ON THE HOME FRONT

President Cecily Ching would like to share some information on several important bills that have been introduced and can significantly impact our industry.

Bill 31 (2007): Establishing a Real Property Tax Exemption

To view the bill, click: here

Bill HD2040 (Parts I-VI): “Relating to Hawaii’s Economy”. Mandates certain conditions applicable to certain commercial and industrial leases (Part I). Creates a department of planning and sustainability by combining the office of planning, commission on water resource management, energy resources coordinator responsibilities, land use commission, office of environmental quality control, and Hawaii community development authority (Parts II-VI). (HB2040 SD2). This bill affects land owners (Lessors) who have entered into long term leases for properties zoned for industrial and commercial use. The Lessees would benefit from this legislation. Owners of office buildings located on commercial leasehold property are Lessees in this scenario and would benefit if this bill was passed as written. The bill appears to be moving through the legislature and has passed several Readings.

To view the bill, click: http://capitol.hawaii.gov/session2008/bills/HB2040_SD2_.htm

Bill 87 (2007): (City Council): A Bill for an Ordinance requiring All New Buildings to be LEED Platinum Certified by 2014. Bill 87 would require all new buildings to be LEED Silver certified by 2010, LEED Gold certified by 2012, and LEED Platinum certified by 2014. Presently, Revised Ordinances of Honolulu § 2-9.3 (2006), requires only county buildings to implement LEED Silver if doing so is not “infeasible or inappropriate.” Bill has been deferred to Gary Okino’s Planning & Sustainability Committee which will decide whether or not the measure should be heard.

To view the bill, click: http://www4.honolulu.gov/docushare/dsweb/Get/Document-68384/2sf_dd7m.pdf

Bill 31 (2007) (City Council): A Bill for an Ordinance establishing property tax exemption for seven (7) years for commercial renewable energy and recycling facilities. Qualifying facility improvements means the construction of new commercial facilities, construction of additions or renovations to existing commercial facilities, that is primarily designed for the production of renewable energy sources, conversion of renewable energy resources into electricity or other energy products, and reprocessing of recyclable materials. Any incremental increase in the valuation of real property primarily attributable to qualifying facility improvements shall be exempt from real property taxes for a period of seven (7) years following the completion of the qualifying facility improvements commencing on or after July 1, 2008.

Bill 26 (2007), CD2 (City Council): To Amend Chapter 16 of the Revised Ordinances of Honolulu 1990, as Amended, Relating to the Building Code. The purpose of this ordinance is to amend the city building Code by adopting the 2003 editions of the International Building Code and International Residential Code for one- and two-family dwellings with local amendments, and by amending city building code provisions governing relocation of buildings, factory-built housing, and termite-infested lumber, respectively. This Bill has been deferred in the Budget Committee.

To view the bill, click: http://www4.honolulu.gov/docushare/dsweb/Get/Document-64392/ORD07-22B.pdf

Bill HB3237: A Bill for an Act relating to Renewable Energy to significantly decrease reliance on fossil fuels and increase Hawaii’s energy self-sufficiency by increasing public participation in the public utility commission process while decreasing the use of paper, requires solar water heaters for new and existing buildings under certain conditions, increases renewal energy rebates, and establishes an ocean energy council to develop ocean energy systems, among other purposes. The bill, which Provides a comprehensive approach towards reducing greenhouse gas emissions and improving Hawaii's energy self-sufficiency, was introduced and passed first reading, and has been referred to other Committees.

To view the bill, click: http://www.capitol.hawaii.gov/session2008/Bills/HB3237_.htm