[Senate Hearing 113-286]
[From the U.S. Government Publishing Office]
S. Hrg. 113-286
SUCCESSES AND CHALLENGES OF MEETING
SUSTAINABILITY GOALS IN HAWAII AND THE PACIFIC
=======================================================================
HEARING
before the
SUBCOMMITTEE ON WATER AND POWER
of the
COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
TO
EXAMINE THE SUCCESSES AND CHALLENGES OF MEETING SUSTAINABILITY GOALS IN
HAWAII AND THE PACIFIC, INCLUDING OVERSIGHT OF EXISTING ACTIVITIES AND
FEDERA-ISLAND PARTNERSHIPS IN ENERGY, WATER, LAND USE, MARINE
RESOURCES, AND OTHER SECTORS
__________
HONOLULU, HI, APRIL 16, 2014
Printed for the use of the
Committee on Energy and Natural Resources
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COMMITTEE ON ENERGY AND NATURAL RESOURCES
MARY L. LANDRIEU, Louisiana, Chair
RON WYDEN, Oregon LISA MURKOWSKI, Alaska
TIM JOHNSON, South Dakota JOHN BARRASSO, Wyoming
MARIA CANTWELL, Washington JAMES E. RISCH, Idaho
BERNARD SANDERS, Vermont MIKE LEE, Utah
DEBBIE STABENOW, Michigan DEAN HELLER, Nevada
MARK UDALL, Colorado JEFF FLAKE, Arizona
AL FRANKEN, Minnesota TIM SCOTT, South Carolina
JOE MANCHIN, III, West Virginia LAMAR ALEXANDER, Tennessee
BRIAN SCHATZ, Hawaii ROB PORTMAN, Ohio
MARTIN HEINRICH, New Mexico JOHN HOEVEN, North Dakota
TAMMY BALDWIN, Wisconsin
Elizabeth Leoty Craddock, Staff Director
Sam E. Fowler, Chief Counsel
Karen K. Billups, Republican Staff Director
Patrick J. McCormick III, Republican Chief Counsel
------
Subcommittee on Water and Power
BRIAN SCHATZ, Hawaii, Chairman
TIM JOHNSON, South Dakota MIKE LEE, Utah, Ranking
MARIA CANTWELL, Washington JOHN BARRASSO, Wyoming
BERNARD SANDERS, Vermont JAMES E. RISCH, Idaho
DEBBIE STABENOW, Michigan DEAN HELLER, Nevada
JOE MANCHIN, III, West Virginia JEFF FLAKE, Arizona
AL FRANKEN, Minnesota TIM SCOTT, South Carolina
Mary L. Landrieu and Lisa Murkowski are Ex Officio Members of the
Subcommittee
C O N T E N T S
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STATEMENTS
Page
Abercrombie, Hon. Neil, Governor, State of Hawaii, Honolulu, HI.. 2
Jimenez, Julia Valentino, Roosevelt High School, Mililani, HI.... 10
Lippert, Dawn, Director, Energy Excelerator, (a program of
PICHTR), Honolulu, HI.......................................... 26
Meguro, Wendy, Assistant Professor, Sustainable Buildings and
Community Design, University of Hawaii, Manoa, School of
Architecture and Sea Grant College Program, Honolulu, HI....... 30
Morimoto, Julian Mangadlao, Roosevelt High School, Honolulu, HI.. 13
Morita, Hermina M., Chair, Hawaii Public Utilities Commission,
Honolulu, HI................................................... 21
Pauley, Stephen, M., MD, President, Edwin W. Pauley Foundation,
Ketchum, ID.................................................... 45
Rue, Harrison, Community Building and Tod Administrator, City and
County of Hololulu, Department of Planning and Permitting,
Honolulu, HI................................................... 33
Schatz, Hon. Brian, U.S. Senator From Hawaii..................... 1
Tam, William M., Deputy Director, Hawaii Commission on Water
Resource Management, Department of Land and Natural Resources
(DLNR), Honolulu, HI........................................... 37
Thiel, Jackie Kozak, Sustainability Coordinator, State of Hawaii,
Honolulu, HI................................................... 2
SUCCESSES AND CHALLENGES OF MEETING
SUSTAINABILITY GOALS IN HAWAII AND THE PACIFIC
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WEDNESDAY, APRIL 16, 2014
U.S. Senate,
Subcommittee on Water and Power,
Committee on Energy and Natural Resources,
Honolulu, HI.
The subcommittee met, pursuant to notice, at 1:10 p.m. at
the East-West Center at the University of Hawaii, Manoa Campus,
Honolulu, Hawaii, Hon. Brian Schatz, presiding.
OPENING STATEMENT OF HON. BRIAN SCHATZ, U.S. SENATOR FROM
HAWAII
Senator Schatz. Good afternoon--the Subcommittee on Water
and Power is holding a field hearing here in Honolulu. We're
pleased to have all of you.
We are here today to examine the successes and challenges
of meeting sustainability goals in Hawaii and the Pacific.
Hawaii is a national leader in sustainability and we want to
continue to encourage that strong tradition. We'll discuss
existing Federal-Island partnerships in energy, water, land
use, marine resources and other sectors as well as initiatives
by local and State government.
This weekend the United Nations International Panel on
Climate Change released a stark report on the need for all
countries to begin reducing carbon pollution immediately in
order to avoid the most devastating impacts of climate change.
Following its release Secretary of State, John Kerry, said this
report makes very clear we face an issue of global willpower
not capacity. Secretary Kerry is correct. We have the tools
necessary to win this fight. What we need is the will, at all
levels, to use them.
Hawaii is one example that the statement is making
progress. But it is also a place that will suffer if climate
change continues unchecked. Hawaii's geographic isolation,
limited physical resources, unique ecosystems and growing
population create a unique set of challenges.
We need reliable and affordable energy, water, agricultural
land and other resources that are vital to a sustainable and
growing economy. U.S. affiliated Pacific Island territories and
freely associated States face similar challenges. Most islands
currently manage or must prepare for projected water shortages,
for urbanization and changing rainfall patterns, high energy
costs due to heavy reliance on imported energy, increasing land
use conflicts from loss of land due to sea level rise and
growing populations and control of invasive species that made
outside effects on fragile island ecosystems.
To address these and other resource challenges, Hawaii has
aggressively pursued a variety of policies to decrease reliance
on imported energy, reduce overall energy use, more effectively
use limited urban and suburban land and ensure future access to
water for drinking, agricultural and other uses.
Hawaii is highly dependent upon imported fuels for energy.
In 2011 the State imported 93 percent of its energy. Like many
relatively small islands, uses mostly fuel oil to generate
electricity. As a result Hawaii has historically had the
highest electricity prices of any State, sometimes reaching 4
times the national average.
In order to reduce energy costs and encourage clean energy
the State implemented a renewable energy goal of 40 percent by
2030 along with a goal of reducing total energy demand by 30
percent by 2030. We are also beginning to pursue strategies to
reuse and recycle water and to use water more efficiently.
Different islands in the State confront different challenges
and opportunities in meeting their energy, water and land use
needs.
The challenges are most acute on Oahu where over 70 percent
of our State's 1.4 million residents live. So we must
simultaneously pursue different energy and resource
conservation strategies. Hawaii's water supplies as well as
many other Pacific Island supplies are highly dependent upon
rainfall and are threatened by increased hotter and drier
weather, the loss of watershed forests and encroachment by
rising sea level.
Nearly 50 percent of Hawaii's water supply comes from
ground water sources and the rest come in from the
approximately 376 streams that flow throughout the year. Ground
water, which is also used for agricultural, industrial and
domestic purposes is the principle source of municipal water
supplies in Hawaii. All of these characteristics of our State
and other island communities mean that we have to be especially
careful stewards of our precious resources. Decisions we make
today, especially as we face a changing climate and all that
comes with it, will have a major impact on our future.
The goal of this hearing is to understand more deeply the
challenges that Hawaii and other Pacific Islands face,
highlight our successes, identify future opportunities and
understand how the State can work more closely with the Federal
Government to advance its goals.
We have 2 panels today.
Our first witness is Governor Neil Abercrombie. Governor
Abercrombie will be followed by Mr. Julian Morimoto from
Roosevelt High School and Ms. Julia Valentino Jimenez from
Mililani.
Thank you all for being here and welcome.
Governor Abercrombie.
STATEMENT OF HON. NEIL ABERCROMBIE, GOVERNOR, STATE OF HAWAII,
HONOLULU, HI; ACCOMPANIED BY JACKIE KOZAK THIEL, SUSTAINABILITY
COORDINATOR
Mr. Abercrombie. Thank you.
Senator Schatz. Thank you for being here. Let's start with
you and move down the line.
Mr. Abercrombie. Thank you very much.
Senator Schatz. I'm told to tell you to take 5 minutes for
your testimony, but I'm pretty sure that staff will understand.
[Laughter.]
Mr. Abercrombie. Thank you very much, Senator. It is a
pleasure for me to be here with these 2 fine, young people, who
are 3 dimensional embodiment of the future that you referred
to.
I have a copy of the letter that you sent me to me where it
says, very specifically, please limit oral summation of your
written testimony to 5 minutes. So you did, I move. Everybody
knows that I was coming prepared.
[Laughter.]
Mr. Abercrombie. So I thank you very much for that
opportunity. A point of fact, I would like to submit for the
record, with your permission, formal testimony for the field
hearing which I have before me and would like to summarize if I
might.
Senator Schatz. Yes, please.
Mr. Abercrombie. For you.
So that I would like to submit.
I would like to submit as well for the record, with your
kind permission, a packet of material which has been shared
with the President's Task Force on Climate Change and
Resiliency including the work of our sustainability
coordinator, Jackie Kozak Thiel, entitled, Navigating Change,
Hawaii's approach to adaptation.
This was, in fact, a report for the first meeting of the
State, Local and Tribal Leaders Task Force on climate
preparedness and resilience in December of last year which
we've been following up on. It includes our resolutions from
the Hawaii Invasive Species Council which, I think, directly,
again, addresses some of the points that you have raised. Our
initiative here in the State on the rain follows the forest
which is our Department of Land and Natural Resources approach
to water conservation and preservation, if you will, in the
midst of the global climate change and warming phenomenon.
Again, with your permission, please?
Senator Schatz. Yes.
Mr. Abercrombie. Mr. Chairman.
Senator Schatz. These will be a part of the record.
Mr. Abercrombie. Thank you so much.
In summary, I would like to in reference to the term,
testimony, just refer you to page 2, if you have a copy of it
there. Just with one little reference, if I might that speech
to the particular necessities associated with being in the
Asian Pacific region. As you know and as you are well aware of
and as you've stated yourself on many occasions, we are Island
People. We regard the Pacific Ocean as not separating us in the
Asian Pacific region, but connecting us in the Asian Pacific
region.
If you'll go to the paragraph on climate change on page 2,
you'll notice with, recognizing this, that islands are windows
to the future. The State of Hawaii has become the first sub
national government to sign onto the Majuro Declaration for
Climate Leadership along with the U.S. and Pacific Island
nations.
I hope it doesn't seem presumptuous to other people that a
State would sign into, sign onto, ask permission to sign onto a
national treaty, in effect. The Declaration indicates that
climate leadership is what is necessitated, particularly for
island nations and for those nations that border the Asian
Pacific region. Cite that because we do believe that Hawaii is
a microcosm for global sustainability challenges and solutions.
When I first ran for office, Senator, in 1974, when I first
ran for the State legislature, I should say, for the seat which
you subsequently occupy, I made water and its conservation the
principle element of my campaign. At the time it was thought to
be an odd focus, thought to be a little bit abstract for a
local legislative contest, if you will. But I didn't think so.
I thought we were vulnerable. I thought we were vulnerable on
the energy side, the food side, the natural resource and
affordability of all of these aspects.
So going back then all the way to that time, to the
present, this has been on the front line of concern for
Hawaiians. Climate change and global warming has brought this
to a higher degree of perception, publicly, I think, than ever
before.
So we see, our islands, as a test bed for innovation. We're
very, very grateful for the opportunity that you sit on, on
this very valuable committee, in terms of its potential benefit
for and your opportunity to make genuine progress, not only for
our islands, but for the nation.
This enables us to have an integrated approach with that
which the Federal Government is able to do for our Federal
partnerships then are key. So we're committed to action on the
Hawaii Clean Energy Initiative, on climate change and what we
propose for the future which the testimony elaborates on at
greater length than I have time for right now, our Aloha Plus
Challenge for Sustainability.
Back there in 1974 we called it carrying capacity. That's
transformed itself, I guess, in nomenclature to sustainability.
It comes to the same thing.
Just let me elucidate a moment or 2 on those 3 elements,
our Hawaii Clean Energy Initiative, of which you were a key
element when you were Lieutenant Governor. 70 percent clean
energy by 2030. The recognition of the oil import crosses of
over 4, between $4 and $5 billion.
We propose to be a national leader in energy efficiency.
We're, right now, we're ahead of schedule to meet our renewable
goals. Our Federal partnerships will help us with a smart grid
and storage and transportation elements all associated with
that.
On climate change itself I've already mentioned that the
President's Task Force on Climate Preparedness and Resilience.
Again, I'm aided in this with the very able assistance of
Jackie Thiel and the various departments of our State
government that are committed to that.
We thank you for your leadership in the Congress on this
issue. I'm glad in the time that you've been there, you've been
recognized for that, not only with your committee assignment,
but with your chairmanship of the subcommittee.
This is a priority issue, climate change for Hawaii, across
the whole Pacific, as I indicated. We are hopeful that the
recommendations that we will be forwarding to the President
are--we know that they're the result of activities and action
that we're taking here in Hawaii. We think it's applicable
across the nation.
So we're taking climate change seriously. We already are
experiencing the impacts, that's for certain. So we want to
share what we're able to learn and what we're able to do with
everyone across the country.
Finally, in this area, I mentioned this Aloha Plus
Challenge. Without going into too much detail, that will be
forthcoming in the days and weeks to come.
Your conference yesterday was about making sustainability
happen. So leaders have to make commitments to act together to
put policies into place that provide direction and incentivize.
So Hawaii was invited by the Global Island Partnership to
make an international commitment to sustainability. We
certainly accept that invitation. We're working with the mayors
throughout the, the mayors and councils throughout the islands
and the chair and members of the Office of Hawaiian Affairs to
bring that about.
The Aloha Plus Challenge will set targets for 2030. This
goes beyond political. In other words, we're not trying to make
this oriented toward a political timeframe, but rather the
timeframe necessary for us to address these serious issues. The
Aloha Plus Challenge will deal with clean energy, global food
production, natural resource management and invasive species
prevention, waste production, smart growth and climate
resilience and green jobs creation and education. All, I think,
clearly the heart of the subject matter of the conference
yesterday and your hearing today.
So we'll be announcing some details with regards to the
Aloha Challenge, the Aloha Plus Challenge. We'll be working
with the public and private sector to--for Hawaii's green
growth. Of course, we're going to support the United State's
Department of State in the upcoming United Nations Conference
in Samoa on island sustainability.
So, Mr. Chairman, we have in the written testimony some
more specific recommendations, a few more general
recommendations based on my summary.
We can't build sustainable futures alone. We know that. We
need private investment. We need private support. We need
public support. We intend to try and bring that about.
We're committed, I can assure you, to being a model for
integrated sustainability. We invite the Nation and the world
to learn with us, not necessarily from us, but with us. We want
to join with everyone as a part of that commitment.
I want to inform you that we're working very, very hard.
Hope to have an answer, perhaps, within a month's time from the
World Conservation Congress in 2016. It's never been held in
the United States before. I think we're down to, perhaps, 2
sites. We've had a very successful site visit from the team
from the Conservation Congress. This is entirely compatible
with the goals of this conference and this hearing.
But we think that Hawaii has something unique to offer. I
hope they conclude the same.
Also, you had yesterday the advantage and the opportunity
to hear from Nainoa Thompson. The Hokule'a World Wide Voyage,
Mr. Chairman, I think summarizes what I have to say today. I
think summarizes what the commitment of everyone here is all
about. I hope gives a clear direction to the activities
associated with the past 2 days.
This is the message of Aloha. This is the message that our
diversity in this world should define us rather than divide us
as we say here. I am happy to be able to recite to those who
wonder what the message of Hawaii is that the aloha spirit, in
fact, unites us as the Pacific Ocean unites us as brothers and
sisters. That this message is something that should be taken
not just to our friends and neighbors on the mainland in the
United States and throughout the United States, but it's one, I
think, that can usefully be taken to the world.
As part of the packet then, Mr. Chairman, I've included for
the formal inclusion in the testimony I hope our Aloha law, the
State law, HRS 5-7.5 which is in fact the Aloha spirit, the
kindness, the unity, the realness, the pleasantness, the
humility and the patience expressed with perseverance that
represents aloha. I know that your activities here today are an
expression of that. I thank you for the opportunity to be able
to present this summary and to share with you, not only our
State's priorities, but our aloha for you and all you're trying
to accomplish.
Senator Schatz. Thank you very much.
Mr. Abercrombie. Mahalo, very much.
[The prepared statement of Mr. Abercrombie follows:]
Prepared Statement of Hon. Neil Abercrombie, Governor, State of Hawaii,
Honolulu, HI
Aloha Chair Schatz and Subcommittee members. As the Governor of the
State of Hawai`i, I thank you for the opportunity to testify about our
State's sustainability goals and how existing and new partnerships with
Congressional leaders and the Federal Government can strengthen our
ambitious efforts.
As isolated islands, Hawai`i is a microcosm of the sustainability
challenges facing the planet. We import 80-90 percent of our food and
energy, impacting our economy more than $8 billion each year. Hawai`i
is the endangered species capital of the U.S, and we join other Pacific
Islands on the frontlines of climate change. Despite our alarming
vulnerability, Hawai`i has a distinct vantage point at the crossroads
of the Asia-Pacific region and a unique opportunity to serve as a model
for integrated, whole system solutions to these challenges. Our island
perspective and indigenous host culture naturally leads to
interconnected thinking and collaboration, and we are committed to
developing nexus solutions for energy, water, waste, agriculture,
natural resources, and community design.
Today, I will highlight three major initiatives with strong
statewide support that illustrate Hawai`i's achievements, aspirations,
and commitment to action:
Excellent early progress on the Hawai`i Clean Energy
Initiative;
Our emerging national and international role in climate
change leadership; and
The Aloha+ Challenge: our shared leadership commitment to
build a more resilient, sustainable and secure economy across
our islands with six ambitious sustainability targets for 2030.
Hawai`i Clean Energy Initiative
As the most fossil fuel dependent state in the nation with $4.5
billion in annual outlays from our historical addiction to oil, clean
energy is a matter of security and resilience in Hawai`i. The Hawai`i
Clean Energy Initiative, jointly led by the State of Hawai`i and the
U.S. Department of Energy, is a perfect example of how federal
partnerships have helped to advance our state goal of 70 percent clean
energy by 2030 through 40 percent renewable energy and 30 percent
energy efficiency. In 2013, my Administration announced our commitment
to go beyond 40 percent renewable. The clean energy sector has set the
pace in Hawai`i. I am proud to report that we are currently at 18
percent renewable, beating our interim 2015 goal of 15 percent ahead of
schedule. With the highest energy costs in the U.S., and as a national
leader in energy efficiency and a pioneer in the frontier of renewable
energy penetration into the grid, Hawai`i is uniquely positioned to
serve as an international clean energy test bed and a model of Federal-
State and Federal-Island partnerships.
Climate Change
Clean energy transformation is paramount for mitigating the impacts
of climate change. I appreciate the Senate's leadership on climate
change, including the Up all Night event in Washington D.C. organized
by Hawai`i's Senator Schatz and others. I have been honored to share
Hawai`i's perspectives as a member of President Obama's State, Local,
and Tribal Leaders Task Force on Climate Preparedness and Resilience.
At the first Task Force meeting, I presented a special report called
Navigating Change-Hawai`i's Approach to Adaptation, which outlines our
distinct challenges, solutions, and initial recommendations. Every
region of our nation is represented on the Task Force, and I assure you
that climate change is a priority issue for all of us. Governor Calvo
of Guam and I have highlighted the special urgency of climate impacts
on island communities and indigenous populations, including more severe
storm events, less rainfall and fresh water, proliferation of invasive
species, rising temperatures, ocean acidification, and sea level rise.
Islands are windows into the future. With this recognition, the State
of Hawai`i became the first sub-national government to sign onto the
Majuro Declaration for Climate Leadership alongside the U.S. and
Pacific Island nations.
Task Force members are developing recommendations for the President
to help strengthen Federal support for State, Local, and Tribal efforts
in disaster management, community health and development, natural
resources and agriculture, and built systems and infrastructure.
Through our Resilient Hawai`i Forums & surveys, we engaged over 1,000
citizens to identify diverse concerns and suggestions. The message is
clear-the people of Hawai`i are taking climate change seriously and
want to see action at every level of government. This is no longer
about projections. We are already seeing the impacts in Hawai`i.
Ranchers are struggling with drought. Our world-renowned beaches are
disappearing due to erosion. Federal support is critical to help us
understand, mitigate, and adapt to the impacts of climate change.
Hawai`i's major recommendations to the Task Force encourage greater
flexibility for adaptive, place-based responses. We also call for
stronger, ongoing horizontal coordination across federal agencies and
vertical coordination with State, Local, and Tribal governments to
ensure cost-effective alignment of proactive efforts and integration of
programs. Additionally, in order to make adaptation-planning decisions,
Hawai`i and other islands need adequate spatial and temporal resolution
for modeling climate projections. Like many islands and coastal states,
much of Hawai`i's critical infrastructure is located along the coast.
We will need federal assistance in identifying vulnerable assets and
strategies for decentralization and relocation.
Hawai`i is uniquely positioned to serve as a hub for coordinating
domestic and international climate change efforts in the Asia-Pacific
region. We recommend that the East-West Center be considered as a venue
for an International Climate Change Resilience Forum. As home base to
the U.S. Pacific Command, the State of Hawai`i also has the opportunity
to build strong partnerships with the U.S. Department of Defense for
building climate resilience in the region.
As a Task Force member, I will produce a report of Hawai`i's full
list of detailed recommendations and plan to share them with our
Congressional delegation for consideration before the end of the year.
Aloha+ Challenge--He Nohona `Ae `Oia-A Culture of Sustainability
The intent of this hearing is to examine successes and challenges
of meeting sustainability goals. The State of Hawai`i has made
sustainability a priority in our State Planning Act and incorporated an
official definition, goals, and principles into law. Last year, I
accepted the invitation from the Global Island Partnership to the State
of Hawai`i to make an international commitment to sustainability in
2014 and to share and learn with other islands. It has been a pleasure
to work with our four Mayors and the Chair of the Office of Hawaiian
Affairs to develop the Aloha+ Challenge, our shared leadership
commitment to 2030 targets in clean energy, local food production,
natural resource management, waste reduction, smart growth, climate
resilience, green jobs creation, and education. This effort is
supported by our State Legislature and a cross-section of public and
private sector leaders in Hawai`i Green Growth. We plan to formally
launch the Aloha+ Challenge in the next few months with a joint,
statewide commitment to:
1. Clean Energy--70 percent clean energy, including 40
percent from renewables and 30 percent from efficiency
2. Local Food--Double the local food production with a goal
of 20-30 percent of food consumed being grown locally
3. Natural Resource Management--Reverse the trend of natural
resource loss mauka to makai by increasing watershed
protection, community-based marine management, invasive species
prevention and control, and restoration of native species
4. Waste Reduction--Reduce the solid waste stream prior to
disposal by 50 percent through source reduction, recycling, and
bioconversion
5. Smart Sustainable Communities--Increase livability and
resilience in the built environment through planning and
implementation at the state and county levels
6. Green Workforce--Increase local green jobs and education
to implement these targets
Federal partnerships and support are crucial to progress on all six
targets. I will highlight a few key successes, challenges, and
opportunities for federal support of the Aloha+ Challenge targets.
Clean Energy
To guide Hawai`i's clean energy revolution, my Administration
established a statewide energy policy in 2013 with five key elements:
(1) diversifying our energy portfolio; (2) connecting the islands
through integrated, modernized grids; (3) balancing technological,
economic, environmental, and cultural considerations; (4) leveraging
our international status as a clean energy test bed; and (5) allowing
the market to pick winners.
We have a strong start on Hawai`i's clean energy transformation,
but future gains will require even smarter solutions. Continued state
and federal investments in analysis, planning, and infrastructure are
required to catalyze the clean energy revolution. We greatly appreciate
our successful MOU with the U.S. Department of Energy, which has
provided vital support for Hawai`i to meet our 2030 statutory clean
energy goals while reducing greenhouse gas emissions.
Due to this success, Hawai`i is keenly focused on removing barriers
for renewable energy penetration by interconnecting our Oahu and Maui
grids and improving grid infrastructure at the energy consumer/
distribution and transmission levels. It is critical to ensure that
dedicated funding is continued in order to commit resources to both
short and long-term initiatives required to achieve Hawai`i's clean
energy goals.
Partnerships and assistance in the following areas will also help
to support Hawai`i's clean energy target:
1. Developing definitive, accurate renewable energy resource
assessments on each island that consider technical constraints,
costs, the environment, and community support and benefit.
2. Building a clear set of scenarios based on the island-
based renewable energy resource assessments.
3. Working with utilities to develop methods to address
curtailment risk as renewable energy penetration forces
limitations at the substation, circuit and system level. This
would include pursuing specific paths towards grid
modernization, smart grid--advanced metering infrastructure;
storage; alternative fuels like natural gas; and submarine
transmission.
4. Developing a transportation plan, starting with a design
charrette of local stakeholders to assess options for reducing
large volumes of petroleum-based gasoline, diesel, jet fuel and
marine fuels with a focus on policies and actions that can be
achieved in Hawai`i through a roadmap and supporting analyses
of costs, benefits, and sources of funding.
Local Food Production and Water
Part of my New Day Plan is to spark an Agricultural Renaissance in
Hawai`i. The Waimea Nui Agricultural Complex project, with a Veteran to
Farmer program, is a great example of our creative Food Self-
Sufficiency Strategy in action. The complex will also include a
biodigester that will create energy for a kitchen and processing
facility where farmers can create value-added products to increase
their revenue stream. This project would greatly benefit from
additional support from USDA.
As the emergency drought in California underscores, water and food
security are vitally linked. Federal partnerships can help us in both
increasing our efficiencies in agricultural irrigation practices and
reclaiming storm water, grey water, and rainwater to replace potable
water in urban and agricultural applications.
Invasive Species
Invasive species are one of the top threats to Hawai`i's
agriculture, natural resources, and human health. I have directed my
departments to effectively work across silos through the interagency
Hawai`i Invasive Species Council. We recently passed resolutions urging
federal agencies to support Hawai`i's efforts to strengthen
biosecurity. The resolutions are attached with opportunities for
partnership with the U.S. Departments of Agriculture, Interior, and
Defense.
The State of Hawai`i would also like to be considered as one of the
U.S. Department of Agriculture's pilot sites to create a harmonized
national systems approach to nursery certification.
Natural Resource Management
Healthy forests, wetlands, coral reefs, and other natural
ecosystems are critical to sustainability and resilience in a changing
climate. In 2011, my Administration unveiled a plan to replenish
Hawai`i's source of water through the Rain Follows the Forest Watershed
Initiative. In 2013, we updated our Ocean Resources Management Plan to
identify management priorities and interagency implementation actions.
We need healthy watersheds and reefs to continue to deliver fresh
water, absorb greenhouse gases, control runoff and erosion, protect
shorelines from storm surge, produce sustainable seafood, maintain our
unique biodiversity, and provide other natural benefits that allow us
to survive and thrive in the middle of the Pacific Ocean.
Federal partnerships and support have been critical in matching our
state investment in natural resource management, such as the U.S. Fish
and Wildlife Service's Cooperative Endangered Species Recovery Fund and
State Wildlife Grant program. A restoration of these funds (to FY2011
and FY2014 levels respectively) would help Hawai`i to make progress on
simultaneously protecting water supply, preserving biodiversity, and
preparing for the impacts of climate change through ecosystem-based
adaptation.
Waste Reduction
Solid waste management is a unique challenge in Hawai`i because we
are a geographically-isolated island state. Currently, we import the
vast majority of goods used in the state, which in turn creates waste
that requires management. Hawai`i has developed a variety of innovative
waste management systems to address the state's solid waste issues,
including development of H-Power (Honolulu Program of Waste Energy
Recovery), the Deposit Beverage Container Program (HI-5), the Advance
Disposal Fee Program for glass, and electronic waste recycling.
In order to meet our 2030 target of reducing our solid waste stream
by 50 percent, Hawai`i needs federal assistance to:
1. Establish a market for recycled products
2. Reduce the level of packaging in transported goods
3. Establish standardized best practices for manufacturing
that will create less waste
All these measures would be useful to other jurisdictions that are
also working to reduce waste.
Smart Sustainable Communities
Ninety percent of our state's population lives on this island. We
need to make sure that our urban and rural communities are resilient,
livable, and age-friendly. Transit-oriented development is a central
component to sustainable community design and smart growth. Interagency
programs like the HUD-DOT-EPA Sustainable Communities Partnership
should be replicated and expanded to encourage innovation,
collaboration, and performance monitoring at a state and local level.
In order to better incentivize sustainable community design throughout
the country, we need to better align transportation costs and usage. As
the Federal Highway Trust Fund decreases from the reduction of vehicle
miles travels (VMT) and increased fuel efficiency, we need to
transition from a fixed cost system to a variable cost system that
accounts for VMT. A VMT pricing system could be used in place of the
existing gas tax system and help to pay for new resilient
infrastructure. This approach would support performance measures for
all modes of transportation and broader community goals that link land
use, community design, health, safety, equity, and environmental
sustainability.
Education--Student participation on the witness panel today
demonstrates the importance of empowering the next generation of
leaders through education. We need to make sure that our children are
obtaining the 21st century skills and multidisciplinary knowledge from
pre-school through higher education. This is a key investment in the
integrated sustainability solutions of the future.
Green Jobs--As we strive toward all of these targets, we will
create a diversified workforce through the economic and entrepreneurial
opportunities presented by solving these challenges. Hawai`i is already
one of the top states in the nation for clean energy job growth.
Government cannot and should not build a sustainable future alone.
Private sector investment, innovations, and partnerships are critical.
Government's key role is to reduce risk, increase market reliability,
and strategically leverage government funding to mobilize major private
finance. The combination of clean energy policies in the Hawai`i Clean
Energy Initiative and Hawai`i's Energy Excelerator is a powerful
example of this approach. $10 million in federal funding leveraged over
$55 million in private sector investment and resulted in over 400 green
jobs. There are similar entrepreneurial opportunities in agriculture,
natural resource management, waste reduction, and green building that
would benefit from federal investment and incentives.
Yesterday's Ascent Conference at the University of Hawai`i reflects
the type of integrated thinking and public-private solutions that are
needed to meet the sustainability challenges in Hawai`i and around the
world. Hawai`i is ready to serve as a model of integrated and
innovative approaches that can be scaled up for national and
international benefit. We welcome others to learn with us.
The Hokule`a, the traditional Hawaiian voyaging canoe, is embarking
on the Worldwide Voyage to share Hawai`i's sustainability message
around the globe and carry lessons learned from other ports and places
with a focus on ocean connections. We are working closely with the U.S.
Department of State to help represent our country at the upcoming
United Nations Conference for Small Island Developing States focused on
island sustainability in September 2014 in Samoa. In 2016, we hope to
be the first U.S. location to host the World Conservation Congress,
where we will showcase real progress on all our Aloha+ Challenge
targets.
My Administration is committed to leading sustainability efforts
through interagency coordination, public-private partnerships, and
strategic investments. The State of Hawai`i sincerely appreciates
collaboration with the Federal Government to advance our 2030 targets.
I thank you for your leadership to elevate the pressing issues of
climate change and sustainability in Congress and for the opportunity
to highlight Hawai`i's priorities.
Senator Schatz. Thank you, Governor.
Ms. Jimenez.
STATEMENT OF JULIA VALENTINO JIMENEZ, ROOSEVELT HIGH SCHOOL,
HONOLULU, HI
Ms. Jimenez. Good afternoon.
My name is Julia Jimenez. I'm a homeschooled senior, who
has had the privilege of being a part of the Schatz Senior
program. I'd like to thank Chairman Senator Schatz for allowing
me to speak before the committee today.
As the next generation to join the work force and venture
out into the world, we have a vested interest on the issues of
climate change and sustainability. We see these problems. We
see our future. For truly these problems are our future.
If nothing is done now, it is my generation that will have
to pick up the pieces. That is why I am here today, to urge
Congress to address these problems while we still can. For it
is much easier to move a vase away from the edge than to glue
it back together once it has been broken.
Although climate change and sustainability may be important
issues that are often talked about, I found that people of the
community truly don't understand the depth of the problem. In
my own circles of family and friends very, very few even
recognize that climate change is actually happening. There is a
certain ignorance or denial that allows people to turn a blind
eye.
Before we can begin to solve climate change and prevent an
unsustainable future we must recognize that there's something
to change and prevent. Congress must partner with the
communities to make a true difference. In order to do this
education must be a priority, for citizens and businesses
alike.
I recommend that Congress invest in research on what is the
best way to reach the communities whether that be through
unbiased curriculum in the schools or innovative outreach
programs.
Another recommendation would be for Congress to set up an
incentive plan so that companies would be encouraged to educate
their customers about sustainable technologies. If these
environmentally conscious products were introduced into our
lives I believe it would not only educate citizens but
encourage them to take an active role in a sustainable future.
Climate change is primarily caused by greenhouse gases that
are often caused by the emission of carbon dioxide after its
source has been used for fuel for certain technologies. Last
night former Vice President, Al Gore, said a wonderful quote,
saying, ``It is like we decided to use the atmosphere as an
open sewage line for gas waste.'' He also compared the
pollution of human kind to releasing 400,000 Hiroshima bombs in
24 hours. This is why it is up to us to keep careful watch of
our own carbon footprints as individuals and as a Nation.
A program is being created in Hawaii called Ka Hei. This
program allows schools to become environmentally conscious and
sustainable while reducing the carbon footprints of the
infrastructures themselves. This program sets us a clear plan
toward sustainability and green energy including the goals of
reducing costs in 255 DOE schools, implementing sustainability
and energy efficiency, supporting the goal of 90 percent clean
energy by 2040 and having more educational opportunities
concerning sustainability and stimulating the economy through
local construction labor.
Even though this program was created for schools it is not
limited to that capacity.
I would like to recommend for the committee to set in place
Federal incentives for companies, offices and schools implement
plans similar to this.
Too often do I walk into a government building and see the
old school lights that hike up electricity costs and the use of
desktop computers when the use of laptops could save more
energy. It is for this reason that I would recommend the
committee put forth a timeline for government buildings to
become more cost effective and energy efficient and diminish
their own carbon footprint.
When we talk of such massive issues as climate change and
sustainability every bit of help counts. If we, as a nation,
can commit to adapting our infrastructures to be
environmentally conscious I believe that we can make a true
difference in the fight against climate change.
For years I lived in a city called Bakersfield in
California. Bakersfield is surrounded by a horseshoe of
mountains where smog will come to sit. This created a horrible
air quality that actually affected my lung capacity and gave me
breathing problems. No one wants our beautiful island to become
like this nor do we want our nation to become like this. That
is why climate change is such an important issue, not only for
our generation, but also for your generation now.
Thank you again to Senator Schatz for allowing myself and
my fellow intern to testify today. We are grateful that
Congress and the committee is dedicated to addressing climate
change and sustainability for the actions that you do now will
affect our future.
Thank you.
[The prepared statement of Ms. Jimenez follows:]
Prepared Statement of Julia Valentino Jimenez, Roosevelt High School,
Honolulu, HI
Good afternoon. My name is Julia Jimenez and I am a homeschooled
senior who has the privilege of being a part of the Schatz Seniors
program. I would like to thank Chairman Senator Schatz for allowing me
to speak today before the committee.
As the next generation to join the work force and venture out into
the world, we have a vested interest on the issues of climate change
and sustainability. We see these problems and we see our future,
because truly these problems are our future. If nothing is done now, it
is my generation that will be left to try and pick up the pieces. That
is why I am here today: to urge Congress to address these problems
while we still can. It is much easier to move a vase away from the edge
then to glue it back together again.
Although climate change and sustainability may be an important
issues that are often talked about, I have found that people of the
community truly don't understand the depth of the problem. In my own
circles of friends and family, very, very few even recognize that
climate change is happening. There is a certain ignorance or denial
that allows people to turn a blind eye. Before we can begin to try to
solve climate change and prevent an unsustainable future, we must first
recognize that there is something to solve and prevent. Congress must
partner with communities to make a true difference. And in order to do
this, education must be a priority, for citizens and businesses. I
recommend that Congress invest in research on what is the best way to
reach the communities, whether that be through more unbiased curriculum
in schools or innovative outreach programs. Another recommendation
would be for Congress to set up an incentive plan, so companies would
be encouraged to educate their customers about sustainable
technologies. If these environmentally conscious products were
introduced in our lives, I believe it would not only educate citizens,
but encourage them to take an active role in a sustainable future.
Climate Change is primarily caused by greenhouse gasses, which are
often caused by the emission of carbon dioxide after its source has
been used as fuel for certain technologies. That is why it is up to us
to keep careful watch of our own carbon footprints, as individuals and
as a nation. A program is being created in Hawaii call Ka Hei. This
program allows schools to become environmentally conscious and
sustainable, by reducing the carbon footprint of the infrastructures
themselves. This program sets up a clear plan towards sustainability
and green energy, including the goals of reducing costs of 255 DOE
schools, implementing sustainability and energy efficiency, supporting
the goal of 90 percent clean energy by 2040, having more educational
opportunities concerning sustainability, and stimulating the economy
through local construction labor.
Even though this program was created for schools, it is not limited
to that capacity. I would like to recommend for the Committee to set in
place federal incentives for companies, offices, and schools to
implement plans similar to Ka Hei. Too often do I walk into a
government building and see the old-school lights that hike-up
electricity costs, and the use of desktop computers when the use of
laptops could save more energy. It is for this reason that I would
recommend the Committee put forth a timeline for government buildings
to put in place cost effective and energy efficient measures to
diminish their carbon footprint. When we talk of such massive issues as
in climate change and sustainability, every bit of help counts. If we
as a nation could commit to adapting our infrastructures to be
environmentally conscious, I believe we could make a true difference in
the fight against climate change.
Thank you again to Senator Schatz for allowing myself and my fellow
intern to testify today. We are grateful that Congress and the
Committee are dedicated to addressing climate change and
sustainability, as the actions you do now will affect our future.
Senator Schatz. Thank you very much.
Mr. Morimoto.
STATEMENT OF JULIAN MANGADLAO MORIMOTO, ROOSEVELT HIGH SCHOOL,
HONOLULU, HI
Mr. Morimoto. Good afternoon. Good afternoon, everyone.
My name is Julian Morimoto. Before I begin I would like to
thank Chairman Schatz and the Subcommittee on Water and Power
today for taking the time to listen to our testimony. I'd also
like to take this time to acknowledge my fellow interns in the
audience. Interns, please wave. Because truly, without them, I
would not have had the opportunity to be here today and discuss
our efforts to create a better future for the State.
My fellow intern, Julia Jimenez and I, are grateful to be
here today on behalf of the Schatz Seniors Program to testify
on matters regarding sustainability efforts. How we, not as
individuals, corporations or groups, but as a community, can
finally bridge the dismal gap between ourselves and the
brighter, greener, more sustainable future. My one wish is that
after today we can all step out of this building with a clear
vision for the future of our country.
The Schatz Seniors decided to undertake an innovative
project to create a system that would rank schools in terms of
their environmental friendliness. Hopefully once the system is
finally complete it will serve as a model for schools in other
States. We would like to share with you what we have been
working on and where we plan to go with this in the future.
The purpose is to create an annual, publicized ranking
system by which we can compare local high schools in terms of
their sustainability. We decided that there were 3 main
questions that needed to be answered.
One is already being done to rate the eco-friendliness of
schools.
What should we propose be included in such criteria?
How would we implement such a system?
We then proceeded to collect information from schools,
programs and institutions throughout the island.
The main 7 criteria proposed were energy usage, water waste
diversion, educational opportunities, food services,
responsible resource management, transportation and campus
initiative.
In addition to these basic ideas some sample questions that
would be needed to--that would need answers would be other
courses offered that are dedicated to teaching students about
sustainability and environmental awareness, other regular
school sponsored events promoting environmental awareness and
other active student led organizations dedicated to sustainable
practices.
It is our hope that this will be implemented in both
public, private and charter schools by 2016.
I present this project to you today in hopes that the
Senate will take these programs to the next level. Instead of
merely implementing them only in Hawaii why not expand and give
schools throughout the United States the incentive to be
greener both on campus and off campus. These incentives could
include national awards and merits and will encourage schools
they should want to take part in creating a sustainable future.
At the end of the day by providing incentives and deciding
what makes up these criteria, the people of the United States
will know that these issues are important and that our
government is dedicated to them, to fixing them. Student
engagement is critical to affecting change, developing leaders
of the future and creating awareness of global, national and
local issues also.
While we support Federal legislation such as Senator
Boxer's Carbon Tax bill, we know that that effort will take
time. However, as Senators, hosting conversations within their
States can be done now and will make an impact.
Yesterday former Vice President, Al Gore, spoke to an
audience of 9 thousand including over 4,000 students. More
importantly the conversation and excitement continued as the
students boarded buses and left for over 30 different schools.
We strongly encourage the Senate to reach out to students and
young people and engage them in meaningful conversations about
sustainability.
By hosting summits, lectures and community conversations
with students of all ages changing the vocabulary to explain
technical and regulatory issues in easy to understand terms and
avoiding acronyms.
Giving concrete examples that young people and their
families can implement regardless of geography and income.
Keeping the message short and focused.
Also creating programs such as high school internships,
school awards, contests that include and inspire students to
get involved and learn.
The Gore lecture also proved to be a rather inviting and
informative experience. We think that the 2 most important take
aways are that there is hope. There is statistically
significant evidence that suggests we are moving in a better
direction. Furthermore, our actions today will affect the world
we live in tomorrow.
Projects like the Green School Ranking System aren't just
about breathing cleaner air and fixing climate change. As
leaders it has been our obligation to not only better the world
of today, but also to shape the world of tomorrow. We hope that
eventually similar systems to the Green School Ranking will
soon be implemented in other States and serve as sustainability
models throughout the country.
Thank you once again.
[The prepared statement of Mr. Morimoto follows:]
Prepared Statement of Julian Mangadlao Morimoto, Roosevelt High School,
Honolulu, HI
Good afternoon everyone! My name is Julian Morimoto, and before I
begin I would like to thank Senator Brian Schatz, Governor Neil
Abercrombie, the Senate Committee on Energy and Natural Resources, and
all the witnesses present today who took the time to hear our
testimonies. I'd also like to take this time to acknowledge my fellow
interns in the audience (interns please wave to the rest of the
audience); for without their hard work, I would not have had the
spectacular opportunity to stand here today and discuss our efforts to
create a better future for this wondrous state. My fellow intern, Julia
Jimenez, and I are gratefully here on behalf of the Schatz Seniors'
program to testify on matters regarding sustainability efforts and how
we--not as individuals, corporations, or groups, but as a community--
can finally bridge the dismal gap between ourselves and the brighter,
greener, more sustainable future. My one wish, is that after today, we
can all step out of this building with a clearer vision for the future
of our glorious country.
The Schatz Seniors Program give high school students precious
first-hand exposure to the areas of public policy and public
administration. For me--and many others--this opportunity has been one
of the highlights of my senior year. The program has greatly broadened
our intellectual horizons, and given us skills we can use to continue
positively impacting our community for years to come. This year, the
Schatz Seniors embarked on a revolutionary journey to impact the way
schools throughout Hawai'i integrate sustainability through curriculum,
student-led programs, infrastructure, and community integration.
The project began when Senator Schatz learned colleges were being
ranked in terms of their eco-friendliness. In this, he saw opportunity.
He wondered if it would be possible for such a system to be implemented
in Hawai'i to positively impact public educational institutions in the
state of Hawai'i. The team captains of this project were seniors Erin
Carroll, Kara Tanaka, and myself. We decided that there were three main
questions which needed answers:
1. What is already being done to rate the eco-friendliness of
schools?
2. What should we propose be included in such criteria?
3. How would we implement such a system?
We then proceeded to collect information from schools, programs,
and institutions throughout the island. The main seven criteria we
proposed were:
1. Energy usage
2. Waste diversion
3. Educational opportunities
4. Food services
5. Responsible resource management
6. Transportation
7. Campus initiative
I am sad to say, however, that our time as Schatz Seniors is almost
over, and that we will have to leave the actual implementation of this
system to the next group of Schatz Seniors; and I hope, that they will
learn and grow just as much as we did throughout the course of this
project.
I present this project to you today in hopes that you will take
programs like these to the next level: instead of merely implementing
them only in Hawai'i, why not expand, and give schools throughout the
United States the incentive to be greener both on-campus and off-
campus? These incentives could include national awards and merits, and
will encourage schools nationwide to take part in creating a
sustainable future. To the senate committee on energy and natural
resources, perhaps you could also play a part in determining what
should be taken into consideration when ranking schools around the
nation. At the end of the day, by providing incentives and deciding
what makes up these criteria, the people of the United States will know
that these issues are important, and that our government is dedicated
to fixing them.
Projects like the Green School Ranking aren't just about breathing
cleaner air or fixing climate change. From the time I was old enough to
count, my generation has always heard, ``You are the leaders of
tomorrow.'' Now, I stand here today, at the near-end of my high school
career, finally beginning to understand what this meant. As leaders, it
has been our obligation to not only better the world of today, but also
to shape the world of tomorrow. My fellow interns and I each had our
own reasons for taking part in this project, and I will share mine. I
took part in this project because I wanted to ensure that twenty years
from now, I can look into the pure eyes of a child and say, ``You are a
leader of tomorrow.'' knowing that he or she can learn and grow to be a
remarkable individual in a greener, brighter, and greater country.
Senator Schatz. Thank you very much to the testifiers.
I'll start my questions for Governor Abercrombie.
Mr. Abercrombie. Thank you.
Senator Schatz. Governor, I know you've been appointed to
the President's Climate Task Force. I wonder whether you
wouldn't mind giving us an update on how it's working, who
comprises the task force and what their timeframe is in terms
of providing a work product for some national policy changes?
Mr. Abercrombie. I would be delighted to do that.
This is in the packet that I was providing to you. It's our
report to the initial conference. The--it covers fresh water
coastlines, ocean resources, security, culture, sensitivity to
culture, actual information decisionmaking context, how to
facilitate coordination, etcetera.
It involves, more formally, tribal leaders, mayors, council
members, Governors, all across the country to try to address
both the regional and national conditions and circumstances
that are--that climate preparedness and resilience. It's not
just a matter of addressing the idea that there is climate
change, global warming, for which we have to be prepared for
what to do in terms of being able to be resilient to do it.
The--there's been a meeting in Los Angeles and another
coming up in Iowa. With your permission I'd like to give the
opportunity to Jackie Thiel to summarize that for you because
she is our Sustainability Coordinator. I think it would give
you some of the details which show that this more than just a
forum or an academic exercise, but an opportunity for us to
move genuine recommendations forward for legislation.
Senator Schatz. Please, Ms. Thiel.
Ms. Thiel. Hello, Senator.
Thank you, Governor, for the opportunity to add.
It's been a great honor supporting our Governor in this
role. He's one of only 8 Governors that were appointed to the
task force. So it's a tremendous opportunity for Hawaii.
Actually the Governor of Guam is another.
So I know this hearing is about Hawaii and other islands.
So it's been great for Governor Abercrombie and Governor Calvo
to bring the message of islands to this task force. They are 2
of 26 members. So as the Governor mentioned mayors and county
commissioners are also involved.
The task force is focusing on 4 major areas of climate
resilience. So, built systems which includes a lot of the
things that we talked at ASCENT yesterday, the water/energy
nexus, transportation, a lot of those built assets that we have
there that are going impacted by sea level rise and other
climate change impacts, also natural resources and agriculture,
community health and developments.
We are really lucky in Hawaii that we don't have mosquito
borne illnesses like malaria and dengue fever, but these have
been identified as climate sensitive diseases.
Finally, disaster managements.
One thing that I think was really striking at our first
meeting in DC is that many of the other task force members have
recently suffered a disaster. They were there for super storm
Sandy, for Irene, fires and floods and Fort Collins Mayor,
Mayor Weitkunat spoke of that. So I think that Hawaii is really
in a position to learn from these other places that have more
recent disasters than we have.
Governor Abercrombie. So one of the things we're doing then
is having what we call resiliency forms here. Again maybe
Jackie can elaborate a little bit on what we've already done
and what we plan.
Ms. Thiel. So one of the things that the White House really
asked us to do is that could only ask, you know, only appoint
26 members, was to really reach out and engage stakeholders in
our region, in our States. So we've engaged over 1,000 citizens
in Hawaii through online survey and Resilient Hawaii forms. One
was during the Pacific Risk Management ``Ohana Conference
recently that NOAA. NOAA has been an amazing partner to us
through this process, helping to support our resilient white
forms. I think a great example of Federal partnerships.
Senator Schatz. So Governor, I have a question about----
Mr. Abercrombie. Could I just add one point to that?
Senator Schatz. Go ahead.
Mr. Abercrombie. It's a fact of nature. What do we do about
rising water, for example? What we've gone through is proposals
concerning reefs, concerning what we can do to deal with the
question of rising water because it's one thing to talk about
it in the abstract or in mega terms. It's another one,
literally, every inch of our land mass is coastline. So and
each island, within different regions and sections of the
island, has its own issues associated with it.
So that's the kind of thing that that the resiliency forms
are dealing with. We know that we don't have a cookie cutter
approach that's going to work where one size fits all. It's
going to have to be site specific and regional specific.
Senator Schatz. At the level of mayor and Governor and
county commissioner is there bipartisan cooperation? Is there a
recognition? You know, what I found even in the halls of the
Senate is that if we talk about disaster preparedness, if we
talk about severe weather, if we talk about civil defense, then
I can find common cause with bipartisan dance partners.
I'm wondering with, in the context of this task force, if
you can get mayors who are Republicans to participate as long
as you're careful with your language?
Mr. Abercrombie. Yes. Yes.
Let me put it this way. Disasters like Hurricane Sandy know
no ideology. There is no political points to be scored.
The climate change, global warming, is no respecter of
particular partisan interests. So that is well recognized that
the language that we indicate is one of coordination and
cooperation because these things are not isolated in political
jurisdictions. A city boundary means absolutely nothing to a
hurricane or a cyclone or a flood or a heat wave or as you
probably experienced much to your great regret, more often than
not, a freeze wave.
Senator Schatz. Polar vortex.
Mr. Abercrombie. Polar vortex. Yes. Yes.
[Laughter.]
Mr. Abercrombie. Another phrase that has been added to the
mix.
So the short answer is yes. It is possible by focusing on
what we have in common rather than what differences can be
conjured on.
Senator Schatz. So one final question for the Governor and
perhaps for your Assistant Building Coordinator before I move
on to the students and allow you to get back to your work.
I'm interested, very much, in the progress that State and
county governments are making here, but also nationally in
energy efficiency performance contracting and would love it if
you would talk a little bit about what State and I know the
city and county of Honolulu has made good progress.
Mr. Abercrombie. Yes.
Senator Schatz. Talk about how the economics have shifted
in ways that provide us real opportunities?
Mr. Abercrombie. Let me just give you a little example.
At the Honolulu International Airport we've signed a
contract on energy efficiency and light that is going to save
in 2013-2014 dollars, $10 of millions of dollars, perhaps into
hundreds of millions of dollars by the time it's over by
changing, simply by having a relentless approach to modernizing
our technology, utilizing modern technology, in light. Just
that alone saves money instantaneously. That's money that can
be invested back into further activity in order to make
everything work more efficiently.
That is going across the country. Our on bill financing to
enable people to get energy efficiency through renewable
energy, the resources that otherwise might not be possible in
terms of financing. If you can pay it on your energy bill and
pay it off just as if it was a mortgage, this is something that
brings it down to the grass roots level and gives visible
evidence to a family that they are not just subject to energy
prices, the object of it, but rather that they can get control
over their own lives, financially and otherwise.
What this does, in my judgment, is an opportunity for
people then to say, look, I can do something about it. I'm not
just the victim here. I'm not just an observer of something
being done to me. I'm able to, not only participate, but take
an active role and seem to then meet the energy challenge of
this century.
Senator Schatz. Thank you very much, Governor, for
providing your testimony.
Feel free to stay with the other testifiers, but if you
have to----
Mr. Abercrombie. Thank you.
Senator Schatz. Go, we understand.
Ms. Jimenez, I have a question for you about your--about
people your age and their awareness of climate change as an
issue. I'm wondering whether your average teenager is aware at
all about this problem.
My sense is that young people in Hawaii care very much
about the environment, but it tends to be more local intensity,
more land use based intensity, more about your personal
experience in the environment. As important as climate change
is, I understand it's somewhat abstract for a 15 year old. I'm
wondering whether my assessment is correct or whether the
awareness is growing?
Ms. Jimenez. I would have to say that there definitely is a
disconnect between what the teenagers of Hawaii, at least that
I know, believe is happening and what is actually happening.
There seems to be a problem of not truly understanding with
that of the problem. It's not an issue that is in normal
conversation, at least in my circles.
I would have to say that in my circles we are usually very
politically competent. We keep up with the news. We know the
legislatures. We actually go out and campaign. We discuss
political topics on a day by day basis. The topic of
sustainability has not come up once.
That's just something from my own personal experience of
they're not understanding the true depth of the issue. I think
that's why it's important for there to be a more integration of
education for the teenage community in Hawaii on not just the
overreaching issue of global warming and to go down to the more
specifics of sustainability, specifically to water
sustainability.
Senator Schatz. Thank you very much, Ms. Jimenez.
I have a question for Mr. Morimoto and then a question for
both of you. This is my third question for both of you is
purely to satisfy my own curiosity.
[Laughter.]
Senator Schatz. My question for you is what's happening
from your standpoint because I know from the Department of
Education's standpoint what's happening in environmental
education. But I want you to tell me what's happening in
environmental education at Roosevelt High School.
Mr. Morimoto. OK.
At Roosevelt High School we have a little garden by the
Science Department building. I think it was a really cool
innovation. Usually the Green Club goes and checks in on it.
They really integrate themselves into learning how to properly
take care of plants. I'm sure they also learn, like, what is
also really harmful and detrimental to the growth of plant life
in Hawaii.
What we also have is AP Environmental Science which that is
also teaching young students how to play an active role in
creating a better environment for their future.
A few years ago we had the Law and Leadership Academy. AP
Environmental Science was one of the required presences. I'm
assuming that the faculty knew that environmental issues were
going to become a very integrated part of discussions of the
modern world today.
Senator Schatz. Thank you very much. I appreciate that.
Let me just ask one final question for the both of you.
How do you and how do your peers get your information
primarily?
Ms. Jimenez. My situation is a little unique since I am
homeschooled. The greater majority of my friends are also
homeschooled as well. So honestly we get our information just
from regular news sources, just as an adult may.
We watch the news. We read newspapers. We talk about it
amongst ourselves. It's honestly also the conversation that's
going around us, what the adults are also talking about, we'll
chime in with our own opinions.
We don't have the luxury of the public and private schools
that have the classes integrated into the system. We have to go
find our own information.
Senator Schatz. Mr. Morimoto, how luxurious is Roosevelt?
[Laughter.]
Senator Schatz. Where do you and your friends get your
information?
I mean, obviously, your teachers. But I'm more interested
in how you consume the news and how you get factual
information.
Mr. Morimoto. In regards to daily life or regards to the
Green School project?
Senator Schatz. I mean more generally in terms of what's
happening in the world. Are you--is it social? Is it television
and the newspaper like the rest of us? Is it mostly the web or
where are you getting your information?
Mr. Morimoto. I believe that currently at my school at
least what I've noticed over the years is that the medium of
which information is transferred between individuals is very
different. Comparing schools I know some schools are still
using Facebook while others are, like, you know, Facebook was
so 10 years ago.
[Laughter.]
Mr. Morimoto. With our----
[Laughter.]
Ms. Jimenez. Twitter and Tumblr.
Senator Schatz. Now you have his complete attention.
[Laughter.]
Mr. Morimoto. However, at Roosevelt the main media of
communication is, in fact, social media.
The teachers are very integrated with their class, with
their students. So they also share information as well.
Nowadays with smart phones, you may or may not already be
aware of this, but a lot of us won't, no that's not right,
but----
[Laughter.]
Mr. Morimoto. A lot of us have apps like CNN. So I get CNN
reports on my phone very often throughout the day. I even got a
few during yesterday's session which I didn't look at,
obviously.
But those--that is also a really common media is through
cell phones and social media. That can be mobile. Because
that's what this world today is all about, right? Mobile.
You're always on the go.
So if you really want to reach out to people of my age and
hopefully for future generations. I will be out of touch 1 day,
but until that day comes.
[Laughter.]
Mr. Morimoto. I think that going mobile. Going mobile and
being integrated in that system is a great way to go.
Senator Schatz. Thank you.
Ms. Jimenez. If I may?
Senator Schatz. Sure, Ms. Jimenez and then we'll move on to
the next panel.
Go ahead, please.
Ms. Jimenez. Going on with what he said. If you asked a 16/
17 year old to sit down and watch an entire news program or
documentary on climate change you will get glassed over eyes
and a lot of texting.
[Laughter.]
Ms. Jimenez. But if you post on Facebook and you ask them
to go look at Facebook they can do that.
If you ask them to go look at Twitter, they can do that and
Tumblr and all of the other social media sites. It's something
that we do daily. So that is definitely a way to reach the
younger generation.
Senator Schatz. Thank you very much. We'll take your
testimony----
Mr. Abercrombie. Thank you for not asking me that question.
[Laughter.]
Senator Schatz. Thank you very much to the testifiers. We
appreciate your testimony.
Ask the second panel to go ahead and sit at the testifier's
table.
Mr. Abercrombie. Thank you, Chairman.
Senator Schatz. With us today we have Hermina Morita, Chair
of the Hawaii Public Utilities Commission.
Dawn Lippert, Director of the Energy Excelerator in Hawaii.
Wendy Meguro, Assistant Professor of Sustainable Buildings
and Community Design at the University of Hawaii, Sea Grant
Program.
Harrison Rue, County Building and TOD Administrator for the
City and County of Honolulu, Department of Planning and
Permitting.
Bill Tam, Deputy Director of the Commission on Water
Resource Management, Department of Land and Natural Resources.
Dr. Stephen Pauley, President of the E.W. Pauley
Foundation.
Thank you all for being here. Your written testimony will
be included in the record. So please take about 5 minutes to
summarize your main points.
Ms. Morita, we'll start with you and move down the line.
STATEMENT OF HERMINA M. MORITA, CHAIR, HAWAII PUBLIC UTILITIES
COMMISSION, HONOLULU, HI
Ms. Morita. Thank you, Senator.
So I'll just get straight to the point.
You know, last October I had the privilege of participating
in a State efficiency and renewable power policy roundtable
which was convened by the former Chair of the Senate Committee
on Energy and Natural Resources, Jeff Bingaman and the former
Secretary of State, George Schultz at Stanford's Steyer-Taylor
Center for Energy Policy and Finance. The roundtable included
the Chairs from 4 States, the PEC Chairs from 4 States, Hawaii,
Kansas, Texas and Washington and the Chair of the New York
State Energy Research and Development Authority. It was an
effort to identify which State level energy policies have
proven to be the most effective and which ones have succeeded
and ultimately which policies can attract bipartisan support to
help mitigate climate change.
My understanding is the report should be out this summer.
The roundtable discussion was focused in 4 areas.
Renewables.
Energy Efficiency.
Customer Generation.
Financing Mechanisms.
So I'm going to focus in these 4 areas so you have a basis
for comparisons with other States when the report becomes
available.
So the first is renewable energy. We are on track to exceed
our 2015 renewable portfolio standards target of 15 percent and
expected to meet our 2020 target of 25 percent.
The Hawaiian electric companies have achieved a
consolidated RPS of 34.4 percent in 2013. But remember this
includes energy efficiency savings as well as solar water
heating technologies.
So excluding those types of energy savings the HECO
Company's renewable energy generation percentage is at 18.2
percent.
The 2013 RPS report for the Kauai Island Utility
Cooperative has not been filed with the Commission yet.
However, KIUC increased its percentage from 14.69 percent in
2011 to 16.64 percent in 2012. They anticipate to have online
by 2015 an additional 24 megawatts of photovoltaics and 6.7
megawatts of biomass. That's pretty amazing for a utility with
a system peak of approximately 76 megawatts.
Regarding energy efficiency.
Hawaii's energy efficiency portfolio standards mandate
target is 43 hundred gigawatt/hours electric use reduction by
2030. Hawaii is on track to achieve more than 1,550 gigawatt
hours in savings by 2015. That exceeds our internal target by
more than 12 percent.
Hawaii Energy, the ratepayer funded energy efficiency
services provider which administers the public benefit fee, is
an essential component of the State's efforts to capture
untapped energy efficiency resources contributing more than 80
percent of the energy savings achieved since 2009. In the
program year ending June 30th, 2013 Hawaii Energy programs will
deliver 1.4 billion kilowatt/hours in lifetime savings at a
total program cost of 2.3 cents per kilowatt/hours. This, in
turn, will save an estimated equivalent of 2.4 million barrels
of oil and 1.2 million tons of greenhouse gas emissions.
At an average electricity price of 30.7 cents per kilowatt/
hours customers will save approximately 450 million dollars on
their electricity bills over the life of the installed
efficiency measures.
With regard to customer generation.
Hawaii's electric utilities lead the Nation in the
installation of group photovoltaics relative to the size of our
island grids. Since 2005 Hawaii has seen exponential growth in
the amount of PV installed on each island and the level of PV
capacity relative to the demand on each island is approaching
20 percent.
Senator, when we passed the 2001 net legislation the system
peak at that time that we're striving for was .5 percent. So,
you know, we've made some strides there.
On Oahu approximately 10 percent of residential customers
have installed PV systems on their home. No other State or
utility is currently experiencing such high levels of customer
sided PV. For this reason there's considerable interest in the
next steps Hawaii will take as we continue to forge new ground.
With regard to financing.
It's a really exciting area for Hawaii. The Commission will
self launch by summer its on bill program where electricity
customers will be able to pay for efficiency or renewable
improvements on their electricity bill through a tariff
mechanism. The on bill program will have 2 components, an on
bill financing mechanism where the public benefit fee will be
leveraged for fixed efficiency improvements like solar water
heaters and an on bill repayment mechanism where other entities
may access the customer's electricity bill for repayment such
as the Department of Business Economic Development and
Tourism's Green Energy Market's Securitization or GEMS.
GEMS is a pioneering program which combines 2 tried and
true financing methods, a traditional rate reduction bond
structure and on bill financing in a synergistic model. This
innovative structure can open the door for a whole new
financing market in renewables and energy efficiency. So
although the GEMS program was invented in Hawaii to serve
Hawaii's residents and businesses the program has drawn
national attention and could potentially serve as a model for
other States.
DBEDT hopes to file its application for the GEMS program
with the Commission to implement the program by this summer.
The Commission has just circulated its term sheet within the
investment community and hope to get responses by the end of
April for its efficiency program.
Just to sort of sum up our largest challenge in moving
toward clean energy transformation.
I feel our biggest challenge and I think you've heard me
mention this before, is moving from clean energy 1.0 to clean
energy 2.0 and beyond. Clean energy 2.0 recognizes that
transformation requires a systems approach requiring technology
and economics to inform and shape policy, energy policy, to
provide clean, safe, reliable, affordable electricity and
achieve environmental and societal goals within a regulatory
framework.
The second biggest challenge is the strategy and transition
for a new electricity, electric utility business model and the
regulatory reform necessary to facilitate this transition in a
timely way, especially since we are so on the leading edge.
So recently my fellow Commissioner, Lorena Akiba remarked,
Hawaii is a coast guard for the future. So while we're often
cited for our success we are also trailblazers with big
challenges before us.
So, thank you for this opportunity.
[The prepared statement of Ms. Morita follows:]
Prepared Statement of Hermina M. Morita, Chair, Hawaii Public Utilities
Commission, Honolulu, HI
Thank you for the opportunity to testify on Hawaii's success and
its challenges in meeting its sustainability goals. Hawaii's Public
Utilities Commission (``Commission'') is responsible for the oversight
of meeting Hawaii's clean energy statutes through its regulation of
Hawaii's electric utilities and mandated programs. Today, I would like
to share with the Committee (1) the key policy drivers under the
jurisdiction of the Commission to accomplish Hawaii's clean energy
transformation with an overview and status of each key policy driver;
and (2) the challenges of accomplishing Hawaii's clean energy
transformation.
Hawaii articulates a multi-prong approach in the implementation of
Hawaii's clean energy future through the following laws:
Renewable Energy Portfolio Standards (``RPS'')
Energy Efficiency Portfolio Standards (``EEPS'')
Public Benefit Fee (``PBF'')
Act 99, SLH 2012 (``Act 99'')
--the public utilities commission shall consider the costs and
benefits of a diverse fossil fuel portfolio and of
maximizing the efficiency of all electric utility assets to
lower and stabilize the cost of electricity
In its totality, Hawaii's energy policies attempt to shift the
focus from individual renewable energy generation projects to a systems
approach, requiring technology and economics to inform and shape energy
decisions to advance three regulatory goals, while capturing
environmental and social benefits:
1. Encourage prudent investments in and the utilization and
optimization of all assets, both utility and non-utility,
centralized and distributed, that bring efficient and cost-
effective benefits and value to the electric system to serve
the public good.
2. Appropriate allocation of fixed costs to maintain and
enhance the electric system, i.e. a customer pays for the
services received from the grid and is fairly compensated for
services a customer provides to the grid.
3. Accessibility, fairness and the opportunity for all
electricity customers to benefit from clean energy policies and
programs.
Key Policy Drivers to Enable Hawaii' s Clean Energy Transformation
Renewable Portfolio Standard
--10 percent of net electricity sales by December 31, 2010
--15 percent of net electricity sales by December 31, 2015
--25 percent of net electricity sales by December 31, 2020
--40 percent of net electricity sales by December 31, 2030
I am happy to report that Hawaiian Electric Company, and its
subsidiaries, Hawaii Electric Light Company and Maui Electric Company
(collectively the ``HECO Companies''), have achieved a consolidated
Renewable Portfolio Standard of 34.4 percent in 2013, which includes
electrical savings from energy efficiency and solar water heating
technologies.\1\ This is an increase from the 28.7 percent achieved in
2012. Excluding electric energy savings, the renewable energy
generation percentage for the HECO Companies is 18.2 percent.
---------------------------------------------------------------------------
\1\ Beginning January 1, 2015, electrical savings shall not count
toward renewable energy portfolio standards.
---------------------------------------------------------------------------
The 2013 RPS report for Kauai Island Utility Cooperative (``KIUC'')
has not been filed with the Commission yet, however, KIUC increased its
percentage from 14.69 in 2011 to 16.64 percent in 2012 and anticipates
to have on-line by 2015 an additional 24 megawatts of utility scale
photovoltaic and 6.7 megawatts of biomass.
Every five (5) years the Commission conducts a review of the RPS to
ensure it is effective and achievable. Attached below is a link to the
report:
Report to the 2014 Legislature on the Public Utilities
Commission Review of Hawaii's Renewable Portfolio Standards--
Issued Pursuant to Section 269-95(5), Hawaii Revised Statutes:
http://puc.hawaii.gov/wp-content/uploads/2013/04/2013-PUC-RPS-
Report__FINAL-w-Appnds.pdf
Several principal findings in this Report include:
The 2015 RPS requirement of 15 percent is achievable for
both the HECO Companies1 and Kauai Island Utility Cooperative
(``KIUC'').
It appears likely that the 2020 RPS requirement of 25
percent is achievable for both the HECO Companies and KIUC,
provided that reasonably expected amounts of currently proposed
utility-scale renewable energy projects and distributed
renewable generation are successfully developed and integrated
on the utility systems.
The 2030 RPS requirement of 40 percent may possibly be
achievable, but this cannot be determined with confidence at
this time due to uncertainties regarding the magnitude of
future utility sales and several substantial outstanding
challenges regarding the successful and economical siting and
incorporation of requisite renewable energy generation
resources. Nonetheless, this target is sufficiently aggressive
to effectively focus efforts to address several challenges to
the extensive incorporation of renewable resources on the
Hawaii utility systems. A number of key issues must be
thoughtfully considered when assessing whether current RPS
targets should be adjusted or whether additional benchmarks
should be established.
The RPS remains effective in helping the State achieve its
policies and objectives with respect to developing renewable
energy resources in Hawaii through the 2030 timeframe.
The Commission anticipates that the results of pending
investigations and reviews relevant to the RPS will further inform
consideration of possible future amendments to the RPS targets.
Energy Efficiency Portfolio Standard
Hawaii's energy efficiency goals were enacted in 2009 and codified
in Section 269-96, Hawaii Revised Statutes, establishing the EEPS at
4,300 gigawatt-hours (``GWh'') of electricity saving by 2030.
Every five (5) years the Commission conducts a review of the EEPS.
Attached below is a link to the report:
Report to the 2014 Legislature on Hawaii's Energy Efficiency
Portfolio Standard--Issued Pursuant to Section 269-96, Hawaii
Revised Statutes: http://puc.hawaii.gov/wp- content/uploads/
2013/04/2013-PUC-EEPS-Report__FINAL.pdf
Key findings of this Report include:
The EEPS goals has proven effective at accelerating
deployment of energy efficiency resources throughout the State.
An estimated 794 GWh of electricity savings have been achieved
statewide since the EEPS law took effect in 2009.
While there is uncertainty about energy efficiency savings
for future years, Hawaii is on track to achieve more than 1,550
GWh in savings by 2015, exceeding the interim 2015 EEPS target
of 1,375 GWh by more than 12 percent.
Hawaii Energy, the ratepayer-funded energy efficiency
services provider, is an essential component of the State's
efforts to capture untapped energy efficiency resources, having
contributed more than 80 percent of energy savings achieved
since 2009.
The long-term EEPS goal remains achievable. The cost-
effective energy efficiency resource available statewide by
2030 exceeds the EEPS goal by nearly 50 percent. Energy
efficiency remains a lower cost resource than most supply-side
energy options, and provides many other important benefits to
Hawaii's electricity utilities and ratepayers.
Public Benefit Fee
The Public Benefits Fee (``PBF'') was enacted in 2009 and
established in Section 269-121 through 125, Hawaii Revised Statutes, is
collected by the HECO Companies from ratepayers through a demand-side
management surcharge. The funds are used to support energy- efficiency
programs and services, subject to the review and approval of the
Commission. The law authorizes the Commission to contract with a third
party administrator to implement and manage energy efficiency programs
funded by the PBF. The program is called Hawaii Energy and administered
by Leidos Engineering, LLC.
June 30, 2013 marked the completion of Hawaii Energy's fourth
program year (the program year 2012 covered July 1, 2012 to June 30,
2013). The current surcharge amount is 1.5 percent of forecasted
utility revenues, the PBF two-year budget for FY 2012 and FY 2013 was
$71,103,608. The target for FY 2012 was $33,472,166. As detailed in
Hawaii Energy's PY 2012 Annual Report, Hawaii Energy's programs for PY
2012 will deliver 1.4 billion kilowatt hours (``kWh'') in lifetime
savings at a total program cost of 2.3 cents per kWh (all in cost).
This, in turn, will save an estimated equivalent of 2.4 million barrels
of oil and 1.2 million tons to greenhouse gas emissions. At an average
electricity price of 30.7 cents per kWh, customers will save
approximately $405 million on their electricity bills over the life of
the installed efficiency measures.
Hawaii Energy's programs are designed to evolve to enable Hawaii's
clean energy transformation cost-effectively focused on the following:
Legacy Demand Side Management Programs--modifying and
upgrading programs to meet cost-effective tests
Efficiency For All--ensuring all ratepayers benefit from the
PBF including the underserved, neighbor islands and hard to
reach customers like low-income ratepayers and renters
Conservation--effecting behavioral changes, outreach and
ally development
Transformation--training and educational programs,
developing energy leadership
Sustainability--targeting indirect energy relationships like
water-energy nexus
For additional information, the Hawaii Energy Annual Report can be
found at the following address: http://puc.hawaii.gov/wp- content/
uploads/2013/04/HawaiiEnergyPY2012AnnualPlan7.19.2012.pdf
Act 99, 2012 Session Laws of Hawaii
More than half of an electricity customer's bill is comprised of
fuel and purchased power cost. Through Act 99, the Legislature mandated
the public utilities commission to consider the costs and benefits of a
diverse fossil fuel portfolio and of maximizing the efficiency of all
electric utility assets to lower and stabilize the cost of electricity.
Currently, Hawaii's electricity and gas utilities are carefully
examining the feasibility and cost benefit analysis to consider the
importation of liquefied natural gas to help reduce the cost of fuel
and improve air quality as well as the choice of fuel to enable more
flexible generators to increase the penetration of variable renewable
resources such as wind and solar.
As a regulator and as a community, one of the challenges of
effecting a clean energy transformation is moving the discussion and
focus off of Clean Energy 1.0 to Clean Energy 2.0. In Clean Energy 1.0,
our energy policies were based on rewarding early adoption of renewable
energy technologies. Clean Energy 1.0 is simple to understand,
quantify, discuss and promote. These policies, such as net metering and
the renewable energy income tax credit, were primarily focused on the
cost of a renewable project. However, as technologies advance and cost
are driven down, these policies have distorted the market where we are
now faced with some perverse effects on the ratepayer who is unable to
afford or cannot participate in these renewable programs.
Unfortunately, these type of political policies are not structured to
react quickly to fix these market distortions.
Clean Energy 2.0 recognizes that transformation requires a systems
approach, requiring technology and economics to inform and shape
desired energy outcomes.
Hawaii's electric grids represent the critical energy
infrastructure that is required to advance to and beyond Clean Energy
2.0 and to serve the public good.
--The grid provides essential system support services for all
customers to enable electricity to be used efficiently,
reliably and safely and, desirably, at affordable rates.
--The grid is required also integrate clean, lower-cost, renewable
energy from large scale, centralized solar and wind plants.
--The grid is also required in order to accept excess generation
from customer- sited distributed PV used to offset energy
usage (e.g., the NEM program) as well as provide the
services required to ensure reliability when there is no
generation or inadequate generation from those sites.
However, the existing grid infrastructure was not designed to
accommodate large amounts of distributed, variable generation that is
being rapidly added to each island system due to customer demand and
technological improvements that have significantly reduced the cost of
these alternative customer options.
It is viewed that the future of Hawaii's electric grids will be
integrated systems with diversified portfolios of modern, quick-
starting, flexible, and efficient generation combined with substantial
amounts of lower-cost renewable generation (both centralized and
distributed), as well as new technologies such as demand response and
energy storage to provide the necessary grid services to ensure
reliable power.
Modernizing Hawaii's island grids is a fundamental responsibility
of the electric utilities and a prerequisite for meeting customer
demands and the state's clean energy goals. This leads me into the
second challenge of Hawaii's clean energy transformation which, I
believe, can only be acted upon by the utility, that is, the electric
utility as the system integrator. As the system integrator, the utility
would be agnostic and price sensitive in utilizing a diverse portfolio
of resources and technologies in optimizing the system to achieve an
affordable, safe, reliable and sustainable energy services not only to
support the electric system, but also our economic objectives and
environmental values.
With emerging smart technologies and its corresponding data
management and analytics, forwarding thinking utility executives, like
many of their counterparts in other sectors are becoming increasingly
aware of and taking advantage of big data as the next frontier for
innovation, competition and increased productivity. Progressive
electric utility executives understand the paradigm shift smart
technologies brings to the generation, overall operations and
distribution of electricity, as well as how it will redefine a
utility's relationship with its customers and other service providers
to the electric system. How timely a utility can process, analyze,
synthesize and effectively use the information it gathers will require
a huge cultural change within the utility, between and within silo'ed
functions, to accommodate a data driven utility. Without this deep
organizational cultural change, I am afraid Hawaii's clean energy
transformation will be difficult to realize. The need to take a systems
approach and how quickly and effectively utility can gather, analyze,
synthesize and use the information in the management of the electric
system are key drivers to effectuate Hawaii's clean energy
transformation and the key to all this is the ability to optimize the
productivity of an intelligent electrical grid.
Senator Schatz. Thank you very much.
Ms. Lippert.
STATEMENT OF DAWN LIPPERT, DIRECTOR, ENERGY EXCELERATOR, (a
program of PICHTR), HONOLULU, HI
Ms. Lippert. Aloha and thank you to Senator Schatz and this
committee for the invitation to testify today.
I'd actually like to take this opportunity to speak about
the Energy Excelerator and what, I believe, it has taught us
about the role of public/private partnerships in accelerating
innovation.
The Energy Excelerator is a program of PICHTR and startup
program designed to help energy innovation companies succeed
starting in Hawaii.
Why starting in Hawaii?
The Senator knows the answer to this question. But 7 years
ago I was fortunate enough to join the analysis team drafting
the Hawaii Clean Energy Initiative which we've spoken about
today. It is bold initiative to set the stage for energy
transformation in Hawaii from an economy 90 percent dependent
on oil to one powered by 70 percent clean, local energy.
At the time it would have been impossible to predict how
powerful that was and the accelerated moment that this State
has seen toward clean energy and the role we played as a model
for other parts of the world. By many standards we are making
great strides toward that goal. As Mina said, solar, for
example, has increased 60 fold over the last few years. Eleven
percent of Oahu households now have solar.
This success has also led to challenges. It's not easy to
integrate all of these new renewables onto our island grids. We
now know that we actually can't reach the 70 percent clean
energy goal unless we adopt new technologies and develop new
approaches.
This is where entrepreneurship becomes linked with the
future of Hawaii and where I believe the Energy Excelerator
comes in. Hawaii is now a fertile place for energy
entrepreneurs. Entrepreneurs like to go to where the pain is
highest and the urgency is most immediate.
To energy entrepreneurs Hawaii and other island nations are
not seen as vacation destinations, but rather lands of
opportunity.
Our Energy Excelerator has capitalized on this opportunity
to launch a unique program that was designed based on
interviews with entrepreneurs. We asked them what they really
needed to move their technology from the lab to the market. Our
new model borrows the best from tech accelerators like Y
Combinator which are designed for web and mobile technologies
and the traditional grant process organizations like the
Department of Energy to create the combined structure of Energy
Excelerator.
What are the best of each of these that we've picked?
We've adopted the cohort aspect of Y Combinator with a
major focus on peer to peer learning and from the Department of
Energy we emulate significant technology funding of up to $1
million needed to support technology commercialization along
with an insistence on customer development and business models.
A vibrant ecosystem is needed to sustain these business
relationships. Our companies work and grow together and even
stay together in one house in a kind of real world clean tech.
It's created a family style community of clean energy startups.
If you talk to any of our entrepreneurs they'll tell you that
this feeling of Ohana is something that sets us apart.
But there's one other thing that makes us different. We
call it place centered innovation. We don't just pick the 15
hottest energy companies each year. We pick the 15 most likely
to transform the Hawaii energy system to help us integrate the
next trench of solar, to fill gaps in our transportation
system, to make buildings smarter and more efficient.
This is really a systems approach to innovation. It is
starting in Hawaii. But we believe it can be applied throughout
the Nation and around the world in outreach and partnerships.
So the question is does this work?
Can we do 2 things at once?
Immediately impact the success of clean energy startups and
also transform the Hawaii energy system through place centered
innovation?
The jury is, frankly, still out. But early metrics are
positive. Our companies have raised $55 million in follow on
funding and created over 400 jobs.
Over 1,000 startups have expressed interest in this program
putting Hawaii on the map for investors and entrepreneurs
around the world. So far we have raised nearly $35 million in
public and private funding from for the Energy Excelerator from
organizations such as the Department of Defense, Office of
Naval Research, the Department of Energy, Hawaiian Electric
Industries and others. We are just getting started.
But time will tell this vision requires long term
investment and commitment.
While over 1,000 energy startups have expressed interest in
the Energy Excelerator we have funded just 32. It is important
to recognize that these companies come not just with ideas but
often with millions of dollars of grant funding already
invested in research. The government has invested significant
resources in research and development for important
technologies that have not yet made it to market.
We designed Energy Excelerator specifically to get these
companies across the gap that exists between the lab and
commercial sales. We iterate and evolve our program
continuously to better achieve this goal.
Based on my personal experience in the Hawaiian Clean
Energy Initiative and the Energy Excelerator innovative public/
private partnerships like ours, can be major catalysts to
deploying sustainable clean energy technology while also
playing a major role in addressing local challenges and
creating a vibrant economy in the process. For all of here one
of the deeply important elements of achieving our clean energy
goals is the opportunity to create high quality jobs in a
knowledge based economy, the types of jobs that our children
will aspire to.
I was encouraged to see the interns here today. I'm also
happy to announce that we're launching an internship program
with our companies to put interns in all of our clean energy
startups. I think this is a really important piece of
developing the next generation clean energy task force that can
work productively with emerging technology.
Finally, on a personal note I just want to say this has not
been an easy road. We are embarking on a journey that is
ambitious, risky and highly entrepreneurial.
I'd also like to sincerely thank Senator Schatz and his
staff, our Congressional delegation, this committee, our public
and private partners and others in the community who have
believed in this vision and help make it possible.
Thank you.
[The prepared statement of Ms. Lippert follows:]
Prepared Statement of Dawn Lippert, Director, Energy Excelerator (a
program of PICHTR), Honolulu, HI
Aloha and thank you to Senator Schatz and this committee for the
invitation to testify today. I'd like to take this opportunity to speak
about the Energy Excelerator and what I believe it has taught us about
the role of public-private partnerships in accelerating innovation.
Innovation in a Hawaii Context
The Energy Excelerator, a program of Pacific International Center
for High Technology Research, is a startup program designed to help
energy innovation companies succeed, starting in Hawaii. Why starting
in Hawaii? Seven years ago I was fortunate to join the analysis team
drafting the Hawaii Clean Energy Initiative. It is a bold initiative to
set the stage for energy transformation in Hawaii--from an economy 90
percent dependent on oil to one powered by 70 percent clean, local
energy. At the time, it would have been impossible to predict how
powerful that was, and the accelerated momentum this state has seen
toward clean energy and the role we've played as a model for other
parts of the world. By many standards, we are making great strides
toward that goal. Solar, for example, has increased 60-fold over the
last few years. Eleven percent of Oahu households now have solar. This
success has also led to challenges--it's not easy to integrate all of
these new renewables onto our island grids. We now know that we
actually can't reach the 70 percent clean energy goal unless we adopt
new technologies and develop new approaches. This is where
entrepreneurship becomes linked with the future of Hawaii--and where
the Energy Excelerator comes in. Hawaii is now a fertile place for
energy entrepreneurs; entrepreneurs like to go where the pain is
highest and the urgency is most immediate. To energy entrepreneurs,
Hawaii and other island nations are not seen as vacation destinations,
but rather lands of opportunity.
Place-based Innovation
Our Energy Excelerator organization has capitalized on this
opportunity to launch a unique program that was designed based on
interviews with entrepreneurs. We asked them what they really needed to
move their technology from the lab to the market. Our new model borrows
the best from tech accelerators like YCombinator, designed for web and
mobile, and the traditional grant process of organizations like
Department of Energy, to create the Energy Excelerator. What are the
best of each that we've picked? We have adopted the cohort aspect of
YCombinator, with a major focus on peer-to-peer learning, and from the
Department of Energy, we emulate significant technology funding of up
to $1 million needed to support commercialization, along with an
insistence on customer development. A vibrant ecosystem is needed to
sustain these business relationships. Our companies work and grow
together, and even stay together in a kind of Real-World-Cleantech.
It's created a family-style community of clean energy startups, and if
you talk to any of our entrepreneurs, they'll tell you that this is
something that sets us apart.
But there is one other thing that makes us different. We call it
``place-centered innovation.'' We don't just pick the 15 hottest energy
companies each year. We pick the 15 most likely to transform the Hawaii
energy system--to help us integrate the next tranche of solar, to fill
gaps in our transportation system, to make buildings smarter and more
efficient. This is a systems approach to innovation. It is starting in
Hawaii but we believe it can be applied throughout the nation and
around the world with outreach and partnerships.
How it's Worked So Far--Results
So the question is--does this work? Can we do two things at once:
1) meaningfully impact the success of clean energy startups and, 2)
also transform the Hawaii energy system through ``place-centered
innovation''? Early metrics are positive; our companies have raised $55
million in follow-on funding and created over 400 jobs. Over 1000
startups have expressed interest in the program, putting Hawaii on the
map for entrepreneurs and investors around the world. So far we have
raised nearly $35 million in public and private funding for the Energy
Excelerator--from organizations such the Department of Defense's Office
of Naval Research, the Department of Energy, Hawaiian Electric
Industries, and others, and we're just getting started. But time will
tell; this vision requires long-term investment and commitment.
While over 1000 energy startups have expressed interest in the
Energy Excelerator, we have funded 32. It is important to recognize
that these companies come with not just ideas, but often with millions
of dollars of grant funding already invested in research. The
government has invested significant resources in research and
development for important technologies that have not yet made it to
market. We designed the Energy Excelerator specifically to get these
companies across the gap that exists between the lab and commercial
sales. We iterate and evolve our program continuously to better achieve
this goal.
Based on my experience in the Hawaii Clean Energy Initiative and
the Energy Excelerator, innovative public-private partnerships like
ours can be major catalysts to deploying sustainable energy technology,
while also playing a major role in addressing local challenges--and
creating a vibrant economy in the process. For all of us here, one of
the deeply important elements of achieving our clean energy goals is
the opportunity to create high quality jobs in a knowledge-based
economy--the types of jobs that our children will aspire to.
In Closing
On a personal note, I want to say that this has not been an easy
road; we are embarking on a journey that is ambitious, risky, and
highly entrepreneurial. And I would like to sincerely thank Senator
Schatz and his staff, our Congressional delegation, this committee, our
public and private partners, and others in the community who have
believed in this vision and helped make it possible. Mahalo.
Senator Schatz. Thank you very much.
Ms. Meguro.
STATEMENT OF WENDY MEGURO, ASSISTANT PROFESSOR, SUSTAINABLE
BUILDINGS AND COMMUNITY DESIGN, UNIVERSITY OF HAWAII, MANOA,
SCHOOL OF ARCHITECTURE AND SEA GRANT COLLEGE PROGRAM, HONOLULU,
HI
Ms. Meguro. First I would like to thank you for this
invitation to speak about sustainability challenges and
opportunities in Hawaii and also to summarize some of the
themes from our ASCENT conference yesterday.
The overarching message that you mentioned in your
introduction that I heard yesterday was that we have the
knowledge. We have the technology to live sustainably here in
Hawaii. Now we need the political will.
As Vice President Al Gore said yesterday, political will is
a renewable resource. So Senator Schatz, the people of Hawaii
trust you to be the steward of that political will.
The subject that I would like to focus on is green
buildings, specifically managing the energy water nexus in the
built environment.
Here in Hawaii where our environment is our economy,
buildings use over 25 percent of our energy. In addition the
energy water nexus illustrates that the energy is used to
transport and treat water and water is used in power plants to
create our electricity.
For example, the Board of Water Supply is one of Hawaiian
electric company's largest customers.
There are many aspects to green buildings but we chose to
focus on efficiency in our session yesterday. Improving energy
and water efficiency in buildings is one of the easiest and
most cost effective ways to mitigate climate change to improve
our local air and water quality and to reduce utility costs for
consumers.
So why focus on efficiency?
It's estimated that a dollar spent on development of
technology that improves the efficiency of building
infrastructure is considerably worth $3 to $4 worth--spent on
renewable energy technology.
One successful example which has been cited multiple times
today of Federal, State and private collaboration to address
energy efficiency in buildings is the Hawaii Clean Energy
Initiative.
So I applaud the efforts so far. I also wanted to point out
I think it's particularly useful because of its quantitative
energy reduction targets and also specific recommended
strategies. So I would like to emphasize those as we move into
the future.
I think we should continue to monitor our progress and
communicate our updated recommendations for building energy
efficiency to the public.
In addition we should continue to foster advancements in
energy saving building technologies and practices on the
horizon.
Next, I would like to discuss how policymakers might
address some challenges and opportunities to reduce energy use
in buildings.
First, Hawaii's building energy and water codes are
outdated. There's an opportunity to push for the adoption of
current building energy and water codes by all counties. This
also happens to align the HCEI recommendations. In parallel
training on the new codes should be provided for building code
inspectors and design professionals.
Second, in Hawaii green building incentives do not yet
reflect the caliber of a building's environmental benefit.
Consider creating incentives for green building projects which
are ratcheted to reward exemplary performance, particularly in
water and energy savings. In addition, consider giving awards
to recognize exceptionally high performance buildings and
developments.
Third, yesterday we talked in the opening session about
acceptable return on investments. The question came up the ROI
of what? What are we measuring?
Higher first costs can discourage building owners from
implementing energy efficient practices or technologies. We
need to have adequate construction budgets or without that,
provide financial incentives to offset those higher first
costs. The goal is to be able to recognize and assess the
quantity of value associated with water and greenhouse gas
emission savings, reduce demands on municipal infrastructure
and improved occupant health.
In a commercial building the ratio of first cost to
operating cost to personnel cost is about 1 to 5 to 200. So
this highlights the economic benefit that green buildings
provide occupants in terms of day lighting, high indoor air
quality, control over one's comfort.
Moving on to the subject of water and buildings.
Challenges in Hawaii include maintaining our sustainable
water supply and also reducing greenhouse gas emissions from
water transport and treatment. Moderate water savings have been
achieved already which, I applaud, using green building rating
systems for both fleet buildings and for schools.
I think this is a great start. But Hawaii has not yet
seized the opportunity to save water and energy by capturing
and using non potable water, onsite, in large scale buildings.
Potable water is defined as suitable for human consumption and
we typically do not need potable water to flush our toilets, to
irrigate and to send to our cooling towers. So there's an
opportunity here to match water quality with its appropriate
use.
We have multiple sources of water in a building which can
be captured, treated and used onsite including green water,
grey water, black water, cooling tower blow down, air
conditioning condensate, etcetera. Multiple of our Hawaii based
plans already encourage Hawaii or Hawaii to recycle and use non
potable water including the Hawaii 2050 Sustainability Plan,
the Hawaii Green Business Guide and the Hawaii Water
Conservation Plan. So why aren't we on board yet or why don't
we have these big projects yet?
I would suggest that you consider initiating pilot projects
with onsite water treatment and non potable water use in a
large scale building or district. Relevant stakeholders to
include in the conversation include the State Building Code
Council, the Public Utilities Commission, the Board of Water
Supply, the Department of Health, Worker's Unions and
individuals who have already been involved in our non potable
water workshops series. Pilot projects would establish a
processes for permitting and inspection as well as training for
code officials, designers and laborers.
In addition, consider a study to quantify the potential
energy and economic benefits of distributive water treatments
verses the traditional centralized municipal water system. This
might be timely considering the upcoming municipal water
treatment plant upgrades that are required by the EPA.
I appreciate your time and look forward to discussion.
[The prepared statement of Ms. Meguro follows:]
Prepared Statement of Wendy Meguro, Assistant Professor, Sustainable
Buildings and Community Design, University of Hawaii, Manoa, School of
Architecture and Sea Grant College Program, Honolulu, HI
I would like to thank you for the invitation to speak about
sustainability challenges and opportunities in Hawai`i, and to
summarize themes from the Ascent conference on April 15th.
The subject I would like to focus on is ``green buildings,''
specifically, managing the energy-water nexus in the built environment.
Here in Hawai`i, where the environment is the economy, buildings use
over 25 percent of our energy. (Energy Information Administration) Most
of that energy generation relies on imported fossil fuels and
contributes to climate change. In addition, the energy-water nexus
illustrates that energy is used to transport and treat water, and water
is used in power plants to create energy. The Board of Water Supply is
one of Hawaiian Electric Company's largest customers.
Improving energy and water efficiency in buildings is one of the
easiest and most cost effective ways to mitigate climate change,
improve our local air and water quality, and reduce utility costs for
consumers. Why focus on efficiency? It is estimated that $1 spent on
the development of technology that improves the efficiency of building
and transportation infrastructure is conservatively worth $3-4 (likely
as high as $8-10) spent on renewable energy technology (Lawrence
Berkeley National Laboratory).
A successful example of a federal, state, and private collaboration
to address energy efficiency in buildings is the Hawai`i Clean Energy
Initiative (HCEI). One of its goals is to reduce energy use by 30
percent by 2030 through efficiency and conservation (not including
renewable energy). HCEI is especially useful because it has
quantitative energy reduction targets and specific recommended
strategies. We should continue to monitor our progress and communicate
updated recommendations to the public. In addition, we should continue
to foster advancements in energy-saving building technologies and
practices.
Next, I would like to discuss how policy-makers may address some
challenges and opportunities to reduce energy use in buildings.
First, Hawai`i's building energy codes are outdated. There is an
opportunity to push for the adoption of current building energy codes
by all counties. This also happens to align with HCEI recommendations.
In parallel, training on the new codes should be provided for building
code inspectors and design professionals.
Second, in Hawai`i, green building incentives do not reflect the
caliber of the building's environmental benefit. Consider creating
incentives for green building projects which are ratcheted to reward
exemplary performance, particularly in water and energy savings.
Third, higher first costs can discourage building owners from
implementing energy efficient practices and technologies. We need to
have adequate construction budgets or provide financial incentives to
offset higher first costs. The goal is to recognize and value the
associated water and greenhouse gas emissions savings, reduced demands
on municipal infrastructure, and improved occupant health. In a
commercial building, the ratio of first costs to operating costs to
personnel costs is about 1: 5: 200. (The Long Term Costs of Owning and
Using Buildings, The Royal Academy of Engineering) This highlights the
economic benefit of high performance buildings that provide occupants
with daylight, high indoor air quality, and control over one's comfort.
On the subject of water and buildings, challenges in Hawai`i
include maintaining a sustainable water supply and reducing the
greenhouse gas emissions from water transport and treatment. Moderate
water savings have been achieved by using green building rating systems
in State buildings and schools. (Lead by Example and Collaborative for
High Performance Schools)
This is a good start, but Hawai`i has not yet seized the
opportunity to save water and energy by capturing and using non-potable
water on-site in large scale buildings. Potable water is defined as
suitable for human consumption, and we typically do not need potable
water to flush our toilets, irrigate, or use in cooling towers. There
is an opportunity is to match water quality and its appropriate use.
A building has multiple water resources which can be captured,
treated, and used, including rainwater; greywater from sinks, showers,
laundry; blackwater from water closets; cooling tower blow down; air
conditioning condensate; pool filter back flush; and more. Multiple
Hawai`i-based plans encourage water recycling or non-potable water use,
including the Hawai`i 2050 Sustainability Plan, the Hawai`i Green
Business Guide, and the Hawai`i Water Conservation Plan.
Consider initiating pilot projects with on-site water treatment and
non-potable water use in a large-scale building or district. Relevant
stakeholders include the State Building Code Council, the Board of
Water Supply, and the Department of Health, workers unions, and
individuals involved in the existing non-potable water workshop series.
Pilot projects would establish processes for permitting and inspection
as well as training for code officials, designers and laborers. In
addition, a study is recommended to quantify the potential energy and
economic benefits of distributed water treatment versus the traditional
municipal water system. It is timely considering upcoming municipal
water treatment plant upgrades are required by the EPA.
I appreciate your time and welcome discussion.
Senator Schatz. Thank you very much.
Mr. Rue.
STATEMENT OF HARRISON RUE, COMMUNITY BUILDING AND TOD
ADMINISTRATOR, CITY AND COUNTY OF HOLOLULU, DEPARTMENT OF
PLANNING AND PERMITTING, HONOLULU, HI
Mr. Rue. Senator Schatz, thank you so much for the
opportunity to testify today. But first I do have to say how
delighted I was to hear the testimony of the gentleman from
Roosevelt. My son graduated Roosevelt a dozen years ago and go,
Rough Riders. That's all I have to say.
[Laughter.]
Mr. Rue. Great testimony.
I'd like to talk about the City and County of Honolulu's
Community Building and Transit-Oriented Development program and
offer some suggestions on what Federal agencies and Congress
can do to support local actions in sustainable community design
or transportation. These also highlight some of the discussions
in our community design panel at yesterday's ASCENT conference.
I would like to also to thank you for your support for the
conference and for your--yesterday.
The TOD program is a community based program planning
effort to help revitalize neighborhoods, increase
transportation and housing choices and create more livable
neighborhoods around the city's 20 mile rail transit system now
under construction. We've developed neighborhood TOD plans for
two-thirds of the 21 stations so far. We're updating land use
ordinances and overlay zoning to require operable mixed use
development.
While we have big plans, policies and projects, we need to
remember this is really about people and their neighborhoods
and how we can connect families with jobs, housing, gathering
spaces and each other. It's not an infrastructure project.
The city's new TOD subcabinet is a working group of
department directors modeled on the HUD, DOT, EPA Sustainable
Communities Partnership. We meet weekly to identify and solve
obstacles, address feasibility infrastructure availability,
coordinate strategies and budgets and act together on
collaborative projects. The TOD team works effectively with
outside partners including several State agencies, land owners
and developers and non profits and allied organizations.
Other work underway include a proposed bike share system to
reduce parking standards, new complete street standards,
protected bike lanes and updated housing strategy and a TOD
financial tool kit. This work will increase transportation
choice access and safety, reduce energy use and emissions, by
the way, that may be some of the missing things that are not in
the HTI plan, a good percentage can come in there, folks, help
protect water resources through compact development and green
infrastructure and improve human and environmental health.
To support these ongoing activities and partnerships we
suggest that the Federal Government consider the following
options most of which can be done with an existing authority
and not asking for new money.
We suggest replicating and expanding the successful
interagency coordination programs like the HUD, DOT, EPA,
Sustainable Communities Partnership. This is an excellent
combination of funding, technical assistance that encourages
innovation, collaboration and performance monitoring.
I was just talking with one of the former directors
yesterday who was at the conference. She noted that it has
touched one third of the U.S. population in various programs.
There's a strong need for continued technical assistance to
the hundreds of existing grantees, expanded guidance and
training materials based on lessons learned and most
importantly corporation partnerships, principles and
collaborative approach in the conventional statutory funding
and regulatory programs.
We also suggest that expanding this interagency approach to
address broader issues using a variety of funding streams
across other different agencies. One way to consider, you know,
streamlined performance would be to use, it sounds simple, but
just using the reporting and public involvement requirements
for the single, cognizant agency much like when we received
Federal grants. Only one cognizant agency is bonded to those
grants. So you could actually rather than have 4 different
agencies, environmental justice and public participation
requirements just follow one of them.
We suggest rewarding local efforts to strengthen
interagency coordination and targeted budgeting for our areas
much like the Federal partnership. The--our TOD subcabinet,
that I noted, has the records of all relevant departments
meeting weekly to coordinate, and prioritize projects and move
them forward. Suggest maybe making such local coordination a
consideration for demonstrating potential for follow through
and grant making.
We're also suggesting leveraging existing and future
funding toward more integrated resilience efforts. Statutory
programs tend to produce the same kinds of projects each year.
Reallocating a larger percentage of existing, available funding
toward innovative, local projects, such as DOD Tiger grant
program, would require proof that investments will cost
effectively meet multimodal, environmental and safety
performance codes.
We also suggest adjusting the MAP 21 rules in future
reauthorization legislation to require a more sustainable
performance measures that address broader community goals and
link land use, community design, health, safety, equity and
environmental sustainability.
Not only do we encourage agencies like EPA to continue
stepping out of their regulatory framework to work
cooperatively with local and State governments to develop more
cost effective, long term solutions to rain water and waste
water issues.
Green infrastructure can do an equal or better job of
protecting watersheds while supporting other sustainability
goals like compact development, transportation, housing choice
to reduce energy use.
Thank you again for the opportunity to testify. We
appreciate the committee's willingness to conduct this hearing
and to work on these critical issues.
[The prepared statement of Mr. Rue follows:]
Prepared Statement of Harrison Rue, Community Building and TOD
Administrator, City and County of Honolulu, Department of Planning and
Permitting, Honolulu, HI
Thank you so much for the opportunity to testify today. In addition
to briefly summarizing the City and County of Honolulu's Transit
Oriented Development Program, my testimony will focus on what federal
agencies and Congress can do to support state and local actions in
sustainable community design and transportation initiatives.
The City and County of Honolulu's TOD Program is a community-based
planning effort to help revitalize neighborhoods, increase
transportation and housing choices, and create more livable communities
around the City's 21 rapid transit rail stations. After four decades of
heated discussion, public opinion, political support, and financial
capacity have aligned to begin construction of The Honolulu Rail
Transit Project, a 20-mile high capacity transit system that will
connect families with jobs, housing, gathering spaces, and each other.
Together with public and private partners, the TOD Program is turning
the focus toward using the transit investment to enhance and revitalize
neighborhoods. The TOD team has developed Neighborhood TOD Plans for 2/
3 of the 21 stations, with the remainder under way. The City is
updating land use ordinances and developing overlay zoning to encourage
walkable, mixed-use development.
Our implementation strategy is intended to catalyze development
opportunities, infrastructure investments, and neighborhood
enhancements around the rail stations. The City's new TOD Sub-cabinet
is a working group of infrastructure, transportation, environmental,
housing, and planning directors who meet weekly to focus inter-agency
efforts on expediting catalytic projects in the TOD areas, with a focus
on feasibility, infrastructure availability, market interest, and
ability to leverage other investments. This approach is modeled on the
success of the HUD-DOT-EPA Sustainable Communities Partnership. The
subcabinet meets weekly to identify and solve obstacles, facilitate
development, coordinate strategies and budgets, and act together on
catalytic projects. The TOD team also works effectively with outside
partners including state and federal agencies, landowners and
developers, and non-profits and allied organizations including union
and construction industry partnerships. Related efforts include a
proposed bikeshare system, reduced parking standards, new complete
streets polices and standards, protected bike lanes, and a TOD
financial toolkit. Together, these plans, policies, and projects will
increase transportation choice, access, and safety; reduce energy use
and emissions; help protect water resources through compact development
and green infrastructure; connect people with jobs and businesses with
customers; and improve human and environmental health.
We have been working with several State agencies on TOD-related
issues, including the Department of Education (potential redevelopment
opportunities and school access); Department of Health (potential bike
share system and environmental/brownfields issues); Department of
Accounting and General Services (potential State facilities and
projects in TOD areas); Department of Planning (TOD planning and
policy); Department of Hawaiian Home Lands (East Kapolei, Kalihi and
downtown TOD plans); HCDA (Downtown and East Kapolei Plans, and
mobility and infrastructure improvements in Kakaako); HHFDC (housing
policy and project finance); Hawaii Public Housing Authority (Kalihi
and Downtown TOD plans); DLNR (development of the East Kapolei TOD
Plan); and the University of Hawaii system (West Oahu, Leeward
Community College, and Honolulu Community College campuses and long-
term redevelopment potential). We have initiated the Airport
Neighborhood TOD Plan, and will be working closely with the Hawaii
Department of Transportation on that plan, as well as transit station
access and safety improvements for the station areas along Farrington
and Kamehameha highways.
To support these ongoing activities and partnerships, we suggest
that the federal government consider the following options:
Replicate and expand successful interagency coordination
programs like the HUD-DOT-EPA Sustainable Communities
Partnership. These have worked exceptionally well to encourage
innovation at the local and state level. They are an excellent
combination of funding and technical assistance that encourages
innovation, collaboration and performance monitoring. These
included HUD's regional planning and community challenge grants
(which Honolulu received), DOT's TIGER grants, and EPA's robust
technical assistance and research. Many of these included
adaptation and resilience strategies for transportation, water,
energy and infrastructure. There is a strong need for 1)
continued technical assistance to the hundreds of existing
grantees; 2) expanded guidance and training materials for other
interested local government partnerships based on lessons
learned to date; and 3) incorporation of the Partnership's
principles and collaborative approach into conventional and
statutory funding and regulatory programs.
This interagency approach could be expanded on to encourage
more integrated resilience strategies that address multiple
infrastructure issues and utilize a variety of funding streams
across different agencies. While it can be more difficult to
`complicate' grant-making and reporting this way, the
government should consider ways to streamline grantmaking and
reporting when coordinating funding awards, such as using the
reporting and public involvement requirements of a single
cognizant agency (much like the approach to using a single
cognizant agency's requirements in auditing funding).
Encourage local efforts to develop more integrated
resilience solutions by rewarding local and state efforts to
strengthen interagency coordination and targeted budgeting
priorities, much like the HUD-DOT-EPA Partnership. One example
of this is the City and County of Honolulu's TOD Sub-cabinet,
which has directors of all infrastructure, planning,
environmental, transportation, economic development,
operations, and housing departments meet weekly to coordinate
and prioritize projects in neighborhoods along the city's 20-
mile rail transit project (now under construction). Such local
coordination could potentially be a consideration for
demonstrating potential for follow-through in grantmaking.
Provide more opportunities to leverage existing funding
toward integrated resilience efforts (in addition to developing
new funding streams). Much of the existing funding in
transportation, housing, water, energy, and environmental
programs is statutory in nature, and goes through older
programs and existing agency structures at federal, state, and
local levels. Re-allocating a larger percentage of available
funding toward more innovative programs that can go directly to
local integrated projects, such as DOT's TIGER grant program,
would help advance and prove the results of innovation.
Statutory formula funds tend to produce the same kinds of
projects each year; innovation-driven programs like TIGER
require proof that investments will cost-effectively meet
multimodal, environmental, and safety performance goals.
Adjust the MAP-21 rules and future Reauthorization
legislation to encourage/require performance measures that
address broader community goals that link land use, community
design, health, safety, equity, and environmental
sustainability.
Encourage agencies like EPA to step out of their regulatory
framework to work cooperatively with local and state
governments to develop more cost-effective long-term solutions
to stormwater issues that do an equal or better job of
protecting watersheds, while supporting other sustainability
goals like compact development, transportation and housing
choice, and reduced energy use. Include training, technical
assistance and funding support for revising local and state
codes and standards to allow/encourage/require green
infrastructure and resilience solutions.
Thank you again for the opportunity to testify; we appreciate the
committee's willingness to conduct this field hearing and to work on
these critical issues.
Senator Schatz. Thank you, Mr. Rue.
Mr. Tam.
STATEMENT OF WILLIAM M. TAM, DEPUTY DIRECTOR, HAWAII COMMISSION
ON WATER RESOURCE MANAGEMENT (CWRM), DEPARTMENT OF LAND AND
NATURAL RESOURCES (DLNR), HONOLULU, HI
Mr. Tam. Thank you, Senator Schatz.
First we'd like to thank you for your introduction of the
Secure Water Act of 2014 which will allow the State of Hawaii
to compete for grants, water smart grants, water efficiency,
water optimization, VUE grants and advance water treatment
demonstration projects. We think this is an important addition
to our ability to be nubile in the future.
We'd also encourage you to pay attention to the decline in
the number of stream gauges and the monitoring wells which are
important in Hawaii. Both have suffered from lack of funding.
We think these are critical. If you are a patient that's
concerned about being healthy you do not want to take the
monitor away when you most need it.
In Hawaii all the water is local. Water and energy have a
very interesting combination, but they move in different ways.
Water is heavier, obviously. It can't be moved around in the
same way energy can be. So it's important to look at the cost
effects of that as we go forward.
The World Economic Global Risks 2014 identified water
prices and the failure of climate change. Mitigation adaptation
is the third and fifth, respectively in its ranking order of
the 10 global risks of highest concern in 2014. They considered
these risks to have a high likelihood and a high impact, unlike
the proverbial black swan which has low probability, but high
impact. The climate change issues coming before us are both
high impact and high probability.
So this is a gale force wind that is coming toward us. As
Nainoa Thompson reminded us yesterday, you're building a canoe
to sail around the world you don't plan for the sunny afternoon
offshore, you plan for the gale force winds and the low tide
channels in 15 foot seas at night. So the question is is the--
are the lashings correctly done. Is the crew ready? Because
when a voyage goes around the world, one bad night and the
voyage is over.
So as we design our climate change adaptation and
resilience, we need to take into account that that's what we
have to look for.
Economics is very important. I'm going to talk about that
in just a moment. The goal of the journey is to get there. It's
not to do an accounting, necessarily, where we meet and
auditors report, although those things have their place.
So when we think about these issues we could do something
that's cheap. But I think what we have to look at is what is
the black swan of a major event? What happens if Fukushima
earthquakes 1,000 miles South comes at us from the Southwest on
Oahu, hits the--power plant, takes out--and Honolulu. It takes
out Sand Island wastewater treatment plant. The harbors and our
airports are hit.
What do you do to build a future when that is a
possibility? There's a huge earthquake. The Pacific is a rich
area in seismic events. We need to think about how to build
those resiliencies into our system which suggests that local,
distributed and simple--systems that are in a community and
that's a new way of doing things.
With the model we've built from the 50s and 60s was good
for that time. But we're now faced with a different set of
circumstances. So we need to think about how to build
resistance and duplication into our systems.
To give you a simple example of what Hermina eluded to
earlier about the cost of water and what some of the savings
might be. Rural water supply was an issue yesterday spends
about $28 million, $26 million for 87 million kilowatt/hours
pumping 43 million gallons a day which is about $187,500 to
pump 1 million gallons for a year. That's on the front side of
the water cycle.
On the back side of the water cycle environmental services
pumps--or costs about--spends about $24 million to pump 74
million, I'm sorry. It used to be 74 million kilowatt/hours for
about 100 million gallons. That's about $244,000 a year to pump
1 million gallons of sewage.
So combined the electrical costs alone to move a million
gallons of water is $431,500 a year. That's not including--on
top of expenses or disrupted--of electricity.
You can buy down a million gallons per day of water savings
through conservation activities in the agricultural areas and
the other areas. So that's where--that's a line we can start to
look at.
Senator Schatz. You said $430 odd thousand a year per
million?
Mr. Tam. Per million gallons of water.
Senator Schatz. How many gallons are we moving?
Mr. Tam. That's the average for one million gallons to be
pumped out of the ground, transferred to your home, transferred
to the wastewater treatment facility and then moved 2 miles
offshore off Sand Island or Honolulu.
Senator Schatz. Wait. But how many gallons are we moving on
Oahu annually?
Mr. Tam. Annually? I don't know the aggregate, but we're
moving about 144 million gallons are being pumped daily from
the foreign water supplies. So that's probably a good
surrogate.
These are for the Oahu system. We can get you that data.
Mr. Tam. But it could take Oahu, the most popular island
where you have a more centralized system that's probably a good
number.
There's about a hundred million gallons going out into the
water into the ocean. As Gary Hill indicated yesterday, waste
water is simply water or it could be waste. There's things we
put into it, we can simply take those things out.
There's methane. There's phosphates. There's a lot of
things to be taken out. Those are separate income streams that,
properly organized, could then become actually a way to reduce
your overall costs.
So the point of it is conservation is, as been indicated,
is the single most cost effective way to deal with water
energy. There have been studies by--at this University over the
last 15 or 20 years. This is not new information. Looking at
the cost benefit of investing in watershed manifers as a way of
increasing supply while the technical aspects of that would
require looking at their papers, essentially if you have a
choice between building a new well which is going to move
motors when down further and requires more and more pipelines
or managing the watershed which then can capture more of that
rainfall, put it back into the ground. That's the real supply
side economics.
That's where you're actually increasing, for example an
aquifer from say, 10 million gallons to 12 million. You still
use your existing infrastructure to take on one, as opposed to
building a well and take out one more of a $10 mine. So the
watershed management has multiple benefits aside from what just
happens on the surface.
Aside from the fact they're hiring young people to go out
and work in the natural resources. You're actually increasing
your supply. As the indications are often to climate--the
university and elsewhere the rainfall pattern around the
Hawaiian Islands are indicating that the clouds that fit the
windward side of the mountains where you have to--our water are
getting thinner both pressure down and pressure up from the
heat. Therefore the amount of water hitting the mountains which
is the source of our rainfall that caused a thinner--that cost
more and more money.
USGS indicates that in the last 80 years primarily from the
1940s to the present that aggregate stream flows now 20 to 22
percent aggregate rainfall just in the last 30 years it's down
10 to 12 percent. If those patterns continue we're going to
have less water in the streams, less water in the ground. To
take advantage of what we can do in the forests, bring back
native plants, cut down the invasive because as this happens,
by the way, the invasives move up. Invasives are now taking
over our forests.
That trend is very dangerous because they have high, rapid
transpiration rates. They do not put the water back in the
ground. The Strawberry Guava throughout the islands, that is
going to--that is really more and more mountain. If you talk to
Senator Ruderman and--observed in his lifetime different kinds
of weeds and invasives that he saw--topography. That's
happening everywhere.
So those phenomenon while not by themselves spectacular, in
the aggregate have a major impact on our water supply.
We would encourage you to look at conservation measures
just as a cost efficient method to do this.
The last thing I would like to say is that water integrates
Ag, waste water use, water for consumption and the energy costs
so that it integrates this in ways that others things do not.
So saving water distribution is a way of paying down other
costs and allowing greater efficiencies.
The last point I guess I would make would be that we've
dealt with this on a regional basis. If we do, simply do this
on a bilateral contract basis we will not have the
efficiencies. So we're going to do waste water management,
central water, for example, there would be savings in different
places. But we need to figure out a way to allocate those
savings and allocate those budgets in a way so everybody gets
to play.
I would encourage you to look at the work that the Army is
doing at Schofield Air--and should be a model for the rest of
this----
Thank you for your time.
[The prepared statement of Mr. Tam follows:]
Prepared Statement of William M. Tam, Deputy Director, Hawaii
Commission on Water Resource Management, Department of Land and Natural
Resources (DLNR), Honolulu, HI
Aloha,
On behalf of the Hawaii Department of Land and Natural Resources
and the State Commission on Water Resource Management, thank you for
inviting us to speak with you about Successes and Challenges in Meeting
Sustainability Goals for Water in Hawaii.\1\
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\1\ The Hawaii Commission on Water Resources Management website
http://dlnr.hawaii.gov/cwrm/ provides extensive information about the
Commission's work and links to many primary and secondary sources.
---------------------------------------------------------------------------
My name is William Tam. I am Deputy Director, Commission on Water
Resource Management (``Commission''), Hawaii Department of Land and
Natural Resources.
I. INTRODUCTION
The Hawaii State Constitution (article XI, Sec. 7) (1978) and the
State Water Code (Haw. Rev. Stat. chap 174C) (1987) charge the State
with a dual mandate: provide for reasonable and beneficial uses of
water and protect public trust water resources for this and for future
generations. Integrating reasonable and beneficial uses and long term
resource protection requires sustainable water supplies.
The challenge of climate change to Hawaii's water resources will
alter how we manage our natural resources-and ourselves--for decades to
come. This is an epochal change and a fundamental shift to a new
paradigm. The hard path of big supply projects will no longer meet our
needs. Not only will the infrastructure change. The way we use water
will change. In some areas, we are approaching ``peak water.'' So
different water qualities will be needed to satisfy different kinds of
demand. And it will be more decentralized and distributed because the
cost of energy will require it. It is time for a twenty-first century
water policy?\2\
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\2\ Juliet Christian-Smith and Peter Gleick, A Twenty-First Century
U.S. Water Policy, Oxford University Press (2012)
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II. CLIMATE CHANGE
The World Economic Forum Global Risks 2014 identified ``water
crises'' and ``failure of climate change mitigation and adaptation'' as
third and fifth, respectively, in its rank ordering of the ten global
risks of highest concern in 2014.\3\ They considered the risks to have
a high likelihood and to have a high impact. The report concluded that
(1) trust is necessary if stakeholders are to work together; (2) long-
term thinking is a prerequisite to any approach to global risks; (3)
collaborative multi-stakeholder action is required as no single entity
has the tools and the authority to tackle systematic risks; and (4) new
governance models are needed.
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\3\ World Economic Forum Global Risks 2014 (www.weforum.org/risks)
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In Hawaii, all water is local. Hawaii faces climate change-related
impacts on our water resources different in kind from our sister states
on the continental United States. Even dry states may (under certain
circumstances) transport fresh water across state borders. Hawaii does
not have that option. Each island is on its own when it comes to water.
There is no Plan B to import or transport fresh water in life
sustaining quantities. Each island must adapt to the uncertainties of
climate change in its own way.
The observed trends in climate change and projections of reduced
future freshwater supplies make it imperative that Hawaii 1)
aggressively pursue water conservation; 2) explore and expand the use
of reused and reclaimed water; and 3) prepare for both persistent
drought conditions (on the leeward sides of the islands) and less
frequent, but larger rain events that run off quickly, fail to recharge
the aquifers, transport soil onto near shore reefs; and 4) collect
reliable hydrologic data to understand and monitor conditions in order
to respond nimbly to new conditions.
In the future, the leeward sides of all the major Hawaiian Islands
are likely to be even drier. It is critical to collect and expand our
collection of hydrologic data to refine future projections.
III. SECURE WATER AMENDMENTS ACT OF 2014 (S.2019): CONSERVING WATER
RESPOURCES; PROMOTING SUSTAINABILITY
First, Senator, we would like to thank you for introducing the
Secure Water Amendments Act of 2014 (S.2019). This Bill will allow
Hawaii to compete for grants under the Department of Interior's
WaterSMART Program, increase funding for drought projects, provide
resources for better data collection and analysis of water supply. This
will help Hawaii improve our water supplies' resiliency and
sustainability. Hawai'i will become eligible for WaterSMART cost share
Water and Energy Efficiency Grants, System Optimization Review Grants,
Advanced Water Treatment and Pilot and Demonstration Project Grants,
and Grants to Develop Climate Analysis Tools. Water resource
stakeholders will be able to partner and collaborate with the
Department of Interior.
The four County departments of water supply, the County wastewater
departments, the Commission on Water Resource Management, the
Department of Land and Natural Resources, the University of Hawaii, the
Department of Agriculture, the Department of Hawaiian Home Lands, and
other water-related entities will benefit from this legislation.
IV. WASTEWATER REUSE AND STORMWATER RECLAMATION
Wastewater reuse and stormwater reclamation are growing rapidly
(especially in the West) as communities realize that every part of the
water cycle is valuable, just mislabeled.\4\ But large- scale
wastewater reuse and stormwater reclamation are relatively new in
Hawaii and not widely understood. As Hawaii's population and water
demands grow and water supplies come under new pressures, wastewater
reuse and stormwater capture will be key components in sustainable
water resource management for non-potable needs.
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\4\ ``Water Reuse: Potential for Expanding the Nation's Water
Supply through Reuse of Municipal Wastewater,'' National Research
Council, National Academy of Science (2012) (http://www.nap.edu)
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OPPORTUNITY AND CHALLENGE
In 2008, the Hawaii Commission on Resources Management in
partnership with the U.S. Bureau of Reclamation completed an appraisal-
level study of opportunities statewide for the large-scale stormwater
reclamation. Of twenty opportunities identified statewide, stormwater
reclamation and reuse at Wheeler Army Air Base and Schofield Barracks
(Wheeler) was determined to have the most stakeholder support and
greatest likelihood for success. A pilot project at Wheeler could
potentially use a significant amount of existing infrastructure for
collection, treatment, storage, and conveyance of stormwater. The idea
is to collect stormwater from the approximately 190 acres of runway and
impervious surfaces at Wheeler airfield, where average annual rainfall
is 40 to 50 inches/ year. The Schofield Barracks Wastewater Treatment
Facility (located at Wheeler) contains several unused clarifiers that
could be used to treat and improve the stormwater quality. An unused
pipeline extends from the Wheeler property to nine 1.8 million gallon
(16.2 million gallon total) underground former oil storage reservoirs
at Waikakalaua Fuel Annex. Waiahole Ditch, or a parallel pipeline in
the ditch easement, could convey the stormwater to downstream
irrigation users, which include agricultural lands, golf courses, and
other green spaces. An extension of the pipeline would allow surplus
stormwater to be used to recharge the Pearl Harbor Aquifer or, further
makai, the Ewa Caprock Aquifer.
Commission records indicate that over 25 million gallons per day of
high-quality potable groundwater from the Wahiawa and Waipahu-Waiawa
Aquifer System Areas are currently permitted for non-potable uses. If
these non-potable uses could be converted to non-potable sources, high-
quality groundwater could be conserved for potable uses. In addition,
development of this opportunity will help to meet Clean Water Act
requirements. Currently, stormwater from Wheeler enters Waikele Stream,
eventually discharging to the West Loch of Pearl Harbor. Both of these
water bodies are identified as impaired on the Department of Health
Sec. 303(d) list. Implementation of Total Maximum Daily Loads (TMDLs)
to receiving waters by the Department of Health will eventually require
a higher level of treatment for stormwater.\5\ The treatment required
to comply with TMDLs will potentially offset the treatment required for
other uses, particularly irrigation.
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\5\ In September, 2012, EPA released is updated 2012 Guidelines for
Water Reuse, U.S. EPA, EPA/600/R-12/6/18 (2012)
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The State is currently investigating how non-potable water could be
developed regionally in Central Oahu. Land use is in transition. With
the decline of plantation agriculture, vast tracts of former sugarcane
lands lie fallow. There are plans for increased agricultural activity
in the Kunia Road corridor, expansion of military housing at U.S. Army
Schofield Barracks, and proposals for new urban developments. There is
significant non-potable water demand associated with each of these
planned activities.
There are also a number of sources of non-potable water in the
Central Oahu. In addition to stormwater, 1) there are two wastewater
treatment plants, Schofield and Wahiawa that are capable of producing
R-1 water; 2) Lake Wilson, which has a current capacity of 2.5 billion
gallons and a pass through stream flow estimated at 36 million gallons
per day; 3) the Waiahole Ditch; 4) new wastewater treatment facilities
associated with new developments; and 5) new re- sourcing treatment
facilities that could divert and treat wastewater from existing
pipelines near or on-site for landscaping or agricultural use (thereby
saving energy costs of pumping water miles away to large treatment
plants).
V. COORDINATE AND INTEGRATE WATER RESOURCE PLANNING ACROSS
JURISDICTIONS ON A LIFE-CYCLE, TRIPLE BOTTOM LINE BASIS
There is a need for new, coordinated, and integrated water resource
planning across jurisdictions, and on a life-cycle, triple bottom line
basis.\6\. If water supply planning and implementation continue in a
piecemeal fashion, the opportunity to partner and leverage resources
may be lost. This may result in higher capital and operating costs,
lost efficiencies, and unfavorable outcomes. By taking a regional
approach and involving multiple stakeholders, there may be new
economies in savings and avoided costs. Specifically, benefits and
costs may be redistributed geographically or across time to enable an
integrated plan to succeed where none of the component parts alone
would start, let alone survive.
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\6\ ``Triple Bottom Line'' refers to an accounting framework for
sustainability that includes financial, social, and environmental
measures (often referred to as People, Planet, and Profits). While the
metrics for each may differ, projects may nonetheless be compared on
each alone. This creates a mechanism to evaluate the ramifications of
alternative decisions from a truly long term perspective much as a
series of cash flows may be compared by reducing each to its present
value.
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For example, reusing wastewater in Central Oahu could reduce the
size and capital costs to expand the planned secondary treatment
facility at the Honouliuli Wastewater Treatment Plant. That could also
reduce operations and energy costs to pump the wastewater to
Honouliuli.
Through a regional plan, there may be a combined benefit among
entities that would not pencil out financially for any single party
acting independently.
Given the many interested stakeholders in the area, there is a need
to engage all stakeholders--landowners, farmers, developers, the
military, wastewater treatment plant operators, Board of Water Supply,
Department of Health, and others in a collaborative planning effort
that looks at all resources, all potential demand, and identifies
solutions in the best interests of the community and the State. The
Commission wants to ensure that water supply, wastewater, and
stormwater planning in Central Oahu proceed in a way that can address
these issues and concerns early in the process and to mitigate any
foreseeable conflicts. The Commission is working to finish its non-
potable water planning in the fall, 2014.
Pending completion of this work, developing and implementing a
proof of concept pilot project is important to demonstrate the
feasibility of stormwater reclamation and reuse and establish its
viability, associated technical issues, costs and budget, and build
support for the larger effort. This regional undertaking will require
close working relationships among federal, state, county, and private
parties. Above all, it will require leadership and innovation.
VI. FULL CYCLE ENERGY COSTS OF WATER
The cost to pump groundwater, transport it to end users, move it
again as sewage (by gravity piping and force mains) to wastewater
treatment plants, remove the chemicals and solids, force it into long
ocean outfalls, and comply with the Clean Water Act is expensive. While
the energy costs of water are appreciated on the mainland,\7\ they have
received little attention in Hawaii.
---------------------------------------------------------------------------
\7\ ``Implications of Future Water Supply Sources for Energy
Demands,'' Heather Cooley (Pacific Institute) and Robert Wilkinson (UC
Santa Barbara), WateReuse Research Foundation and Bureau of Reclamation
(DOl) (2012); ``Energy Down the Drain- The Hidden Costs of California's
Water Supply,'' NRDC and Pacific Institute (August 2004)
---------------------------------------------------------------------------
In the first 11 months of FY 2012, the Honolulu Board of Water
Supply paid approximately $26.8 million for 87.9 million kilowatt hours
to pump 143 million gallons I day for one year. That is about $187,500
to pump one (1) mgd for one year.
In FY 2013, the City and County of Honolulu Department of
Environmental Services paid approximately $24.3 million for about 74
million kilowatt hours to treat and pump about 99.4 mgd of sewage for a
year. That is about $244,000 I year per one (1) mgd of sewage treated.
Combined, the BWS and Environmental Services' energy cost to pump,
transport, treat, and dispose of one mgd of water is about $431,500 /
year. And that is just the electrical costs. It does not include the
capital, the infrastructure, the human labor, or the environmental
costs. Imagine securing the service that potable water provides in a
whole new way. Calculate the opportunity costs of leaving potable (and
future drinking) water in the ground (the best reservoir there is- as
Arizona's groundwater recharge project demonstrates) and not pumping
(lower energy costs). But the overall plan may only succeed if this
savings can be allocated and distributed to other regional parties on
an overall cost efficient basis. There will simply not be enough bi-
lateral contracts to make the whole work. It requires a regional
approach.
It goes without saying that the Uniform Plumbing Code ("UPC") and
International Green Construction Code (``IGCC''), as well as local
county ordinances provide important institutional pathways to the day
to day implementation of real conservation. It is through these
retrofitting mechanisms that old (as well as new) infrastructure is
realigned in more efficient directions. Ironically, the cost I benefit
payback period for investing in many of these retrofits is often less
than one year and it generates new work for skilled labor in small and
medium sized operations. One perverse effect of rising energy costs is
it makes investment and rapid changes in new efficiencies more
economic.
VII. DROUGHT PLANNING, MITIGATION, AND RESPONSE
The Commission is the lead agency for drought planning in Hawaii.
The Hawaii Drought Council helps to coordinate drought mitigation and
response activities across the state. In 2005, the Commission developed
the Hawaii Drought Plan which led to working with drought stakeholders
in each county to develop four County Drought Mitigation Strategies.
The County Drought Mitigation Strategies identify projects to improve
drought preparedness and resilience in the water supply; agriculture &
commerce; and environment, public health and safety sectors.
The Hawaii Water Resources Act of 2000 (P.L. 106-566, as amended)
made Hawaii eligible for U.S. Department of Interior, Bureau of
Reclamation programs for drought relief and drought planning. Hawaii
was able to benefit from these programs during the droughts in the last
decade through emergency drought assistance and planning assistance
from the Bureau of Reclamation. The authority for emergency drought
relief (Title I of P.L. 102-250, as amended) expired on September 30,
2012. Reauthorization of this authority and appropriation of program
funding could help stakeholders in Hawaii to better cope with drought.
There are several federal agencies that offer programmatic
assistance for drought mitigation and response, including U.S.
Department of Interior's Bureau of Reclamation and U.S. Department of
Agriculture's Natural Resources Conservation Service, Farm Service
Agency, Rural Development Program and Risk Management Agency. The
respective County Drought Mitigation Strategies have drought mitigation
projects in need of funding sources and could qualify for one or more
of the programs offered by these agencies, should funding opportunities
become available.
Hawaii also benefits from the work of the National Oceanic and
Atmospheric Administration's National Integrated Drought Information
System (NIDIS). Continued support for NIDIS is important for
maintaining a drought early warning system and for delivering products,
tools, resources and programs to assist drought stakeholders to prepare
for and mitigate the impacts of drought across the country.
VIII. NEED FOR INCREASED CLIMATE AND HYDROLOGIC MONITORING AND RESEARCH
Hawaii's climate is extremely diverse. Micro-climates are the rule
rather than the exception. We have rainforests and deserts, alpine
mountains and coastal plains. Annual precipitation can vary by more
than 100 inches/year in a span of just a few miles. Rain gages and
stream gages allow us to monitor trends in these elements over time. In
order to get a clear picture of climate change, there needs to be
monitoring with long periods of record and sufficient geographical
coverage to represent our different climate regions across the state.
The number of stream gages in Hawaii has declined from over 197 (1966)
to only 59 in 2012. Rainfall stations have decreased from a peak of
over 1000 in 1968 to around 340 in 2007. This decline in monitoring is
leaving gaps in the data at a time when we need this long-term data the
most.
Stream gages operated by the U.S. Geological Survey are funded on a
cost-share basis with cooperators, who are mainly state and county
agencies. The recent fiscal crisis caused these cooperators to reduce
funding for data collection resulting in the loss of important stream
gaging stations. The National Weather Service administers a cooperative
observer program in Hawaii, which comprises its volunteer rain gage
network. Hawaii's sugar plantations were prolific rainfall observers.
Since the plantations closed, the network of rainfall stations declined
precipitously. It is important to re-establish both stream gages and
rainfall stations in key climatic regions where there is a long period
of record of observations. The continuation of hydrologic data
collection and analysis is fundamental in monitoring how Hawaii's
climate is changing and to ascertain the impacts of climate change on
our water availability both now and in the future.
Section 9506, Secure Water Act of 2009 establishes a Climate Change
and Water Intergovernmental Panel in order to address the issue of data
gaps in current water monitoring networks and how to improve data
collection to better monitor and analyze water resources.
Section 9507 of the Act authorizes the implementation of programs
to enhance water data collection by the U.S. Geological Survey.
Congress needs to appropriate sufficient funds to implement the
provisions described above and for the U.S. Geological Survey in Hawaii
to increase the number of stream gages in Hawaii, especially where
critical, long-term stream gages have been discontinued.
Congress also needs to appropriate fund to increase the number of
Hawaiian rainfall stations and reestablish important rainfall stations
with long periods of record through the Pacific Islands Climate Science
Center or the University of Hawaii.
Ensuring that hydrologic data collection continues in Hawaii is the
only way to effectively monitor and analyze the impacts of climate
change on our precious fresh water resources. This essential data set
will benefit many sectors of the community--researchers and resource
managers alike, including the University of Hawaii, U.S. Geological
Survey, Hawaii Department of Land and Natural Resources, and many
others.
IX. ACTIVE LEADERSIDP AND ENGAGEMENT ACROSS JURISDICTIONS
The key is active leadership. Money and legislation may be slow and
hard to secure. But getting people from all levels of government,
across multiple functions, and in conjunction with private actors to
sit down and talk with one another requires only active leadership and
personal time. It is the human contact that opens the doors. We have
the means to communicate with one another. It is not expensive. It just
requires convening meetings or hearings (like this one) to highlight
innovations, encourage collaboration, re-imagine smaller more dynamic
on-site systems, and share opportunities.
Agency Collaboration
Protect water resources through accelerated collaborative effort by
City, State and Federal agencies.
Planning
Analyze true life cycle costs/value of water resources across
jurisdictions, the full hydrologic cycle, and functions so that
efficiencies and costs can be realized across multiple users. Compare
alternative scenarios, including the cost of current course. Integrate
energy costs into all water analysis. Integrate analysis and
synchronize plans across all levels of government. Examine regulatory
changes (practices and rules) needed to realize the proposals outlined
here.
Watershed protection
Expand forest and agricultural public/private partnerships to
combat invasive species, capture and enhance groundwater resources,
restore native plants, and increase resilience to climate change.\8\
Prevent runoff and pollution in ahupua'a and watershed area across
jurisdictions (using mauka to makai approach)
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\8\ ``Natural Infrastructure- Investing in Forested Landscapes for
Source Water Protection;'' World Resources Institute (2012).
---------------------------------------------------------------------------
Infrastructure improvements and controls
Investigate and support treating wastewater to R-1 for reuse from
state, county, federal, and private facilities. Capture and reclaim
storm water, grey water, and rainwater to replace potable water use in
urban and agricultural applications. Expand grading and agricultural
soil conservation efforts. Increase efficiencies in agricultural
irrigation practices. Decentralize and relocate new and renovated
infrastructure away from coastlines
Finance
Explore ways to engage private funding sources.\9\ Insurance
companies calculate risk and have good reason to search out risk
reduction strategies. Develop new pricing structures. Publish combined
water & energy triple bottom line accounting for all projects.
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\9\ ``Financing Green Urban Infrastructure'' (OECD Regional
Development Working Papers 2012/10; http://dc.doi .org/
10.17875k92p0c6j6ro-en); Creating Clean Water Cash Flows- Developing
Private Markets of Green Stormwater Infrastructure in Philadelphia
(NRDC January 2013; http://www.nrdc.org/water/stormwater/files/green-
infrastructure-pa-report.pdf)
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Multi-Agency Coordination Group
Establish multi-agency coordination group with a specific mandate
to analyze how to carry out the tasks described here (including how to
engage private funding sources). Set a deadline to report back to this
Committee in one year (May, 2015).
Mid-Course Corrections: Flexible, Adaptive, and Responsive
Increasingly, water, energy, and natural resource problems combine
in new and faster ways. Old, isolated approaches fail to capture the
interaction or the complexity of problems, their solutions, or their
urgency. We need more mid-course corrections. Institutions designed 20-
40 years ago need to work horizontally across jurisdictions and in near
real time. Specifically, federal agencies (especially EPA and COE, but
also USFWS and NOAA) need to get closer to the management problems and
help States be flexible and more adaptive. Navigating requires regular
mid-course corrections and quick feedback loops.
X. GOING FORWARD
Climate change poses great uncertainties and risks to sustainable
water supplies. Water conservation, development of non-potable
alternatives, integrated actions across multiple jurisdictions, drought
planning, and mixed public-private financing and watershed protection
require direct active leadership and attention.
Hawaii is developing a number of initiatives that are still in
their early stages. We would appreciate the opportunity to provide the
Subcommittee with a more detailed account of these activities. To that
end, we request that the record in this matter be kept open until
April30, 2014 to supplement the testimony provided here.
Thank you for the opportunity to share our views. We look forward
to working with this Subcommittee and our federal partners to achieve a
sustainable water future for Hawaii.
Senator Schatz. Thank you very much.
Dr. Pauley.
STATEMENT OF STEPHEN M. PAULEY, MD, PRESIDENT, EDWIN W. PAULEY
FOUNDATION, KETCHUM, ID
Mr. Pauley. Thank you, Senator Schatz, for this opportunity
to recommend that Coconut Island, Kane'ohe Bay, Oahu, Hawaii
serve as a living example for sustainable systems that will
stimulate the building and implementation of similar systems by
others in the Hawaiian Islands, most of North America and the
Pacific Rim.
When Coconut Island was gifted to the University of Hawaii
Foundation the Pauley intended that in addition to the green
sciences already in place at HIMB, the Hawaii Institute of
Marine Biology, that the island would become a model for
sustainability. In my dedication speech in 1998, when I
dedicated the island along with a newly built marine lab I said
the following.
``If we can relate the first rate science being done at
this new lab to improving ecosystems in this bay, the Hawaiian
Islands and the Pacific Ocean, if we can make Coconut Island a
model for sustainable living, if we can leave the comfort zone
to our narrow disciplines to relate our science to others in
the community, and to the diverse fields of humanities, of the
humanities, if we can find the courage to shape public policy
to improve our environment and if by doing these things we end
up with a healthier ecosphere, through your efforts to
reconnect people to the natural world, than our gifts to you in
Hawaii will have real meaning, not only to our granddaughters,
Hannah and Brooke.'' We have 2 more since then. ``But to our
future set of generation.''
That was in 1998. Hannah is now 17, 18 and ready to go to
college. The point being, it's been a long time.
[Laughter.]
Mr. Pauley. Coconut Island long range development in 1998
was drafted by 16 leaders from the University of Hawaii and
surrounding communities, approved by the UH Board of Regents,
co-chaired by then UH President Ken Mortimer and me.
The mission statement reads, ``To promote the stewardship
of the living oceans, restore, preserve and sustain marine
ecosystems in Hawaii and the Pacific Rim to integrate
scientific research, community involvement, education and
example at Coconut Island.''
Almost 16 years have passed and those goals have been
minimally achieved. This has been a disappointment to the Board
of Directors of the Pauley Foundation and the Pauley family. To
many at UH who also see the potential for the island to serve
as an example for sustainable systems that include the use of
solar and wind energy, fresh water catchment, natural sewage
treatment and the use of sustainable building materials.
While first rate marine science is routinely conducted at
HIMB the island's overall potential is still lacking. The
reasons for the lack of concerted action are many, most are
budget related. There has been a lack of continuity at UH. Four
presidents have served UH over the past 16 years. There needs
to be both a political and strategic will to adhere to the
zoning of environmental sustainability emissions stated in the
1998 Coconut Island long range development plan.
Senator Schatz, you have firsthand knowledge of Coconut
Island's potential. We both served on the Board of Directors
for the Center for a Sustainable Future. The organization was
founded by former dean of SOEST, Dr. Barry Raleigh.
CSF was funded by private foundations and donors. We
studied issues such as coastal pollution, coral beaching,
reduced fish populations, aqua cultures and strategies for the
use of biofuels to replace dependency on imported oil. We also
studied other environmental problems in Hawaii and the Pacific
Rim. But funding fell short when it came to implementing
sustainable systems. CFS was disbanded when Dr. Raleigh retired
as Dean of SOEST.
So the specific request that I am making of the committee
since we've been unable to achieve the progress on any other
basis is to implement the Coconut Island master plan of 1998.
No. 1, build sustainable energy, water and building system
on the island so that the island can serve as an example of
what to do correctly in the era of climate change, dependency
on fossil fuels warming oceans and loss of coral reefs and
fisheries.
No. 2, build a conference center and visitor housing. This
is all in the master plan. To bring together others in Hawaii
and the Pacific Rim to study environmental issues such as food
shortages, depleted fisheries, climate change and shoreline
flooding. These are all issues obviously we all know about that
threaten coastal communities.
I thank you for this opportunity to state my views.
[The prepared statement of Mr. Pauley follows:]
Prepared Statement of Stephen M. Pauley, MD, President, Edwin W. Pauley
Foundation, Ketchum, ID
Thank you Senator Schatz for this opportunity to recommend that
Coconut Island, Kaneohe, Oahu, Hawaii, serve as a living example for
sustainable systems that would stimulate the building and
implementation of similar systems by others in the Hawaiian Islands,
coastal North America, and the Pacific Rim.
When Coconut Island was gifted to the University of Hawaii
Foundation, the Pauley Foundation intended that in addition to the
marine sciences already in place at the Hawaii Institute of Marine
Biology (HIMB), that the island would become a model for
sustainability.
In my dedication speech in 1998, when I dedicated the island along
with a newly built marine lab I said the following:
``If we can relate the first rate science being done at this
new lab to improving ecosystems in this bay, the Hawaiian
Islands & the Pacific Ocean; if we can make Coconut Island a
model for sustainable living; if we can leave the comfort zones
of our narrow disciplines to relate our science to others in
the community and to the diverse fields of the humanities; if
we can find the courage to shape public policy to improve our
environment, and if by doing these things we end up with a
healthier ecosphere through your efforts to re-connect people
to the natural world, then our gifts to you and Hawaii will
have real meaning not only to grand daughters Hannah and
Brooke, but to our future 7th generation.''
The Coconut Island Long Range Development Plan of 1998 was drafted
by 16 leaders from the University of Hawaii and surrounding
communities, approved by the UH Board of Regents, and co chaired by
then UH President Ken Mortimer and me. The Mission Statement reads:
``To promote the stewardship of the living oceans, restore,
preserve, and sustain marine ecosystems in Hawaii and the
Pacific Rim through integrated scientific research, community
involvement, education, and example at Coconut Island.'' ( 1998
Coconut Island Long Range Development Plan)
Almost 16 years have passed and those goals have been minimally
achieved. This has been a disappointment to the board of directors of
the Pauley Foundation, to the Pauley family, and to many at UH who also
see the potential for the island to serve as an example for sustainable
systems that include the use of solar and wind energy, fresh water
catchment, natural sewage treatment, and the use of sustainable
building materials.
While first rate marine science is routinely conducted at HIMB, the
island's overall potential is still lacking. The reasons for lack of
concerted action are many. Most are budget related. There has been a
lack of continuity at UH; four presidents have served UH over the past
16 yrs. There needs to be both a political and strategic will to adhere
to the zoning and environmental sustainability missions stated in the
1998 Coconut Island Long Range Development Plan.
Senator Schatz, you have firsthand knowledge of Coconut Island's
potential. We both served on the board of directors for the Center for
a Sustainable Future (CSF). The organization was founded by former Dean
of the School of Ocean Engineering Science and Technology (SOEST) at
UH, Dr Barry Raliegh. CSF was funded by private foundations and donors.
We studied issues such as coastal pollution, coral bleaching, reduced
fish populations, aquaculture, strategies for the use of biofuels to
replace dependency on imported oil, and other environmental problems in
Hawaii and the Pacific Rim. But funding fell short when it came to
implementing sustainable systems. CSF disbanded when Dr Raleigh retired
as Dean of SOEST at the University.
Specific Request of this committee
Congressional funding for Coconut Island is requested to implement
the Coconut Island Master Plan of 1998:
1) build sustainable energy, water, and building systems on Coconut
Island, Kaneohe, Oahu so that the island can serve as an example of
what to do correctly in the era of climate change, dependency on fossil
fuels, warming oceans, and loss of coral reefs and fisheries;
2) build a conference center and visitor housing to bring together
others in Hawaii and the Pacific Rim to study environmental issues such
as climate change, food shortages, depleted fisheries, and coastal
flooding-- all issues that threaten coastal communities;
Senator Schatz. Thank all of the testifiers. I do have a
number of questions.
I'll start with Mr. Tam and, I think, Ms. Meguro. This is a
general question because you know that I understand the water
and power nexus. What I am still needing help with is that
because we have the old, physical infrastructure and old
statutory, regulatory infrastructure and old ways of doing
things, that, you know, I had a workshop 6 or 8 months ago
where we talked about this.
I have very capable staff. I have access to all kinds of
experts. Yet, the question of how, exactly, to manifest the
thinking that's expressed at this panel in terms of making sure
that we make holistic decisions. There seems to still be a gap
in terms of what changes, either at the regulatory or
policymaking level, need to be made.
I understand that projects can be done more intelligently.
I understand that at the building level that people ought to be
smarter about things.
But given that, you have boards and departments of water
supply and then you have electric utility companies and sort
of, never the twain shall meet, except with the concept which
is that utilities use a lot of water and electric utilities use
a lot of water and then, of course, the water utilities use a
lot of electricity. So it's all intuitive except that in terms
of effectuating long term, holistic planning, it's not at all
clear to me what kinds of changes at the policy level need to
be made.
Mr. Tam. Thank you, Senator.
The first act is going to be an act of imagination because
we have to understand how the water moves. Once you understand
how the water moves, you've got to ask the question how might
it move differently.
I'll give you a simple example. If the Coal Rich project
proceeds they will have to build, under current plans, a
pipeline from the new facilities or new subdivision down to the
transfer station and then over Honolulu-Uley. That pipeline
alone is $40 million.
If instead they were to be asked or if they chose to build
an R1 facility so remembering our bio-rec facility, they could
treat the water there to an R1 quality, use it on their lands,
use it on adjacent lands, provide irrigation water that's non
potable, for example, to the Patsy Mink Park which is right
below that. Currently the border up supply pumps about a
million gallons a day to irrigate potable water to irrigate
land.
If that could be done with R1 water you can save the
potable water by pumping a million gallons a day. You could
save----
Senator Schatz. Would the county or State laws need to be
changed in order for them to be able to do this?
Mr. Tam. I don't think so. I think this is more an action
of and I don't have a direct answer, maybe some type of
biospecs, but I think it's more a decisionmaking across the
groups. People might have to sit down and talk about it.
Senator Schatz. But this would be the Land Use Commission
requiring or the Department of Planning and Permitting do
these?
Mr. Tam. I don't think so. I think--and I defer to the sum
of the county process. But I think it's more a matter of just
figuring out the pathway forward and maybe some permitting
requirements. It depends on each project.
But I think in the first instance it's sitting down and
getting a plan figured out among people who will be affected.
But I just wanted to take this as an example. If you leave a
million gallons in the ground which is your best reservoir, you
don't have to pump it.
Those savings are important. Now those savings will be
realized primarily by the Board of Water Supply. The question
is if you have a regional plan is can you reallocate those
savings to some other part of the property so then you make
cost efficiency work.
Now the Board of Water Supply, of course, will tell you
they've got to have all that savings. But if they're going to
play with everybody else it's important that they shared some
fraction to make other, less efficient parts of the plan work.
Senator Schatz. Right. But it's not trivial to--and I
understand you're giving me a specific example, but it's, sort
of, not trivial at all that we're sitting here not clear
whether we need changes in the law or not and not clear at all
whether or not this is a question of leadership or a question
of policy. I presume it's both.
But it seems to me that we are, sort of, knocking around on
this issue because it's so obviously the smart thing to do.
Yet, the mechanics are not, you know, well articulated quite
yet.
Mr. Tam. I would make a suggestion and it's in my written
testimony on this point, actually, that there be a coordinating
committee organized between the mayor or the Governor with the
relevant people involved and come back and report to this
committee at the end of the year so we have a forcing mechanism
and come back with those specific suggestions that would make a
difference in those areas.
I think that's--then we could get down to what the legal
changes might have to be, what the purveying schemes are, but
they vary by topography.
For example, right now the Army Corps or rather the Army
drew a contract and is working with aqua engineers to take all
their own water. They use it for landscaping. People are going
to move some R1 water to Kaneohe to some of the farmers down
there. That would be a different kind of arrangement with the
county.
So there are specific permitting requirements. But I don't
think we can give you that answer right now.
Ms. Meguro. So I've been trying to chase down the same
question in the last maybe, 6 months. I would say that answer
is a little fuzzy. But I can tell you what I've learned so far.
First, I think there is a body who has been looking into
this, the U.S. Green Building Council, Hawaii Chapter, Advocacy
Committee. They have been reviewing some of the plumbing codes
for recommendation for adoption by the State and counties.
So as I understand they are looking at both the
international green construction code and the uniform plumbing
code 2012 as potential overlays or for full adoption by the
counties. I don't think that has come to a conclusion yet, in
my understanding.
Next, I was wondering if there was any hang up in the
Department of Health, if for some reason their water quality
standards that might be holding us back.
My read of the codes so far, it looks like the Department
of Health is willing to review design projects on a case by
case basis and that that was not the hurdle. It sounds
inefficient to, kind of, go on for every or review every design
project on a case by case basis. But it was not the road block.
One of the things that I did hear that is not necessarily a
road block, but is definitely, slows us down, is a Hawaii
Administrative Rule which requires building projects to hook
up, pay to hook up to the sewer if it is available at your
site. If you have a water treatment plant offsite or a system
onsite that is sufficient for your building or set of
buildings, then is it really necessary to pay to hook up to the
sewer?
So that's, I think, one challenge that design teams are
facing.
Thanks.
Senator Schatz. Thank you very much.
Chairman Morita.
Ms. Morita. I just wanted to point out that I think a lot
of the solutions to this is dealing with cultural changes
within departments. Every department is so siloed. We need to
pick up the phone and call each other and find out what's
happening. We have been.
Using the public benefit fee we've been delving into the
energy water nexus. Again, using the public benefit fee we have
a publication coming out on water, waste water best practices,
that will be distributed to the boards of water, even though we
don't regulate them, as well as the private water sewer
companies that we are--that we do regulate. So there's some
cross pollination, pollinization going on between departments.
Thanks to DLNR providing us with information, also
Department of Health, we at least have staff talking to each
other about how do we gain these additional efficiencies and
how do we take these direct and indirect savings from designing
within a system approach?
Senator Schatz. Thank you.
In the interest of time I'd like to move on.
Mr. Rue, I appreciate your testimony. I appreciate that you
delineated some ways that we can be helpful in terms of making
sure that the Federal Government programs that already exist
are coordinating best with the city and county of Honolulu on
your projects.
Which programs do you rely upon the most in terms of
Federal revenue streams or individuals who are collaborating
with you?
Mr. Rue. Sure.
I should confess that before joining, rejoining the city a
few months ago, I did work as a consultant for several of the
Federal agencies and help work on those programs myself. So I
understand the inner mechanics a little bit.
We do--we use a lot of funding from DOT, you know, in
addition to the huge amounts that we are getting for the
transit system itself, we get money for bus systems, for road
repairs and building. Have a good working relationship there.
We are in touch with the more innovative folks in the
Livability program, both here locally as well as, you know, in
DC and certainly get some wisdom from them. We are competing
for a Tiger grant, you know, that's due out now, in the next
month. So, it will be, you know, certainly pursuing competitive
grants as well.
With EPA we have had a strong relationship with their smart
growth program, you know, since actually before it was. We had
an EPA site visit in 2004 that was even before the
Environmental Department was really kicked off. They've done
several workshops, many of them through the sea grant program.
I've been involved in a lot of them over the years, even when I
was in Ohio.
So there's a strong relationship there, particularly with
sea grant on a lot of community designed issues.
We recently applied for a Brown Fuels funding grant and we
have a good relationship with those folks as well.
Then with HUD we did receive a little over 2 million for
the HUD Community Challenge grant. We set up an equitable
housing fund. So we have a really good relationship with HUD,
Office of Sustainable Housing and Communities, as well as with
the ongoing regular statutory funding. I think one of their
deputies was here recently working with our team on the
homelessness issues and, you know, that kind of statutory
funding
Senator Schatz. Thank you very much.
This goes for all the panelists and anybody in this room
who is working in this phase. I know most of you already know
this, but certainly our staff and our office and committee
stands ready to assist you in all of the programs and projects
that you're working on.
Dr. Pauley, I want to talk to you about the master plan for
Coconut Island. I appreciate your dawet pursuit of this vision
and your relentlessness because I know that it's been,
especially recently, quite challenging.
My question for you, specifically is does the 1998 master
plan, sort of, hold up? Does it need to be revised in order to
attract the kind of leadership and funding that is required or
is it essentially ready to go and just requiring some political
will and some resources?
Mr. Pauley. I think it's ready to go. There's really, all
the components are there based on the things we've been hearing
the last few days, water, sewer, thinking of the natural sewer
system, solar panels. You know, we've been talking about solar
for a long time out there. It just hasn't happened for one
reason or another.
So I think it's ready to go.
Senator Schatz. Are we in arrears with respect to
infrastructure, I mean, basic infrastructure at this point? Is
there some? Do you have some sense of what the price tag would
be?
Mr. Pauley. At one time we thought that would be about $13
million. The sea walls are all falling down and I know that
Governor Abercrombie and Clayton, he found some money in the
State this year to build some of that up to help the
infrastructure. We certainly appreciate that.
When I say we are really not--anybody to call the shots
anymore since you gave the gift.
But obviously I want to see the dream filled, fulfilled,
out there and so far it hasn't happened.
Senator Schatz. Thank you.
Ms. Lippert, I have 2 questions for you.
The first, what's your mix of funding? I know, and could
you separate out how much money actually flows through your
Excelerator and then you, I think, you provided a number, 55
odd million in, I think, additional money raised, not
necessarily coming through your organization.
Could you separate those out by dollar amount and also give
us, it doesn't have to be precise, but a rough breakdown of
Federal, State and private dollars?
Ms. Lippert. Yes, absolutely.
So on our funding side the rough breakdown of Federal,
State and private funding is primarily Federal, very little
State money and increasing private money.
So, on the Federal side primarily we've worked with the
Office of Naval Research in the last couple of years. They have
a commitment of $30 million over the next 5 years to fund this
program which was seeded with Department of Energy money. So we
really consider the Federal funding both Department of Energy
and the Office of Naval Research funding as seed funding to
prove out the vision.
I think there will always be a role for public funding in
this kind of effort because we're trying to achieve some really
broad public policy goals, but ultimately what we're trying to
do is prove value there and use that to attract private
funding. We attracted the first tranche of private funding on
New Year's Eve, actually, of this year, so December 31st from
Hawaiian Electric Industries. I think that's really the
direction that we're going to make it a true public/private
partnership.
On the company side we've invested approximately $10
million of Federal funding so far and the companies have turned
that into $55 million of follow on funding.
Senator Schatz. Who owns the intellectual property?
Ms. Lippert. The companies. Yes.
So it's a traditional, sort of, Federal company
relationship where the companies retain intellectual property,
but the government has license to that intellectual property if
it's of use to them.
So this is a highly leveraged program where we've been able
to match make investors with the companies to directly put
capital into the companies. But in the future what we see as
our role is a more direct fund where we actually have
relationships with these investors as well. But so far they've
been directly investing into companies and into projects.
Senator Schatz. I'm just going to give you a minute to plug
the why. That's my second question.
[Laughter.]
Ms. Lippert. OK, why unlimited renewable energy?
So, I mean, the question here is why do we have a group,
maybe, promoting renewable energy?
Actually I think it goes back to something that we talked
about yesterday at the ASCENT conference. It was one of the
primary findings of our panel in public/private partnership
which is the fundamental requirement for public/private
partnership is trust. Why aren't--a way to help build trust in
the community.
Then the second thing is just tapping into the diversity of
our resources. I think it's just really about finding talent
within our community and tapping into talent wherever that may
be to help achieve a transformation that's real and tough, but
really important.
Senator Schatz. Thank you very much.
My final question will be for Chairman Morita.
Could you just describe for the purposes of the record
really, the Federal role in HCEI from the DOE and DOD
perspective?
Ms. Morita. OK, so first of all the partnership is
extremely important to us. What it did was help bring resources
to the State and help us leverage those resources in moving
forward, accelerating the transformation to clean energy.
Currently, now, we are looking at how to update the
agreement, the partnership between the State and DOE. It's been
in effect since 2008 and the technologies have changed,
priorities have changed. So looking forward to an updated
agreement.
The other big issue is getting access to the national labs
and the technical and economic expertise that they provide as
we move forward. As I said in my testimony the technical and
economic analyses will help us lead to better environmental and
societal types of decisions. So just having that access to the
expertise throughout the labs.
Then again, taking what we learned in Hawaii and having it
applied to other areas. It, you know, we're outliers in this
area and as Commissioner Akiba said, you know, we're a postcard
from the future and so all eyes are on us right now as we move
forward. I think in establishing partnerships, the systemic
approach, that's what we can demonstrate and prove out for, not
only the rest of the country, but the rest of the world.
Senator Schatz. Thank the panelists, thank you very much.
I want to thank the East-West Center. I want to thank the
University of Hawaii Sea Grant and everybody in this room.
We've had a very productive couple of days. I appreciate it
very much.
[Whereupon, at 2:57 p.m. the hearing was adjourned.]