Category: News Releases

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

For Immediate Release: December 18, 2013

HONOLULU — Under the leadership of Gov. Neil Abercrombie, the Department of Business, Economic Development, and Tourism’s (DBEDT) State Energy Office is providing technical assistance and guidance for the Department of Transportation’s newly announced energy efficiency program.

Using Energy Performance Contracting (EPC), the state’s 12 airports will be modernized with the latest in energy efficient and green technology. The project will cut energy use by 49 percent, create hundreds of local jobs, and save at least $518 million in energy costs over the next 20 years. Improvements will include the replacement of transformers, light fixtures and chilled water and air conditioning systems, as well as the addition of solar photovoltaic panels, installation of smart controls, and deferred maintenance.

“This energy savings agreement is further testimony of the leadership of Gov. Abercrombie, who constantly challenges all state agencies to lead by example and walk the walk,” said Mark Glick, State Energy Administrator. “This project reflects our focus on high impact solutions to meet our efficiency and renewable energy portfolio targets.”

EPC is an innovative approach to implementing energy and water efficiency measures using guaranteed energy savings to pay for projects. Hawaii leads the nation in EPC per capita investment and was recently honored with its second consecutive national Race to the Top award.

The project has garnered national praise from multiple energy organizations. Dan Crippen, Executive Director of the National Governors Association, noted that, “This announcement is a great example of how energy performance contracts can help governors and states achieve cost-effective energy savings in public facilities. “I am happy NGA was able to support Hawaii’s work to set the stage for significant energy savings at state airports.”

Added David Terry, Executive Director of the National Association of State Energy Officials, “This is the largest performance contract investment by a single state agency that we are aware of, and we commend the Governor and the State of Hawaii for this outstanding achievement.”

According to the Energy Savings Coalition (ESC), which tracks EPC nationwide, Hawaii will now hold the largest single EPC agreement by a state agency, with the previous contract being the Alabama prison system for $90 million. “Clean energy efforts like this demonstrate great leadership on the part of Hawaii state government,” said ESC Executive Director Jim Arwood.

A division of DBEDT, the Hawaii State Energy Office (SEO) is providing key advice and technical assistance to DOT for this program. With a successful track record of assisting government agencies with EPCs since 1996, SEO has provided technical assistance to such entities as the University of Hawaii, City & County of Honolulu, and Counties of Hawaii and Kauai.

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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:

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

For Immediate Release: November 22, 2013

HONOLULU — At the inaugural 2013 Hawaii Technology Excellence Awards held on Thursday, the Hawaii State Energy Office took top honors for two of its innovative online programs:
• Hawaii Renewable Energy Permitting Wizard in the Cross-Boundary Collaboration and Partnerships category
• Hawaii Renewable EnerGIS Energy Resource Mapping Application in the Fast Track Solutions category

These online tools are part of the State Energy Office’s suite of self-help applications available at energy.hawaii.gov.

“These programs are the result of Gov. Abercrombie’s directive to work collaboratively across departments and leverage technology to achieve our state’s clean energy goals. The State Energy Office’s use of technology to provide developers and investors with important technical assistance is accelerating projects’ journey to the marketplace,” said Richard Lim, director of the Department of Business, Economic Development and Tourism (DBEDT). “The Self-Help Suite of tools plays a significant role in advancing high impact projects that are positively transforming our clean energy economy.”

Launched in August 2012, the Hawaii Renewable Energy Permitting Wizard is an interactive online permitting tool that allows users to identify the federal, state and county permits required for a specific renewable energy project in Hawaii based on information provided by the user. The Wizard also produces a Permit Plan with expected issuance sequencing and timelines for each identified permit. In the coming months, the Wizard will undergo upgrades to its functionality and content, making it an even more robust, accurate and user friendly tool. The program will remain functional during the update period.

Launched in December 2012, the Hawaii Renewable EnerGIS Energy Resource Mapping Application allows users to identify the renewable energy resources and related attributes, such as zoning, slope and rainfall, for specific land parcels throughout the state. The program uses available data from the Office of Planning’s Statewide GIS (Geographic Information Systems) files, also known as “layers.”

“Both tools simplify the planning process by providing developers and investors with critical data, as well as informing policy development,” added State Energy Administrator Mark Glick. “Ultimately, these will help the state maximize our renewable resources to meet our clean energy goals.”

The State Energy Office also partnered with the Department of Health on its e-Permitting Portal, which was recognized in the Digital Government: Government to Business category.

The 2013 Hawaii Technology Excellence Awards was part of the Hawaii Digital Government Summit 2013, organized by the state’s Office of Information Management and Technology.

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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:

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

For Immediate Release: November 19, 2013

HONOLULU — The Hawaii Refinery Task Force has submitted its Interim Report to Gov. Neil Abercrombie, assessing the impacts of potential refinery closures on Hawaii’s energy system and analyzing options for assuring the state’s energy security.

Prepared by consultant ICF International with input from task force members, the Interim Report found:
• Hawaii’s two refineries face significant economic challenges, driven by decreasing demand and the state’s desire for cleaner sources of energy, and one or both refineries are likely to close by 2020.
• To help ensure the stability of fuel supply and prices, critical infrastructure assets associated with the refineries must remain operational during this period of transition, even if the refineries must close.
• Over the long term, Hawaii’s progress in increasing energy efficiency and renewable generation has the potential to reduce fossil fuel needs for power generation by as much as 50 percent by 2020, thereby replacing a significant portion of refinery fuel oil supply.
• Finally, the transition to Hawaii’s clean energy ecosystem will take time, and the transition period must be managed carefully to ensure stability of supply and prices.

“The work of the task force is critical to enabling the state to bridge the period to a new energy ecosystem and helping to ensure stable refinery supply during the transition,” said Richard Lim, Department of Business, Economic Development and Tourism Director, who oversees the task force. “This joint effort of public and private parties demonstrates a cohesive collaboration in addressing current and future challenges to Hawaii’s fuels ecosystem.”

On Nov. 12, the task force met at its third of four scheduled meetings to adopt the Interim Report, which can be viewed on the Hawaii State Energy Office’s website at energy.hawaii.gov (in the EnergyBUZZ and Publication sections). The task force will convene in early 2014 to review the Final Report, which must be submitted to the Governor by the last day of the 2014 State Legislative Session.

Gov. Abercrombie established the task force in February 2013 by Executive Order to assess the impacts to changes in Hawaii’s refining capacity and to advise him on Hawaii’s future fuels ecosystem.

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For more information, contact:

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

For Immediate Release: October 31, 2013

HONOLULU —GreenSun Hawaii, a loan program administered by the Hawaii Community Reinvestment Corporation (HCRC), has reached the $2 million milestone of loans issued. The initiative 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 calculates an estimated savings of 556,000 kilowatt hours and a combined savings in the participants’ electric bills in excess of $221,000.

“GreenSun Hawaii is a model example of how innovative financing programs play a key role in transitioning Hawaii to a clean energy economy,” said Gov. Neil Abercrombie. “As Hawaii advances toward energy independence, clean energy is the driver that powers our economic growth and creates new clean energy industries.”

In addition to reaching the $2 million milestone for financing residential installations, GreenSun Hawaii also completed the funding of its first commercial installation: a $300,000 project for a nonprofit. The organization will save about 193,000 kilowatt hours, equivalent to a utility savings of approximately $62,000 annually.

“Gov. Abercrombie’s New Day plan proclaims energy to be the state’s most important economic enterprise,” said Richard Lim, director of the Department of Business, Economic Development and Tourism (DBEDT). “GreenSun Hawaii’s financing infrastructure helps the state grow its clean energy economy and meet its clean energy goals.”

Funded by a grant from the U.S. Department of Energy (Recovery Act Funds), the program is a public-private partnership that has leveraged $3.75 million in federal funds to support $75 million in energy financing statewide. The funds were made available through DBEDT to increase the use of solar energy, decrease the state’s independence on imported fossil fuel and lower overall energy costs throughout the islands.

“This innovative loan program makes energy-savings systems accessible to more residents, nonprofits and businesses,” said State Energy Administrator Mark Glick. “Innovative financing, like the GreenSun Hawaii program, plays a critical role in ensuring the broadest possible segment of our population is included.”

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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For more information, contact:

Kathy Yim
Marketing/Communications Officer
DBEDT’s State Energy Office
Phone: (808) 587-9003

For Immediate Release: October 14, 2013

HONOLULU — The State Energy Office commends a new fuel contract between Hawaiian Electric Company (Hawaiian Electric) and Hawaii BioEnergy (HBE) recently approved by the Hawaii Public Utilities Commission (PUC). The agreement calls for Hawaiian Electric to purchase approximately 10 million gallons of locally produced biofuels annually from HBE over 20 years for the utility’s Kahe Power Plant in Kapolei.

“The PUC’s approval of this agreement sets a clear path for achieving the state’s long-term economic and clean energy interests,” said Gov. Neil Abercrombie. “This agreement will contribute to Hawaii’s green job growth, which is a key part of Hawaii’s economic transformation through the expanding clean energy sector.”

HBE is a consortium of three of Hawaii’s largest landowners and three venture capital companies that plan to use locally grown feedstocks to produce biofuels. The agreement allows HBE to provide Hawaiian Electric with biofuels produced from dedicated local sustainable energy crops on Kauai to offset and reduce imported fossil fuels.

“Having a diverse renewable energy portfolio that includes renewable biofuels for the electricity sector will also help the state achieve a clean energy transformation that may benefit the transportation sector in the long term,” said PUC Chair Hermina Morita.

The agreement comes three months after HBE announced an agreement with Alaska Airlines to supply the carrier with sustainable biofuels. HBE has also entered into a memorandum of understanding with the Boeing Company to evaluate opportunities to develop renewable aviation fuels in Hawaii.

“As Hawaii emerges as a global clean energy leader, this is an example of how technologies developed and deployed here can have a significant impact worldwide,” said Richard Lim, director of the Department of Business, Economic Development and Tourism. “Hawaii BioEnergy’s strategy to also target the aviation market reinforces the state’s energy policy to develop locally produced renewable biofuels production through long-term contracts and move into higher value markets such as jet fuel.”

“The PUC’s decision to approve this long-term contract for the production of locally produced biofuels is supportive of the state’s quest for a diverse portfolio of clean energy solutions and greater price stability for our energy consumers,” added State Energy Administrator Mark Glick. “This agreement sets the stage for locally produced biofuels to play a more meaningful role in helping achieve the state’s renewable portfolio standard.”

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. 2011-0369).

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For more information, contact:

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