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Blue Planet Foundation Page 2 of 3

island over the thirty-year period, regardless of the cost of electricity, or of oil or other fossil fuels, at a specific time. Achieving the legislative intent of this law is critical to realize the benefits of the policy for new home owners. Building new housing with solar will increases the efficiency and affordability of new homes built in Hawai'i. Solar water heaters are among the most effective means of reducing the high electricity cost burden that residents now endure. The solar roofs law makes the cost of living more affordable by slashing the electric utility bill of an average new home by 30 to 40 percent—saving over $1000 annually for an average household on Kaua‘i. With average household use, most solar water heaters will pay for themselves in energy savings between 3 and 7 years. When systems are built into a home during construction—and when many systems are installed simultaneously in a larger subdivision and economies of scale are realized—solar water heaters are less expensive than an electric heater retrofit. When rolled into a 30-year mortgage, homeowners with solar will start saving money on day one. Even with other financing schemes, solar is a no-brainer investment that brings down the monthly cost of living. If current trends continue, the cost of residential electricity will continue to grow, making electric water heating even more expensive—and solar water heating more of a “no-brainer.” The cost of living is a top-of-mind issue for many in Hawai‘i. Hawaii’s solar roofs mandate makes new home ownership more affordable by reducing the monthly utility burden. To better achieve the legislative intent of the solar roofs mandate, Blue Planet Foundation respectfully asks that this bill be amended to contain the language provided below. Thank you for the opportunity to testify. SUGGESTED AMENDMENTS §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, at the coordinator’s discretion, [the coordinator approves ]a variance is approved. A variance application shall only be accepted if submitted by an architect or mechanical engineer licensed under chapter 464, who attests that:

(1) Installation is impracticable due to poor solar resource;

Blue Planet Foundation Page 3 of 3

(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.] a North American certification entity [is] will be installed that would better address the state’s renewable energy goals expressed in section 269-92 because of unique aspects of the proposed single-family dwelling; provided that at least one other gas appliance, not including decorative lighting or outdoor grilling equipment, [is] will be 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) A request for a variance shall be submitted to the coordinator on an application prescribed by the coordinator and shall include the name of the dwelling owner, a description of the location of the property, and justification for the approval of a variance using the criteria established in subsection (a). 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) 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. The fees, if any, shall be deposited into the energy security special fund established under section 201-12.8. (d) Nothing in this section shall preclude any county from establishing procedures and standards required to implement this section.