Author: Amanda Ho

HAWAII CHOSEN TO STUDY ADVANCED ENERGY CONSERVATION PLANNING

November 13, 2008

For Immediate Release: November 13, 2008

HONOLULU — Governor Linda Lingle announced today that the State of Hawaii has been selected by the National Governors Association (NGA) Center for Best Practices to participate in its Policy Academy on Advanced Energy Strategies for Buildings.

The Policy Academy will assist the state to develop an action plan and implementation strategy around energy use in the state’s public and private buildings.

“This project comes at the perfect time for Hawaii as we continue to maximize our federal and private partnerships to increase Hawaii’s energy independence,” said Governor Lingle, who serves on the NGA’s eight-member energy task force. “The NGA Policy Academy will support our Hawaii Clean Energy Initiative and provide Hawaii with additional national assistance in reviewing both legislative and regulatory proposals for advancing energy efficiency and renewable energy technologies in our building sector.”

“The Policy Academy will provide technical assistance from NGA Center staff, expert faculty, and national consultants,” said Theodore E. Liu, director, Department of Business, Economic Development and Tourism (DBEDT), whose department will lead Hawaii’s participation in the Policy Academy. “We have a robust team of public and private sector building and visitor industry professionals who are prepared to identify innovative solutions to making buildings in Hawaii more energy efficient.”

As part of the Advanced Energy Strategies for Buildings Policy Academy, Hawai‘i’s energy team will work with national experts to develop action plans that include:

• Identifying cost-effective strategies for reducing energy use from buildings, such as improving building codes and encouraging participation in voluntary certification programs;
• Designing new policies, programs and measures that promote the adoption of smart energy use, such as increasing consumption from renewable sources; and
• Developing innovative funding and financing options to support implementation, such as low-interest loans, utility rate restructuring, or public benefit funds.

The Lingle-Aiona Administration currently is implementing several initiatives to improve energy efficiency in state government buildings. Eleven state buildings on four islands have been targeted as priorities for “retrocommissioning.” This process involves identifying opportunities to save energy in state buildings and reduce operating costs, such as installing new or upgraded energy-efficient products, materials, systems and equipment. The state also is moving forward on installing photovoltaic systems at airports and other transportation facilities around the state.

In September, DBEDT officials, State Tourism Liaison Marsha Wienert, along with the U.S. Department of Energy and the National Renewable Energy Laboratory, began discussions with the large hotels in Waikiki on a collective approach to conserving energy and developing new energy sources. This most recent assistance by NGA will enhance the state’s and the private sector’s efforts to increase energy efficiency in the hotels.

Hawaii’s central challenge is its high dependence on imported fossil fuel for its energy needs. Ninety-six percent of the crude oil refined and consumed in Hawaii is from non-U.S. sources, leaving Hawaii especially vulnerable to supply disruptions. Seventy-eight percent of Hawaii’s electricity generation is from petroleum (diesel) and 13 percent is from coal, resulting in the highest energy costs in the nation.

“Hawaii has abundant renewable resources, including solar, wind, biomass and geothermal, and emerging technologies such as ocean and wave energy. We need to implement a strategy to increase access to these clean energy technologies to reduce our buildings’ energy use and overall energy costs,” Liu said. “This project will assist us in meeting that goal. Working towards solutions in increasing our use of indigenous sources of energy and achieving greater energy efficiency will save a portion of more than $5 billion exported annually to purchase foreign oil. This will mean additional money circulating at home to create economic opportunities at all levels of our economy.”

Hawaii was one of seven states selected to participate in the NGA Policy Academy on Advanced Energy Strategies for Buildings. The others were Arizona, Florida, Iowa, Michigan, Utah, and Wisconsin.

The Opening Meeting of the Policy Academy will be held January 14-16, 2009, in Washington, D.C. This project is supported through funds provided by the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy.

This is the second time this year the NGA has supported the Hawaii Clean Energy Initiative. In June, the NGA Center for Best Practices awarded Hawaii a $50,000 grant to analyze the costs and benefits of electric vehicles as well as the infrastructure needed to support their large-scale use in Hawaii.

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For more information, contact:

Ted Liu
Director, DBEDT
Phone: (808) 586-2355

Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708

Russell Pang
Chief of Media Relations
Phone: (808) 586-0043

GOVERNOR LINGLE RELEASES $1,854,000 FOR ENERGY CONSERVATION IMPROVEMENTS TO STATE BUILDINGS

October 21, 2008

For Immediate Release: October 21, 2008

HONOLULU – Governor Linda Lingle has released $1,854,000 in design and construction funds to improve the energy efficiency of state buildings on Oahu.

Project work includes the installation of new or upgraded energy-efficient products, materials, systems and equipment.

“It is important that the state lead by example in making public buildings more energy and cost-efficient,” said Governor Lingle. “Deferring these projects would delay our cost-saving benefits and result in building systems and equipment becoming obsolete.”

Projects include:

State Capitol – Honolulu, Oahu
$64,000 in design funds will be used to install light sensor switches throughout the building to turn off or lower lighting in areas not being occupied. In addition, Governor Lingle released $1,362,000 for construction to install protective tinting on windows to reduce the heat gain and load on the air-conditioning system.

Kalanimoku Building – Honolulu, Oahu
Governor Lingle has allotted an additional $350,000 for design to replace the air-conditioning system’s air-handler units, ducts, controls and basement exhaust fans, which are old, deteriorating and not working properly. The Kalanimoku Building is located at 1151 Punchbowl Street.

Kakuhihewa Building (also known at the Kapolei State Building) – Kapolei, Oahu
$48,000 will cover design to install light sensor switches throughout the building to turn off or lower lighting in areas not being occupied.

Hale Auhau Building – Honolulu, Oahu
An additional $30,000 will cover design to replace the air-conditioning system’s air-handler units, ducts and controls. Located at 425 Queen Street, the Hale Auhau Building houses the Department of the Attorney General.

Design and construction timelines for these projects vary. Construction on all projects is scheduled to be completed by December 2010.

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For more information, contact:

Russ Saito
Director, DAGS
Phone: (808) 586-0400

Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708

Russell Pang
Chief of Media Relations
Phone: (808) 586-0043

STATE AND HAWAIIAN ELECTRIC STRIKE SWEEPING AGREEMENT FOR HAWAII’S ENERGY FUTURE

October 20, 2008

For Immediate Release: October 20, 2008

HONOLULU – Governor Linda Lingle today announced a comprehensive agreement to decisively move the state away from its dependence on fossil fuels for electricity and ground transportation.

The historic accord – agreed to between the Lingle-Aiona Administration, including the Department of Business, Economic Development and Tourism and the State Consumer Advocate, and the Hawaiian Electric companies – is an achievement stemming from months of discussions and work on the Hawaii Clean Energy Initiative. This effort, which began in January between the state and U.S. Department of Energy, seeks to move Hawaii toward having 70 percent of its energy use come from clean energy sources by 2030.

The agreement will reduce by many years the process of moving the state forward to a clean energy-driven economy by accelerating regulatory changes.

“This is a detailed plan to implement the Hawaii Clean Energy Initiative with sweeping changes that are needed to reduce our dependence on imported fossil fuel and to achieve a more secure energy and economic future,” said Governor Lingle. “I feel strongly that the state and our major utility can and must continue finding common ground in moving forward and taking decisive and bold steps toward an energy-independent Hawaii.”

Major highlights of the agreement include:

• A commitment to integrate as much as 1100 megawatts (MW) of already identified additional renewable energy on the Hawaiian Electric companies’ grids (700 MW to be implemented within five years).
• The construction of an undersea cable connecting Maui, Molokai and Lanai into one electrical grid to allow the integration of an additional 400 MW of renewable wind power generated in Maui County for transmission to Oahu.
• A requirement that 40 percent of electric power come from renewable resources by 2030, doubling the current Renewable Portfolio Standard requirement law.
• A “feed-in” tariff system designed to dramatically accelerate the addition of renewable energy from new sources by providing published purchased power prices for renewable power providers, which would encourage increased development of alternative energy projects.
• Seeking prompt approvals from the Hawaii Public Utilities Commission for the immediate deployment of advanced meters and for implementation of time-of-use rates that reward customers with lower electric rates for using power during off-peak times. This change will support the development of a “smart grid” to allow customers far greater control of their energy use and their electricity bills.
• Changing the way Hawaiian Electric is compensated by moving away from a business model that places reliance on increased electric sales.
• Commitment from the Hawaiian Electric companies to retire older fossil fuel powered energy generation plants as Hawaii moves to a renewable energy future.
• Conversion of existing fossil fuel generators to renewable biofuels, ultimately using crops grown locally and in a sustainable manner.
• A prohibition on the construction of any new coal plants in Hawaii.
• Expanding the Pay-As-You-Save program under which customers can install solar water heating systems without having to pay money up front, but can acquire energy-saving improvements through shared savings on their electric bills.
• Eliminating existing system-wide caps on net energy metering to allow customers on each island to produce their own renewable energy and obtain credit on their electric bills for any excess exported to the grid.
• Submitting a proposal to the PUC for establishment of “lifeline” rates, which provide a cap for certain low income customers.
• Committing the state and Hawaiian Electric Companies to a program that will identify and implement incentives needed to encourage adoption of electric vehicles for individual and fleet use, and also lead by example by acquiring hybrid or electric-only vehicles for government and utility fleets.

“With this agreement, Hawaii moves to the forefront in energy leadership in the nation,” said Kevin Kolevar, assistant secretary of the U.S. Department of Energy, whose office helped negotiate the agreement. “Hawaii’s vision will prove to be a boon to the local economy and will lead to more stability and long-term reductions in the cost of energy in Hawaii. It will provide future generations with significant independence from imported fuel.

“I applaud Governor Lingle for her commitment to pursuing the Hawaii Clean Energy Initiative. She has made it a personal priority, kept everyone’s feet to the fire and made sure that the final result is in the public’s best interest,” Kolevar said. “Without her leadership none of this would be possible.”

“This agreement reinforces that Hawaii is open for energy business,” said Ted Liu, director of the State Department of Business, Economic Development, and Tourism. “It will require focused and upfront investment in order to get Hawaii off its dependence on imported oil, but in the long term, will lead to significant reductions in energy costs to Hawaii’s consumers. It is an investment in a healthy future for our economy and for our environment. The path is not necessarily easy, but it will reward all of us in the end.”

“This agreement also includes measures to assist Hawaii consumers, providing options to help them reduce their electricity bills,” said State Consumer Advocate Catherine Awakuni. “Provisions
include advanced meters and pricing that will reward customers for wise energy choices, no money- down solar water heating installations, and an end to a utility business model based on increasing sales rather than encouraging decreases and efficiencies in energy use. All of this will help utility ratepayers in the days ahead.”

“We appreciate the opportunity to participate in this critical effort led by Governor Lingle and her Administration, in particular the Department of Business, Economic Development and Tourism’s energy division, and the contribution of time and expertise of the U.S. Department of Energy,” said Constance Lau, chairman of the board, Hawaiian Electric Company.

“We are committed to making these plans a reality and working together with the state to achieve a more secure, economically viable and environmentally responsible energy future for Hawaii,” Lau said.

While this agreement is with the Hawaiian Electric utilities, the state and the consumer advocate are also working separately with Kauai Island Utility Cooperative (KIUC). KIUC and Kauai County are active participants in the Hawaii Clean Energy Initiative. Kauai has unique energy issues such as a utility cooperative status, the lack of inter-island cable potential today, the existing grid lay-out, and limits to some renewable energy choices due to threatened and endangered avian populations which compel a separate agreement. KIUC and the U.S. Department of Energy are also working to model the KIUC grid to better understand the electricity choices available to Kauai.

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For more information, contact:

Ted Liu
Director
DBEDT
Phone: (808) 586-2355

Lenny Klompus
Senior Advisor – Communications
Office of the Governor
Phone: (808) 586-7708

Russell Pang
Chief of Media Relations
Office of the Governor
Phone: (808) 586-0043

Lynne Unemori
Vice President, Corporate Relations
Hawaiian Electric Company, Inc.
Phone: (808) 543-7972

Catherine Awakuni
Consumer Advocate
DCCA
Phone: (808) 586-2770

 

HAWAII NATURAL ENERGY INSTITUTE AWARDED $5 MILLION FOR WAVE ENERGY PROJECT

September 19, 2008

For Immediate Release: September 19, 2008

HONOLULU–The Hawaii Natural Energy Institute (HNEI) at the University of Hawaii School of Ocean and Earth Science and Technology has been selected by the federal Department of Energy (DOE) to establish one of two National Marine Renewable Energy Research Centers.

The DOE will provide a grant to HNEI of approximately $1 million per year for as many as five years to conduct renewable energy research and development of technologies that harness the power of waves and ocean thermal energy conversion.

“As a test center, UH will receive federal funding to study and encourage the implementation of wave energy systems in Hawaiian waters,” said State Representative Cynthia Thielen who has been a strong advocate of wave energy development. “Our strong wave climate, combined with the highest use of fossil fuel and electricity rates in the nation, make Hawaii an ideal location for the development of lower -cost wave power.”

“The Department of Energy is aggressively pursuing the development of next-generation technologies that are capable of producing renewable energy to add to our nation’s diverse energy portfolio,” Acting Assistant Secretary of Energy Efficiency and Renewable Energy John Mizroch said. “Wave, tidal, and current-driven hydro power is an important clean, natural, and domestic energy source that will promote energy security and reduce greenhouse gas emissions.”

The National Renewable Marine Energy Center in Hawaii will facilitate the development and implementation of commercial wave energy systems and to assist the private sector in moving ocean thermal energy conversion systems beyond proof-of-concept to pre-commercialization, long-term testing.

These Centers are a public-private partnership that will assess and evaluate the viability and cost-competitiveness of using advanced water power systems.

The Center in Hawaii will serve as a national information clearinghouse for the marine renewable energy industry that will collect and disseminate information on best practices in research.

The Department of Energy is expected to award HNEI $978,048 later this year and exact funding will be determined for subsequent years thereafter.

“Wave energy converters require engineers, consultants, commercial divers, maintenance crews, marine transport services, technicians and shipyard services. A vibrant wave energy industry will create well-paying jobs while keeping billions of dollars in our state economy instead of shipping them primarily to foreign countries to pay for oil,” Representative Thielen said.

“With the recent surge in oil prices, renewable energy systems have been experiencing a renaissance. Investors who wanted nothing to do with renewable energy companies a few years ago are now scrambling to get their money invested in leading technologies. Those investors now can compete to catch the wave.”

“This award is another important step in implementing the Hawai‘i Clean Energy Initiative, harnessing the endless supply of wave and potential deep ocean energy we have surrounding our islands,” said Ted Liu, Director of the Department of Business, Economic Development & Tourism.

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For more information, contact:
Ted Liu
Director – Department of Business, Economic Development & Tourism

STATE SECURES $1.7 MILLION IN ENERGY GRANTS

September 11, 2008

For Immediate Release: September 11, 2008

HONOLULU—The Department of Business, Economic Development & Tourism (DBEDT) has been awarded a $500,000 federal Department of Energy (DOE) grant – that will be combined with more than $900,000 in private sector in-kind contributions and $350,000 that the state recently received for related studies – creating a fund of close to $2 million for increased use of renewable energy.

The DBEDT project is one of only 15 state-led clean energy projects that received the U.S. Department of Energy competitive grant award. In addition to this most recent competitive grant, DBEDT also received a $50,000 competitive grant from the National Governors Association in July, to study electric vehicle policy issues, and a $300,000 grant from the Department of Energy to study undersea cabling.

“These grant projects will help study ways to modernize our electrical grids,” said DBEDT Director Theodore E. Liu. “This will be the first-step in our renewable energy program for supplying Oahu with electrical energy from other islands.”

“Securing these competitive grants highlights the national leadership role Hawaii is playing in renewable energy development,” said Lt. Governor James R. “Duke” Aiona, Jr. “Our Administration is committed to breaking Hawaii’s dependency on imported oil and reducing greenhouse gas emissions through developing clean sources of energy. This public-private partnership will further Hawaii’s efforts to modernize our electrical infrastructure and distribution system and help increase the energy security of our state.”

The projects will focus on four technology areas:

1. Deploying undersea transmission lines to deliver energy generated from wind and solar generation sources on Lanai and Molokai to Oahu;
2. Upgrading and expanding Oahu’s transmission and distribution system to enhance reliability and stability and to be able to accept up to one gigawatt of renewable energy;
3. Evaluating the integration of electric vehicle storage into the electrical grid to maximize renewable energy use; and
4. Deploying a suite of energy storage systems to study both grid stability issues and bulk power issues raised by new “as-available” renewable energy systems.

Financing, configuration, ownership, and management will be examined, as well as the stability of the Oahu electrical grid. Ultimately, this project will identify and recommend policies for large scale energy and storage systems and the specific technical requirements that would allow the integration of large as-available renewable energy into the utility grid.

DBEDT will partner with the Hawaiian Electric Company, First Wind, Castle & Cooke, and Better Place. Hawaii Natural Energy Institute and Enterprise Honolulu will assist in the project.

These latest grants build on the progress of the Hawaii Clean Energy Initiative, an unprecedented partnership formed in January between the State of Hawaii and the U.S. Department of Energy. The goal of the Initiative is to significantly decrease energy demand and accelerate the use of renewables, so that clean energy resources will be sufficient to supply 70 percent of Hawaii’s energy needs by 2030.

As part of the partnership, in April the Department of Energy selected Hawaii as part of a nationwide demonstration project to modernize the country’s electricity grid system. The estimated cost of the Hawaii grid modernization project is $15 million which includes a $7 million investment by the DOE and an additional $8 million from private sector partners including General Electric, Hawaiian Electric Company, Inc., Maui Electric Company, Columbus Electric Cooperative, the New Mexico Institute of Mining and Technology, Sentech and First Wind.

Also this year, the Department of Energy’s National Renewable Energy Laboratory (NREL) announced it would establish a wind technology program at First Wind’s Kaheawa Wind Farm on Maui. It is the first such partner site for the National Renewable Energy Laboratory’s wind technology program outside of its base in Colorado.

These collaborative partnerships are part of the Lingle-Aiona Administration’s efforts to reduce the state’s dependence on imported oil and help bring energy price stability to Hawaii consumers.

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For more information, contact:

Ted Liu, Director
Phone: (808) 586-2355

Theodore Peck, Energy Planning & Policy Branch Manager
Phone: (808) 587-3803
Email: [email protected]

GOVERNOR LINGLE SIGNS KEY LEGISLATION TO BOOST RENEWABLE ENERGY PRODUCTION

July 1, 2008

For Immediate Release: July 1, 2008

HONOLULU – Governor Linda Lingle signed into law today three bills to increase renewable energy generation and reduce the state’s dependence on imported oil.

Two of the bills will provide renewable energy project developers with much needed assistance with Hawaii’s complex permitting process. The third bill authorizes the Department of Agriculture to offer a new class of loans in its agricultural and aquaculture loan programs to encourage farmers to contribute to the production of alternative sources of energy.

“This set of legislation is another important step in our long-term plan for energy independence in Hawaii,” said Governor Lingle. “As we continue to work toward achieving our goal of having 70 percent clean energy in Hawaii by 2030, these new laws will make it easier for businesses to invest in renewable energy projects.”

Together, the measures enable the State to oversee and coordinate the facility permitting process, working with federal, state, and county agencies to streamline the process while preserving the authority of the agencies to review and approve permits under their respective jurisdictions.

HB2863 HD2 SD2 CD1, Relating to Renewable Energy, which becomes Act 207, establishes new responsibilities for director of the Department of Business, Economic Development and Tourism (DBEDT) as the State’s energy resources coordinator. This position will create a streamlined permitting process that includes state and county permits required for the siting, development, construction, and operation of a new renewable energy facility of at least 200 megawatts of electricity. The bill requires the coordinator to hold a public meeting on the island where the project will be located to promote awareness and encourage public input.

HB2505 HD2 SD2 CD1, Relating to Energy, which becomes Act 208, establishes a full-time renewable energy facilitator position in the Department of Business, Economic Development, and Tourism. The facilitator would report to the state energy coordinator. The facilitator’s duties will include facilitating existing permits, proposing changes to the permit process and coordinating energy projects.

HB2261 HD2 SD1, Relating to Agricultural Loans, which becomes Act 209, establishes a new class of loans that will help farmers create their own power for their operations, thus helping to preserve the future of farming and aquaculture in the State of Hawaii. The bill expands the State‘s existing agricultural and aquaculture loan programs to allow farmers to develop renewable energy for their farms using renewable sources such as photovoltaics, hydro, wind, methane, biodeiesel and ethanol. Food safety and product tracking projects would also qualify for the loans.

The maximum loan amount would be $1,500,000 or 85 percent of the project cost, whichever is less, for up to 40 years. The annual interest rate will be 3 percent for agricultural loans and 5 percent for aquaculture loans.

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For more information, contact:

Ted Liu
Director, DBEDT
Phone: (808) 586-2355

Sandra Lee Kunimoto
Director, Dept. of Agriculture
Phone: (808) 973-9550

Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708

Russell Pang
Chief of Media Relations
Phone: (808) 586-0043

HAWAII WINS NATIONAL CLEAN ENERGY GRANT

June 30, 2008

For Immediate Release: June 30, 2008

HONOLULU – Hawaii has been awarded a $50,000 grant from the National Governors Association (NGA) Center for Best Practices to support the State’s clean energy initiative. The funds will be used by the State to analyze the costs and benefits of electric vehicles as well as the infrastructure needed to support their large-scale use in Hawaii.

Hawaii is one of 12 states to receive a grant through the Clean Energy States Grants Program, which is part of the NGA’s Securing a Clean Energy Future initiative. The grants are awarded to states to help overcome obstacles to achieving greater energy efficiency and conservation, and to foster the use of clean energy resources. Grant assistance will go towards research, analysis, meetings, training, outreach or other efforts necessary to develop and advance clean energy efforts by the states.

“An important component of securing our economic future requires that we develop a variety of innovative solutions to reduce our over dependence on imported fuel,” said Governor Lingle. “This grant will help Hawaii build the foundation needed to transition to electric vehicles and help reduce the need for expensive gasoline. We appreciate NGA’s recognition of Hawaii as a leader in clean energy development.”

The grant supports the Hawaii Clean Energy Initiative, a partnership between the State and the U.S. Department of Energy to have 70 percent of the state’s energy come from clean, renewable energy sources.

“We are pleased that Hawaii’s commitment to clean energy is being recognized and encouraged at the national level. Electric vehicles are an important part of our goal of reducing greenhouse gases,” said Theodore E. Liu, director of the Department of Economic Development and Tourism, which applied for and will implement the grant.

Twenty-six states competed for the grants, which are made possible by support from American Electric Power, Dominion Resources, The Ford Motor Company, The Rockefeller Brothers Fund, and the NGA Center for Best Practices. Additional funding from the Emily Hall Tremaine Foundation will help support a technical assistance workshop for the states to be held in Washington, D.C. this fall.

Earlier this year, Governor Lingle participated in the NGA’s annual conference in Washington, D.C., as part of a year-long initiative to enlist the efforts of all governors to move the United States toward a cleaner, more independent and more secure energy future. NGA’s Securing a Clean Energy Future initiative seeks to make the U.S. a global leader in energy efficiency, clean technology, energy research and alternative fuels.

Governor Lingle serves on the NGA’s eight-member energy task force, which is co-chaired by Governors Tim Pawlenty (Minnesota) and Kathleen Sebelius (Kansas). Other energy task force members include Governors Jodi Rell (Connecticut), Charlie Crist (Florida), Brian Schweitzer (Montana), Ed Rendell (Pennsylvania) and Chris Gregoire (Washington).

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For more information, contact:

Ted Liu
Director, DBEDT
Phone: (808) 586-2355

Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708

Russell Pang
Chief of Media Relations
Phone: (808) 586-0043

GOVERNOR LINGLE SIGNS BILL TO INCREASE SOLAR ENERGY

June 26, 2008

For Immediate Release: June 26, 2008

HONOLULU – Governor Linda Lingle today signed into law a bill to increase the use of one of Hawaii’s most abundant renewable energy sources and reduce dependence on imported oil. With the Governor’s signature, Hawaii becomes the first state in the nation to require the installation of solar water heating systems on new single-family homes.

“This solar power legislation is another important step in our long-term plan for energy independence in Hawaii,” said Governor Lingle. “In addition to solar, it is critical that we continue to develop innovative energy solutions that capitalize on our natural renewable resource advantages in order to achieve our goal of having 70 percent clean energy in Hawaii by 2030.”

The measure, SB644 SD3 HD3 CD1, prohibits the issuing of building permits for single-family homes that do not have solar water heaters starting January 1, 2010. Exceptions will be allowed in cases where homes are built in locations with low rates of sunshine such as forested areas, where the life cycle analysis of the solar system proves to be cost-prohibitive, or if the dwelling uses a substitute renewable energy source.

The bill, which becomes Act 204, would also allow home builders to use gas-demand-water heaters, which use a small tank to heat up water quickly when the faucet is turned on, if the home includes another gas appliance.

Under the measure, the Public Utilities Commission is tasked with setting standards for the water heaters, and the counties would establish implementation procedures.

There are certain provisions and language in the bill that are of concern, including eliminating the existing 35 percent tax credit for solar water installations for residential developers of single-family residences starting January 1, 2009.

The bill also appears to eliminate the tax credit for owners of existing residential single-family homes after January 1, 2010. While this may not have been the intent of the bill, the language implies that existing homeowners would have had to seek a building permit to install a solar water heater prior to January 1, 2010 to claim the tax credit.

The bill also clouds whether existing single-family residences can obtain a 20 percent wind-power tax credit and a 35 percent photovoltaic tax credit for new single-family structures built in 2009 and for existing single-family residences after January 1, 2010.

The Lingle-Aiona Administration will introduce legislation in the next legislative session to clarify this language and ensure the tax credits for solar water, wind and photovoltaic systems for new single-family homes built in 2009 continue as well as ensuring access to this important tax credit for existing residences after January 1, 2010.

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For more information, contact:

Ted Liu
Director, DBEDT
Phone: (808) 586-2355

Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708

Russell Pang
Chief of Media Relations
Phone: (808) 586-0043

U.S. DEPARTMENT OF ENERGY SELECTS HAWAII FOR ENERGY MODERNIZATION PROJECT

April 21, 2008

For Immediate Release: April 21, 2008

HONOLULU – Governor Linda Lingle and U.S. Department of Energy (DOE) Assistant Secretary for Electricity Delivery and Energy Reliability Kevin Kolevar today announced the selection of a Hawaii project as part of a nationwide demonstration to modernize the country’s electricity grid system.

The Department of Energy plans to invest up to $7 million over three years in a project led by the Hawaii Natural Energy Institute (HNEI) of the University of Hawaii to increase efficiency in Hawaii’s energy infrastructure and use of renewable energy sources. An additional $8 million will be contributed by the various team partners, which include General Electric, Hawaiian Electric Company, Inc., Maui Electric Company, Columbus Electric Cooperative, the New Mexico Institute of Mining and Technology, Sentech and UPC Wind.

The goal of the HNEI project, one of nine to be competitively selected by the Department of Energy as part of a $50 million nationwide demonstration, is to reduce peak load electricity demand by at least 15 percent at distribution feeders – the power lines delivering electricity to consumers. The three-year Hawaii project will be deployed at the Maui Lani Substation on Maui.

“This is a groundbreaking project that again highlights Hawaii as a national center for new energy development,” said Governor Lingle. “This project will help set the foundation to improve the reliability and efficiency of Hawaii’s electric grid system while allowing greater utilization of renewable energy sources.”

The Hawaii project will develop and demonstrate a control and energy management distribution system that includes resources such as renewable energy sources, energy storage, responsive loads and distributed generation. The deployment of this distribution management system will benefit Hawaii by providing improved reliability and power quality by addressing concerns such as energy grid congestion, energy reserves and intermittent power supplies.

“DOE is pleased to partner in the development of this innovative energy management system which will further the State of Hawaii’s bold plan to reduce its dependency on fossil fuels and move to a renewable-based energy portfolio,” said Assistant Secretary Kolevar. “The development and deployment of advanced technologies to increase the efficiency and dependability of the nation’s electricity grid are critical to the Bush Administration’s comprehensive strategy to ensure energy security and reliability.”

This latest project supports the Hawaii Clean Energy Initiative, an unprecedented partnership formed in January between the State of Hawaii and the U.S. Department of Energy which aims to have 70 percent of Hawaii’s energy come from clean, renewable sources by 2030. This will reduce the state’s dependence on imported oil and help bring energy price stability to Hawaii consumers.

Last month, the Department of Energy’s National Renewable Energy Laboratory (NREL), the nation’s primary laboratory for energy efficiency and renewable energy research and development, signed a memorandum of understanding with UPC Wind to establish a Remote Research Affiliate Partner Site at UPC Wind’s Kaheawa Wind Farm on Maui.

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For more information, contact:

Ted Liu
Director, DBEDT
Phone: (808) 586-2355

Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708

Russell Pang
Chief of Media Relations
Phone: (808) 586-0043

GOVERNOR LINGLE ANNOUNCES WIND TECHNOLOGY PARTNERSHIP WITH NATIONAL RENEWABLE ENERGY LABORATORY

March 31, 2008

For Immediate Release: March 31, 2008

HONOLULU – Governor Linda Lingle today announced a collaborative public-private partnership to establish a wind technology program on Maui as part of the Administration’s ongoing efforts to increase Hawaii’s energy independence.

The U.S. Department of Energy’s National Renewable Energy Laboratory (NREL), the nation’s primary laboratory for energy efficiency and renewable energy research and development, today signed a memorandum of understanding with UPC Wind to establish a Remote Research Affiliate Partner Site at UPC Wind’s Kaheawa Wind Farm on Maui. It is the first such partner site for the National Renewable Energy Laboratory’s wind technology program outside of its base in Colorado.

This latest partnership expands on the Hawaii Clean Energy Initiative that was initiated between the State of Hawaii and the U.S. Department of Energy in January which aims to have 70 percent of Hawaii’s energy come from clean, renewable sources by 2030.

The Maui partner site will conduct research and development on advanced wind energy technologies, including operational and control studies, energy storage options and integration of renewable electricity into existing grids. The research’s goal is to help maximize the integration of wind into Hawaii’s utility system so that this renewable resource can compete with traditional energy sources, providing a clean, renewable alternative for Hawaii’s and the nation’s energy needs.

“The establishment of a partner site of the National Renewable Energy Laboratory on Maui recognizes our islands’ abundant renewable resources, and the advancements we are making to transform Hawaii into one of the world’s first economies based primarily on clean energy resources,” said Governor Lingle. “This partnership will provide Hawaii with invaluable technical assistance, access to leading-edge research, and relationships with additional national partners as we seek to develop innovative approaches to increase our energy independence and reduce our reliance on imported fossil fuels,” the Governor added.

“The U.S. Department of Energy is pleased to commit the expertise of its National Renewable Energy Laboratory to help harness Hawaii’s unique abundance of natural resources and showcase the broad benefits of renewable energy technologies and alternative fuels at work on an unprecedented scale,” DOE Assistant Secretary for Energy Efficiency and Renewable Energy Andy Karsner said. “We look forward to further public-private partnerships that will advance the goals of the Hawaii Clean Energy Initiative and serve as an example to be replicated in the United States and other island communities around the world.”

“This is the first presence for the National Renewable Energy Laboratory’s wind technology program outside of its base in Colorado,” said NREL Director Dan Arvizu who is in Hawaii to sign the agreement and inspect the new Maui site. “NREL recognizes the potential in Hawaii both to deploy wind technologies to meet our energy needs and to use successes here as models for other states and regions.”

Wind energy is one of many renewable resources and technologies being built into the Hawaii Clean Energy Initiative.

“Our Kaheawa Wind Farm is an ideal site to aggressively explore what can be done to reduce Hawaii’s dependence on imported oil,” said Paul Gaynor, president and CEO of UPC Wind Partners, LLC. “Governor Lingle has made a concerted effort to encourage wind power development in Hawaii, as the state seeks to grow its energy independence. We’re looking forward to participating in this partnership to help develop new technologies that can grow the wind industry as the leading provider of renewable power in the country.”

“For Hawaii to achieve the bold 70 percent clean energy target in one generation, partnerships between the public and private sectors; among federal, state and local government entities and between research institutions and industry will be critical,” the Governor said. “It will require a fundamental transformation in how Hawaii generates, transmits and uses energy.”

The four Hawaii Clean Energy Initiative technical working groups that are focusing on this transformation have recently completed their first round of work. This work focused on identifying barriers to the rapid adoption of clean energy in areas of electricity generation; transmission and distribution; end-user efficiency; and transportation, including biofuels and advanced transportation technologies.

The wind technology program, located at the base of the foothills just south of Boulder, Colo., is the nation’s premier wind energy technology research facility. Operated by the National Renewable Energy Laboratory for the U.S. Department of Energy, the program provides an ideal environment for the development of advanced wind energy technologies.

For additional information about the Lingle-Aiona Administration’s energy efficiency initiatives, visit www.hawaii.gov/gov/energy.

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For more information, contact:

Ted Liu
Director
Dept. of Business, Economic Development and Tourism
Phone: (808) 586-2355

William Parks
Deputy Assistant Secretary
U.S. Dept. of Energy
Office of Electricity Delivery and Energy Reliability
Phone: (808) 586-2663

Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708

Russell Pang
Chief of Media Relations
Phone: (808) 586-0043