STATE SECURES $1.7 MILLION IN ENERGY GRANTS

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

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

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

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

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

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

HAWAII AND U.S. DEPARTMENT OF ENERGY PARTNER TO MAKE HAWAII A “WORLD MODEL” FOR CLEAN ENERGY ECONOMY

For Immediate Release: January 28, 2008

HONOLULU – Governor Linda Lingle and U.S. Department of Energy (DOE) Assistant Secretary for Energy Efficiency and Renewable Energy Alexander Karsner today signed a Memorandum of Understanding (MOU) to establish the Hawaii Clean Energy Initiative, a long-term partnership designed to accelerate the transformation of Hawaii into one of the world’s first economies based primarily on clean energy resources.

The goal of the Hawaii Clean Energy Initiative is to use renewable resources – such as wind, sun, ocean, geothermal, and bioenergy – to supply 70 percent or more of Hawaii’s energy needs by 2030. This will reduce the state’s dependence on imported oil and help bring energy price stability to Hawaii consumers.

“This innovative, unprecedented partnership builds on the progress the state has made to increase energy independence by decreasing Hawaii’s reliance on imported oil,” said Governor Lingle, who previewed the historic agreement last week in her State of the State Address. “Our islands’ abundant natural sources of energy, combined with the considerable capabilities of the Department of Energy will help Hawaii lead America in utilizing clean, renewable energy technologies.”

“Through this unique initiative, DOE is pleased to commit its technical and policy expertise and capabilities to help demonstrate reliable, affordable and clean energy technologies in Hawaii,” Assistant Secretary Karsner said. “With an abundance of natural resources and environmental treasures, Hawaii is the ideal location to showcase the broad benefits of renewable energy at work on an unprecedented scale. Hawaii’s success will serve as an integrated model and demonstration test bed for the United States and other island communities globally, many of which are just beginning the transition to a clean energy economy.”

The partnership will provide technical assistance and technology program support for a variety of innovative projects that draw on technologies developed through a range of DOE research and development programs. Efforts will focus on working with public and private partners on several clean energy projects throughout the state including:

Designing cost-effective approaches for 100 percent use of renewable energy on smaller islands.

Designing systems to improve stability of electrical grids operating with variable generating sources, such as wind power plants on the Island of Hawaii and Maui.

Integrating renewable energy, including solar, wind, energy storage and advanced vehicle technologies into existing systems to meet the islands’ energy needs.

Minimizing energy use while maximizing energy efficiency and renewable energy technologies at new large military housing developments.

Expanding Hawaii’s capability to use locally grown crops as byproducts for producing fuel and electricity.

Developing comprehensive energy regulatory and policy frameworks to promote clean energy technology use.

The Hawaii Clean Energy Initiative will also tap the expertise of other federal agencies, including the U.S. Departments of Agriculture and Defense, national research laboratories, and research and development entities, as well as the private sector. The Hawaii Clean Energy Initiative recognizes that, while DOE and the State are providing the leadership, ultimately all of Hawaii’s citizens will need to be involved to create real and lasting change.

“The Lingle-Aiona Administration is committed to leading by example,” said Theodore E. Liu, Director of Hawaii’s Department of Business, Economic Development, and Tourism. “Hawaii is already a leader in energy policy. We are now stepping up to strengthen our energy program by providing funding for projects that will accelerate the transition to a clean energy-based future.”

In 2006, Energy for Tomorrow legislative measures were enacted to initiate a dramatic change in the state’s energy policy. In 2007, Hawaii became only the second state in the nation to establish a cap on greenhouse gas emissions. This partnership with the Department of Energy is building on Hawaii’s momentum and brings new resources into the state through this agreement.

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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

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