For Immediate Release: July 11, 2017
HONOLULU —Hawaii has surpassed the half-billion-dollar mark for investment in energy performance contracting (EPC), an innovative financing tool that allows government agencies to achieve significant savings from the installation of energy, water and operational efficiency projects without having to pay capital expenses up front. With $504.3 million in signed energy performance contracts to date, Hawaii becomes just the seventh state nationally to eclipse the half-billion-dollar threshold for EPC investment.
Buildings account for approximately 40 percent of total U.S. energy consumption and carbon dioxide emissions. By making buildings more energy efficient through retrofits and upgrades government agencies can significantly reduce energy use and negative environmental impacts. EPC also allows government agencies to enjoy the benefits of new high-efficiency lighting, cooling and other equipment without incurring any of the upfront costs while bringing improved working environments to personnel. The $504.3 million of energy performance contracts put in place since 1996 will save the state an estimated $1.2 billion in electricity costs over the life of the contracts.
“State and county agencies, which are some of Hawaii’s largest energy consumers, are demonstrating how energy performance contracting can reduce electricity consumption and help us achieve our clean energy goals cost effectively,” said Luis Salaveria, director of the State Department of Business, Economic Development, and Tourism. “In addition, reducing the amount the government spends on energy allows us to make better use of taxpayer dollars for other critical programs,” he added.
“Hawaii has long been the national leader for its investment in performance contracting projects on a per capita basis. But now they have joined a handful of states in the exclusive half-billion dollar club for total investment in energy saving projects,” said Jim Arwood, executive director of the Energy Services Coalition. “Other members include the states of Washington, Ohio, Kentucky, North Carolina, Colorado and Massachusetts.”
The Hawaii State Energy Office (HSEO), a division of DBEDT, provides technical assistance to state and country agencies entering into energy performance contracts. The EPC projects vary widely and include office buildings, community colleges, airports, highways, and prisons. In a typical EPC, the building owner contracts with an energy service company to install the energy improvements and guarantee the energy savings over the contract term. The contractor is then paid out of the energy savings and captures the incentives made available by Hawaii Energy to promote investment in energy efficiency.
“The Hawaii State Energy Office has been instrumental in the success of EPC for government facilities in Hawaii,” said Brian Kealoha, executive director of Hawaii Energy. “The ability to finance energy efficiency upgrades over time without any upfront cost while incorporating the incentives from Hawaii Energy removes a critical barrier in moving forward with EPC projects and brings our state that much closer to reaching its 100 percent clean energy goal.”
Hawaii’s commitment to energy performance contracting has made it the national EPC leader on a per capita basis for five consecutive years. Hawaii’s investment of $370.74 per capita is well ahead of second place Washington with investment of $191.67 per capita. The national average is $60.78 per capita. Performance contracts signed by state and local government agencies in Hawaii since 1996 include 295 buildings and facilities covering more than 112 million square feet. The savings are the equivalent of powering 388,210 homes for one year.
About the Hawaii State Energy Office
The Hawaii State Energy Office (HSEO) is a division of the state’s Department of Business, Economic Development and Tourism. With the state’s goal to reach 100 percent renewable energy generation by 2045, HSEO is leading the state’s charge toward clean energy independence. HSEO 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, HSEO has positioned Hawaii port as a leader in clean energy innovation, which will generate quality jobs, attract investment opportunities and accelerate economic growth. For more information, visit energy.hawaii.gov
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.
About Hawaii Energy
Hawaii Energy helps educate island families and businesses about the many, lasting benefits of energy efficiency and conservation. Hawaii Energy encourages and rewards smart energy choices which will allow our state to reach 100 percent clean energy faster and cheaper. To date, we have collectively saved the people of Hawaii more than a billion dollars off their energy bills. Let Hawaii Energy be your trusted energy advisor to help save you money and protect what makes Hawaii so special.
Alan Yonan Jr.
DBEDT State Energy Office