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Clean Energy Policy Analysis: NREL/TP-7A2-47891 Impact Analysis of Potential April 2010 Clean Energy Policy Options for the Hawaii Clean Energy Initiative S

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Clean Energy Policy Analysis: NREL/TP-7A2-47891 Impact Analysis of Potential April 2010 Clean Energy Policy Options for the Hawaii Clean Energy Initiative S Technical Report Clean Energy Policy Analysis: NREL/TP-7A2-47891 Impact Analysis of Potential April 2010 Clean Energy Policy Options for the Hawaii Clean Energy Initiative S. Busche and E. Doris National Renewable Energy Laboratory R. Braccio, D. Lippert, P. Finch, D. O'Toole, and J. Fetter Booz Allen Hamilton Technical Report Clean Energy Policy Analysis: NREL/TP-7A2-47891 Impact Analysis of Potential April 2010 Clean Energy Policy Options for the Hawaii Clean Energy Initiative S. Busche and E. Doris National Renewable Energy Laboratory R. Braccio, D. Lippert, P. Finch, D. O'Toole, and J. Fetter Booz Allen Hamilton Prepared under Task No. IDHW.9120 National Renewable Energy Laboratory 1617 Cole Boulevard, Golden, Colorado 80401-3393 303-275-3000 • www.nrel.gov NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy Operated by the Alliance for Sustainable Energy, LLC Contract No. DE-AC36-08-GO28308 NOTICE This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof. Available electronically at http://www.osti.gov/bridge Available for a processing fee to U.S. Department of Energy and its contractors, in paper, from: U.S. Department of Energy Office of Scientific and Technical Information P.O. Box 62 Oak Ridge, TN 37831-0062 phone: 865.576.8401 fax: 865.576.5728 email: mailto:[email protected] Available for sale to the public, in paper, from: U.S. Department of Commerce National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 phone: 800.553.6847 fax: 703.605.6900 email: [email protected] online ordering: http://www.ntis.gov/ordering.htm Printed on paper containing at least 50% wastepaper, including 20% postconsumer waste Acknowledgments This report was produced with funding from, and in coordination with, the Department of Energy (DOE). The authors would like to acknowledge the significant contributions of the members of the Hawai‘i Clean Energy Initiative’s technical and integration working groups, as well as other stakeholders in Hawai‘i. The input provided by these members was integral to ensuring the validity of these analyses to the Hawaiian context. During the review process, the authors benefited from extensive comments from a variety of stakeholders, including: Joyce McLaren, NREL Easan Drury, NREL Joel Bluestein, ICF International John Sheehan, University of Minnesota Peter Lilienthal, HOMER Energy, LLC Alison Silverstein, contractor to DOE. In addition to these reviewers, we appreciate the assistance of Karen Petersen in NREL’s Communications Office for her editing support. Of course, any remaining errors are the responsibility of the authors. iii List of Acronyms AFV alternative fuel vehicle AMI advanced metering infrastructure AMP Alameda Municipal Power ASHRAE American Society of Heating, Refrigerating and Air-Conditioning ASTM American Society for Testing and Materials BBL barrel (of oil) BHA Boston Housing Authority C&I commercial and industrial CAFE corporate average fuel economy CARB California Air Resources Board CLUE Center for Land Use Education CIS customer information system CO2 carbon dioxide CNG compressed natural gas DBEDT Hawai‘i Department of Business, Economic Development and Tourism DHHL Department of Hawaiian Homelands DLNR Department of Land and Natural Resources (Hawai‘i) DND Department of Neighborhood Development (Boston) DOD Department of Defense DOE Department of Energy EE energy efficiency EERE Energy Efficiency and Renewable Energy (DOE) EIA Energy Information Administration (DOE) EIS environmental impact statement EPA Environmental Protection Agency EPRI Electric Power Research Institute EV electric vehicle FFV flex fuel vehicle FY fiscal year GAHP Green Affordable Housing Program (Boston) GAO Government Accountability Office GHG greenhouse gas GM General Motors GVW gross vehicle weight GW gigawatt GWh gigawatt hour HB house bill HARC Hawai‘i Agricultural Research Center HCEI Hawai‘i Clean Energy Initiative HDOA Hawai‘i Department of Agriculture iv HECO Hawaiian Electric Company HELCO Hawaii Electric Light Company HERS Home Energy Rating System HHFDC Hawai‘i Housing Finance and Development Corporation HNEI Hawaii Natural Energy Institute HPHA Hawai‘i Public Housing Authority HUD Department of Housing and Urban Development ICE internal combustion engine IRP integrated resource plan KIUC Kauai Island Utility Cooperative kW kilowatt kWh kilowatt hour LADWP Los Angeles Department of Water and Power Residential Electric Vehicle Services LBE lead by example LCFS low carbon fuel standard LEED Leadership in Energy and Environmental Design LY legislative year MECO Maui Electric Company MGY million gallons per year MPG miles per gallon MW megawatt MWh megawatt hour NHTSA National Highway Traffic Safety Administration NRDC Natural Resources Defense Council NREL National Renewable Energy Laboratory O&M operation and management PBF Public Benefit Fund PBFA Public Benefit Fund Administrator PHEV plug-in hybrid electric vehicle PTC production tax credit PUC Public Utilities Commission PV photovoltaic QHTB qualified high-tech business RECO Residential Energy Conservation Ordinance REZ Renewable Energy Zone RFS Renewable Fuel Standard RPS renewable portfolio standard SAE Society of Automotive Engineers SB senate bill SHW solar hot water SMUD Sacramento Municipal Utility District TOU time-of-use UL Underwriters Laboratory USGBC United States Green Building Council v Executive Summary In partnership, the U.S. Department of Energy (DOE) and the State of Hawai‘i have established the Hawai‘i Clean Energy Initiative (HCEI) to facilitate the state’s transition to 70% clean energy by 2030. As requested by the HCEI technical working groups, the authors provided analyses of 21 clean energy policy options being considered for recommendation to the 2010 Hawai‘i State Legislative Session. This report provides detailed analyses of the following policies to determine the impact they may have on ratepayers, businesses, and the state in terms of energy saved, clean energy generated, and the financial costs and benefits. Table ES-1. Policy Options Analyzed for the HCEI Working Groups Working Group Policy Options Analyzed Electricity Amended Fossil Fuel Power Plant Restrictions Food and Energy Security Fund Extension of the Sunset of Act 221/215 for Clean Energy Projects Transmission Line Need and Prudence Rate Design Limiting the Biofuels Contribution to the RPS to 30% End-Use Efficiency Public Benefits Fund Increase Net-Zero Energy Capable Requirement for New Homes Photovoltaic -Ready Requirements Tax Incentives with Pass-Through Option for Nontaxable Entities for Green Buildings and Energy Efficiency Improvements Density Bonus Residential Energy Conservation Ordinance Lead by Example—Energy Efficient/Green Affordable Housing Lead by Example—30% More Energy Efficient New and Existing Public Buildings Fuels Expansion of the Biofuel Facility Tax Credit Lease of Public Lands for Renewable Energy Transportation Deployment of Electric Vehicle Infrastructure Electric Vehicle Charging Infrastructure Tax Credit Transitioning of Rental Cars to Plug-in Hybrid Electric Vehicles Income Tax Credits for Plug-in Hybrid Electric Vehicles and Electric Vehicles Subsidized Electricity for Electric Vehicles The policy analyses were completed by the DOE Technical Assistance Team at the request of the HCEI working groups. The specific policies were chosen by the working groups to address barriers to clean energy development in Hawai‘i as identified by HCEI. Several of the policies were modified versions of policies that were recommended to but not adopted by the legislature in 2009. The analyses are intended to provide insight into the possible impacts, both qualitative and quantitative, that these policies may have in Hawai‘i based on the experience with these policies elsewhere to help inform the working groups’ decision-making process when determining policy recommendations for the Hawai‘i 2010 legislative year (LY 2010). They were developed through an iterative process involving substantial input from the working group vi members, local stakeholders not officially involved in the HCEI process and local and national clean energy experts. As much as possible in this data-limited arena, Hawai‘i-specific context has been incorporated into the analyses to better reflect the many unique aspects of energy use in the State of Hawai‘i. Each policy addresses a specific barrier to clean energy identified by the working group members. The costs and benefits of each policy are distributed differently among the various stakeholders affected by the potential policy. For some, such as the lead by example (LBE) policies considered by the End-Use Efficiency working
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