HAWAII AND U.S. DEPARTMENT OF ENERGY REAFFIRM COMMITMENT TO CLEAN ENERGY INITIATIVE

For Immediate Release: September 15, 2014

HONOLULU — The State of Hawaii and the U.S. Department of Energy have agreed to continued cooperation as Hawaii embarks on the next phase of its clean energy future.

Gov. Neil Abercrombie and Energy Secretary Ernest Moniz today signed a Memorandum of Understanding, reaffirming their commitment to the Hawaii Clean Energy Initiative, a long-term partnership to increase energy efficiencies and maximize the use the use of Hawaii’s abundant renewable energy resources.

“We remain focused on reducing the state’s dependence on imported oil while also creating high-wage jobs and economic opportunities for the people of Hawaii,” Abercrombie said. “Together with the federal government, we are creating a new framework that will take our state to the next level in its clean energy transformation.”

Moniz announced his signing of the MOU during a pre-recorded address to the opening session of the Asia Pacific Resilience Innovation Summit & Expo being held at the Hawaii Convention Center.

“Today’s announcement demonstrates that by setting ambitious clean energy goals, the United States can support local industries while also moving towards a low carbon future,” Moniz said. “These types of collaborative efforts are an important component of the President’s Climate Action Plan, which will help reduce our greenhouse gas emissions while strengthening the clean energy economy in Hawaii and nationwide,” he said.

“Renewing the commitment to Hawaii Clean Energy Initiative is an important step at this point in our energy transition plan.” said Richard Lim, director of the Hawaii Department of Business, Economic Development and Tourism. “In light of our success so far*, we want to position Hawaii as a test bed for clean energy solutions.”

The MOU calls for the U.S. DOE to provide technical assistance and other resources to the state. The state’s commitments under the MOU include developing the technical, workforce and academic tools necessary to realize the purpose of the agreement.

Mark Glick, Hawaii State Energy Office Administrator, said updating the MOU will allow policymakers to take a fresh look at parts of the HCEI that need to be strengthened.

“To really push the envelope we’re going to have to take a hard look at reducing petroleum use in the transportation sector, which is two-thirds of Hawaii’s energy mix,” he said. “This includes the use of alternative fuels in ground and marine transportation, including natural gas and hydrogen.”

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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.

*Hawaii reached an important milestone last year, generating 18% of its electricity from renewable resources. That puts the state ahead of its interim 2015 target of 15%, and provides a jumpstart on reaching the 2020 goal of 25%. Combined with a 15.7 % reduction in energy use through conservation and efficiency, the state is nearly halfway toward it 2030 goal of 70 percent clean energy.

For more information, contact:

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

DBEDT APPLAUDS PUC’S APPROVAL OF GEMS PROGRAM FINANCING ORDER

For Immediate Release: September 5, 2014

HONOLULU — The Public Utilities Commission has approved the State of Hawaii to issue up to $150 million in bonds to provide low-cost capital for a proposed loan program that would expand access to solar photovoltaic systems and other clean energy improvements for Hawaii consumers who have had difficulty obtaining financing for such projects. Approval of the financing order Thursday represents a significant milestone as the state Department of Business, Economic Development and Tourism moves forward with its Green Energy Market Securitization (GEMS) program.

The bonds are modeled after a well-tested financing structure used for decades by utilities on the Mainland to pay for power plants and other costs associated with storm recovery and stranded assets. The PUC’s order marks the first time nationally that this type of financing model has been approved to provide low-cost financing for the installation of clean energy equipment.

“We’re taking a well-established securitization structure and repurposing it for the benefit of underserved consumers in Hawaii, such as nonprofits, renters and lower-income folks who want to enjoy the savings of clean energy.” said DBEDT Director Richard Lim, who led development of the program. “Issuance of the bonds will provide a market-based mechanism to channel capital to clean energy investments that might not otherwise be undertaken.”

DBEDT plans to issue the bonds by November. The GEMS bonds will share characteristics with a type of security known as a “rate reduction bond.” There have been about $50 billion of these securitization bonds issued across the country since 1997. In all but one case the bonds have achieved “AAA” or equivalent ratings.

The PUC’s approval allows the imposition of a Green Infrastructure Fee, which will be used to secure the bonds. The fee will be assessed on all 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. The Green Infrastructure Fee will be offset by a reduction in the Public Benefits Fee that is currently on electric bills, resulting in little or no impact to ratepayers.

DBEDT awaits approval of GEMS program order by the PUC. Bond proceeds will be used to finance clean energy technologies to reach a broader base of Hawaii consumers.

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This news release and the information contained herein do not constitute an offer to sell, or the solicitation of, an offer to buy any security. Such an offer can only be made pursuant to an Official Statement of the State of Hawaii and DBEDT. DBEDT anticipates preparing an official statement in connection with the transaction.

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:

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

STATE OF HAWAII HONORED WITH NATIONAL ENERGY AWARD FOR THIRD CONSECUTIVE YEAR

For Immediate Release: September 2, 2014

HONOLULU — Hawaii was recognized for the third consecutive year by the Energy Services Coalition as the nation’s leader for per capita investment in energy performance contracting (EPC), an innovative financing tool that allows government buildings to achieve significant energy efficiency savings without paying total capital expenses up front.

“Whether it is through our efforts in energy efficiency or our renewable energy projects, Hawaii continues to demonstrate its leadership in clean energy,” said Gov. Neil Abercrombie. “Our clean energy agenda benefits our environment, creates good jobs, grows local businesses and reduces the amount of dollars sent overseas to buy imported oil.”

EPC uses the savings from upgrades such as digital controls for energy systems, and lighting, plumbing and air conditioning improvements to repay the cost of installing the equipment. The costs of the energy upgrades are borne by the performance contractor and paid back out of the energy savings. The Energy Services Coalition in its annual Race to the Top program ranks the 50 states based the amount invested in performance contracts for government buildings. Hawaii led the nation this year with $235.74 invested per capita.

The Aloha State was well ahead of second place Delaware with EPC investment of $154 per capita and third place Ohio at $108.58 per capita. The $320.68 million in EPC contracts awarded in Hawaii since the program’s inception has resulted in the creation of 3,486 “job years” and an energy savings of nearly $900 million over the life of the contracts, according to the Energy Services Coalition.

“Hawaii’s top ranking in Race to the Top recognizes our efforts to mobilize investment in high-impact energy efficiency projects that are helping state achieve its energy efficiency targets,” said Richard Lim, director of the State Department of Business, Economic Development and Tourism. “The technical assistance we provide in the area of performance contracting is one of many initiatives developed by DBEDT to accelerate the growth of Hawaii’s clean energy economy.”

The State Energy Office has been providing technical assistance for performance contracting to state agencies and counties since 1996. The EPC projects vary widely and include courthouses, community colleges, hospitals, prisons, and airports.

“We’ve challenged ourselves and our agency partners — as some of Hawaii’s largest energy consumers — to lead by example and push the limits of energy performance contracting,” said Mark Glick, State Energy Office Administrator. “Our drive to take on high-impact EPC projects is fueled by our commitment to the Clinton Global Initiative America and to the U.S. Department of Energy’s Better Buildings Initiative to sharply increase the value of such contracts by the end of this fiscal year. We will hit this target in large part thanks to the leadership of Ford Fuchigami and his team at the Department of Transportation-Airports Division, who are overseeing a $150 million contract to deliver energy savings at the state’s 12 airports.”

For more information on Hawaii’s ESPC projects, visit https://energy.hawaii.gov/energy-performance-contracting. To see the complete Race to the Top list, visit https://www.energyservicescoalition.org/espc/table.

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About the Energy Services Coalition
ESC is a national nonprofit organization, composed of a network of experts from a wide range of organizations, working together at the state and local levels to increase energy efficiency and building upgrades through energy savings performance contracting.

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:

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

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