ENERGY

Many will recall the Arab oil embargo in the 1970’s, and gas rationing at the pumps when prices increased 400% in six months.  This was followed rapidly in 1979 and 1980 by the Iranian revolution, and the rise to power of Ayatollah Khomeini.  Back then, our nation spent billions on renewable energy technologies, vowing never again to be dependent on foreign interests.  Hawaii was no different – I supported major federal initiatives in geothermal energy, ocean thermal energy conversion, and the preliminary development of an undersea cable to transport power from one island to another.

But then, oil prices returned to a reasonable level in the late 1980’s, and with it went our heightened national interest and zeal to reduce our dependency on foreign oil.  Just think where Hawaii would be today, had we just stayed the course.

Hawaii remains the state most dependent on imported oil.  About 90% of our energy needs are satisfied with imported oil, creating severe economic and security challenges.  At the same time, Hawaii has a wide variety of renewable energy resources, the development of which will not only reduce oil dependence, but result in lasting environmental benefits, and energy self-sufficiency. 

We must not falter this time around in accepting more distributed renewable and clean energy into the grid, such as wind, photovoltaic, geothermal, and biofuels.  To do so, we must provide a level of certainty in the amount of renewables the utility will accept and at what price, as well as de-linking utility revenues and electricity profits to encourage conservation, demand-side management, and third-party owned renewable energy systems.  We must pursue alternative transportation fuels and electric vehicles.  We must also provide greater incentives for energy conservation and demand reduction.

The Hawaii Clean Energy Initiative is an important step in furtherance of our commitment to reduce our dependency on foreign oil.  This ambitious goal is a full-scale transformation of Hawaii’s energy system to 70% clean energy by 2030.  It requires significant public and private investment, and an overarching political will to succeed.  Over the past five years alone, more than $125 million has come to Hawaii from the U.S. Departments of Defense and Energy to support a host of research, development and energy efficiency programs.  We are a national leader in this area with a host of renewable energy technologies to test, perfect and implement. 

I am pleased with the federal investments to date and will continue to provide an increased level of funding to ensure that we stay the course, and once and for all, reduce our dependency on foreign oil.  It is our duty to the next generation.

Below are some of my energy accomplishments for Hawaii:

Hawaii Energy and Environmental Technology Initiative.  In 2002, I worked to secure funding from the Office of Naval Research for the Hawaii Natural Energy Institute of the University of Hawaii (UH) to establish the Hawaii Energy and Environmental Technology Initiative to address critical technology needs associated with the exploration and utilization of seabed methane hydrates, and the development and testing of fuel cells and fuel cell systems.  The annual funding level was about $4 million which allows the UH to garner a national expertise of value to the U.S. Navy and transferable technology to the civilian sector.  With this basic investment, the UH has been able to compete for additional funding.  Today funding levels from the Navy are approaching $5 million annually.

At the onset, this initiative focused on development of a Hawaii Fuel Cell Test Facility in Kakaako.  This successful state-of-the-art testing facility forged additional partnerships.  It is today, the Navy’s main test facility for fuel cell development for unmanned air and undersea vehicles, including the effects of fuel and air containments and fuel cell propulsion for these unmanned systems. 

With an expanded Navy interest in alternative energy, together with additional funding I am supporting, new tasks will include perfection of an ocean thermal energy conversion heat exchanger, better energy storage and management technologies to facilitate greater use of renewable energy resources including wind and solar.

Hawaii Center for Advanced Transportation Technologies (HCATT).  In the late 1990’s, HCATT was established to research and test a host of electric vehicle, hybrid and battery technologies.  The annual funding base was about $3 million.  In 2004, the Air Force brought the first hydrogen powered fuel cell vehicle to Hawaii, and the program turned its attention to the use of hydrogen as a new energy medium.  Hickam Air Force base has become the national Air Force leader in the development of hydrogen based technology.  Hickam leads the State’s efforts in this area as well.

About $10 million has been spent over the years to both demonstrate and implement the following:

• The first fuel cell vehicle – a 30 foot bus for Hickam shuttle service in operation within the Air Force and the State.  It is a hybrid with a small fuel cell and a large battery pack.
• The first modular, deployable hydrogen production and fueling station to produce hydrogen and dispenses it into vehicles.  The station is capable of producing 48 kg of hydrogen a day.
• A fleet of operational fuel cell vehicles at Hickam – cars, vans, refueler.  
• Solar and wind energy sources are being installed to produce renewable hydrogen.  Photovoltaic arrays and wind turbines produce hydrogen with an annual electric cost savings.  The cost savings with an operational photovoltaic array were about $43,500 in 2008.

Hawaii – New Mexico Partnership.  In 2006, Senator Pete Domenici of New Mexico and I started the Hawaii-New Mexico Partnership, bringing together the University of Hawaii, New Mexico Tech and industry partners, General Electric and Hawaiian Electric.  Its annual funding level has been about $2.5 million.  The mission is to facilitate a greater penetration of Hawaii’s renewable energy resources into our electric systems.

The initial goal focused on developing strategic energy roadmaps for the major islands (beginning with the Big Island) to identify economically viable technologies that could be implemented to transform island energy infrastructures.  The Big Island and Maui initiatives are completed.  Oahu is nearly done and Kauai is ongoing.  The results addressed both the system integration/grid stability of taking significantly more renewable energy, as well as institutional issues like the need for easier execution of power purchase agreements with third-party renewable energy operators.  This congressional initiative provided the basic construct and way forward for the establishment of the Hawaii Clean Energy Initiative.

These efforts continue to validate the islands’ renewable energy road maps.  This will include testing the impact of high wind penetration on Maui and Oahu, significant increases in geothermal energy on the Big Island, and the large-scale integration of photovoltaic on all islands.

Hawaii Renewable Energy Development Venture (HREDV).  To further pursue and encourage the potential for clean energy enterprises in Hawaii, I requested U.S. Department of Energy support to develop a larger, more robust and sustainable clean energy sector in Hawaii.  This new program began in 2008 with $1.2 million and an additional $3.8 million in 2009.  The first phase involved a technology assessment of critical needs and capabilities.  At present, HREDV is leading the effort to facilitate the formation of teams to compete for economic stimulus clean energy funding opportunities.  The goal is to put forward projects that are “ready to go” such that private sector entrepreneurship and capital investment can be spurred on.

Additionally, HREDV will solicit proposals for potential co-investment from the private sector.  Targeted areas will include renewable energy technologies, energy efficiency, and clean energy-based transportation fuels and systems.  Follow-on efforts will include promoting coordination between renewable energy, sustainable agriculture and water resources management.  Reducing electrical costs for our farmers through investments in renewable energy increase their economic viability.  Moreover, it makes the connection between energy security and food security, which makes for a truly sustainable Hawaii.

Tropical Feedstocks and Biomass Conversion.  This project focuses on developing efficient biomass production and its conversion into useable energy.  Our unique tropical conditions and year-round growing season make Hawaii an ideal location to address biomass energy development which also offers new opportunities for Hawaii's agricultural sector, support rural employment, and promotes a greater level of environmental quality.  This project began with $500,000 in federal funding in 2008 and enjoyed an increase to $1.4 million in 2009.  University of Hawaii researchers are working to identify and produce promising biomass crops with energy conversion potential.  Bana and Guinea grasses were the initial crops investigated.  During the current year, new crops being addressed are energy cane, fast growing trees, and plants that can grow in arid conditions. 

Economic Stimulus.  Hawaii was provided $44.9 million in stimulus funds to in areas critical to the development of clean, efficient, American energy, including modernizing energy transmission, research and development of renewable energy technologies, and modernizing and upgrading government buildings and vehicles.  The money will come in the following programs: 

• Hawaii will receive $25.9 million through the State Energy Program which will be available for rebates to consumers for home energy audits or other energy saving improvements; development of renewable energy projects for clean electricity generation and alternative fuels; efficiency upgrades for state and local government buildings; and other state efforts to help save families money on their energy bills. 
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• In addition, we will receive $4 million through the Weatherization Assistance Program which will allow an average investment of up to $6,500 per home in energy efficiency upgrades and will be available for families making up to 200 percent of the federal poverty level – or about $50,720 for Hawaii. 
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• We will also receive $15 million from the Energy Efficiency and Conversation Block program which will allow Hawaii to reduce total energy use and lessen its dependence on fossil fuel emissions.  The breakdown of this amount is as follows -- State Energy Office $9.6 million, City and County of Honolulu $3.8 million; Hawaii County $737,800, Maui County $605,300 and Kauai County $267,900.