Model Energy Code

Specifies that Model Energy Code standards for residential
buildings shall apply to previously unoccupied new residential
real property sold after 07/01/01.

THE SENATE                              S.B. NO.           2253
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT


 1      SECTION 1.  The legislature finds that the development,
 2 management, efficient consumption, and conservation of
 3 residential energy resources are of prime importance throughout
 4 Hawaii.  Energy is a key factor shaping Hawaii's economy,
 5 environment, and standard of living.  In 1997, isle residents and
 6 businesses spent about $2,760,000,000 on energy, or eight per
 7 cent of the $34,000,000,000 gross state product.  This amounts to
 8 $2,139 per capita, or 8.2 per cent of Hawaii's average per capita
 9 annual income.  Hawaii residents paid the fifth highest overall
10 energy prices in the nation in 1995, thirty-three per cent higher
11 than the national average.  Moreover, Hawaii ranked third highest
12 in electricity prices, thirty-four per cent above the national
13 average.
14      Some implications of Hawaii's energy situation are not as
15 obvious as direct energy costs.  Hawaii depends on oil for
16 eighty-eight per cent of its energy, more than any other state.
17 World oil supplies are finite and prices are subject to sudden,
18 extreme fluctuations which can threaten the health of Hawaii's
19 economy.  Oil endangers Hawaii's fragile environment more than
20 most other fuels.  Dollars spent for imported energy leave the

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 1 islands and are not available to the local economy.
 2      While the State has long recognized its dependence on oil
 3 and the need to diversify its energy base, and much progress has
 4 been made, more constructive steps need to be taken.  When
 5 reductions in energy use are accomplished through increases in
 6 efficiency, the economy may continue to expand.  In order to
 7 provide a stable foundation for Hawaii's economy, diversification
 8 of energy supplies and a continued emphasis on efficiency of
 9 energy use are essential.
10      The legislature finds that one way to increase energy
11 efficiency is to require the standards for residential buildings
12 in the Model Energy Code to apply to all new residential real
13 property.  Hawaii's Model Energy Code is a building energy
14 efficiency standard for the State.  Many parts of the code have
15 been developed specifically for the unique conditions of the
16 islands.  The code includes a set of requirements for the energy-
17 efficient design of buildings and building systems.  These
18 requirements assure the application of cost-effective design
19 practices and technologies which minimize energy consumption
20 without sacrificing either the comfort or productivity of the
21 occupants.
22      The underlying intent of the code is to save energy in
23 buildings.  Since increases in oil prices can quickly and

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                                     S.B. NO.           2253

 1 dramatically impact the state's economy, it is sound public
 2 policy to encourage the design of the most efficient buildings
 3 possible.  While the code stops short of requiring the most
 4 efficient design possible, it does require a minimum level of
 5 energy efficiency that is easily cost effective in all sectors of
 6 the economy.
 7      The requirements developed for the code are based on cost
 8 effectiveness.  The requirements are intended to provide a simple
 9 payback period of less than ten years, meaning that the
10 additional cost due to a requirement is less than ten times the
11 annual energy savings.  The code is expected to save about
12 $1,100,000 per year in consumer energy costs.  These savings are
13 roughly equivalent to eleven thousand six hundred megawatt-hours
14 of electricity or twenty-one thousand barrels of oil per year.
15 The cumulative energy savings are estimated to reach one hundred
16 seventy-four thousand barrels per year in the year 2001 and three
17 hundred fifty thousand barrels in 2011.
18      In addition, as the State continues to grow, there will be
19 new demands for energy resources that must be met through the
20 construction of new electric generating facilities or
21 alternatively through energy efficiency measures.  The peak
22 electricity demand savings are estimated to be about 2.8
23 megawatts per year, reaching twenty-five megawatts by 2001 and

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                                     S.B. NO.           2253

 1 fifty megawatts in 2011.  The savings cancel out the need to
 2 supply an equivalent amount of new electric power.
 3      Despite these savings, Hawaii's model energy code has not
 4 been generally implemented by all of the counties with respect to
 5 residential buildings.  The legislature finds that the overall
 6 cost savings that could be achieved through the implementation of
 7 the code by each of the counties for residences far outweighs the
 8 minimal additional up front charges in building materials that
 9 would be required to implement these provisions.  Accordingly,
10 the purpose of this Act is to require the implementation of
11 Hawaii's Model Energy Code by the counties with respect to
12 previously unoccupied new residential buildings.
13      SECTION 2.  Section 46-19.5, Hawaii Revised Statutes, is
14 amended by amending subsection (a) to read as follows:
15      "(a)  Energy efficiency building standards based on the
16 design requirements for improvements of energy utilization in
17 buildings developed and approved by the American Society of
18 Heating, Refrigerating and Air-Conditioning Engineers,
19 Incorporated (ASHRAE 90.1), shall be incorporated by each county
20 into its building code by October 24, 1994.  The standards shall
21 apply to all buildings, including state buildings; provided that
22 [the]:
23      (1)  The standards for renovated buildings shall only apply

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                                     S.B. NO.           2253

 1           to the renovated system or elements of the building[.];
 2           and
 3      (2)  The standards for residential buildings shall apply to
 4           all previously unoccupied new residential buildings
 5           sold after July 1, 2001.  As used in this paragraph,
 6           "residential buildings" means multifamily dwelling
 7           units of three stories or fewer of habitable space
 8           above grade as well as all single and two family
 9           dwellings.  Residential building standards shall be
10           those sections of the Hawaii Model Energy Code, July
11           1993 edition, which apply to low-rise residential
12           buildings."
13      SECTION 3.  Statutory material to be repealed is bracketed.
14 New statutory material is underscored.
15      SECTION 4.  This Act shall take effect upon its approval.
17                           INTRODUCED BY:_________________________