GOVERNOR SIGNS 5 BILLS RELATING TO ENERGY

For Immediate Release: June 20, 2014

HONOLULU – Gov. Neil Abercrombie today signed five energy-related measures (Acts 106 to 110) that address solar energy device warranties or guarantees, the energy systems development fund, the Public Utilities Commission, modernization of the electric grid and a car-sharing vehicle surcharge tax.

“We spend billions of dollars a year on imported oil,” Gov. Abercrombie said. “Let’s keep our money within the state by investing in clean, renewable energy development that will reduce carbon emissions in the process, helping to mitigate climate change. These bills are critical to Hawaii’s future and demonstrate our commitment to a more sustainable state for our residents.”

Senate Bill 2657 (Relating to Renewable Energy) requires contractors installing solar energy devices to notify private entities that installation may void roofing warranties or guarantees and to obtain written approval and follow written instructions for waterproofing roof penetrations from the roof manufacturer, unless the private entity forgoes the roofing warranty or guarantee. The measure also requires a roofing contractor that waterproofs roof penetrations related to the installation of a solar energy device to honor the roof warranty or guarantee.

Senate Bill 2196 (Relating to Energy) reestablishes the energy systems development special fund that was repealed on June 30, 2013. The measure also extends the allocation of revenues collected from the environmental response, energy and food security tax, also known as the “barrel tax,” to various special funds from 2015 to 2030.

Senate Bill 2948 (Relating to the Public Utilities Commission) transfers the administrative placement of the Commission from the Department of Budget and Finance to the Department of Commerce and Consumer Affairs and clarifies its authority to concerning standard administrative practices, including operational expenditures and hiring personnel. The measure also enables the commission chair to appoint, employ and dismiss an executive, fiscal and personnel officer.

House Bill 1943 (Modernization of the Hawaii Electric System) amends the Public Utilities Commission principles regarding the modernization of the electric grid.

Senate Bill 2731 (Relating to a Car-sharing Vehicle Surcharge Tax) establishes a car-sharing vehicle surcharge tax.

###

Media Contact:
Justin Fujioka
Press Secretary
(808) 586-0012
[email protected]

Home

DBEDT FILES APPLICATIONS WITH PUC TO IMPLEMENT GREEN ENERGY MARKET SECURITIZATION PROGRAM

For Immediate Release: June 9, 2014

HONOLULU —The Hawaii Department of Business, Economic Development and Tourism (DBEDT) has filed two applications with the state Public Utilities Commission (PUC) seeking approval to move forward with the Abercrombie Administration’s Green Energy Market Securitization (GEMS) program, which will make solar panels and other clean energy improvements more accessible and affordable to Hawaii consumers.

“The GEMS program is a significant step toward removing barriers that have prevented many Hawaii residents from embracing clean energy and lowering their power bills,” said Gov. Abercrombie, who proposed the program in his 2013 State of the State address and signed it into law later that year. “GEMS will play an important role in the state’s pursuit of energy independence while helping to create green jobs and raising Hawaii’s profile as a global model for clean energy.”

DBEDT Director Richard Lim, the architect of the GEMS program, said one of the challenges was to come up with a financing structure that would channel capital to green energy investments outside the traditional financing model. “While solar PV has grown exponentially there is a market gap of consumers who cannot afford the high upfront costs, or cannot qualify for loans. The GEMS program will open up access to solar PV for these market segments,” Lim said. “This innovative financing approach leverages public dollars to achieve a long-term, sustainable financing solution to support clean energy project development.”

Mark Glick, the administrator of the State Energy Office, said the GEMS program is a powerful tool in the state’s push to meet its clean energy goals. “GEMS is an example of the State Energy Office focus on high-impact, creative solutions in affordable financing that have the flexibility for broad application in Hawaii’s growing clean energy sector,” Glick said.

The program will solidify Hawaii’s position as a national leader in a growing movement to develop clean energy financing solutions. GEMS is designed to help meet the state’s ambitious renewable energy and energy efficiency goals by using public dollars to mobilize private-sector capital in a way that stimulates the growth of Hawaii’s clean energy economy. It represents a market-based approach to bringing clean energy into reach for more utility ratepayers, with focus on underserved markets such as low- and moderate-income homeowners, renters and nonprofits.

The applications were filed with the PUC on Friday. The first filing is for a financing order to issue up to $150 million in Green Infrastructure Bonds and to authorize a Green Infrastructure Fee to secure the bonds. The second filing is for an order to create a Green Infrastructure Loan Program that would use the bond proceeds to provide alternative low-cost financing for solar photovoltaic systems and other eligible clean energy technologies. GEMS will be administered at little or no cost to ratepayers.

Proceeds from the bond issuance will be placed in a Green Infrastructure Special Fund that can be used alone or in combination with private capital to provide financing to consumers through “deployment partners,” such as local financial institutions, solar financiers and energy lenders. Consumers will be able to repay the loans over time with the savings on their electric bills. DBEDT will oversee the program until a Green Infrastructure Authority is created to take over the administrative duties. The fund initially will be used to support the installation of solar PV systems, and will later be expanded to cover a variety of eligible clean energy technologies, energy storage, smart modules, monitoring devices and other technology to support the interconnection of PV systems to the grid.

The GEMS bonds will be modeled after a well-established securitization structure that has been used in other jurisdictions to advance important state policy and cost recovery objectives. The bonds will not be tied to the state’s credit rating. There have been about $50 billion of these securitization bonds issued across the country since 1997. In all but one case, the securitization bonds have achieved “AAA” or equivalent credit ratings.

The GEMS bonds will be secured by a Green Infrastructure Fee. The fee will be assessed on all electric utility ratepayer bills to ensure the bonds achieve the highest possible credit ratings, and thus lowering the amount of the fee, which is expected to be less than $2 a month for residential customers. As proposed in the financing order application, the Public Benefits Fee that is currently on electric utility customer bills will be reduced to offset the cost of the Green Infrastructure Fee, resulting in little or no impact to ratepayers.

The PUC’s issuance of financing and program orders will allow the program to finalize guidelines relating to targeted customers, qualifying technologies, qualifying deployment partners and other program details. Based on current timelines relating to the regulatory, program setup and deployment partner onboarding processes, financing products are expected to be available to customers by November of this year.

###

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.

MEDIA CONTACT:
Alan Yonan Jr.
Communications Officer
DBEDT State Energy Office
(808) 587-3860
[email protected]

HAWAII APPLAUDS OBAMA ADMINISTRATION’S CLIMATE CHANGE RULES FOR POWER PLANTS – REST OF THE COUNTRY FOLLOWING HAWAII’S LEAD

For Immediate Release: June 2, 2014

HONOLULU — The White House today released new rules under the Clean Air Act governing what existing power plants must do to reduce earth-warming greenhouse gas emissions. These rules provide states flexibility to utilize energy efficiency and renewable energy, such as outlined in the Hawaii Clean Energy Initiative (HCEI), as compliance measures.

Gov. Abercrombie applauded the new rules, stating, “Hawaii is at the forefront of responding to climate change through our Hawaii Clean Energy Initiative, which serves as a substantial economic driver while reducing our dependence on imported oil. By building such flexibility into the rules, President Obama is encouraging the rest of the country to follow Hawaii’s lead in pursuing clean energy.”

New financial tools under development by the Hawaii Department of Business, Economic Development and Tourism (DBEDT) to increase deployment of renewable energy and energy efficiency measures are well-timed to empower the state’s energy consumers to contribute to greenhouse gas reductions through use of renewable energy like rooftop solar.

“Hawaii’s Green Energy Market Securitization financing tool, or GEMS, will expand low-cost financing to clean energy solutions while helping the state gain credit for reducing carbon through lesser use of petroleum products to generate electricity,” said DBEDT Director Richard Lim.

Proposed by the governor in his 2013 State of the State address and signed into law later that year, GEMS is an innovative, clean energy financing program designed to make clean energy improvements affordable and accessible to Hawaii consumers, especially underserved markets such as low- and moderate-income homeowners, renters and nonprofits.

These new rules requiring carbon dioxide emissions reductions from power plants were issued pursuant to Section 111(d) of the Clean Air Act. During the its extensive process to hear from stakeholders throughout the nation the U.S. Environmental Protection Agency (EPA) reached out to Hawaii. The state submitted a set of consolidated comments developed by the Hawaii Department of Health, Hawaii State Public Utilities Commission (PUC) and DBEDT regarding state plans to meet federal carbon emission reduction targets for existing electricity generation units.

Mark Glick, the administrator of the State Energy Office, acknowledged EPA’s innovative approach and outreach to Hawaii. “EPA is clearly recognizing innovative policies like the Hawaii Clean Energy Initiative, by allowing states to utilize energy efficiency and renewable energy as greenhouse gas compliance measures. Hawaii is able to comply with little or no financial impact on our businesses and residents by allowing our ongoing clean energy agenda to count for reductions in greenhouse gas emissions,” Glick said.

Gov. Abercrombie added: “Hawaii is working with the Obama Administration to align our state’s commitment to go beyond 40 percent renewable energy in the electrical power sector by 2030 and our federal and state policies to reduce our carbon footprint. As a leading test bed for clean energy, Hawaii can demonstrate to the world how to stimulate our economy while improving the environment for future generations.”

The new EPA rules allow states to employ a range of measures to meet carbon emission targets, including renewable energy and energy efficiency projects. In Hawaii, numerous such initiatives are underway in the power generation sector under the umbrella of the HCEI.

Ongoing PUC dockets include those relating to energy efficiency portfolio standards, requests for proposals for renewable energy production, and interconnection matters. In addition, the PUC and DBEDT are working with the Hawaiian Electric Companies to better align the utility’s business model with consumer interests and the state’s public policy’s goals.

###

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:

Alan Yonan Jr.
Communications Officer
DBEDT’s State Energy Office
Phone: (808) 587-3860

 

>