Author: Amanda Ho

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]

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]

For Immediate Release: July 11, 2014

HONOLULU — The state honored 13 businesses and nine events today for their outstanding and innovative clean energy efforts at the 2014 Hawaii Green Business Awards. The awards were presented by Lt. Gov. Shan Tsutsui and hosted by the Hawaii State Energy Office of the Department of Business, Economic Development and Tourism (DBEDT), Department of Health and The Chamber of Commerce of Hawaii. The annual awards program recognizes achievements by Hawaii businesses and entities in the area of energy efficiency.

“Today’s honorees have proven themselves to be responsible stewards of business and the environment. Together, they showcase a deep commitment to preserve and protect our precious natural resources,” said Lt. Gov. Tsutsui. “From hotel guest room energy conservation systems and sourcing local ingredients to composting, efforts like these will reduce our impact on the environment and reliance on imported fossil fuels.”

The Hawaii Green Business Program (HGBP) assists and recognizes businesses that strive to operate in an environmentally and socially responsible manner. When launched in 2002, the HGBP initially focused on Resorts & Hotels due to the large number of visitors in Hawaii, and the potential for significant resource reduction through conservation. This year, the Wyndham Waikiki will be awarded for the third consecutive time, having tracked energy, water, and recycling rates as well as establishing a Green Committee to support its corporate legacy commitment.

The program, funded in part by the federal Environmental Protection Agency Pacific Southwest Region IX, has expanded over the years and now includes four categories: Resorts & Hotels, Offices & Retail, Restaurant & Food Service Facilities, and Green Events. Next year’s awards will feature two new categories: Grocery Stores and Worship Facilities.

Businesses that have been recognized for their green practices can be viewed in an interactive map on the Hawaii State Energy Office’s Green Business Program website: https://energy.hawaii.gov/green-business-program. The Hawaii State Energy Office also is releasing an app that will also make the interactive map accessible on mobile devices.

The honorees of the 2014 Hawaii Green Business Awards are:
• Aqua BambooWaikiki Hotel
• Aqua Kauai Beach Resort
• Grand Hyatt Kauai Resort and Spa
• Hawaii Island Retreat
• Marriott’s Maui Ocean Club
• Outrigger Reef on The Beach
• The Equus Hotel
• The Ritz-Carlton, Kapalua
• Wyndham at Waikiki Beach Walk
• Blue Hawaii Lifestyles
• Honeywell Smart Grid Solution
• MonkeyPod Kitchen at Ko’olina
• The Limtiaco Consulting Group

The Hawaii Green Business Awards also honored nine green events held in 2014:

• Build and Buy Green Conference at Hawaii Convention Center and University of Hawaii Cancer Center Sullivan Center 2013 & 2014
• TEDx “Disruptive Leadership” & “Cultivating Community”
• Hawaii Innovation Workshop by travel2change
• Hawaii Sustainability in Higher Education Summit
• Green Apple Day of Service – USGBC Hawaii
• Kamehameha Schools’ Sustainability Council Retreat #2-KYA
• KYA Holiday Party 2013
• ILFI Water Petal Event-KYA
• Loco Kine Valentine by Sweetbreads

For a description of the awardees and their energy efficiency accomplishments, please see separate Awardee Accomplishments document.
Awardee Accomplishments (PDF)

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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:

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

For Immediate Release: July 7, 2014

HONOLULU — GreenSun Hawaii, a loan program administered by the Hawaii Community Reinvestment Corporation (HCRC), has reached the $3 million milestone of loans issued. The latest round of funding included the program’s first-ever commercial loan of $167,500 for a non-profit organization.

GreenSun Hawaii was launched in 2011 to increase energy efficiency in Hawaii by providing residential, multi-family projects, nonprofits and businesses with affordable means of financing the installation of energy efficient and renewable energy systems. Annually, the program produces an estimated savings of 663,000 kilowatt hours and a combined savings in the participants’ electric bills in excess of $327,000.

“GreenSun Hawaii illustrates how the government and private sector can work together to bring clean energy to everyday people while creating local jobs and allowing us to advance toward our energy goals,” said Gov. Neil Abercrombie. “We are continually looking for ways to help utility customers bring down electricity bills, and GreenSun Hawaii has been an effective tool in that effort.”

Richard Lim, director of the Hawaii Department of Business, Economic Development and Tourism (DBEDT), noted that GreenSun Hawaii helps reduce risk for participating financial institutions, thus enabling them to extend loan availability to a larger pool of customers. “GreenSun Hawaii has proven successful in increasing the use of solar energy, decreasing the state’s dependence on imported fuel and lowering overall energy costs throughout the islands,” Lim said.

Funded by a grant from the U.S. Department of Energy (Recovery Act Funds), the program is a public-private partnership with the ability to leverage $4.38 million in federal funds to support $88 million in energy financing statewide.

“This innovative program allows participating banks and credit unions to extend more favorable terms and lower interest rates than they would otherwise be able to offer,” said Hawaii State Energy Administrator Mark Glick. “It’s initiatives like this that are helping reduce our islands’ dependency on fossil fuels and accelerate our transformation to a clean energy economy.”

GreenSun Hawaii is one of several programs developed by DBEDT to remove barriers to the adoption of renewable energy and conservation measures. The department’s most ambitious initiative to date is the Green Energy Market Securitization (GEMS) program, which will use a market-based funding mechanism to channel $150 million in private capital into clean energy investments. GEMS provides a sustainable financing structure that will make solar panels and other clean energy improvements available to traditionally underserved markets in Hawaii such as low-and moderate income homeowners, renters and nonprofit organizations.

One of GreenSun Hawaii participants, Central Union Church in Honolulu, expects to save about $63,000 annually in energy costs as a result of energy efficiency retrofits financed through the GreenSun Hawaii program. The church began looking at ways reduce its carbon footprint in 2008, forming the “Central Union Green Team” to promote sustainable practices, said Miguel Asuncion, church administrator.

“We were excited to hear about the GreenSun Hawaii program, which fits in with our approach to living wisely by way of conservation and compassion now and in the future,” Asuncion said. The church’s clean energy upgrades, financed with a loan from HawaiiUSA Federal Credit Union and installed by Energy Industries of Hawaii, are expected to cut electricity use by 29 percent and save 193,000 kilowatt hours annually, he said.

For more information about GreenSun Hawaii, including lists of participating lenders and authorized contractors and an online loan application, visit www.greensunhawaii.com.

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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.

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

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.

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

Home

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.

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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.

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

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.

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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:

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

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

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

For Immediate Release: December 23, 2013

HONOLULU — The Department of Business, Economic Development and Tourism’s (DBEDT) State Energy Office commends the Hawaii Public Utilities Commission’s (PUC) approval of the Hu Honua 21.5 MW biomass power purchase agreement on Hawaii Island.

“DBEDT commends the PUC for carrying out the state’s energy policy directives in pursuit of a diversified energy portfolio,” said DBEDT Director Richard C. Lim. “This decision reflects our policy of balancing technical, economic, environmental and cultural considerations for renewable energy projects, providing cost savings and creating green jobs in Hawaii County.”

“Hu Honua will deliver a firm, dispatchable, biomass resource to Hawaii Electric Light Company’s (HELCO) renewable energy portfolio, which will not only reduce HELCO’s dependence on imported fossil fuels, but will also provide necessary grid support services,” said PUC Chair Hermina Morita. “Importantly, this project will enable HELCO to retire aging and expensive fossil fuel power plants to help lower the high cost of electricity paid by HELCO’s ratepayers.”

Located on a 25.57-acre site in Pepeekeo, Hu Honua is in the process of refurbishing the power plant originally built in 1972 for the Hilo Coast Processing Company sugar mill. The PUC’s approval of the 20-year Power Purchase Agreement includes pricing that is lower than avoided cost and de-linked from fossil fuel pricing. Its community benefits will include economic stimulus and job creation at the facility as well as in industries on Hawaii Island such as forestry, harvesting and hauling.

Added State Energy Administrator Mark Glick, “The State Energy Office welcomes the addition of this biomass project to Hawaii County’s renewable portfolio, which has the state’s highest concentration of renewables in operation on any island with more than 40 percent renewable generation.”

The state’s energy policy may be found on the State Energy Office’s website at energy.hawaii.gov. The PUC’s decision may be found on its website at https://dms.puc.hawaii.gov/dms/ (Docket No. 2012-0212).

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For more information, contact:

Noreen Kam
Communications Officer
DBEDT’s State Energy Office
Phone: (808) 587-3860