Energy Services Participant Agreement, which is similar to a solar lease or solar power purchase agreement.
"Low- and moderate-income household" means a household with income equal to or less than one hundred forty per cent of the area median income as determined by the United States Department of Housing and Urban Development.
"Solar energy system" or "energy project" means any identifiable facility, equipment, apparatus, or the like, which may include an energy storage system, that converts solar energy to useful thermal or electrical energy for heating, cooling, or reducing the use of other types of energy that are dependent on fossil fuel for their generation.
[L 2024, c 40, pt of §1]
(a) There is established the solar hui program to be administered by the authority. The solar hui program shall provide a multi-family residential property owner the opportunity to invest in the solar hui investment fund established pursuant to section 196-113. Multi-family residential property owners who invest in the solar hui investment fund under the solar hui program may be eligible to receive:
(1) Any tax credit associated with the installation of a solar energy system, subject to the requirements of the tax credit; and
(2) Any income derived from:
(A) Repayment of an energy services agreement with the low- and moderate-income household ratepayer provided by the solar hui investment fund; or
(B) Generation of energy from an energy project entered into by the fund manager.
(b) There is established within the authority the position of the solar hui program fund manager, which shall be a full-time equivalent position exempt from chapter 76. The solar hui program fund manager shall:
(1) Manage the solar hui investment fund established pursuant to section 196-113;
(2) Market the solar hui program to multi-family residential property owners; and
(3) Select solar contractors for energy projects.
(c) The authority shall adopt rules pursuant to chapter 91 to carry out the purposes of this part.
[L 2024, c 40, pt of §1]
(a) There is established the solar hui investment fund into which shall be deposited the following:
(1) Appropriations by the legislature;
(2) Investments received from multi-family residential property owners;
(3) All other money received for the fund from any other source; and
(4) All income and interest earned or accrued on moneys deposited into the fund.
(b) The solar hui investment fund may be used to:
(1) Enter into energy services agreements with low- and moderate-income households to install a solar energy system;
(2) Invest in energy projects;
(3) Pay administrative costs of the solar hui program; or
(4) Pay any other costs related to the solar hui program.
[L 2024, c 40, pt of §1]
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