Bill Text: HI SB2283 | 2018 | Regular Session | Introduced

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Bill Title: Relating To Energy Efficiency.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2018-01-22 - Referred to TRE/HOU, WAM. [SB2283 Detail]

Download: Hawaii-2018-SB2283-Introduced.html

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THE SENATE	S.B. NO.	2283
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

A BILL FOR AN ACT

 

 

Relating to Energy Efficiency.

 

 

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

 

     SECTION 1.  The legislature finds that Act 204, Session Laws of Hawaii 2008 (Act 204), was enacted for the benefit of consumers, requiring that new single-family homes be built with a solar water heater system except in limited circumstances.  The idea behind requiring solar water heaters was to lower energy costs for consumers.  That Act, known as the "solar water heater mandate", also created a variance process for single-family dwellings that do not include a solar water heater system that meets the standards; a single family dwelling can be built without a solar water heater if:

     (1)  Installation is impractical due to poor solar resource;

     (2)  Installation is cost-prohibitive based upon a life cycle cost-benefit analysis;

     (3)  A renewable energy technology system, such as a solar photovoltaic system, is substituted for use as the primary energy source for heating water; or

     (4)  A demand water heater device approved by Underwriter Laboratories, Inc., is installed; provided that at least one other gas appliance is installed in the dwelling.

     The legislature quickly found that the variance provisions of Act 204 could be used to circumvent the objectives of Act 204 to the detriment of consumers, and attempted to clarify certain elements of the solar water heater mandate with part VII of Act 155, Session Laws of Hawaii 2009 (Act 155).  In Act 155, the legislature clarified that the legislature "intended for a consumer to have the option to use gas appliances with the full knowledge that such a system may be more costly and less efficient".  The legislature further noted that in order to reduce attempts to circumvent Act 204, "if the potential variance applicant is not the party who will ultimately pay for the energy cost consumption, then only [variance exceptions (1), (2), or (3) under the solar water mandate] should apply".

     Despite the intent and additional clarification that variances granted under the solar water heater mandate be "rarely granted" and that variances based on the "demand water heater device" provision be even rarer, the legislature finds that the variance process is being used to circumvent the legislature's objectives, particularly with respect to the "demand water heater device".  Through December 2017, of the approximately 5,600 variance requests filed, almost all have been granted, and over 5,100 of those filed requests have been for demand water heaters.  Furthermore, the variance process is being misused such that it is providing benefits to unintended beneficiaries - over two thousand of the variance requests have been submitted by a single architect who ultimately does not incur the costs for energy consumption.

     The legislature therefore finds that it is necessary to amend the solar water heater mandate to implement the intent of Acts 204 and 155 to better protect consumers.  This need is particularly sharp at a time when substantial new residential tracts are being developed.

     Accordingly, the purpose of this Act is to provide housekeeping amendments to close the loophole allowing applicants to circumvent the legislature's stated objectives for solar water heating systems and ensure that the variance for a demand water heater may only be granted if a solar water heater or other renewable energy technology system is impracticable and cost-prohibitive.  In addition, a request for a variance for a demand water heater may only be granted if the applicant attests that the applicant will also be the resident-owner of the home.

     SECTION 2.  Section 196-6.5, Hawaii Revised Statutes, is amended to read as follows:

     "§196-6.5  Solar water heater system required for new single-family residential construction.  (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 coordinator approves a variance.  A variance application shall only be accepted if [submitted] signed 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 renewable gas-tankless instantaneous water heater that provides hot water only as it is needed[.] and has a Uniform Energy Factor of 0.93 or higher.

     (b)  All applications for variance under subsection (a)(4) shall also:

     (1)  Be signed by the applicant who shall be the owner and occupant of the dwelling and shall attest that the applicant shall pay the energy costs for heating water in the home; and

     (2)  Include an attestation by an architect or mechanical engineer licensed under chapter 464 demonstrating that installing a renewable energy technology system under subsection (a)(3) would be impracticable due to poor exposure to a renewable source of energy, like solar or wind energy, and cost-prohibitive based upon a life cycle cost-benefit analysis that incorporates the average residential utility bill and the cost of the new renewable energy technology system with a life cycle that does not exceed fifteen years.

     [(b)] (c)  A request for a variance shall be submitted to the coordinator on an application prescribed by the coordinator 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] subsections (a)[.] and (b).  The coordinator may exercise discretion in denying any variance application deemed incomplete or insufficient to satisfy the criteria in subsections (a) and (b).  A variance shall be deemed approved if not denied within thirty working days after receipt of the variance application.  The coordinator 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)] (d)  The director of business, economic development, and tourism may adopt rules pursuant to chapter 91 to [impose]:

     (1)  Impose and collect fees to cover the costs of administering variances under this section[.]; and

     (2)  Impose appropriate fines or penalties for false attestations in variance applications.

The fees[,] and fines, if any, shall be deposited into the energy security special fund established under section 201-12.8.

     [(d)] (e)  Nothing in this section shall preclude any county from establishing procedures and standards required to implement this section.

     [(e)] (f)  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."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2018.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Energy Efficiency; Solar Water Heater; Variance

 

Description:

Requires applicants to provide further documentation for using a demand water heater device in lieu of a solar water heater or renewable energy technology system.  Allows coordinator to exercise discretion in denying variance applications.

 

 

 

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