Bill Text: HI SB1121 | 2017 | Regular Session | Introduced

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Bill Title: Relating To Energy Efficiency.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-01-31 - The committee(s) on TRE deleted the measure from the public hearing scheduled on 02-03-17 1:15PM in conference room 225. [SB1121 Detail]

Download: Hawaii-2017-SB1121-Introduced.html

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THE SENATE	S.B. NO.	1121
TWENTY-NINTH LEGISLATURE, 2017
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 this body passed Act 204, Session Laws of Hawaii 2008, which for the benefit of consumers required that new homes utilize solar water heating except in narrowly limited circumstances.  That Act, known as the "solar water heater mandate", also created a variance process for non-compliant solar water heaters.  For the reasons described herein, the legislature finds that the variance provision currently utilized in the solar water heater mandate can be used to circumvent the objectives of Act 204 to the detriment of consumers.

     In 2009, attempting in part to clarify elements of Act 204, Session Laws of Hawaii 2008, the legislature passed Act 155, Session Laws of Hawaii 2009.  Act 155 explained that in passing Act 204, the legislature "found that retrofitting a home for a solar water heater after [the home] was constructed was more costly, and that such upfront costs . . . were substantial barriers for the average consumer."  However, the legislature further explained that "[t]he financial barriers can be addressed . . . by including the installation of a solar water heater into the purchase price and mortgage of a home, where the cost of the system may pay for itself immediately."

     Part VII of Act 155 focused on clarifying the solar water heater mandate created under Act 204.  The solar water heater mandate included a variance process by which 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 finds that despite the legislature's intent that variances granted under the solar water heater mandate be "rarely granted", the variance process is being used to circumvent the legislature's objectives.  Moreover, the legislature intended that a variance based on the "demand water heater device" provision be even rarer, stating "if the potential variance applicant is not the party who will ultimately pay for the energy cost consumption, then only [variance exceptions (1)-(3) under the solar water mandate] should apply".  However, through December 2016, 4,450 variance requests have been filed and more than ninety-nine per cent of those requests have been granted, and nearly ninety-four per cent of those requests have been for demand water heaters.  In addition, the variance process is being misused such that it is providing benefits to unintended beneficiaries.  Over 1,750 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 solar water heating is impracticable and cost-prohibitive, and if no renewable energy technology system can be substituted for use as the primary energy source for heating water.  In addition, a request for a variance for a demand water heater may only be granted if 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 gas-tankless instantaneous water heater that provides hot water only as it is needed.

     (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 a variance under subsection (a)(3) would be impracticable and cost-prohibitive in accordance with subsections (a)(1) and (a)(2).

     [(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 (a).  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 and collect fees to cover the costs of administering variances under this section[.], and to impose appropriate penalties or fines for false attestations in variance applications.  The fees, fines, or penalties, 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, 2017.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Energy; Solar Water Heater Mandate; Variance

 

Description:

Amends the solar water heater mandate to ensure that the variance for a demand water heater may only be granted if solar water heating is impracticable and cost-prohibitive, and if no renewable energy technology system can be substituted for use as the primary energy source for heating water.  Clarifies that 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.

 

 

 

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