RELATING TO ENERGY ASSISTANCE.

SB3103

THE SENATE

S.B. NO.

3103

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO ENERGY ASSISTANCE.

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

����
SECTION 1.
�
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 2024 report commissioned by the Aloha
United Way, "ALICE in Hawaii:
�
2024
Facts and Figures", states that two in five households, or forty per cent,
in the State live below the ALICE (asset limited, income constrained, employed)
threshold, meaning that almost 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 coronavirus disease 2019 (COVID-19)
pandemic, with thousands of customers collectively owing millions of dollars.
�
In addition, electricity needs are expected
to increase due to rising climate temperatures and associated home cooling
needs.

����
In 2022, the legislature adopted senate concurrent
resolution No. 242, S.D. 1 (2022), which requested the public utilities
commission, in collaboration with the department of commerce and consumer
affairs' division of consumer advocacy, to convene a working group to create a
Hawaii low-income home energy assistance program.
�
As noted in a December 2022 report to the
legislature submitted by the public utilities commission, the federal low-income
home energy assistance program funded by the United States Department of Health
and Human Services and 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 low-income home energy assistance program 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 low-income home energy assistance
program funds in fiscal year 2021-2022, roughly half of the next-lowest state.
�
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.

����
The legislature further finds that, in
addition to the limited financial assistance available through the United
States Department of Health and Human Services from the federal low-income home
energy assistance program, the public benefits fee administrator of the public
utilities commission 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 providing assistance to low-income households
that are directly impacted due to the high cost of electricity.

����
Accordingly, the purpose of this Act is
to provide eligible households with assistance related to
energy costs by:

����
(1)
�
Establishing a Hawaii home energy assistance
program within the department of human services and authorizing the department
of human services to assist eligible households with the payment of costs
associated with meeting their home energy needs; and

����
(2)
�
Requiring the public benefits fee
administrator of the public utilities commission to provide recipients of the
Hawaii home energy assistance program with information and support designed to
enhance home energy efficiency and reduce electricity costs.

����
SECTION 2.
�

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

����
"
�346-
��
�
�
Hawaii home energy assistance program;
established.
�
(a)
�
There is established within the department
the Hawaii home energy assistance program.
�

Subject to the availability of program funds, the program may assist
eligible households with payment of costs associated with meeting an eligible
household's home energy needs.

����
(b)
�
Any person who is in need of public assistance
may submit an application on a form prescribed by the department that includes,
at a minimum, documentation to prove that the person:

����
(1)
�
Is
a resident of the State;

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

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

����
(c)
�

The public utilities commission public benefits fee administrator, 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).

����
(d)
�

The department shall adopt rules pursuant to chapter 91 for purposes of
this section.
"

����
SECTION 3.
�

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

����
"(b)
�

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

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

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

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

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

����
(5)
�
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;

����
(6)
�
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;

����
(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
]

����
(8)
�
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

����
(9)
�

Providing information and technical assistance about available energy
efficiency programs to recipients of the Hawaii home energy assistance program
established pursuant to section 346-
��
,
including an energy audit if requested by the recipient, and assisting the
recipients with implementation of energy efficiency improvements.
"

����
SECTION 4.
�

There is appropriated out of the general revenues of the State of Hawaii
the sum of $1,500,000 or so much thereof as may be necessary for fiscal year
2026-2027 for the purposes of implementing the Hawaii home energy assistance
program established pursuant to section 2 of this Act.

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

����
SECTION 5.
�

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

����
SECTION 6.
�

This Act, upon its approval, shall take effect on July 1, 2026.

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 qualifying households in paying their
energy bills.
�
Requires the Public
Utilities Commission Public Benefits Fee Administrator to provide certain
information and assistance to recipients of the program.

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