RELATING TO ENERGY ASSISTANCE.

HB789

HOUSE OF REPRESENTATIVES

H.B. NO.

789

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to energy assistance
.

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

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SECTION 1.
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The legislature finds that Hawaii's
electricity rates are among the highest in the nation, at close to three times
the national average, and vary based on availability of renewable resources,
power plants, fuel costs, and pricing regulations.
�
The 2022 report commissioned by Aloha United
Way, "ALICE in Hawaii:
�
2022 Facts
and Figures", states that forty-four per cent of households in the State
live below the ALICE (asset limited, income constrained, employed) threshold,
meaning that almost one-half of all families in Hawaii are struggling to make
ends meet, even though they are employed.
�

The number of electric utility customers in arrears and facing
disconnection is higher than before the COVID-19 pandemic, with thousands of
customers collectively owing millions of dollars.
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In addition, electricity needs are expected
to increase due to rising climate temperatures and associated home cooling
needs.

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During the
regular session of 2022, the legislature adopted Senate Concurrent Resolution
No. 242, S.D. 1, which requested the creation of a Hawaii state low-income home
energy assistance program (LIHEAP) working group.
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As noted in a December 2022 report to the
legislature submitted by the public utilities commission, the federal LIHEAP
administered by the department of human services, a program designed to provide
energy assistance to families, served fewer than nine thousand households in
Hawaii in 2020, or about two per cent of the State's population potentially
eligible for energy assistance based on income.
�

The State received the lowest amount of federal funding for federal
LIHEAP of all states in fiscal year 2021-2022.
�

According to estimates from the National Energy and Utility
Affordability Coalition, Hawaii received 0.14 per cent of federal LIHEAP funds
in fiscal year 2021-2022, roughly half of the next-lowest state.
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Funding for states is determined based on a
formula developed in 1984, which inherently favors states with large heating
needs and does not consider specific electricity prices within states.

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The
legislature further finds that in addition to the limited financial assistance
available through the department of human services from the federal LIHEAP
program,
the
public
utilities commission's
public benefits fee administrator
plays a vital role in
ensuring that all available state and federal benefits and rebate programs are
being utilized by providing opportunities and solutions for Hawaii residents
and businesses to save money and energy.
�

The legislature also finds that the State must commit to efforts that
provide assistance to low-income households that are directly impacted due to
the high cost of electricity.

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The
purpose of this Act is to establish within the department of human services a
Hawaii home energy assistance program similar to the federal LIHEAP program
that will allow participants to receive not only financial assistance to meet
their home energy needs but also valuable information and assistance from the public
utilities commission's
public benefits fee administrator
about making their homes
more energy efficient to reduce their cost of electricity.

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SECTION
2.
�
Chapter 346, Hawaii Revised Statutes,
is amended by adding a new section to part II to be appropriately designated
and to read as follows:

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"
�346-
�
Hawaii home energy assistance program;
established.
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(a)
�

There is established within the department the Hawaii home energy
assistance program.
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Subject to the
availability of program funds, the program may assist eligible households with
payment of the costs associated with meeting an eligible household's home
energy needs.

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(b)
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To apply for assistance through the Hawaii
home energy assistance program, a person shall submit an application on a form
prescribed by the department that includes, at a minimum, documentation to
prove that the person:

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(1)
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Is a resident of the State;

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(2)
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Has an active utilities account in the
State; and

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(3)
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Satisfies the income eligibility limit and
all other eligibility standards established by the department in rules adopted
pursuant to subsection (d).

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(c)
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The public benefits fee administrator established pursuant to section
269-122, in consultation with the department, shall provide information and
technical assistance about available energy efficiency programs to recipients,
including an energy audit at the request of a recipient, and assist recipients
with implementation of energy efficiency improvements, in accordance with
section 269-123(b).

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(d)
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The department shall adopt rules pursuant to chapter 91 to implement
this section.
"

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SECTION
3
.
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Section 269-123, Hawaii Revised Statutes, is
amended by amending subsection (b) to read as follows:

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"(b)
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The public benefits fee administrator's duties and responsibilities
shall be established by the public utilities commission by rule or order, and
may include:

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(1)
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Identifying,
developing, administering, promoting, implementing, and evaluating programs,
methods, and technologies that support energy-efficiency and demand-side
management programs;

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(2)
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Encouraging
the continuance or improvement of efficiencies made in the production,
delivery, and use of energy-efficiency and demand-side management programs and
services;

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(3)
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Using
the energy-efficiency expertise and capabilities that have developed or may
develop in the State and consulting with state agency experts;

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(4)
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Promoting
program initiatives, incentives, and market strategies that address the needs
of persons facing the most significant barriers to participation;

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(5)
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Promoting
coordinated program delivery, including coordination with electric public
utilities regarding the delivery of low-income home energy assistance, other
demand-side management or energy-efficiency programs, and any utility programs;

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(6)
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Consideration
of innovative approaches to delivering demand-side management and
energy-efficiency services, including strategies to encourage third-party
financing and customer contributions to the cost of demand-side management and
energy-efficiency services;

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(7)
�
Submitting,
to the public utilities commission for review and approval, a multi-year budget
and planning cycle that promotes program improvement, program stability, and
maturation of programs and delivery resources; [
and
]

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(8)
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Educating
and training appliance manufacturers, distributors, and retailers of appliances
covered under part VI of chapter 196 about the appliance efficiency standards
established under that part to improve compliance[
.
]
; and

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(9)
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Providing
information and technical assistance about available energy efficiency programs
to recipients of the Hawaii home energy assistance program, including an energy
audit if requested by the recipient, and assisting the recipients with
implementation of energy efficiency improvements.
"

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SECTION
4.
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There is appropriated out of the
general revenues of the State of Hawaii the sum of $5,000,000 or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 to establish one
full-time equivalent (1.0 FTE) position and two full-time equivalent (2.0 FTE) temporary
positions, make system modifications, and contract for services for the
purposes of implementing the Hawaii home energy assistance program.

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The sums

appropriated shall be expended by the department
of human services for the purposes of this Act.

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SECTION
5.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION 6.
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This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

DHS; PUC;
Hawaii Home Energy Assistance Program; Appropriation

Description:

Establishes
the Hawaii Home Energy Assistance Program within the Department of Human
Services to assist households in paying their energy bills.
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Requires the Public Utilities Commission's Public
Benefits Fee Administrator to provide information and technical assistance
about available energy efficiency programs to recipients of the program.
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Appropriates funds.

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