Dee Hock, the former chief executive officer of VISA International,
said, "If one is to properly understand events and to influence the
future, it is essential to master four ways of looking at things: as
they were, as they are, as they might become and as they ought to be."
A remarkable spirit of bipartisan public interest led to significant
strides toward a more secure and sustainable energy future during this
past legislative session, and created a stronger foundation for
Hawai'i's preferred energy future building toward what it ought to be.
The final package includes proposals from the governor's omnibus
bill, the Senate and House majority packages and from the 43-member
Hawai'i Energy Policy Forum.
Some naysayers have criticized the Legislature for "punting"
important questions to the state's Public Utilities Commission. But
considering that energy is a very complex subject with policy,
technical, legal and financial implications, relying on the PUC is wise.
The Legislature rightfully set broad policy directives and authorized
the PUC to conduct the needed technical analyses, fact-finding and
policy and standards development and enforcement. At the PUC, the
consumer advocate represents the public interest and responsible
stakeholders can have a place at the table.
There is no doubt that our energy future ought to be clean, renewable
and secure.
However, that future cannot be achieved without the removal of
regulatory barriers that impede the implementation of renewable or
efficiency projects. Creating a conducive regulatory climate with rate
structures and incentives is necessary to focus the electric companies
on where we ought to be.
And the role of the PUC is extremely important in keeping the cost of
electricity affordable and the service reliable for all members of our
community.
The bills passed this session will aim to expand Hawai'i's use of
renewable energy.
The state's Renewable Portfolio Standard law requires that 20 percent
of electrical energy sales must come from renewable energy sources or
through energy efficiency. The law was revised to require that at least
half of that requirement must come from renewable sources such as wind,
solar, geothermal, hydro and biomass. The PUC can require more than 50
percent and penalize the utilities if they do not meet that target.
The renewable energy technologies income tax credit designed to
encourage private investment is now permanent and credit amounts have
been raised to encourage consumers to install solar hot-water heaters
and photovoltaic systems.
A pilot solar water heating "pay as you save" program will allow
residents to purchase a solar hot-water system the best single way to
save energy and cut home energy costs with no money up front. And they
can pay off the cost over time on their electricity bill.
Along with renewables, greater efficiency is essential to our energy
future. We need a new energy culture that focuses on conservation and
efficiency.
The PUC already is looking at how to manage and encourage energy
efficiency and the new laws will give the PUC the authority to establish
an independent "energy efficiency utility" with the power to collect
money from customers and spend it to encourage energy efficiency and
renewables a task now managed by the utilities.
The PUC is also authorized to examine the "fuel price adjustment"
clause, which is the cost of fuel for electricity that the utilities
pass through to consumers, to determine whether changing the system will
encourage utilities to pursue more renewables or just subject consumers
to even higher costs.
Also passed this session are bills that set new planning and budget
goals for state agencies to incorporate "green" building practices,
including renewable energy, increased conservation, waste reduction and
pollution prevention. Government agencies are encouraged to purchase
environmentally friendly products such as fuel-efficient vehicles and
alternative fuels.
That includes requiring county agencies that issue construction or
development permits to give priority processing to projects that meet
energy-efficiency and environmental-design standards.
While there are steps to be taken right away, the governor and
Legislature recognized a responsibility to look to the energy horizon as
well.
For example, a bill passed that will establish a renewable hydrogen
program with an investment capital special fund of $10 million to
support the first year's activities. This is a long-term investment and
will support the growth and development of the other home-grown
renewable resources as a feedstock for hydrogen.
While the session delivered a comprehensive and forward-looking set
of new laws, we still face significant challenges in implementing these
initiatives and filing in the gaps.
For example, if Hawai'i seriously intends to reduce its dependence on
imported fossil fuel, it will also require dealing with transportation
as well as electricity generation. The Forum had proposed a so-called
"Hummers for hybrids" bill to increase licensing costs for gas
guzzlers to offset reducing those costs for fuel-efficient vehicles,
including hybrids.
We have a strong foundation and are well-positioned for the future.
Now it's time for all of us to work together to get us where we ought to
be.
Sharon Miyashiro is co-chair- woman of the Hawai'i Energy Policy
Forum, which is based at the University of Hawai'i-Manoa. She wrote this
commentary for The Advertiser.