CREATING A CLEAN & SECURE RENEWABLE ENERGY FUTURE

The global energy industry is undergoing rapid changes and Hawai‘i is well positioned to capitalize on new opportunities in this high-tech sector. Seizing these opportunities to transform Hawaii’s energy infrastructure will reward Hawaii with a clean and reliable energy supply, develop a high-tech industry with vast opportunities to export its products and expertise globally, and retain more local dollars in Hawaii’s economy.

Currently, Hawai‘i depends on imported oil for approximately 93% of the state’s energy needs. This heavy reliance on imported oil makes Hawaii’s businesses and families extremely vulnerable to oil price fluctuations and potential disruptions in oil supply. The money used to buy oil also leaves the state’s economy and does not support local business. Hawai‘i must do better to stabilize a vital component of its economy.

Hawaii has substantial indigenous renewable energy resources such as solar, wind, geothermal, ocean and wave activity. Technological improvements in these small-scale distributed energy sources are making these resources highly attractive as cost-effective, reliable, and clean power sources. These resources, coupled with policies like net energy metering and renewable portfolio standards, are breaking down the traditional grid system from a highly centralized system to a distributed system where electricity sources are located closer to the end users. This break down of the traditional electrical grid provides an opportunity for Hawaii to transform the state’s energy infrastructure from an outdated system almost entirely reliant on oil to a more secure and cleaner system based on renewable energy and distributed power.

I have advanced several measures that would position Hawaii at the forefront of this energy transition. During my last term, I :

• passed the Net Energy Metering bill – Net energy metering allows eligible customers with solar or wind power to “spin their meter backwards” when they produce surplus electricity that is supplied back to the energy grid. This reduces the customer’s bill and provides a strong incentive for homeowners to purchase solar or wind energy systems. The legislature passed this bill in 2001 and became the 34th state to enact net energy metering.

• pressed for a mandatory Renewable Portfolio Standard – I introduced legislation in the past three sessions that would mandate each energy utility to produce a specified portion of their electricity from renewable sources. This is a flexible, market-based approach which provides a “floor” for renewable energy which may have difficulty otherwise competing against fossil fuels, especially when using biased cost formulas. Several other states have passed similar legislation and Governor Pataki in New York established a similar policy through an Executive Order. Hawaii’s energy utilities have lobbied extensively against this policy and in 2001 the Legislature passed a measure that establishes voluntary renewable energy goals for Hawaii’s utilities.

• urged renewal of the Energy Conservation Income Tax Credit – Hawaii’s homeowners and businesses have a significant tax credit for purchase and installation of devices that conserve energy. This tax credit has provided an effective incentive for purchase of these items, but it will expire in 2003. Renewing this tax credit will be one of my highest priorities in the next session.

I will continue to press these measures and build the political will to improve Hawaii’s energy infrastructure. These efforts will put Hawaii at the forefront of renewable energy in the Pacific.

District 14, East & North Kauai

OTHER ARTICLES IN POSITION PAPERS SECTION

Bottle Bill
Land Banking
Renewable Energy
Gasoline Pricing
Hydrogen
State Parks Funding
Education