NEWLY ISSUED HAWAII PUBLIC UTILITIES COMMISSION’S DECISIONS ALIGNED WITH STATE’S LONG-TERM ENERGY GOALS

For Immediate Release: April 29, 2014

HONOLULU — The Department of Business, Economic Development and Tourism’s (DBEDT) State Energy Office and Gov. Neil Abercrombie commended the Hawaii Public Utilities Commission’s (PUC) issuance of four major decisions and orders today.

The PUC’s decisions and orders relate to Integrated Resource Planning (IRP), Reliability Standards Working Group (RSWG), Policy Statement and Order Regarding Demand Response (DR) Programs, and Maui Electric Company (MECO) Rate Case Follow Up.

“The PUC’s issuance of these four crucial decisions and orders are major strides forward in achieving the state’s long-term economic and clean energy goals,” said Gov. Neil Abercrombie. “These actions provide clarity and purpose, and are vital steps towards reducing our state’s dependence on imported fossil fuels. In addition, the white paper, which provides future energy planning and project review, offers a strategic framework to support Hawaii’s transformation to a clean energy economy.”

The PUC’s orders provide guidance to the Hawaiian Electric Companies to aggressively pursue energy cost reductions and proactively invest in and respond to emerging renewable energy integration challenges.

“DBEDT commends the PUC for carrying out the state’s energy policy directives in pursuit of maximizing the deployment of clean energy production,” said Richard Lim, DBEDT director.  “The orders provide HECO a clear road map and serve as a foundational platform to allow the company to aggressively pursue major initiatives to build a customer centric distribution system that facilitates increased levels of both distributed generation and utility scale renewables, which have already proven to be cost effective.”

“The PUC’s decisions and orders support the state’s quest to enable an integrated energy ecosystem based on maximizing renewable energy and energy efficiency measures,” added State Energy Administrator Mark Glick.  “It requires a strategic approach and collaboration by the PUC and our energy stakeholders to fulfill the state’s clean energy commitment to go beyond 40 percent renewable energy for power generation.”

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The Hawaii State Energy Office is leading the state’s charge toward clean energy independence. With a goal to meet and exceed Hawaii’s 70 percent clean energy targets by 2030, the State Energy Office is committed to developing and deploying high impact solutions that will maximize Hawaii’s renewable energy resources and improve efficiency and transportation standards. Through effective policies and innovative programs, the State Energy Office has positioned Hawaii as a leading proving ground for clean energy innovation, which will generate quality jobs, attract investment opportunities and accelerate economic growth. The State Energy Office is a division of the state’s Department of Business, Economic Development and Tourism. For more information, visit www.energy.hawaii.gov.

For more information, contact:

Kathy Yim
Acting Communications Officer
DBEDT’s State Energy Office
Phone: (808) 587-9003

HAWAII REFINERY TASK FORCE SUBMITS FINAL REPORT TO THE GOVERNOR

For Immediate Release: April 28, 2014

HONOLULU — The Hawaii Refinery Task Force has completed its year-long study of the potential impacts of refinery closures and has submitted its Final Report to Gov. Neil Abercrombie.

In its final meeting on April 9, the task force unanimously adopted the study’s Final Report prepared by ICF International with input from the task force members and other stakeholders.
The Final Report found a number of measures that are already helping state policymakers take action to secure Hawaii’s future energy supply:
• The state is advancing legislation to modernize Hawaii’s outdated gasoline specification;
• Refinery closure scenarios are being incorporated into the Kalaeloa Barbers Point Harbor planning processes; and
• A prioritization process is being developed for ensuring delivery of jet fuels at Pier 51.

The Final Report also raised a number of longer-term challenges that the state must address:
• While the Hawaii Clean Energy Initiative (HCEI) is significantly reducing the state’s use of fossil fuels for electricity generation, much more will need to be done to reduce this reliance on fossil fuel for transportation.
• The gradual phase out of the fossil fuels and the further development of renewables, bioenergy, liquefied natural gas (LNG), and a connected state power grid over the coming decade will require careful planning to ensure stability of the grid.
• Given the complexity and urgency of these issues, there may be need for establishment of a designated coordinated entity to ensure alignment of state policy and actions around conventional fuels, as part of the state’s overall energy strategy.

“I congratulate the open, transparent, and collaborative approach employed by the task force to complete this study,” said Gov. Abercrombie. “This final report validates the importance of a sustained and reliable energy supply for the people of Hawaii.”

“This final report represents an effective collaboration of task force members to address challenges Hawaii faces in its rapidly evolving energy and fuels ecosystem,” added Richard Lim, Department of Business, Economic Development and Tourism Director, who oversaw the task force. “Based on task force findings, energy stakeholders are taking the first steps to reduce vulnerabilities in Hawaii’s fuel supply infrastructure which could lead to supply and price disruptions in the event that one or both of Hawaii’s refineries closed.”

The Final Report can be viewed on the Hawaii State Energy Office’s website at energy.hawaii.gov (on the Homepage and Publications section).

Gov. Abercrombie established the 30-member task force by executive order in February 2013 to identify the challenges and risks if one or both refineries in the state were permanently closed and to advise him on Hawaii’s future fuels ecosystem.

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For more information, contact:

Kathy Yim
Acting Communications Officer
DBEDT’s State Energy Office
Phone: (808) 587-9003

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