STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Examples of Hawaii’s
Leadership in Building
Efficiency
Mark GlickHawaii State Energy Administrator
May 15, 2015
NASEO 2015 Western Regional State and
Territorial Energy Office Meeting
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Urgency to Conserve – Hawaii is Most
Isolated Population Center on Earth
Alaska: 3,022 mi
U.S. Mainland: 2,471 mi
Mexico: 3,397 mi
Costa Rica: 4,822 mi
Colombia: 5,551 mi
Chile: 6,698 mi
Ecuador: 5,450 mi
New Zealand: 4,613 mi
Taiwan: 5,285 mi
Fiji: 3,157 mi
Australia: 5,205 mi
Japan: 4,036 mi
China: 5,251 mi
Russia: 5,312 mi
Canada: 3,550 mi
Indonesia: 6,276 mi
Papua New Guinea: 4,492 mi
Hawaii
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Energy Cost as a Percent of GDPUnpredictable energy costs greatly impacts Hawaii’s economy
5.9%
6.9%
7.5%
8.6%
9.3%9.5%
10.3%
7.3%
8.6%
10.9% 10.8% 10.8%
9.3%
0%
2%
4%
6%
8%
10%
12%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 2014*
Source: Research & Economic Analysis Division, DBEDT
* estimated
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Electricity Prices: U.S. vs. Hawaii
10.80
34.02
0
5
10
15
20
25
30
35
40
Se
p-1
1
De
c-1
1
Ma
r-1
2
Ju
n-1
2
Se
p-1
2
Dec-1
2
Ma
r-1
3
Ju
n-1
3
Se
p-1
3
De
c-1
3
Mar-
14
Ju
n-1
4
Se
p-1
4
US
HI
Source: Energy Information Administration
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Hawaii’s Energy PolicyThe Energy Resources Coordinator sets Hawaii’s energy policy
Under HRS 196, the DBEDT Director is the
state’s Energy Resources Coordinator (ERC),
responsible for energy planning, policy and
programs
State Energy Administrator and Energy Office is
delegated with fulfilling ERC energy policy
directives
In 2011, the ERC repositioned clean energy as
economic driver – departing from original
principal focus on environmental and energy
security
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Energy Resource Coordinator
Statutory Duties HRS 125C – Procurement, Control, Distribution, and Sale of Petroleum
Products
HRS 128 – Civil Defense and Emergency Act
HRS 171 – Public Lands, Management and Disposition of
HRS 196 – Energy Resources
HRS 201 – Department of Business, Economic Development, and Tourism
HRS 201N – Renewable Energy Facility Siting Process
HRS 226 – Hawaii State Planning Act
HRS 235 – Income Tax Law
HRS 269 – Public Utilities Commission
HRS 342B –Air Pollution Control
HRS 486J – Energy Industry Information Reporting Act
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Hawaii Clean Energy
Initiative (HCEI)
100% Renewable (electricity sector) by 2045
Reduce 4,300 Gwh by 2030 - EEPSNew Energy in Transportation Road Map
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Balanced Approach
• Diversifying our energy
portfolio
• Connecting the islands
through integrated,
modernized grids
• Balancing technical,
economic, environmental
and cultural considerations
• Leveraging our position as
a test bed to launch an
energy innovation cluster
• Allowing the market to pick
winners
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
• STEP 1:
100% renewable energy
goal
• STEP 2:
Grid of the future
• STEP 3:
Transitional fuels for
power generation &
transportation
Clean Energy Vision
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Renewable Energy and Energy
Efficiency Portfolio Standards
6.9% 8.3% 9.3% 10.9% 12.1%14.5% 15.7%
8.9%9.4%
9.5%9.5%
11.9%
13.7%
18.0%
15.8%17.8%
18.8%20.4%
24.0%
28.2%
33.7%
0%
10%
20%
30%
40%
2007 2008 2009 2010 2011 2012 2013
RP
S a
nd
EE
PS
Levels
Renewable Energy Percentage
Energy Savings Percentage
Source: Renewable Portfolio Standards Status Reports, 2007-2013 (Hawaii Public Utilities Commission)
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Performance Contracting
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Use energy-savings financing mechanisms to
pay for efficiency and renewable energy projects
on campus.
Maximize student tuition savings by establishing
long-term commitments to reduce energy use at
the University of Hawaii.
Encourage the use of innovative means of
energy-savings financing to reduce taxpayer
costs for capital improvement and energy
efficiency projects.
Net Zero University
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
"§304A- University of Hawaii; net-zero energy
goal. (a) The University of Hawaii shall establish a
collective goal of becoming net-zero with respect to energy
use, producing as much energy as the system consumes across
all campuses, by January 1, 2035.
(b) The University of Hawaii shall establish a
benchmark for the amount and value of energy consumed during
the 2014-2015 fiscal year, against which it shall measure
its progress toward the net-zero energy goal set forth in
subsection (a).
(c) The University of Hawaii shall make improvements
that advance the net-zero energy goal set forth in
subsection (a) a priority.
(d) The University of Hawaii shall submit an annual
report to the legislature no later than twenty days before
the convening of each regular session. The annual report
shall include the following information:
(1) Overall progress toward the net-zero energy goal
set forth in subsection (a);
(2) Plans and recommendations to advance the net-zero
energy goal set forth in subsection (a)."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2015.
HB 1509 HD3 SD2 CD1
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Building Codes
Hawaii Building Code Council unified county & state building codes.
Council adopted IECC with amendments tailored to Hawaii’s climate.
State Energy Office added as Council voting member in 2014
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
GEMS Green Financing
GEMS will help nonprofits and other underserved groups finance
PV panels and other clean energy improvements.
The state last fall issued $150 million in green infrastructure
bonds by November to support the GEMS program
The bonds provide a source of low-cost capital for clean energy
that will not compete with private-sector financing
15
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Clean Energy Innovation
SectorHawaii – Clean Energy Test Bed for the Asia-Pacific Region
STATE OF HAWAII DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT & TOURISM
Mahalo
Mark Glick
808-587-3807
