HB 977: Energy Financing; Clean Energy and Energy Efficiency Revolving Loan Fund; Underserved Ratepayers; Appropriation

A BILL FOR AN ACT

RELATING TO ENERGY FINANCING.

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

     SECTION 1.  The legislature finds that rooftop solar plus storage systems will help the State meet its one hundred per cent renewable energy portfolio standard goal by 2045, while reducing carbon emissions and the State's reliance on imported fossil fuels and helping to stabilize the grid.  The legislature further finds that the green energy money saver on-bill financing program has filled the financing gap in providing inclusive, accessible, and affordable financing of rooftop solar plus storage systems to reduce energy-burdened, underserved ratepayers.

     The legislature further finds that as of January 2025, the Hawaii green infrastructure authority has over one thousand two hundred applications in process, which are anticipated to consume remaining available funding.  Additionally, while the Hawaii green infrastructure authority was awarded $62,000,000 in federal solar-for-all loan funds, these funds are restricted to financing only low-income households and a limited number of disadvantaged census tracts, leaving moderate-income households and other underserved ratepayers, including nonprofits and small businesses, without access to financing.

     The purpose of this Act is to provide a capital infusion to the clean energy and energy efficiency revolving loan fund for the Hawaii green infrastructure authority to finance projects for underserved ratepayers, in addition to other eligible borrowers.

     SECTION 2.  Section 196-61, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Underserved ratepayer" means state and local governments, low- and moderate-income homeowners, renters, nonprofits, small businesses as defined by the United States Small Business Administration, and multi-family rental projects."

     SECTION 3.  Section 196-65.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(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 underserved ratepayers; eligible public, private, and nonprofit borrowers for clean energy investments; or other authorized uses[, or both,]; or a combination thereof, 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."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 to be deposited into the clean energy and energy efficiency revolving loan fund established pursuant to section 196-65.5, Hawaii Revised Statutes.

     SECTION 5.  There is appropriated out of the clean energy and energy efficiency revolving loan fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 to provide loans or other financial assistance to eligible borrowers for clean energy investments or other authorized uses; provided that the appropriation shall not lapse at the end of the fiscal year for which the appropriation is made.

     The sum appropriated shall be expended by the Hawaii green infrastructure authority for the purposes of this Act.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 3000.

Report Title:

Energy Financing; Clean Energy and Energy Efficiency Revolving Loan Fund; Underserved Ratepayers; Appropriation

Description:

Authorizes the Clean Energy and Energy Efficiency Revolving Loan Fund to be used to provide financial assistance to underserved ratepayers, in addition to other eligible borrowers.  Appropriates funds into and out of the Clean Energy and Energy Efficiency Revolving Loan Fund.  Effective 7/1/3000.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO ENERGY FINANCING.

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

     SECTION 1.  The legislature finds that rooftop solar plus storage systems will help the State meet its one hundred per cent renewable energy portfolio standard goal by 2045, while reducing carbon emissions and our reliance on imported fossil fuels and helping to stabilize the grid.  The legislature further finds that the green energy money saver on-bill financing program has filled the financing gap in providing inclusive, accessible, and affordable financing of rooftop solar plus storage systems to reduce energy-burdened, underserved ratepayers.

     The legislature further finds that as of January 2025, the Hawaii green infrastructure authority has over one thousand two hundred applications in process, which are anticipated to consume remaining available funding.  Additionally, while the Hawaii green infrastructure authority was awarded $62,000,000 in federal solar-for-all loan funds, these funds are restricted to financing only low-income households and a limited number of disadvantaged census tracts, leaving moderate-income households and other underserved ratepayers, including nonprofits and small businesses, without access to financing.

     The purpose of this Act is to provide a capital infusion to the clean energy and energy efficiency revolving loan fund for the Hawaii green infrastructure authority to finance projects for underserved ratepayers, in addition to other eligible borrowers.

     SECTION 2.  Section 196-61, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Underserved ratepayer" means state and local governments, low- and moderate-income homeowners, renters, nonprofits, small businesses as defined by the United States Small Business Administration, and multi-family rental projects."

     SECTION 3.  Section 196-65.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(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 underserved ratepayers, 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."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 to be deposited into the clean energy and energy efficiency revolving loan fund established pursuant to section 196-65.5, Hawaii Revised Statutes.

     SECTION 5.  There is appropriated out of the clean energy and energy efficiency revolving loan fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 to provide loans or other financial assistance to eligible borrowers for clean energy investments or other authorized uses; provided that the appropriation shall not lapse at the end of the fiscal year for which the appropriation is made.

     The sum appropriated shall be expended by the Hawaii green infrastructure authority for the purposes of this Act.

     SECTION 6.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 3000.

Report Title:

Energy Financing; Energy and Energy Efficiency Revolving Loan Fund; Underserved Ratepayers; Appropriation

Description:

Authorizes the Clean Energy and Energy Efficiency Revolving Loan Fund to be used to provide financial assistance to underserved ratepayers, in addition to other eligible borrowers.  Appropriates funds into and out of the Clean Energy and Energy Efficiency Revolving Loan Fund.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to energy financing.

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

     SECTION 1.  The legislature finds that rooftop solar plus storage systems will help the State meet its one hundred per cent renewable energy portfolio standard goal by 2045, while reducing carbon emissions and our reliance on imported fossil fuels and helping to stabilize the grid.  The legislature further finds that the green energy money $aver on-bill financing program has filled the financing gap in providing inclusive, accessible, and affordable financing of rooftop solar plus storage systems to reduce energy-burdened, underserved ratepayers.

     The legislature further finds that as of January 2025, the Hawaii green infrastructure authority has over one thousand two hundred applications in process, which are anticipated to consume remaining available funding.  Additionally, while the Hawaii green infrastructure authority was awarded $62,000,000 in federal solar-for-all loan funds, these funds are restricted to financing only low-income households and a limited number of disadvantaged census tracts, leaving moderate-income households and other underserved ratepayers, including nonprofits and small businesses, without access to financing.

     The purpose of this Act is to provide a capital infusion to the clean energy and energy efficiency revolving loan fund for the Hawaii green infrastructure authority to finance projects for underserved ratepayers, in addition to other eligible borrowers.

     SECTION 2.  Section 196-161, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Underserved ratepayer" means state and local governments, low- and moderate-income homeowners, renters, nonprofits, small businesses as defined by the United States Small Business Administration, and multi-family rental projects."

     SECTION 3.  Section 196-65.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(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 underserved ratepayers, 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."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 to be deposited into the clean energy and energy efficiency revolving loan fund established pursuant to section 196-65.5, Hawaii Revised Statutes.

     SECTION 5.  There is appropriated out of the clean energy and energy efficiency revolving loan fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 to provide loans or other financial assistance to eligible borrowers for clean energy investments or other authorized uses; provided that the appropriation shall not lapse at the end of the fiscal year for which the appropriation is made.

     The sum appropriated shall be expended by the Hawaii green infrastructure authority for the purposes of this Act.

     SECTION 6.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2025.

Report Title:

Energy Financing; Energy and Energy Efficiency Revolving Loan Fund; Underserved Ratepayers; Appropriation

Description:

Authorizes the Clean Energy and Energy Efficiency Revolving Loan Fund to be used to provide financial assistance to underserved ratepayers, in addition to other eligible borrowers.  Appropriates funds into and out of the Clean Energy and Energy Efficiency Revolving Loan Fund.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 1116

Honolulu, Hawaii

RE:    H.B. No. 977

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Energy and Intergovernmental Affairs, to which was referred H.B. No. 977, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY FINANCING,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Authorize the Clean Energy and Energy Efficiency Revolving Loan Fund to be used to provide financial assistance to underserved ratepayers, in addition to other eligible borrowers; and

     (2)  Appropriate funds into and out of the Clean Energy and Energy Efficiency Revolving Loan Fund to provide loans or other financial assistance to eligible borrowers for clean energy investments or other authorized uses.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Public Utilities Commission; Hawaii Green Infrastructure Authority; Hawaiʻi Climate Change Mitigation and Adaption Commission; Office of Climate Change, Sustainability, and Resiliency of the City and County of Honolulu; Holu Hou Energy; Kauai Climate Action Coalition; Green Party of Hawaiʻi; Climate Protectors Hawaiʻi; PV Tech; Church of the Crossroads; Hawaii Solar Energy Association; Coalition Earth; Shifted Energy; Alternate Energy Inc.; Star Energy Systems; Energy Advisors; 350Hawaii.org; LegaSea Energy; Council for Native Hawaiian Advancement; Hawaiʻi Energy; Photonworks Engineering LLP; Malama Solar; Green Power Projects LLC; Grand Solar, Inc.; Solar Services Hawaii LLP; Sunrun; and thirty-three individuals.

     Your Committee finds that low- to moderate-income households pay a disproportionately higher percentage of their income towards energy bills and do not have the financial means to pursue the installation of renewable energy technologies.  This measure seeks to address the financial barrier preventing many struggling households and other underserved ratepayers from reducing their energy burdens and moving towards energy independence.  According to testimony received by your Committee, this measure avoids increasing utility bills for all ratepayers and additional financial burdens on the underserved population that this measure is intended to support.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Energy and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 977, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 977, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Energy and Intergovernmental Affairs,

STAND. COM. REP. NO.  887

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 977

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 977, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY FINANCING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Authorize the Clean Energy and Energy Efficiency Revolving Loan Fund to be used to provide financial assistance to underserved ratepayers, in addition to other eligible borrowers; and

     (2)  Appropriate funds into and out of the Clean Energy and Energy Efficiency Revolving Loan Fund.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Hawaii Green Infrastructure Authority; Climate Protectors Hawaii; Coalition Earth; 350Hawaii.org; PV Tech; Northshore Holdings Group Inc.; Revolusun Smart Home; Holu Hou Energy; Inter-Island Solar Supply; and six individuals.  Your Committee received comments on this measure from the Hawaiʻi Climate Change Mitigation and Adaptation Commission; Public Utilities Commission; and Hawaiʻi Energy.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 977, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  349

Honolulu, Hawaii

                , 2025

RE:   H.B. No. 977

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Energy & Environmental Protection, to which was referred H.B. No. 977 entitled:

"A BILL FOR AN ACT RELATING TO ENERGY FINANCING,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Authorize the Clean Energy and Energy Efficiency Revolving Loan Fund to be used to provide financial assistance to underserved ratepayers, in addition to other eligible borrowers; and

     (2)  Appropriate funds into and out of the Clean Energy and Energy Efficiency Revolving Loan Fund.

     Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs; Hawaii Green Infrastructure Authority; Hawaiʻi Climate Change Mitigation & Adaptation Commission; Sierra Club of Hawaiʻi; Climate Protectors Hawaiʻi; Inter-Island Solar Supply; Shifted Energy; Alternate Energy Hawaii; HNU-Energy; 350Hawaii.org; Coalition Earth; and four individuals.

     Your Committee finds that rooftop solar plus storage systems will help the State meet its one hundred percent renewable energy portfolio standard goal by 2045 and help reduce reliance on imported fossil fuels.  Your Committee further finds that while the Hawaii Green Infrastructure Authority was awarded $62,000,000 in federal solar-for-all loan funds, these funds are restricted to low-income households, leaving moderate-income households and other underserved ratepayers without access to financing for these solar systems.  This measure addresses this need by authorizing the Clean Energy and Energy Efficiency Revolving Loan Fund to be used to provide financial assistance to underserved ratepayers.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider the appropriation amount of $50,000,000 to be deposited into and appropriated out of the Clean Energy and Energy Efficiency Revolving Loan Fund.

     As affirmed by the record of votes of the members of your Committee on Energy & Environmental Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 977, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 977, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Energy & Environmental Protection,