This report has been catalogued as follows: Hawaii. Energy Resources Coordinator. Report - Hawaii. Energy Resources Coordinator. .Honolulu: Dept. ofBusiness, Economic Development and Tourism, State ofHawaii, 1976- Annual

1. Energy policy-Hawaii. 1. Hawaii. Dept. ofBusiness, Economic Development and Tourism. HD9502.H383.1992 '3 "-"'e_ -'C;-',-"-: "'.""--, y-,"~",-

..'-", e,f.

l GOVERNOR'S MESSAGE r II ENERGY RESOURCES COORD ...... V".L&. III EXECUTIVE SUMMARY

1 ENERGY PLANNING

1 Background: Hawaii's Energy Situation Transportation Conservation 2 Hawaii Energy Strategy Program Alternate'Iransportation Fuels

5 Other Planning Efforts ~'C' -,-. 5 National Recognition for Hawaii's Integrated Energy Policy Development Program 5 COMMUNICATION AND EDUCATION

2 ALTERNATE ENERGY DEVELOPMENT

6 Biomass 7 Coal EMERGENCY PREPAREDNESS 8 Geothermal 8 Hydropower mgencv Planning 9 Ocean Thermal Energy mter-rsrann Shipments of Heavy FuelOil 10 Solar Energy Inrhldrll Study 12 Wind Power

3 ENERGY CONSERVATION

14 Conservation Program 15 Integrated Resource Planning 15 Demand-Side Management 16 Energy-Efficient Lighting and 19 Building Technology 19 Recycling 20 Energy Extension Solar Vehicle Performance Meet; the soybean oil-fueled Sunrider;Kamaoa Wind Farm; vvainiha hydroelectric plant; »

1 The Governor's Message

The catastrophic eventsof Hurricane Iniki

have shown us all too vividly that the livesand

welfare ofHatoaii's people and visitors can be II= devastated by the loss ofenergy for electricity and ==::; transportation. Preventing the assault ofnatural i.... • forces on Hawaii may not always be possible, but protectingour people from the trauma ofenergy

disruptions is one of our government's major

= goals.

Reducing Hawaii's over-dependence upon

imported petroleum as a singlesource ofenergy is essential if weareto succeed in ensuring energy State ofHawaii security for our people. Significant progress

towardachieving our goal has been made this

yearthrough comprehensive planning and the

cooperative efforts ofState, Federal and County

governments and theprivate sector.

Our thanks to all those who have participated

in these efforts. ENERGY RESOURCES COORDINATOR'S OUTLOOK

As Energy Resources Coordinator (ERC) for the State ofHawaii, I am pleased to submit this report to the Governor, the Legislature and the citizens of Hawaii. The report describes major public and private activities undertaken or completed during 1992 in the areas ofenergy planning, alternate energy development, conservation, communication, energy education and emergency preparedness.

Hawaii's vulnerability to energy shortages caused by interruptions in supply is exacerbated by our nearly complete dependence upon imported petroleum. Hawaii's petroleum supplies come primarily from Alaska and the Far East and projected declines ofthese reserves mean that we may become more dependent upon petroleum from the polit­ ically volatile Middle Eastern nations. Forecasts of increased resident and visitor population alert us to the need for more electricity and transportation fuels. Environmental concerns question the tech­ nologies and uses ofdifferent kinds ofenergy resources for our State " i~t:+;,;0f:b~ Development ofour owni'ndigenous sources 0 electrical power depends upon increased commer- . cialization and economiccomperltiveness'ofthese ' renewable resources. Greater,divefsification throug the use ofcoal, although iti~ ~n i}nported fossil fu~l, .: State ofHawaii offers considerable promise.' Intensified conser-' , , ~f~ vation programs andimplementation ofIntegrated' ,. Resource Planning mandated tiy ~he Public Utilities' " Commission will help relieve pressure on present energy supplies. Yet the urgency ofour need t develop.locally available resources pfsustainabl power becom~smoreapparenf'as energy productIon in parts ofour'§tate contil).uesto hover near local levels ofenergfde,m .. A collaborative and, balanced energy'poU "pable ofmeeting the energy needs of2tffpe~plehas never been mo

,)1' , r-; important. ",.", -'1&;

The Hawaii Energy Strateg}iI)r~giafu;p~(into effe:tthis year, is designed to pr()duceanintegrated p!an ofaction for energy for the~tate~.Jh)seven projects of this innovative programwill paye the way for development ofimportant recommendations and new initiatives designed to ensure that Hawaii's people will be served, now and in the future, by dependable, efficient and economical energy systems I to increase energy self-sufficiency and security. l .. Hawaii's many-faceted programs to reduce The first net-power producinl?;olpe:n~cy(:Ie01cerenewable energy projects comes from Oil Overcharge Funds made resources and demand-side management activity; available to the State as a result oflegal settlement 1<;: development of a transportation energy strategy; a ofalleged oil pricing violations by the oil companies- review ofthe State's energy vulnerability; and devel­ during the 1970s and 1980s. . opment ofan energy strategy integration and evaluation system. A three-year streetlight conversion agreement between DBEDT and the Hawaii State Department of Hawaii's 92 percent dependency on imported Transportation (DOT) was completed this year. petroleum was reduced with on-line production of During this project an estimated 2,700 streetlights electricity from the 180-Megawatt (MW) AES coal­ were converted to high-efficiency lamps with fired cogeneration plant at Barbers Point beginning projected savings of 1.9 million Kilowatt hours September 1. The plant also furnishes 30,000 (kWhs) ofelectricity per year. pounds ofsteam per hour to the Chevron USA refinery at Barbers Point to heat oil storage tanks. It Hawaii was the seventh state in the country to be has the capacity ofreducing Hawaii's use ofimported a partner with the Environmental Protection Agency oil by about 5,500 barrels per day - approximately (EPA) in the national Greenlights program aimed at 15 percent ofHawaiian Electric Company's (HECO) decreasing air pollution by reducing electricity current use. Due to advanced technology, emissions demand through the use ofenergy-efficient lighting ofsulfur dioxide, nitrogen oxides and particulates systems. are less than half the new-source performance n.clards allowed by the Federal Clean Air Act. Technical assistance provided by DBEDT . ".'!".,,,, improved operating efficiency of the solar water In addition, Puna Geothermal Venture's 25 MW heating retrofits on all 35 buildings ofMayor Wright generating plant was completed and produced Homes in Honolulu. For the year endingJuly 1, approximately 10 MW ofelectric power to the Hawaii 1992, savings of81 percent in energy usage for the Electric Light Company (HELCO) grid in October. Homes were reported. Although production has been temporarily suspended, future increments are being developed A law was ~fl<\C:1tedlb) the State Legislature to reach the rated 25 MW capacity. prohibiting homeowner installation of solar dwellings or town- A small wind-diesel hybrid system was built and houses. 255, made approvals began power generation on Molokai and a new 10­ for built with State MW hydropower plant on the Wailuku River near funds or subsidized Hilo is under construction and is expected to be on­ given percentage line by mid-1993. water systems, New model building codes ensuring the use ofenergy­ efficient design and equipment were drafted and presented to County building and public works departments for their consideration.

Assistance was granted to the Bicycling League for expanded programs in bicycling safety, to the Hawaii Solar Energy Association (HSEA) for promoting the use ofsolar water heating systems and the State energy tax credits, and to the Recycling Association ofHawaii for increased efforts to encourage recycling programs. Seed money provided to these agencies has resulted in increased funding and support from community groups and other sources.

DBEDT continued a vigorous program ofcommunity outreach and education to raise public awareness ofthe crucial role ofenergy conservation and diversification in reducing the State's energy vulnerability. Energy Awareness Month activities were expanded and coor­ dinated by DBEDT staff; a school poster contest was conducted on a statewide basis; and energy education curriculum development and workshops continued on an expanded scale.

The State's program ofenergy emergency preparedness was reviewed and updated to meet current conditions. Funds were provided each uUUHL.V develop its own energy emergen sistent State plan.

In addition to upda preparedness plan, spc~ci;al(~th)rUIwere initiated to Kauai County with assistance-and recoverv programs necessitated by the devastation L<1U»'o;U U

EXECUTIVE SUMMARY II BACKGROUND: HAWAII'S ENERGY SITUATION

Hawaii's Energy Problem. Hawaii is without indigenous fossil fuel resources; it depends on imported oil for 92 percent ofits energy. This makes Hawaii the most vulnerable state in the nation to the disruption ofits economy and way oflife in the event ofa disruption ofworld oil market or rapid oil price increases. Currently, 40 percent ofHawaii's oil comes from Alaska and the remainder from the Asia-­ Pacific region. The export capabilities of these sources ofsupply are projected to decline signifi­ cantly - approximately 50 percent - by the year 2000. This will likely increase Hawaii's dependence on the oil reserves of the politically unstable Middle East.

ENERGY SUPPLY DEMAND, Hawaii is also vulnerable to possible disruptions ofits supply in the event ofa crisis. The long ECONOMIC FEASIBILITY AND distance from the U.S. Strategic Petroleum Reserve in Louisiana and Texas, combined with a declining TECHNOLOGICAL ADVANCES. number of U.S. tankers capable oftransiting the Panama Canal, make timely emergency deliveries problematic.

Hawaii's oil dependence is

the highest of all 50 states

and Washington D.C. P 100% 91%

e

r ""&3% - 5904~------c -

- e - - n - t

Petroleum Dependence by State: 1990 Percent of total energy use .. Environmental protection is also a major Project 3. Renewable Energy Resources concern for Hawaii and its residents. Energy Assessment and Development production from fossil fuels is the major source of Program; local and global air pollutants, while petroleum shipping and handling pose risks to fragile marine Project 4. Statewide Energy Demand-Side habitats and coastal resort areas. An energy policy Management Assessment; which internalizes the environmental and social costs offossil fuels will place added value on energy effi­ Project 5. Transportation Energy Strategy; ciency and renewable energy, but could result in an increase in the market price ofenergy to consumers. Project 6. Energy Vulnerability Assessment Report and Improved Contingency Hawaii's Energy Potential. Hawaii has significant, Planning; and yet relatively untapped, renewable energy resources and energy-efficiency potential. Biomass, wind, solar, Project 7. Energy Strategy Integration and geothermal, hydroelectric and ocean resources can Evaluation System. provide clean, stable sources ofenergy supply. The Islands' energy savings potential would likely allow The HES program began on March 3,1992, utilities to defer construction ofadditional fossil fuel­ under a Cooperative Agreement with the United fired power plants by reducing elsq~ricitydemand States Department ofEnergy (U.S. DOE) and is through conservation and incr;e~se~i~nergyeffi­ scheduled for completion by December 31,1994. ciency. Efficiency gains in t~e'~r:~nsI?0'r.tation sector Funding of$2 million has been allocated. Total are also possible.' funding includes $1.5 million in Federal funds and $500,OOOi~,l'tafefunds. Significant progress has alreadXbee"n made on these seven projects. The program was presented to the public at the HES Workshop held at the East-West Center (EWC) on October 23,1992. Participants in the Workshop provided ideas, comments, and feedback to enhance ;'.';';t,;8,i?,;;:"ji "''''L'-',,': !':', ':i.-t:,~"_,:;~C"~,,--:;:-:--:;,,:.-:;,/:::::, , the program. eRES is a ed on the earlier Hawa Integ tec!:Energy Policy (HEP).Deyelopme Program. lIES is a set ofseven projects which Wil . Project 1: Analytical Energy Forecasting Model produce an integrated energy strategyfor the State of H~\Vaii: 'The program includes a comprehensive. . . ,An analytical energy forecasting model capable energyvulnerability assessment with r~commended , ~ofanalyzing and predicting the State's energy usage ur .ofaCtion to decrease Hawaii's energy v'ulner- " ," by end use, sector and utility service area under ili d to better prepare foran:effective response';<~>":"'varyingeconomic and technical conditions will be to any energy emergency orsupply disruptiori.! The developed as one ofseven projects comprising the sevenprojects are desi~eaitoiricrease under;) HES program. Work began on this project in 1992 standing ofHawaii's energyl~ituation and to produce with the hiring ofa consultant to develop a fore- f(~commeridations to achieve~the State energy casting model specifically tailored to Hawaii ~edives bE: (1) dependabl~.efficient and / conditions, to construct an energy data-gathering economical statewide energy systems capable of system to support the forecasting model and to supporting the needs of the people; and (2) develop staff expertise within State government in increased energy self-sufficiency. 'w. using and updating the model.

The seven initial projects ofthe two-year HES Meetings were held with DBEDT staff and repre­ program are: sentatives from other State agencies and utility companies to review Hawaii's energy forecasting Project 1. Analytical Energy Forecasting needs in detail. Based on meeting findings, a Model; comprehensive review was made ofenergy fore­ casting models currently used by other energy Project 2. Fossil Energy Review agencies, utilities and research institutions. A model and Analysis; was then selected and software obtained. Revisions were completed to calibrate it to Hawaii's particular

ENERGY PLANNING II The Hawaii Energy Strategy evolved out of the Hawaii Integrated Energy Policy Development Program, a process which sought input from a wide variety of experts and interests. Hawaii's "Energy Community" will continue to be involved in the Hawaii Energy Strategy technical review process and other energy planning efforts.

energy usage characteristics. DBEDT staff continue to perform a comprehensive overview ofworld and to acquire in-house expertise in the model structure regional fossil fuels industries and their relationship and operation by working with consultant personnel to Hawaii; provide a baseline assessment ofHawaii's in these tasks. Training manuals and user guides to current uses offossil fuels; appraise the role of accompany the model will be prepared by the relevant fossil-fuel technologies not presently used in consultant in 1993. Hawaii; and assist the State in developing better capa­ bilities in long-term planning ofits energy system A thorough review ofexisting energy data as well with regard to fossil fuels. The four parts ofthe as potential data sources has been made indepen­ project are scheduled for completion in a one-year dently of this project. Results ofthe review were period fromJuly 1992 toJune 1993. A series of compared with the data needs of the forecasting seminars will be held by DBEDT and the EWe to model, and recommendations were developed for inform the energy community and the public of the the collection and addition of energy data to the results of the project and to obtain input for the data base. final report.

The draft report on the current use of three Project 2: Fossil Fuel Review major categories offossil fuels - oil, coal and natural gas - will be completed in early 1993. An To help evaluate Hawaii's current dependency analysis is being made ofthe use offossil fuels by upon imported fossil fuels for almost all its energy relevant economic sectors in Hawaii. Emerging and needs, DBEDT contracted with the Resources potential uses ofcoal in Hawaii are being evaluated Program, EWe and the Argonne National Laboratory in terms of supplies, quality, stability of supply and

II ENERGY PLANNING I j I I alternative import sources in event ofdisruption. supply curves for biomass, hydroelectric, OTEC and I Possible sources of natural gas and gas liquids, wave energy. Phase Three considers collection of should such imports prove economical in the future, more wind and solar data at selected locations and were identified. The technological and economic the development ofa plan for integrating renewable effects of substituting one kind offuel for another energy resources into the State's energy supply mix. I are being examined. An assessment ofthe potentials and drawbacks of technologies and fossil fuels not presently used in Hawaii was initiated and is Project 4: Demand-Side Management Assessment I scheduled for completion in 1993. Demand-Side Management (DSM) refers to any I The final task will be the development of utility company activity aimed at modifying the ! scenarios for the State of the optimum choices and customer's use ofenergy to reduce energy demand. ! uses offossil fuels. The final report is due by It includes conservation, load management and mid-1993. energy efficiency programs. DSM offers the potential oflower utility bills for customers and deferral of major plant investments for utilities. Other likely Project 3: Assessment ofAlternate benefits are reduced environmental impacts ofutility Energy Resources energy supply production and increased potential diversification ofenergy resources. Project 3 of the HES is entitled the Renewable Energy Resources DBEDT began a DSM Assessment Project this Assessment and Development year. The project initiated the following: developing Program. This program involves the a framework and format for end-use and DSM production ofa comprehensive measures; conducting-a statewide assessment ofend­ assessment ofHawaii's use electricity consumption by residential, renewable energy commercialand industrial sectors; and institution­ resources including alizing a DSM assessment; characterization and wind, solar, biomass.c /, evaluation capability within DBEDT. A DSM, hydroelectric, PT{)QT,am Design, Planningand Evaluation Workshop thermal "n,"ren, ' May1992 and presentations~IlDSM given at public information meetings sponsored wave energy. the five utilities. ' step is to prepare a range strategy for developing••• these resources. Transportation Energy Strategy

During 1991, DBEDT contracted R. The objective ofthis project is to d~'velop a trans­ Lynette & Associates (RLA) to complete portation energy strategy which addresses a Comprehensive Review and Evaluation transportation energy demand and supply. ofHawaii's Renewable Energy Resource Transportationis currently the, largest ener~­ Assessments. The RLA study, completed consuming sectorinHawaii, accountingfor more in 1992, evaluated past renewable energy than 60 perfentofthe petroleum demand. Hawaii's resource assessments and made recommen­ energy security will be improved by diversifying fuels dations for further resource assessment in each of used for transportation, thereby reducing the State's the major technologies. RLA identified.windand dependency on imported petroleum. Local solar as the two renewable energy resources production offuels could provide economic benefits requiring additional monitoring and measurement. in the form ofmorejobs for Hawaii's people. Other resources were considered to have adequate resource data available. DBEDT engaged a consultant, Parsons Brinckerhoff Quade & Douglas, Inc. to work in asso­ Phase One of the current project includes the ciation with Hawaii Natural Energy Institute (HNEI) identification ofconstraints to renewable energy and Acurex Environmental, Inc. to develop a ' resource development and research into existing Transportation Energy Strategy for Hawaii by the end infrastructure and utility compatibility. Phase Two of 1993. calls for development ofrenewable energy resource

ENERGY PLANNING II ..-.-.------

I I' I !

r!i The consultants and associates will provide DBEDT with data and analysis tools, evaluate trans­ portation energy supply and demand, identity potential transportation fuels systems, outline indigenous resources and develop a transportation OTHER PLANNING EFFORTS energy strategy which is to include transportation energy conservation, supply and planning elements. In addition to the comprehensive long-range energy planning provided by the HES program, the Project 6: EnergyVulnerability Assessment Report State Energy Functional Plan will continue to be and Contingency Planning updated on a biennial basis. The Energy Functional Plan provides implementing actions and budgetary The purpose of this project is to assess Hawaii's estimates for short-range energy projects. vulnerability to energy supply disruptions and to evaluate and improve the State's capability to deal with such a disruption. Research will be conducted in-house with the assistance of utility staff members, civil defense officials and petroleum company NATIONAL RECOGNITION FOR managers to assess Hawaii's vulnerability to energy supply disruptions, evaluate prospective industry and HAWAII'S INTEGRATED ENERGY State energy preparedness actions, and consider acceptable levels of risk in view of possible vulnera­ POLICY DEVELOPMENT PROGRAM bilities. Scenario analyses and other inputs from HES Projects 1 and 2 will also be used to determine The HEP, developed over a two-year period Statewide energy vulnerability. from 1989 to 1991 by DBEDT with the assistance ofplanning consultants, business managers and Potential initiatives and plans to improve the general public, was selected in 1992 by the Hawaii's contingency planning and response capa­ U.S. Council of State Governments as one of the bility will be identified and recommended to deal top ten innovative policy development programs more effectively with energy supply disruptions. in the nation. Reports will be prepared on these subject areas and the U.S. DOE has been requested to prepare addi­ tional reports relevant to the establishment of regional petroleum reserves as may be required by Congress.

Project 7: Energy Strategy, Integration and Evaluation

Project 7 will integrate the findings of the overall HES program into a comprehensive State energy strategy final report. Energy policy, legislative and regulatory initiatives for implementation and eval­ uation will be developed. The report will identity, assess and recommend the optimal public policy mechanisms to implement a least-cost strategy for regulated and non-regulated energy development in Hawaii.

The draft final report will be presented to the public for their information. Their feedback will be included in the final report scheduled for completion in December 1994.

II ENERGY PLANNING BIOMASS

Biomass presently is the largest source of renewable fuel in Hawaii. Consisting primarily of sugarcane bagasse, biomass provided an estimated 8.5 percent ofthe total electricity generated statewide in 1991. Biomass is also considered to be a potential source ofground transportation fuels.

Biomass from Bagasse Sugar company mills account for most of the electricity produced from biomass, especially on the Neighbor Islands. Sugar mills use bagasse from sugarcane to provide thermal power and electricity for their own operations, and electricity for sale to the utility grids. Wood chips have been used in some facilities. In 1991, the latest year for which figures are available, on the Island ofHawaii the sugar companies' mills provided an estimated 181 million

SOME ALTERNATIVE RESOURCES SUCH AS kWh ofelectricity to HELCO; on Maui, Hawaiian BIOMASS, WIND, HYDROPOWER, BIOGAS, PHOTO­ Commercial & Sugar Company (HC&S) provided VOLTAICS AND SOLAR THERMAL, HAVE BEEN approximately 105 million kWh of electricity to Maui USED IN HAWAII FOR SOME TIME, BUT THEIR Electric Company (MECO); and on Kauai, sugar PRODUCTION OF ENERGY SHOULD BE companies provided an estimated 100 million kWh EXPANDED. NEW ADDITIONS TO COMMERCIALLY ofelectricity from bagasse and other forms of UTILIZED ALTERNATIVES INCLUDE COAL AND biomass. GEOTHERMAL WHICH ALSO COULD BE EXPANDED.

OTHER ALTERNATIVES SUCH AS OTEC, Biogasifier Scale-up Facility HYDROGEN AND SOME SUBSTITUTES FOR TRANS­ A multi-million dollar Biogasifier Scale-up PORTATION FUELS ARE ALSO UNDER Facility project funded by the U.S. DOE, DBEDT, DEVELOPMENT, ALTHOUGH THEY HC&S moved into advanced planning and SOME TIME FOR COIMMIERC:IAL SCALE. stages during 1992. The primary purpose of biogasifier project is to test the technical feasi­ GREATER UTILIZATION OF ALL producing a fuel gas from sugarcane bagasse RESOURCES DEPENDS IN wood chips. In further development, the rUt;J~';1~ TO COMPETE ECl)NC)MI(:::ALD may be tested for use in gas turbines for AND OTHER PETROLEUM PRcmUCTS g-~nelratl:ng electricity and, in the longer term, lead to ACCELERATED EFFORTS production ofmethanol fuel for transportation STATE'S purposes. The facility is planned for the HC&S Paia mill on Maui. Project management is under the direction ofPICHTR.

DBEDT HAS WOHKf::D VL..V.... L..L..I DOE, THE UNIVERSITY Research Facilities THE NATURAL ENERGY.L.A130F~Al;()RY ftlollg-r;,ull~e program designed to identity and AUTHORITY (NELHA), most productive species ofgrasses and INTERNATIONAL CENTER diverse Hawaiian locations as a basis for TECHNOLOGY KE:SEJl,RCH PRIVATE INDUSTRY commercial biomass production for conversion to DEVELOPMENT, DEMONSTRATION AND COMMER­ CIALIZATION OF HAWAII'S INDIGENOUS ENERGY RESOURCES. electricity and transportation fuels continued in 1992, its sixth and final year. The project, ajoint Energy Production from Landfill Gas effort by DBEDT and Hawaiian Sugar Planters' Kapaa Energy Partners, a private company, Association (HSPA) conducted research at five expanded the number ofwells to collect landfill gas locations on four islands to identify species best in 1992 at the City and County ofHonolulu Kapaa suited for energy conversion. Experiments on landfill. More than 60 wells driven into the landfill improved yields through selection ofcuttings material collect gas generated by the anaerobic elite trees ofclonal propagation decomposition of refuse. The landfill gas, which is carried out at s,e,reraHlocations. 50 perct;nt methane, is piped to the surface and used to fuel a turbine generator to produce electricity which is sold to HECO. The cogeneration system exhaust heat from the turbine for drying ~~C~df!t:}c;";m!!!;T';~';T;!:ag:gf(~galtec,atthe nearby Kapaa Quarry. The system 500,000 gallons offuel oil per year, pr,oviiding an additional reduction in energy demand.

Methane Production from Animal Waste Funding by DBEDT has supported a project to produce and use methane gas from animal waste at a on Maui. The project allows the farm to collected methane for heat and for the production ofon-site electricity. A private company located in Waimanalo on Oahu also uses animal The State COI1tiIIUf:d the production of on-site electricity, Development tprti];7pr and other products. wood species selecltioln!c.cu]'tivation The goal of this ronz-ranze pf()j:{I1am continuous rotation can be harvested and chipped producing elec­ tricity and process heat. selection, COAL cloning methods ofpropagation harvesting tech- nologies are among the ofinvestigation. Start-up ofa new coal-fired cogenerating plant at Potential by-products of farms include Barbers Point, Oahu marked a major achievement in fiberboard, wood pulp and high-value chemicals. reducing Hawaii's almost total dependence upon petroleum to meet its energy needs. The 180-MW cogeneration plant, operated by AES Barbers Point, Inc., began.full:§,,~~leoperations on September 1, Municipal Solid Waste 1992. It h~c~thec

II ALTERNATE ENERGY DEVEL().PMEI'./r m the world and is designed to minimize unwanted geothermal resources offer significant potential emissions. The Clean Air Act does not set emission for the development and production of limits for carbon dioxide which is a combustion alternative energy. byproduct ofall fossil fuels and a possible contributor to global warming. However, AES has acted voluntarily to reduce this impact of the facility by contributing $2 million towards the purchase ofa Puna Geothermal Venture 143,000-acre nature reserve in South America. Trees Puna Geothermal Venture's (PGV) 25-MW in the virgin forest there will absorb C02 from the generating plant was completed and has supplied I atmosphere and convert it to oxygen. power to the HELCO grid. The amount of commercial power produced in October was as high ! UJU,~IUU ! Each year the plant will use about as 10 MW. Future increments will be developed to coal imported from Indonesia. The coal iSllnlloaded reach the 25 MW specified in the company's contract at Barbers Point Harbor and transported-to with HELCO. unique conveyer belt that forms "'_UU''-, ·••••'Y. completelj' enclosing the coal to eliminate The $120 million project was due to provide Coal ash, the final bvnroductss HELCO with 25 MW ofpower a year ago, but the genera.tioIl, can be project has been delayed by legal and technical problems. The legal issues were resolved and final permit approvals were received from the Hawaii State Department ofHealth (DOH) and the Hawaii State Department ofLand & Natural Resources. After providing up to 10 MW ofelectricity to HELCO for a two-week period, PGV had to plug their only producing well, KS-8, in early November 1992.

Addrtional production and injection wells are drilled to develop the geothermal resource underlyiing the PGV project area. The production of electricity is expected to resume in 1993.

Scientific Observation Holes HNEI, under a contract with DBEDT, completed three offour planned small-diarrieter Scientific Observation Holes in the Kilauea East Rift Zone. The holes, some ofwhich were drilled to depths in excess of2,000 meters, provided data for assessing the geothermal resource potential of the Puna District. Additional information was collected on rock types and structure, depths ofpotential geothermal reservoirs, ground water depth and composition and temperatures ofrocks and fluids. Monitoring and testing of the Scientific Observation Holes are ongoing; however, further drilling activity has been temporarily suspended.

Puna Geothermal Venture's 25-MW power plant facility located in Pohoiki, Hawaii. HYDROPOWER substantial amounts ofelectricity in California,Japan, Italy, Iceland, New Zealand, the Philippines and Hydropower has been a source ofelectricity in other parts ofthe world. Hawaii's indigenous Hawaii for several decades. Most ofthe State's 20 hydro power plants are owned by sugar plantations

ALTERNATE ENERGY DEVELOPMENT II ... . .,

and HELCO; some date back to the early 1900's. imported petroleum each year. Private funding The amount of electricity sold to the utilities varies supported the project with the assistance of$25 from year to year depending upon rainfall, plan­ million in State-approved special purpose revenue tation needs and other factors. In 1991, hydropower bonds. providedjust under one percent ofthe State's elec­ tricity and almost II percent ofthe electricity generated on the Island ofKauai. Proposed Hydro Plants Several other proposed hydroelectric projects on Wailuku River Hydroelectric Power Plant Hawaii, Kauai and Maui totaling 39 MW were unable to obtain requiredpermitsfor construction due to A new addition to hydropower in Hawaii is the opposition by envir?nmental and surfing groups, and 10-MW plant being built by the Wailuku River financial constraints. ' Hydroelectric Power Company, Inc. at thejunction of the Wailuku River and Kalohewahewa Stream near OCEAN THERMAL ENERGY CONVERSION

OTEC offe;~ I-I~",aiiOne6fth~"'2";;' greatestpotentials, nt'~xtto geothermal,f~r supplying firm powerfrom renewable energyresollrces..The OTEC process, using the temperaturedifference between ",arm surface ocean water and the cold waterfrom ocean depths, is environmentally benign, and,almosttotally devoid ofharmful emissions. In addition, OTEC can be used to provide fresh water.

, 1'1, Hawaii's contributions to OTEC tesearch.over many years have made the lState an acknowledged worldwide leader in fOTEC technology and facilities. The NELHA facility at Keahole Point on the Island ofHawaii is considered the world's foremost testing facility for OTEC and OTEC-related activities. In 1992, DBEDT supported and worked in concert with NELHA, the U.S DOE, PICHTR, the UH and private companies on several major OTEC projects.

Wainiha hydroelectric power plant located on the Island Open-Cycle OTEC Demonstration Plant of Kauai. The construction ofa 210-kW (gross) open-cycle OTEC experimental apparatus is underway at NELHA. Preliminary and final designs are complete Hilo on the Island ofHawaii. The hydro plant is and the turbine and other components are being expected to be on line byJune 1993. This single installed. The open-cycle OTEC plant is scheduled facility will provide an estimated 34 million kWh of for operation in 1993; shakedown operational testing electricity annually, enough to supply over 5,000 began in late 1992. The project continues to be homes, saving the equivalent of55,000 barrels of funded jointly by the U.S. DOE and DBEDT.

II. ALTERNATE ENERGY DEVELOPMENT rr The plant at NELHA is the first net-power producing open-eycle plant to be constructed anywhere in the world. Net power produced will be approximately 40 kW after subtracting power needs for water pumping and other parasitic loads. The production offresh water from the system is scheduled for a later date following successful testing and operation of the OTEC plant. The combined production ofelectric power and fresh water offers I significant benefits to Pacific island and other ! nations where both power and water are scarce ! resources. Closed-Cycle DIEC A 100-kW closed-cycle OTEC plant, also located at NELHA, is in the advanced design stage with

The technology of raising successfully demonstrated raising oysters for food is

Other DIEC-Related Projects Several other projects using the cold water from OTEC systems have been put into effect at NELHA. The laboratory facilities are now air-conditioned using the cold sea water. An experimental project involving the production of hydrogen from seawater and the extraction ofheavy metals is underway in a joint project of the UH Manoa Campus and University ofRiel, Germany. A slant-drilling demon­ stration off-shore at NELHA was technically successful and has been capped off to be used in Deep Underwater Muon And Neutrino Detection experiments in 1993.

SOLAR ENERGY

Solar energy comes from the radiation of the sun shining on the earth. Hawaii's location close to the tropical zone provides very high levels ofsolar radiation (also called insolation). Utilizing this radiation either as solar heat, solar thermal power or photovoltaic power can provide Hawaii with several Keahole Point, Island of Hawaii. alternative sources of power to replace imported petroleum.

ALTERNATE ENERGY DEVELOPMENT 1m Approximately 55,000 households in Hawaii management ofPICHTR. Support for the project utilize solar water heaters, making Hawaii the state includes $150,000 from the U.S; DOE and in-kind with the nation's highest per capita installation of DBEDT services. these solar devices. It is estimated that there are more than 1,000 residential and commercial photo­ voltaic (PV) installations now in use throughout the state. Photovoltaic Power Systems for Milolii Homes The village ofMilolii on the Island ofHawaii is Solar Electric Generating System (SEGS) located in a remote area which does not have utility Assessment transmission lines. Funding for installing residential 692-Watts peak PV systems for 50 homes in Milolii Solar thermal generated electricity has been was provided to the Hawaii County Economic demonstrated on a commercial scale in California Opportunity Council (HCEOC) by DBEDT through where several facilities have capacities of 14 MW to 80 the Office ofCommunity Services of the Department MW. These facilities provided Southern California ofLabor and Industrial Relations. At present, 27 Edison with an environmentally safe solution to their systems have been installed in Milolii homes where peak demand electricity requirements. In addition, they are used for operating refrigerators, washing each megawatt allowed the displacement ofmore machines and lights. An additional 23 residential than 3,500 barrels ofimported fuel oil equivalent per systems will be installed as more houses in the village year. are constructed. The project was funded by $350,000 from Petroleum Violation Escrow Funds. SEes may have considerable potential for use in Hawaii. However, a number ofquestions must be answered before the private sector and utilities are willing to finance such projects. To answer these Solar-Powered Desalination Project questions, a contract was awarded to Kearney and A solar-powered desalination demonstration Associates to complete an earlier study begun by Luz plant at Milolii is scheduled for completion by the International Ltd. to provide data needed for end of 1992. The distillation unit, designed to decisions on SEeS' applicability for Hawaii. produce up to 1,000 gallons a day ofpotable water, Information was obtained from HECO, HELCO and will provide drinking water for residents. Until now Kauai Electric (KE) regarding their generation and they had to rely on catchment water or water transmission status, needs, and projected growth. brought in by cars or trucks. At present, power for Relevant data on potential sites for SEeS were the desalination unit is provided partly by solar units gathered together with information on licensing and and partly by an electric generator. The project is permitting requirements and storage/backup needs. managed by the HCEOC and funded by $50,000 in A draft final report by the consultant will be State Capital Improvement Project (CIP) Funds. submitted in January 1993 with the results of the study presented in seminars in February 1993. Photovoltaics for Utility-Scale Maui County Integrated Electric Utility Applications Program A 20-kW photo­ voltaic system The U.S. DOE provided funding for an inte­ near grated electric utility program for Maui County with the overall objective ofshowcasing the commercial viability of dispersed renewable resources in an island-based utility environment and to demon­ strate how the small island utility can successfully integrate renewable energy technologies into its generation base. Work continues on this project under the Kihei, Maui, the first satellite project ofa nationwide utilities in using a greater proportion ofwind energy program sponsored by the U.S. DOE, the California while maintaining the quality of utility power. Energy Commission, the Electric Power Research Institute, and Pacific Gas & Electric Company to Construction of the 25-kW wind/pumped storage demonstrate the use of photovoltaics in a utility hydroelectric facility located at the Kahua Wind setting, continues to operate and furnish power to Energy Storage Test (WEST) facility in North Kohala the utility grid. Funding has beet)"provided by was completed in 1991. The WEST facility includes DBEDT, Energy Conversion Devices; Inc., MECO three Carter 25-kW wind turbines, the pumped hydro and the U.S. DOE. • energy storage system, a battery storage system and related resear~ll projects. The wind/pumped storage f system has-been operating on a test basis since 1991. Mini Car Project A multi-year plan is being prepared for operation J Solar .",t ',lnd maintenance of the plant by WEST facility staff, ~ ~ HNEI and Kahua Ranch. c" """ DBEDT and the Hawaii State Department of ~'Education (DEduc) sponsored a program for inter mediate and high school students from publi "~"! Funding for the pumped hydro energy storage project was furnished by State CIP funds, $230,000; sdchools}n severadlalreas of the Stadte tOh~ulild ". I a Bonneville Power Administration, $109,850; emonstrate mo e solar-powere ve Ie es.Th e "., 1991-1992 Mini-Solar Car Project, funded by DBEDT Electronic Power Conditioning Company, $100,000; and a Christa McAuliffe grant, provided students with •••• c Bonneville Pacific $10,000; Kahua Ranch $50,000 (in­ .... ·kind); and HNEI $40,000 (in-kind). opportunities to gain first-hand knowledge and an c understanding of modern technology while working closely with peers and a variety ofexperts. The goal ~ twas to produce a small-scale solar-powered vehicle Wind/Diesel Electric Hybrid System through teamwork, problem solving and the gration ofscience, math, language arts and Zond Pacific, Inc. ofHawaii, in conjunction with

tecllnol()gy. '1; Zond Systems Inc. ofCalifornia, completed '~~'- construction of a new wind/diesel electricity Sixteen intermediate and 22 high schools generating system near Moomomi, Molokai. The ipated in the first Performance Meet whichwas held system consists of three 100-kW wind turbines and a during the State Science and Engineering Fair in 100-kW diesel engine powered generator. It demon­ April. Another such performance meet is scheduled strates the effectiveness ofwind power backed up by for April 1993. diesel power. The facility has been furnishing elec­ tricity commercially and has provided 99 percent operating reliability.

WIND POWER Funding for this project was provided by Zond Systems, $420,000, and DBEDT, $242,000. Hawaii has some of the best conditions in the world for wind power and the State was second only to California in wind-energy generation. Wind power in Hawaii now ranks third among our renewable Kamaoa resources which provide electricity to the utility grids. The Kamaoa Although most of Hawaii's wind farms are small by located on the Mainland standards, they contributed more than 15 Mitsubishi wind turbine generators million kWh ofelectricity last year. operating there for.severalyears, Durinz Kamaoa continued to provide more kWh ofelectricity to the HELCO grid Wind/Pumped Hydro Facility at Kahua percent of the island total. Pumped hydro energy storage combines the use ofwind power to pump water into a reservoir which can be employed in conjunction with a hydropower facility for generating electricity. The technology offers a form ofenergy storage which can assist

ALTERNATE ENERGY DEVELOPMENT lEI Kahua Wind Farm Small Wind Energy Facilities Kahua Ranch, formerly the largest ofthe wind About ten small, privately owned wind generators farms on Hawaii, now has only 19 in ranging in size.r~91}h~.okW to 27 kW operate on the operation. The wind farm, although reduced Island.~f~,ntaifal1~sel~somepower to HELCO. furnished 1.8 million kWh ofelectricity The~~are~lsoale~priyatelyowned, non-grid last year or about 0.2 percent of the c~?lleste~fasilit;ieSlls~?primarily for pumping Kahua Ranch is also the site of the wind-pumped ;vaterand'~llWishingB9werto individual homes and hydro demonstration project and l'smallfarms . " conducted by HNEI, Hawaiian Electric Renewabh Systems (HERS) and Kahua Ranch.

Lalamilo wind farm-in K.ohalill,coIlsist:iIll?;. 20-kW and 39, has a total capacity of ap]pr<)xjlrn~~t~ly2.3 installation ofequipment began wind farm has been operating smlcer~l1a Approximately 70 percent of the gel(l~Il1 used for water pumping and the reltlam.~te HELCO. Last year the wind farm pr9 ded "' ..•..•.,., million kWh ofelectricity to the Islil,rtdof

Hawaii grid. f"Y"

Makani Moa'e Wind Farm During the early'part of 1992, HERS Makani Moa'e wind farm at Kahuku, Oahu continued to operate and furnish power to HECO. The huge MOD-5B experimental design wind turbine operated as part of the wind farm. This two-blade machine, rated at 3.2 MW, measures 320 feet in diameter, making it one of the largest ofits kind in the world. Makani Moa'e also operated 15 smaller Westinghouse wind turbines rated at 600 kW each. The wind farm furnished electricity to the HECO grid.

In October 1992, HERS parent company, Hawaiian Electric Industries, announced that it was shutting down the wind farm. Chronic mechanical problems and economic considerations were given as the reasons. A DBEDT and U.S. DOE supported ·y,···>,,·,nroiect for the design, operation and testing ofa new wind-turbine blade at Kahuku will be canceled unless another.operator can be found.

250-kWh Mitsubishi Wind turbines located on the Kamaoa Wind Farm on the Island of Hawaii.

lEI ALTERNATE ENERGY DEVELOPMENT THE STATE OF HAWAII IN EXXON FUNDS AND $10 MILLION THROUGH JUNE 30, 1991, IN STRIPPER WELL FUNDS. WITH A FEW EXCEPTIONS, THE FUNDS ARE RESTRICTED TO CONSER­ VATION PROGRAMS MEETING U.S. DOE REQUIREMENTS. OVER THE YEARS, A SIGNIFICANT PORTION OF THE OIL OVERCHARGE FUNDS HAVE BEEN USED; IF THE MANY SUCCESSFUL CONSER­ VATION PROGRAMS NOW FUNDED ALL OR IN PART BY OIL OVERCHARGE FUNDS ARE TO BE CONTINUED, STATE FUNDING WILL HAVE TO BE INCREASED BEYOND CURRENT ENERGY BUDGET LEVELS.

CONSERVATION PROGRAM ADMINISTRATION

DBEDT is responsible for administering the majority of Federal and State energy conservation programs in Hawaii. Major conservation programs administered by DBEDT include the State Energy Conservation Program (SECP), the Institutional Conservation Program (ICP) and the Energy Extension Service (EES). Two other programs, the Weatherization Assistance Program (WAP) and the Low Income Home Energy Assistance Program (LIHEAP) are administered by other State agencies. INCREASED BY 12 YET DURING THE SAME PERIOD RESIDENT POPULATION AND VISITORS TO HAWAII INCREASED BY 15 PERCENT AND 77 PERCENT RESPECTIVELY, AND State Energy Conservation Program THE NUMBER OF REGISTERED VEHICLES IN THE The SECP program, funded by U.S. DOE, Oil STATE INCREASED BY 43 PERCENT. Overcharge Funds and State contributions, includes projects such as consumer information and education, energy DURING 1992, DBEDT INITIATED AND IMPLE­ emergency preparedness, energy planning, government MENTED CONSERVATION PROJECTS IN A procurement retrofits, promotion of VARIETY OF AREAS INCLUDING ENERGY­ building energy standards, ridesharing, bicycle EFFICIENT LIGHTING AND APPLIANCES, BUILDING safety education, and recycling. 'TECHNOLOGIES, TRANSPORTATION AND RECYCLING. SOME OF THESE PROJECTS ARE VERY LARGE IN SCOPE. OTHERS ARE SMALLER BUT PROVIDE AGGREGATE SAVINGS OF SUBSTANTIAL SIZE. FUNDING HAS BEEN PROVIDED BY THE FEDERAL GOVERNMENT AND OIL OVERCHARGE FUNDS, WITH SUPPLEMENTAL OR MATCHING CONTRIBUTIONS PROVIDED BY STATE AND COUNTY GOVERNMENTS, PRIVATE AGENCIES AND RECIPIENTS

MUCH OF THE FUNDING HAS COME FROM THE OIL OVERCHARGE (ALSO CALLED PETROLEUM VIOLATION ESCROW) FUNDS. THESE ARE FUNDS AWARDED TO THE STATE AS A RESULT ~ ".'_.~A~~ provides funds for outreach assistance to indi­ OF LEGAL SETTLEMENTS FOR ALLEGED OIL small.businesses, particularly those on the PRICING VIOLATIONS DURING THE 1970s located in Hilo, Wailuku 1980s. OIL OVERCHARGE FUNDS INCLUDE Proier.ts mcrudetpubuc information programs, ABOUT $14.5 MILLION RECEIVED IN 1986 BY ...

county energy planning, workshops, assistance with In March 1992 the PUC issued Order No. 11523 Science Fairs, Hawaii Agri-Energy Technical marking the start of the first cycle of the IRP process. Assistance, assistance with IRP briefing preparation, Order No. 11523 was amended by Order 11630 in and publication of the newsletter, Transitions. May 1992. These Orders require that integrated resource plans must be submitted by the gas and electric utilities in staggered intervals between May 1 Weatherization Assistance Program and November 1, 1993. Another energy conservation program, WAP, These Orders incorporate many of the key funded by the U.S. DOE and Oil Overcharge Funds, " el~~ents ofDBEDT'stestimony presented under assists low-income families in meeting energy costs bX, "Docke~??17,whichestablished the need for IRP. providing insulation jackets and timers on hot~a,ter The festimonyindicated that DBEDTwould develop heaters and heat pump water heaters. Asman,!:!}! " independent~?recasts of the State's energy ~SSds as assessments,bothState\\Ti,~~;a~d demonstration project for installing solar water,s,>';! well as resource at Theyprovidefort~.~«;patticipation heaters has been authorized by the U.S. DOE andisic>' , theisland.level, of a,geng~s,org;anized being pursued. The WAP program is administered State ardCounty government by the Hawaii State Department ofLabor and i~terestgroupsandF~ege~eralpublic iflt~e devel­ Industrial Relations, Office ofCommunity Services. 6p~entand~eviewRfIRPproposalsand ,.'t Commission approval,.ofIRPs.;""In additioni()!§s~ing asaninterve~orin poqket6617, DBEDT has '" ,"';" i~te~enedin all five utility dockets andDBEDTstaff, Low Income Home Energy Assistance serve~ on all utility IRPadvisory groups. Duringthe Program reporting period"D~El)l'staffparticiB(lte~i~ll~li,ty ':..:< -,.:"::.: ..\' ',.": -c." ,.,/-.:j advisory group di~S\lssio~~ onforeca~ting,supply- LIHEAP, with funding provided by the U.S.',;;'; ;,,anddemaf)d-side;measures, externalities and Department ofHealth and Human Services, assists>!, integration. ~; low-income households with payments of utility bills; , During the past year, over 7,600 LIHEAP clients>" "All of the utilit~~sha~ecompleted preliminary were provided more than $1.4 million in assistance. energy forecasts as part of the ongoing IRP process. LIHEAP is administered by the Hawaii State The energy forecasts will provide information on Department ofHuman Services, Family and energy demand against which DSM and supply-side Adult Services. options will be optimized to produce a least-cost resource plan that will serve the energy needs of utilities' customers. INTEGRATED RESOURCE PLANNING This is a continuation ofa project that began in DEMAND-SIDE MANAGEMENT 1989 in which DBEDT, the regulated utilities, conser­ vation groups and other concerned parties, working As part ofits participation with the utilities in collaboratively under a PUC order, evaluated contri­ DSM activities, DBEDT provided technical assistance butions of the energy options for meeting near- and to HECO, MECO, and HELCO in development and long-term consumer energy needs in an efficient and evaluation ofa Commercial Lighting Pilot Project reliable manner at the lowest reasonable cost. and a Residential Lighting Pilot Project. DBEDT also studied program design options for a residential IRP is an approach to regulated utility planning water heating DSM program with HECO. DBEDT which evaluates all potential energy options, provided funding and technical assistance to KE, in including supply side (energy production by conven­ implementing and evaluating its Residential Lighting tional fuels and renewable energy resources), Pilot Project and to The Gas Company (GASCO) in demand side (energy usage, conservation, efficiency designing and implementing a residential customer and load management), as well as the social, environ­ survey. mental and economic costs of these options. DBEDT has actively supported the concept and implemen­ tation of the IRP process for Hawaii.

1m ENERGY CONSERVATION n Surveys of residential gas and electric customers replacing and equipment made on Kauai by KE and GASCO were tabulated by or installing solar-water.heaterslwere conducted in DBEDT staff. Technical and evaluation assistance 1992 with through the use were also provided for GASCO's surveys ofservice ofFederal, Funds. area customers on the islands ofMaui and Hawaii. The surveys provided data on the number and of energy-using appliances in the surveyed homes, the amount ofusage and plans for future purchases.

DBEDT employed a private consultant to nrovide technical assistance and training to DBEDT staff in IRP and DSM.

Database Task Force In 1992, DBEDT and HECO established and are jointly managing a Database Task Force for the collection of energy data which can be used by DBEDT in demand-side assessment, fore­ casting and other energy models. As part of this project, DBEDT provided briefings on End Use Data Types and Sources and a report on Database Framework and Format Assessment End-Use and Measure Databases.

The Task Force will continue to meet to coopera­ tively gather existing data needed for DSM planning. The Task Force will identify data sources and data main­ tained by individual members, review proposed surveys collected data, review assumptions and parameters be usedinpSM prograll1 design, resolve data issues, help develop needed q~ta. Funds was provided by DBEDT with in-house labor Meetingsare generally scheduled supplied by DOT. quarterly. .. Greenlights Program for Energy ENERGY-EFFICIENT LIGHTING AND Conservation On February 26,1992, the Governor signed a EQUIPMENT Memorandum ofUnderstanding making the State of Hawaii the seventh state in the nation to become a Installing energy-efficient lighting and appliances partner with the EPA in the agency's Greenlights can reduce electrical use and Many projects program. Greenlights is a national program aimed at

ENERGY, CONSERVATION 1m '"

decreasing air pollution by reducing electricity • Lighting upgrade for the Gregory House AIDS demand through the use ofenergy-efficient lighting hospice; systems. Under the program goals, Hawaii will have energy-efficient lighting systems in 90 percent of the • Lighting upgrade and heat pump water heaters square footage in State buildings by 1997 and will for the Catholic Charities offices and care enlist as many corporations as possible under the homes; same program. Lighting systems for all new Hawaii State buildings will be constructed in compliance • Lighting upgrade and window film for the Maui with the most current energy codes. Cameron Center;

The EPA will furnish informational materials and • Solar water heating and lighting upgrades for technical support in developing surveys and Hale Kipa Youth Shelter; and completing analyses ofappropriate options. • Appliance and lighting upgrades as well as meter conversions for Maililand Homeless Housing.

Solar Water Heaters for As a result of the retrofits completed byJuly Mayor Wright Homes 1992, estimated savings ofmore than 523,000 kWh of electricity, 6,300 therms ofsynthetic natural gas, and Solar water heating retrofits were completed on 980 gallons ofliquefied petroleum gas (LPG) will be all 35 buildings ofthe Mayor Wright Homes in achieved. Total project costs were $375,108 ofwhich Honolulu. Besides funding most of the project, $173,027 were provided by Oil Overcharge Funds. DBEDT provided technical assistance to improve the performance ofsystems on some ofthe buildings. Phase II oft~~prOgTam began inJuly 1992. Very large savings in energy usage have been Among the agencies already added in Phase II are achieved in this major conservation project. For the the American~ungAssociation,Kalani Honua on year endingJuly 1, 1992, energy usage for the Mayor the Island ofHawaii and the Walter Cameron Center Wright Homes was reduced by a calculated . on Maui. {, .. 81 percent. New Equipment for Institutions Dollars From Sense Program s At Leeward Community Col ege, plan-ning and The Dollars From Sense program, with fundi~;' . design work was completed and construction begun from Oil Overcharge Funds, assisted several "to alleviate temperature and humidity problems in nonprofit care-providing agencies during 1992. the Language Arts Building while also reducing elec- Technical assistance and funds allowed recipient tricity use. .,. agencies to target and purchase recommended . energy-eonserving retrofits such as lighting and w<:\ter Numerous changes were made in the design and heating in a pilot program initiated during 199Vilnd . implementation plans ofthe Chilled Water Loop 1992. Eight organizations benefiting from energy project on the UH Manoa Campus. This long-term conservation projects completed in 1992 on Oahu ICP project is designed to join ten buildings with and Maui included: three commori'chilled water loops so that single chillers can cool multiple buildings during off-peak • Lighting upgrade for the Salvation Armytl1rift demand times. stores;

•A solar water heating system and lighting upgrades for the Palolo Chinese Home; Solar Water Heaters for HFDe Housing DBEDT strongly supported HB 2319-92 which •A solar water heating system and lighting was signed into law onJune 18, 1992, as Act 255-92. upgrades for the Maui Youth and Family Act 255 promotes the use ofsolar energy for water Services; heating in housing constructed under the Hawaii State Housing Finance and Development

1& ENERGY CONSERVATION 11 opportunities, tax credits for solar and heat pump water heaters and an overview of the Model Energy Code.

Homeowners' Installation of Solar Energy Devices DBEDT also supported the passage ofSB 3098-92 which voids any contract, lease or other document prohibiting the owner ofa single-family dwelling or townhouse from installing a solar energy device. This bill was signed into law as Act 268-92 onJune 18, 1992.

Weatherization Assistance Program During the 1991-1992 project year, WAP installed a total of439 heaterjackets, 233 timers and 359 heat pump water heaters on the Islands of Oahu, Hawaii and Kauai, and in Maui County, providing consid­ erable savings in energy costs and usage in these locations. Additional energy savings in the future may be provided through a demonstration project authorized by the U.S. DOE to provide solar water heating systems for low-income households. Presently, demonstration project plans call for approximately 30 solar water heating systems to be installed on Molokai. The bidding process is underway.

Funding for WAP in 1991-1992 was $174,000 conditions would equipment ineffective or from U.S. DOE and $800,000 from Oil Overcharge Funds.

The law requires that DBEDT adopt rules with respect to alternate water heating systems to be Agricultural Energy Education Program installed in the remaining units not required to have solar water heating equipment. Furthermore, the Act The Hawaii Agricultural Energy Education requires that DBEDT shall submit a report to the Program conducted by the Cooperative Extension Legislature in 1996 evaluating the overall life-cycle Service of the UH College ofTropical Agriculture cost as well as the energy efficiency ofall types of and Human Resources provides education and water heating systems and solar water heating training in energy-efficient systems appropriate to equipment installed in projects approved by the agriculture in Hawaii. The use ofsolar power in agri­ corporation between 1993 and 1995. culture has expanded over the past decade as photovoltaic systems have improved and become DBEDT prepared a draft rule for alternate water lower in cost. heating systems and presented this rule to the HFDC, the electric and gas companies and other interested Nearly 100 participants on Maui received hands­ parties. Other topics covered in this briefing on training in solar panel construction for included various types ofwater heating options such agricultural use in hot water heating, water pumps as heat pumps, utility demand-side management and energized fencing for animal confinement. A low-energy drip irrigation system using solar panels

ENERGY CONSERVATION 1m was built and demonstrated in the Ka'u district of .Performance Contracting Hawaii County. A design manual providing a detailed description of the system and parts was DBEDT has had an ongoing performance prepared and published by the Cooperative contracting program since 1989. Performance Extension Service. Workshops on solar drying of contracting is a mechanism by which end users of tropical fruits were held and a teachers' guide for electricity or gas implement energy efficiency building solar dryers was prepared. projects in their facilities. It is an arrangement for the provision ofenergy services in which a person or company agrees to finance, design, install, maintain, manage and/or operate energy systems or BUILDING TECHNOLOGY equipment to improve energy efficiency or produce energy in exchange for a portion of the energy Because energy-efficient building design will save savings, specified lease payment or specified energy and reduce utility costs throughout the life of payment. a building, energy-efficient building design will reduce energy demand in new and renovated This year, emphasis was placed on working with buildings for many years. the utilities and government agencies to develop a shared, cost-savings project. At the same time, DBEDT will contract with a consultant to develop requests for proposals and assist with negotiation and Proposed Building Code Revisions evaluation ofperformance contracts. A consultant for DBEDT wrote a proposed Model Energy Code for county building codes aimed at ensuring the use of energy-efficient design and equipment. Two additional documents will be Kauai Civic Center Retrofit developed: an Application Manual, which is a user's DBEDT is providing a grant for $125,000 for the guide to the Code, and an Impact Analysis, which Lihue Civic Center in an agreement with the County projects the energy savings from the building effi­ of Kauai. The grant and matching funds from the ciencies resulting from the Code. The proposed County will be used to retrofit an old, energy-inef­ Code reflects input by a DBEDT Model Code Task ficient air conditioning system and provide building Force, County Public Works and Building envelope improvements and other energy-efficient Departments, design and building professionals and measures to ensure that the air conditioning system the general public. The Code was written for presen­ operates efficiently. In addition, the County will fund tation to the four Counties and can be adopted other improvements and interior modifications such either in full or in modified form by each of as low heat output fluorescent lights, the Counties. properly designed ducts, window tinting, blinds and drapes. State Procurement Programs During the past year the kinds ofenergy-efficient. RECYCLING equipment on the State'~ equipment procurement lists have grown. Acomplete line of energy-efficient The recycling of lighting equipment is ,now listed. "Life used paper, plastic, costing," which estimatesthe energy motor oil; equipment over the estimated equipment life aluminum and other factors these costs into the overall total cost of metals can conserve equipment, has been included for purchases of large amounts of energy several high-energy usage items such as copying because the amount of machines. power used to manufacture articles made from recycled goods is about half the amount needed to manufacture them from new materials.

lEI ENERGY CONSERVATION IlUiJtdSJXX:!&2i3IiLi 2 ~ ....~ ·'d7&i1ti

Recycling Association of Hawaii personnel took part in statewide and Neighbor Island IRP Advisory Committees, assisted with IRP informa­ Grants by DBEDT through the support ofOil tional meetings and monitored electric rate case Overcharge Funds and the Federal government have public hearings. Ongoing programs in educational served as seed money which has enabled the information, energy workshops, exhibits at science Recycling Association ofHawaii to develop plans to fairs and other outreach programs were conducted become a self-sufficient nonprofit agency with an throughout the year. Over a 12-month period, an annual budget ofapproximately $225,000. estimated 25,000 public contacts were made by the I three EES offices. j The Association provides assistance to State and I County officials, community organizations, schools In addition, the Kauai EES sponsored a recycling • ! and commercial groups in their efforts to encourage music video which reached viewers statewide through and implement recycling programs. The Association public service and paid TV spots. A water conser­ I develops educational information and curriculum vation video was produced in 1992 and distributed to materials, coordinates a speakers' bureau, produces local schools, water and energy agencies throughout I and distributes two recycling newsletters and staffs a the State. Other projects included an increasingly recycling hotline and library. successful Used Oil Collection Program and an expanded program of energy information displays in During the past fiscal year, the Association public libraries. assisted supermarket chains in their recycling efforts for plastic and paper bags, answered thousands of Special projects of the Hawaii Island EES office statewide requests for information on the Recycling included more than 50 tours and presentations on Hotline, and distributed about 8,000 brochures in energy. Approximately 8,100 persons attended these response to written requests, telephone inquiries, talks, exhibits and site visits. EES staffcoordinated and as handouts at various events. The Association planning for the first National Energy Education served again this year as coordinator for the annual Development (NEED) Project conference which recycling programs for Christmas trees and included Pacific area representatives, participated in telephone directories. meetings of the Mayor's Energy Advisory Commission, and published three issues of Transitions, a Pacific Basin energy information Recycling Replaced Fluorescent Ballasts newsletter. During thejoint DBEDT/DEduc sponsored In addition to its other services, Maui County public school re-ballasting and re-Iamping program EES participated in a three-day Business and the completed in 1991, a local company devised a Environment Annual Conference featuring recycling method for separating PCB containers in the ballasts and waste management programs, County and utility for safe disposal and shredding the remaining energy projects and the National Energy Strategy, material for sale as scrap metal. The process More than 400 persons attended the conference. electricity

ENERGY EXTENSION SERVICE

The EES, with offices located in Hilo, Wailuku and Lihue, provides consumer information, education and outreach assistance to individuals and small businesses on the Neighbor Islands. During 1992, the EES staff participated actively in the IRP process ofthe PUC and the five utilities. EES

ENERGY CONSERVATION m 77Tf7W" r",n••rtnttrTfi'im

TRANSPORTATION ENERGY CONSERVATION

AIternative modes ofground transportation, such as walking, bicycling.j'iding buses modes ofmass transit, are~eneficialfor Hawaii's fragile environment. Theyalso strengthenHawaii's energy security because theyrequire less (or, for walking and bicycling, zeroYdemand for petroleum fuels. .Trafficcongestion, in addition to its other . und~siraRledfects, is extremely energy inefficient; vehicles which,,<.\re bu~i~gfuel, but are not moving, are essentially gettingJerp per gallon. Jt't' , .~r s:Ii Ridesharing DBEDT has been working closely with the promotion of Ridesharing as an energy efficiency and congestion reduction measure.

"RideShare Week," a high-profile, statewide SIGNIFICANTLY IMPACT THE USE OF PETROLEUM public awareness event, took place during the week of October 12-16 PRODUCTS, AS WELL AS HAWAII'S FRAGILE and involved

ENVIRONMENT.

TRANSPORTATION FUELS DEVELOPMENT AND

DEMAND PROJECTIONS ARE DEPENDENT UPON,

AND MUST BE INTEGRATED WITH, TRANS-

PORTATION ENERGY CONSERVATION AND

DEMAND REDUCTION EFFORTS. IN ADDITION TO

EMBARKING ON THE DEVELOPMENT OF A

TRANSPORTATION ENERGY STRATEGY FOR THE

STATE OF HAWAII, DBEDT SPONSORED AND 70 private companies, every State agency, and most County and Federal agencies. A PARTICIPATED IN SEVERAL SUCCESSFUL network ofover 200 coordinators spearheaded the effort. Over 14,000 Oahu commuters and several PROGRAMS IN BOTH TRANSPORTATION ENERGY thousand Neighbor Islanders pledged to try ridesharing for at least one day (Wednesday, CONSERVATION AND ALTERNATIVE TRANS- October 14, 1992, "Rideshare Day"). Participants were eligible to win hundreds ofprizesdonated by PORTATION FUEL DEVELOPMENT. over 50 private sector organizations. Awareness of

fJI transportation alternatives was raised by television and radio public service announcements; printadver­ tising; articles in various localnewspapers and newsletters; and nume~Qusstoriesreportedbyth.e media.

In addition to carpooling, riding buses, walking, and bicycling, employees arranged to telecommute or to adjust their.work hours to avoid peakrush hours. Free transportation services were provided by taxi companies (SIDA and Charley's), private commuter bus services (BusPlus and the Leeward Oahu Transportation Management Association),and Liquefied Petroleum Gas, also known as propane, the Barbers Point Ferry. Approximately 600 people is an alternate fuel which is used in thousands of signed up for free bus rides on 11 RideShareWeek vehicles in Hawaii-from forklifts to buses. The demonstration routes operated by Bus Plus and vehicle above was converted locally. about 20 commuters pledged to try the ferry from Barbers Point to Honolulu.

In addition to "RideShare Day," awareness-raising events included a proclamation by the Governor, a ALTERNATE TRANSPORTATION rally and informational fair in Tamarind Park, presentations on bicycle commuting by the Hawaii FUELS Bicycling League, and a transportation fair at the UH Nationally, the desire to reduce dependence on Manoa Campus. petroleum and to reduce air pollution have been embodied in the Clean Air Act Amendments of 1990 and the National Ener!D' Policy Act of 1992. Federal Promotion of Bicycling research and dernonsirationfunding will be available in the coming ye(lnrfo~jointpublic/private alterna­ Using bicycles instead ofcars for transportation tively-fueled (includingelectriQ,vehicles) reduces transportation fuel demand. Bicycling also transportatiC)ll projects. helps to reduce air pollution and parking congestion. DBEDT has supported the promotion ofbicycling as an alternative to automobile transportation in the form of three annual grants to the Hawaii Bicycling League, and cooperative efforts with State, County and private agencies. To date, a very successful bicycling education and safety course, designed and implemented in cooperation with DEduc, has reached an estimated 12,000 fourth-grade studentsIn Hawaii's public schools.

A video program on safe bicycling for elementary In .1992, DBEDTei1couragedthe diversification school children has been drafted. Plans for bicycling ofground transpC)rtation fuels, and prC)yided general paths and other bicycle-friendly features are included information and technical supportto assist Hawaii in plans for City and County roadways and State. organizations in responding to alternate fuel-related highways. The plans are being carried out in several Federal programs and economic development oppor­ areas including Moiliili, Diamond Head, Pearl City tunities; 1, and on Maui. A full-time position for Bicycling ii Coordinator has been established in the City and l County of Honolulu. Gasoline Additives: Alcohols and Ethers Locally-produced biomass feedstocks may be used to make gasoline additives which boost the

TRANSPORTATION Ell ------g;iii&iiiji===;;;:;;;trnn

octane rating of the fuel while reducing harmful transportation fuel for Hawaii. The study is carbon monoxide emissions. The three additives scheduled for completion in 1993. most commonly discussed are ethanol, methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE). Methanol A blend of 10 percent ethanol and 90 percent DBEDT continued to work with HNEI in the gasoline may be used in any modern gasoline­ demonstration ofvehicles powered by M85 (85 powered vehicle without any modifications to the percent methanol + 15 percent gasoline). In 1992, vehicle. The 10 percent ethanol blend is considered DBEDT and HNEI developed plans for a demon­ an "oxygenated fuel" and is currently marketed in 44 stration program which will involve flexible-fueled other states as a mid-grade or premium-grade fleet vehicles capable of operating on various blends gasoline. DBEDT has been discussing the economic of methanol/gasoline or ethanol/gasoline. feasibility ofthe use ofethanol blends in Hawaii with refiners and other interested parties. A biomass gasification facility, currently in the planning and design phase, may eventually produce MTBE, an additive made from methanol and methanol from locally grown biomass feedstocks. isobutylene, has become an extremely popular (For more information on the gasifier, see Chapter 2 octane enhancer and oxygenate in gasolines on the on Alternate Energy Development.) Mainland. Methanol produced through the gasifi­ cation of biomass may be used in the production of MTBE. Liquefied Petroleum Gas ETBE, an additive made from ethanol and In 1992, DBEDT continued to stay in contact isobutylene, is being considered as a national with local fuel suppliers regarding the use and status competitor to MTBE and as a possible replacement ofLPG (also known as propane) as a transportation to blending ethanol in gasoline. ARCO, AMOCO fuel. LPG, used in over 3,000 cars, trucks, vans, and Chevron have announced plans to test or use ETBE in some of their gasolines on the Mainland. airport support vehicles, and forklifts in Hawaii, is Ethanol produced from local feedstocks may be used in the production ofETBE. Research is continuing at the UH-Manoa Campus to develop the "next generation" ofETBE production technology.

Ethanol In October 1992, DBEDT issued a Request for Proposals for professional and technical services to evaluate optimal processes, feedstocks and current economic feasibility of producing transportation fuel­ grade ethanol in Hawaii. Improvements in ethanol production technology raise the possibility that production costs may be significantly less than previously projected; a new evaluation ofethanol Variable-fuel vehicles, such as the one above, may use any combination of gasoline and M-85 (methanol) or E-85 (ethanol). These vehicles are available in the 1993 production cost is necessary to model year from several major auto manufacturers. determine ethanol's current potential as an alternative

EB TRANSPORTATION the most widely used - and the only commercially Hydrogen may also be produced via microorganisms available - alternative transportation fuel being sold or through steam reforming wet biomass sources in Hawaii today. such as algae, kelp, water hyacinth and banana tree trunks. HNEI is also working on improved methods ofhydrogen energy storage.

Vegetable-Oil Based Diesel Substitute October 1992 marked the arrival ofa 24-foot inflatable boat called the "Sunrider." The.vessel This electric vehicle, driven by completed the 2,700-mile voyage owner Cully Judd, was originally a from Oregon to Hawaii using a gasoline-powered car. soybean-based fuel called soydiesel in its ISO-horsepower diesel engine. Solar panels on the boat provided Electricity auxiliary power for operating elec­ tronic equipment and a water In·1992, DBEDT continued to monitor the desalination system. The soydiesel progress ofelectric vehicles through correspondence fuel is made from esterified withvehicle, battery, and charging system manufac­ soybean oil, although other types of turers; and review data collected from local, national, waste vegetable oils and greases and international demonstration projects. may also be used to make the biodiesel fuel. More than 200 Hawaii's responset.o a 1992f:(Ig~!,.a.pprfl:;· vehicles in South Dakota, Missouri priation for an electric vehicle projectiIl'I-Iawaii is and Kansas are reported to be The Sunrider, left, arrived in being coordinated by the High Technology using biodiesel fuel in place of Honolulu on October 1, 1992, after petroleum-based diesel. Diesel-Bi, Development Corporation with the inpufatid traveling 2,700 miles powered by assistance ofDBEI)'l7,Hawaii's electric utilities, the a similar fuel made from rapeseed diesel fuel made from soybean oil. public, and other interested parties. oil, is used in buses and taxis in No modifications to the engine _-_._i-_~'--i'-_:} "'.;. '.- Europe. were necessary to use the Ninet~ellnin~~-two markedthesecond};ear of "soydiesel" fuel. operation ofHECO's electric van, "Ka;a Vila. "The van, which has accumulated over 5,000 miles to date, has beendisplayed at several DBEDT-sporisored events aswell as used by HECO for commuting and National Energy Policy Act of 1992 delivery runs to all areas ofOahu. The National Energy Policy Act of 1992, signed by President Bush on October 24, 1992, contains a substantial section on alternative transportation Preliminary evaluations indicate that the use of fuels. There are incentives for-the purchase ofalter­ electricity as a transportation fuel may be as much as natively-fueled vehicles, Federal tax deductions for 60 to 300 percent more energy-efficient than the use the installation of alternative fuel dispensing ofliquid fuels in internal combustion engines. equipment, and mandatesfor Federal, State, and certain local and private fleets to purchase alterna­ tively-fueled vehicles. Hydrogen Above, Bryan Peterson, pilot of the Sunrider, points to his During 1992, DBEDT collected information and next destination while Douglas Won and Brent Baker of HNEI continued work on the production of followed developments in vehicle and fuel tech­ Souse Brothers, Inc., who assisted in the first leg of the hydrogen from renewable sources such as solar voyage, look on. nology in order to assist agencies and other energy and biomass. One method ofproducing organizations participating in, or affected by, the hydrogen from solar energy is through the use of alternate fuel provisions of the National Energy semiconductor photoelectrochemical cells. Policy Act.

TRANSPORTATION Ell mTRANSPORTATION COMMUNICATION

The theme of this year's DBEDT communication campaign, The Great Hawaiian Energy Challenge, carried the message ofHawaii's over-dependence on petroleum for all its energy needs to both adult and school-age audiences by means ofa new television public service announcement, newspaper stories and advertisements, exhibits, brochures, contests, workshops and educational programs. The campaign focused onthe urgency ofthe State's energy situation and the idea that energy and the environment gohand-in-hand.

Energy Awareness Month .October was declared Energy Awareness Month in a proclamation issued by the Governor.~ear1x.40 energy-rdated events were sche,dllled throughoutthe' State.DBEDT published a weeklycalendar of Energyi\:wareness Month activities in Sunday editions of.major newspapers in-each county. DBEDT Coordinated and sponsored a three"day: Energy Awareness Month Exhibition at Ala Moana BILITY AND DEPENDENCE UPON IMPORTED Center. Many organizations, including theRecycling Association ofHawaii, HECO, Pacific Resources Inc. PETROLEUM. THE STATE OF HAWAII (PRJ), DEduc, DOT, the Honolulu Board ofWater Supply (BWS) and HSEA sponsored special activities dllring the wonth in addition to participating in the CONTINUES TO BE DEPENDENT UPON Ala,lVIoana,¢ne,rgy exhibition. f:;;

PETROLEUM FOR MORE THAN 90 PERCENT OF Ala Moana Exhibition ITS ENERGY RESOURCES. IN ADDITION, A three-day exhibition sponsored and coor­ dinated by DBEDT was held October 16-18 at the Ala Moana Center Mauka Exhibition Area. The PETROLEUM RESOURCES ARE SUBJECT TO purpose of the exhibition was to provide a greater understanding ofthe various energy-related SHIPPING AND SUPPLY DISRUPTIONS AND PRICE resources in Hawaii and to provide consumers with simple, practical information and practices which can move Hawaii closer to becoming an energy self­ CHANGES OVER WHICH THE STATE HAS LITTLE sufficient state.

Informational publications on energy and the OR NO CONTROL. THE PEOPLE OF HAWAII MUST environment were displayed and distributed to the public. The exhibitors included HECO, PRJ, DOT, BECOME AWARE OF THESE PROBLEMS AND BWS, City & County ofHonolulu Refuse Division (H­ POWER), DEduc, Hawaii Sugar Planters' Association, Reynolds Aluminum Recycling Co., ACTIONS MUST BE TAKEN TO PROTECT THE HNEI, HSEA, Recycling Association of Hawaii, Honolulu Community Action Program, Inc. and DBEDT. An estimated 2,500 persons visited the exhi- STATE FROM CRITICAL ENERGY EMERGENCIES. bition during the three-day period. More than September in St. Paul, Minnesota. The Great 17,200 publications and promotional items were Hawaiian Energy Challenge TV spots won first place distributed. for audio visual advertising. The coordinated set of nine Energy Factsheets depicting Hawaii's alternate Other activities during Energy Awareness Month energy resources and energy conservation practices included five interactive one-hour TV shows on placed first in the four-color brochure category. A energy; tours of NELHA in Kailua-Kona; an energy Travel Guide of Energy Project Sites was first in the awareness fair on efficient electricity usage held at four-color booklets and manuals sector. This was the Tamarind Park by HECO; "RideShare Week" and first time Hawaii's entries had won three first place "RideShare Day" programs sponsored by DOT; "Get awards at the National Energy Program Managers' the Drift and Bag It" beach and marine debris Conference. cleanups throughout the State sponsored by the Governor's Advisory The National Energy Program Committee on Litter Managers' Conference is an annual Control and the meeting ofstate and federal energy Hawaii State Litter program managers who discuss Control Office. present and future changes in The October both state and federal programs, meeting ofthe framed against the major trends Electric Vehicle and issues surrounding the Association of topic of energy. Conference Hawaii focused on attendees have an opportunity the application of to discuss these issues, hear a electric vehicles in variety ofperspectives and Hawaii. The opinions, discover cutting Honolulu Board of edge programs, and learn first Water Supply hand which strategies have proven sponsored weekly tours most successful in affecting energy of the Halawa Xeriscape efficiency and renewable energy (water-saving) Garden and technologies. Underground Pump Station. The one-hour educational tours promoting water effi­ ciency and conservation were attended by more than 700 persons. A three-hour class on xeriscape EDUCATION gardening was also sponsored by BWS. A one-day workshop on the HES program was sponsored by DBEDT continued a dynamic program in energy DBEDT during Energy Awareness Month to provide education, including teacher training workshops, the public with an overview of the HES Program and curriculum development, an energyposter contest, its seven component projects, and an opportunity to bicycling safety classes, a mini-solar vehicle present comments and suggestions in group performance project for students, and presentations discussions and through an audience questionnaire. on energy to Hawaii's schools and community groups. Some energy-related classroomprograII1s A senior citizen recycling craft contest, a Sierra have been designed to complement the goals and Club forum on Energy and the Environment and objectives ofDEduc's Energy Use and the library energy exhibits scheduled for Kauai were Environmentguidefor grades K-12. canceled due to widespread damage caused by >,<:,)~, Hurricane Iniki. In addition to the 18,146 energy information publications and 16,445 promotional items distributed at various energy exhibits and fairs during National Awards for Hawaii's Communication the year, more than 46,500 publications were either Programs mailed to or picked up by teachers, students, the general public, representatives ofcommunity organi­ Three DBEDT communication/energy zations and the military. education projects placed first at the annual National Energy Program Managers' Conference held in

/ COMMUNICATION AND EDUCATION The Energy Extension Service on the Island of The December 5,1992, workshop at Kailua High Hawaii (HEES) reached approximately 1,500 School wasattended by teachers, a principal and fifth students (preschool through college) and 820 grade students from Kaelepulu, Keolu and Maunawili teachers with classroom lectures, workshops, elementary schools. "liff}' ~ conferences and special courses. An additional 300 [}l" teachers and students phone?for as,s,istanceorcame $'iIbjectscovered included energy use in Hawaii, into the HEES office to make use ofeducational en~~gy sources, renewable versus nonrenewable resources such as the curriculum library and energy resources,pr()ject planning and public videotape collection.j'Fhroughthe loan ofvideotapes speaking. Participants' evaluations ofboth and other instructional materials and help with workshops were overwhelmingly favorable to the scheduling ene:gy-related field trips, hundredsof objectives, organization, activities and presentation of other students were provided with energy infor­ the workshops. Three additional workshops are mation in their classrooms. scheduled for 1993, two ofwhich may be on the Neighbor Islands.

DBEDT along with the UH-Hilo Center for National Energy Education Development ,.Continuing Education and Community Service and Project tb.e·energy offices ofKauai, Maui and Hawaii Counties co-sponsored a series offive one-hour inter­ The NEED Project is a natiorialnetworkof active 1V shows entitled Saving with Solar Water students, educators, community, industry and Heating, Solar Electric Power for Your Home, government leaders formed to initiateand enhance Redesigning Hawaii's Electrical Future, Racing with energy education in the nation's schools. Using "The Powerful Sun" and Your Energy-Conscious energy as an interdisciplinary theme,NEED Home. These one-hour Energy Spotlights programs programs develop student leadership skills, analytical were broadcast on public access cable stations on and critical thinking, public speaking, peer teaching, Fridays during October. The programs were also project planning and self-evaluation techniques. viewed in specially equipped classrooms statewide via the Hawaii Interactive Television System operated As part of the NEED program, a six-day byUH. conference was held in July at the UH-Hilo Campus. The Energy Education and Leadership Training Formal classes for professional credits continued Conference, entitled Power Trek, was the first ofits to be offered to teachers on the Island ofHawaii by kind to be offered on a Pacific region basis. DBEDT's HEES. A three-eredit course, Adventures Approximately 60 students and teachers from Hawaii, in Energy Education, provided an overview ofenergy Guam and the Northern Marianas attended the subjects, field trips, and a variety ofgames and conference. Conference attendees were trained in activities which could be used in the classroom. This more than two dozen teacher-tested NEED activities course is offered each summer to educators. and prepared plans for energy education workshops for their schools for the 1992-1993 school year. In September, East Hawaii teachers were offered a one-credit course, Fun with the Sun, which focused on solar energy. In addition to orienting educators to solar technology applications, the educators had Educational Conferences and Workshops the opportunity for hands-on experience with Two energy education workshops held on Oahu working solar devices. Games, songs and other engaged teachers and students in NEED-related classroom activities were also introduced. This class activities which included the dissemination of is scheduled to be repeated in West Hawaii in early teaching materials, information and publications on 1993. Hawaii's energy situation.

On November 21, 1992, the workshop at Moanalua High School was attended by teachers and Curriculum Development students from Farrington High School, Iolani School, DBEDT is developing the Statewide Energy Moanalua Intermediate School, Punahou School and Education Program (SWEEP) to assist students from St. Andrew's Priory for Girls. kindergarten through 12th grade in becoming more cognizant of their energy usage and the energy usage

COMMUNICATION AND EDUCATION Em ofothers; to help them realize the importance of encouraged to participate in the annual DBEDT's careful energy consumption and development; and Statewide Poster Contest on Energy. The theme for to spur them to make the State more energy secure. 1992 was The Great Hawaiian Energy Challenge. More than 1,000 poster entries were received from SWEEP is designedtoprovide'the best available 237 teachersrepresenting 79 schools. Thirteen hands-on energy education activities in the winners received awardsfor their handiwork in a classroom. It includes effective lessons frommariy' ceremonywithLt. Governor Benjamin Cayetano at sources and compiles them in separate grade-level the Governor's Office on August 7. Each student modules. Included with each lesson are background receiveda$50 U.S. Savings Bond from DBEDT, a $50 information; teaching strategies; practical, hands-on merchandise.certificate from Town & Country Surf, activities; student assessments; and a reference list. and a Certificate ofAchievement Award from the

A renewable energy c~~~~c).llumfor secondary grades is also being deyel()p~dwiththe cooperation ofDBEDT and DEduc, and will be incorporated into SWEEP. This curriculum focuses on Hawaii's indigenous, sustainable energy resources and tech­ nologies with hands-on experiments simulating renewable energy resources. The students will use critical thinking and problem solving techniques in making decisions required by the exercises.

Resource Teacher Position A resource teacher position was filled in August. The teacher, a liaison between DBEDT and DEduc, is on loan for one year and will work on energy curriculum development, the NEED Project, school Femari Gasllos, 1st grade, was one of the winners Statewide Poster Contest on Energy. presentations and other energy education-related activities for Hawaii.

Recycling Association ofHawaii. The winningentries were also used toward the development of two 30: Statewide School Poster Contest on Energy second commercials produced by Island Television and Hawaii Energy lide Calendar KITV-4 for their Earthday, Everyday Program. Public and private elementary and secondary The contest was co-sponsored by Island school students throughout the State were Television KITV-4, Town and County Recycling Association ofHawaii and DBEDT. The 13 winning posters are featured in the 1993 Hawaii Energy Tide Calendar, another educational publication of DBEDT. The posters were also displayed at Pearlridge Center in September, Kahala Mall Shopping Center in October and Windward Mall in November.

EIJ COMMUNICATION AND EDUCATION

II CONTINGENCY PLANNING

Contingency planning for dealing swiftly and effectively with disruptions in energy supplies continues to be a major concern ofDBEDT. During 1992, existing emergency preparedness plans were reviewed and updated to meet current conditions.

DBEDT actively supported HB 3134, an Administration initiative relating to energy emergency response. This bill was signed into law as Act 182-92 by the Governor onJune 12, 1992. Act 182 provides for biennial energy emergency planning in which State and County plans are coor­ dinated and made consistent. It also clarifies conditions under which monies may be expended from the Petroleum Products Control Fund. It appropriates significant funds for State energy emergency planning and additional funds for each County to develop its own energy emergency plan consistent with the State plan.

INTERISLAND SHIPMENTS OF HEAVY FUEL OIL

Early in 1992, the State's two interisland shippers 90 PERCENT OF ITS ENERGY NEEDS, HAWAII ofheavy fuel oil announced they were discontinuing shipments from Oahu to the Neighbor Islands in order to avo'id far-reaching financial liability under the U.S. Oil Pollution Act of 1990 and the State Environmental Response Law. Heavy fuel oil is used LACKS INDIGENOUS FOSSIL FUEL RESOURCES OF in sugar plantation and other power plants for generating a significant portion of electricity on the Neighbor Islands.

Faced with a potentialenergy crisi~causedby the ITS OWN. THE STATE'S MID-PACIFIC LOCATION shippers' actions, DBEDT developed statistical data for the ERC and the Office ofthe Governor on inter­ island heavy fuel oil shipments,consumption, storage and infrastructure. Response strategies for the ERGand the Governor's consideration were REQUIRES DELIVERY OF ALL FOSSIL FUEL prepared afidsubmitted.

DBEDTsupported passage ofAct 130-92 provides untilJune 30, 1996, a liability cap at level ofavailable insurance coverage ($700 million) SUPPLIES IN SHIPS OVER THOUSANDS OF MILES for interisland shipments offuel oil. Italso provides untilJune 30, 1993, payment by the electric utilities to their contracted power producers using high­ priced alternate fossil'fuels. It authorizes the PUC to allocate costs statewide when rates OF OCEAN WATERS. increase by 15 percent or more when such allocation emergency/essential services be included in the is deemed to be in the public interest. present State Fuel Set-Aside Program.

Petromarine Hawaii Ltd., inJune 1992, began Legislation is currently being drafted to propose negotiations with Hawaii Tug and Barge (HT&B) to this modification to the energy emergency purchase its fuel barge and assume HT&B contracts preparedness statute (Chapter 125c, HRS) for the for transporting fuel oil. Although the arrangements upcoming legislative session. Current Administrative have not yet been completed, HT&B has stated it rules provide for a five percent set-aside ofall other intends to continue transport offuel oil to users on fuels for government allocation during an Maui and the Island ofHawaii for at least the life of emergency. The study recommends aviation fuel set­ their contracts with HELCO and MECO asides offive percent for jet fuel and ten percent for in December 1993. aviation gasoline. The rules will be modified based on this recommendation, contingent on legislative In December 1992, DBEDT approval for.aviationfuel set-aside. an in-house study of the impacts ofState/Federal oil carrier liability as called forby House Concurrent Resolution 283-92. REGIONAL PETROLEUM RESERVE "'9""'_'): ". >-"1< DBEDT continued to work closely with Hawaii's AVIATION FUEL INDUSTRY STUDY Congressional delegation and the U.S. DOE to facilitate establishment of a Regional Petroleum A study ofthe aviation fuel industry in Hawaii as Reserve in Hawaii. it relates to energy emergency preparedness was completed and published in August 1992. The study On the Federal level, DBEDT continued its recommends that aviation fuel (including bothjet efforts for a Hawaii Regional petroleum reserve and, fuels and aviation gasoline) used for as an interim measure, seeking "guaranteed access"

Oil tanker offloading crude oil to the PRI refinery at Campbell Industrial Park.

Ell ENERGY EMERGENCY PREPAREDNESS for Hawaii to the U.S. Strategic Petroleum Reserve • Provided media support - news releases and and to loading facilities in the event ofa shortage. interviews on fuel availability; Unfortunately, these provisions were stricken from • Conducted post-disaster assessments as part of the 1992 National Energy Policy Act before its the State's Hazard Mitigation Plan; and approval in October 1992. A concurrent effort by • Developed proposals that could assist KE with Hawaii is to participate in a U.S. DOE three-year pilot financing alternatives for system restoration and project ofrefined petroleum product reserves. reduce the impact on KE's ratepayers.

DBEDT continued discussions, on the local level, with both industry and military. HECO has agreed, in principle, to provide a 300,000-barre1 tank location at Campbell Industrial Park for possible use in the three-year Refined Product pilot project.

Talks with local military commanders were conducted to identity military petroleum storage facilities considered excess to the military's needs. Storage facilities declared by the military to be surplus to their needs and totaling 862,000 barrels were toured. Follow-up discussions with the military continued.

HURRICANE INIKI

According to the Federal Emergency Management Agency, Hurricane Iniki, with sustained winds of 130 miles per hour (mph) and gusts to 160 mph when it struck Kauai on September 11, 1992, was the strongest hurricane in at least 90 years to hit the State of Hawaii. For perspective, during Hurricane Andrew in August 1992, Florida Power and Light Company experienced a loss ofapproxi­ mately two percent ofits transmission and distribution system. However, on Kauai, Iniki destroyed approximately one-third ofKE's trans­ mission and distribution system. This is believed to be the most devastating proportional damage to an energy utility by a single natural disaster in the history of the United States.

To support Kauai's response and recovery efforts following Iniki, DBEDT provided assistance to Kaual County, Hawaii State Civil Defense and the energy companies serving Kauai as follows:

• Provided information and coordination regarding fuel distribution, fuel availability and energy utility recovery efforts via daily Energy Situation Reports; • Expedited urgent shipments ofequipment and materials to support rapid restoration of wholesale and retail fuel distribution; • Furnished response action advice and support;

ENERGY EMERGENCY PREPAREDNESS Ell 1m ApPENDICES World Energy Reserves and Resources

Estimates ofthe future availability ofworld crude oil and natural gas are based upon current estimates ofworld reserves and resources. Reserves as commonly defined are the "Proven Reserves," oil and natural gas that is known with a good degree of certainty to exist and can be recovered under present economic, operating, and technical conditions. Resources are undiscovered recoverable oil and gas resources thought to exist in geologic strata favorable for crude oil extraction.

Because these data are based upon estimation andjudgement, large shifts in these estimates occur as experts modify their estimates. Estimates ofworld crude oil and natural gas reserves in January 1992 and published in Oil & GasJoumalreveal the following: [1]

Over 66 percent of world crude oil reserves and over 30 percent of world natural gas reserves are in countries surrounding the Persian Gulf.

The 13 OPEC countries control over 77 percent ofthe world's crude oil and over 39 percent of the world's natural gas resources.

The United States controls less than three percent of the world's crude oil and about four percent of its natural gas reserves.

[1] Data published in Oil & GasJoumal, December 28,1991.

ApPENDIX A Ell ..

World Crude Oil & Natural Gas Reserves January 1, 1992

Country Crude Oil Natural Gas or Region (Billion bbl) Percent (Tril cu £1) Percent

NorthAmerica 83.2 8.4 337.5 7.7 Canada 5.6 0.6 96.7 2.2 Mexico 51.3 5.2 71.5 1.6 USA 26.3 2.7 169.3 3.9

Central & S. America 68.5 6.9 167.0 3.8 Venezuela 59.1 6.0 110.0 2.5 Other 9.4 0.9 57.0 1.3

West Europe and North Sea 14.5 1.5 178.5 4.1

MidEast Abu Dhabi Iran Iraq Kuwait Saudi Arabia Other

Africa Libya Nigeria Other

Far East, Oceania India Indonesia Malaysia Other

East Europe, China other Communist areas Former USSR China Other

TotalOPEC WORLD TOTAL

Source: Oil & GasJournal, Dec. 31,1990.

Em ApPENDIX A Nation and Hawaii

In 1991 the United States as a whole depended upon petroleum for about 40 percent ofits energy needs, proportionately about the same for the previous year. Coal and natural gas supplied 23.1 and 24.4 percent respectively. Nuclear supplied about 8 percent and hydroelectricity about 3.8 percent. In addition, wind, geothermal, biomass and other energy sources accounted for 0.3 percent. In 1991, Hawaii

In contrast to the national average, Hawaii in 1991 depended upon oil for depended upon petroleum for over 91 percent ofits energy needs. Biomass, used mainly by sugar over 91 percent ofits plantations to generate electricity and industrial steam, contributed over six percent. Biomass in the energy needs. form ofmunicipal solid waste in 1991 also included a large amount ofelectricity generated by the City & In contrast, the national County ofHonolulu's municipal waste to energy facility. Solar water heating, hydroelectricity, wind, average was just over and coal made up the remaining 1.4 percent. 40 percent. ".,

PRIMARY ENERGY CONSUMPTION, UNITED STATES & HAWAII 1991 Percentage by Energy Source

ApPENDIX A Em :q

Nation and Hawaii

Hawaii is unique among the 50 states in that over 91 percent ofits energy comes from oil. Geographically isolated, Hawaii cannot draw power from neighboring states. It has no conventional energy resources such as oil, coal, or natural gas, but must import every barrel ofoil it uses and must have the physical plant and means to meet all its energy needs. In addition, tourism, the largest component ofHawaii's economy, is dependent upon airline transportation. Jet fuel alone accounts for almost 31 percent ofthe state's total energy consumption.

On a state by state basis in 1990, the latest year for which individual state data are available, Hawaii had the highest dependence upon petroleum, over 91 percent. Rankingjust below Hawaii in oil dependence were Maine, New Hampshire, and Connecticut at about 66,63 and 59 percent respectively. Typically the northeastern states tend to have the greatest oil dependency.

Hawaii's oil dependence is

the highest ofall 50 states

and Washington D.C.

P 100% 91%

e

GG% r 83% - 59%

c -

- e -

n - -

t 0%_ -

Petroleum Dependence by State: 1990 Percent of total energy use

Source: United States Department ofEnergy, Energy Information Administration; State Energy Data Report, 1960-1990.

E& ApPENDIX A DiLLdiLI Primary Petroleum Consumption by Sector: United States and Hawaii, 1991

Hawaii, like the United States as a whole, consumes over 60 percent ofits oil for transportation purposes. However, in contrast to the rest ofthe nation, over 37 percent ofHawaii's oil consumption goes to air transportation as compared to only 9.5 percent nationally. Over 50 percent ofthe nation's oil consumption goes to ground and water transportation compared to only 23 percent in Hawaii. Over 31 percent ofthe state's oil is used for electricity generation. In the nation as a whole, only about four percent ofits oil is used for electricity generation. Coal is by far the dominant fuel in contrast to Hawaii where oil makes up 90 percent ofthe electricity sector's fuel.

Petroleum Consumption by Sector: United States and Hawaii, 1991

ApPENDIX A Em Electricity Production, Nation and Hawaii

In 1991, the United States depended upon oil for about four percent ofits electricity generation. Coal was used to generate about 55 percent ofthe nation's electricity with nuclear, natural gas and hydroelectricity supplying 22,9, and 10 percent respectively.

In stark contrast to the nation as a whole, petroleum was used for over 90 percent ofHawaii's electricity. Biomass, mainly from sugar plantations but also from municipal solid waste, was used to generate over 8 percent ofthe state's electric power while the remaining two percentcame from hydroelectricity, wind, geothermal, and other sources.

Hawaii Electricity Production: 1990 and 1991 (Thousand kWh)

[1] Includes Honolulu solid waste electricity generation. *1£ss than O. I percent. Source: Department of Business, Economic Development & Tourism records.

United States Electricity Generation by Utilities: 1990 and 1991 (Million kWh

[1] Includes biomass, wind, geothermal, PV,and other sources. Source: U.S. Department of Energy, Monthly Energy Review, October 1992.

Em ApPENDIX A n When compared to other states, electric utilities in Hawaii and the District ofColumbia depend on oil to supply practically all their electric needs. Massachusetts, third ranked, depends on oil for just under 38 percent ofits electricity. The United States as a whole is only about 4.2 percent dependent on oil to supply its electricity. This chart illustrates the Of50 states and D.G, two including Hawaii are over 90 percent dependent on petroleum for electricity wide range ofoil generation, nine are between ten percent and 38 percent dependent, six are between one and eight dependency for electricity percent dependent and the remaining 34 states depend on oil for less than one percent oftheir generation among states. electricity. In general, most states rely on coal for electricity generation and, in fact, the United States All states use oil for this as a whole used coal to generate about 55 percent of its electricity in 1990 and 1991. purpose but states that use

less than 0.19 percent do

not show a bar because of

the scale ofthis chart.

P 100%

90.2% e --

- r - c - . - e - - n 1 4.2% - I. 1I1.~ t %- ••_-

Oil Dependency of Electric Utilities

ApPENDIX A 1m Electricity Generation by Source: 1991 United States and Hawaii

In 1991, over 90 percent ofHawaii's total electricity production depended on oil. In contrast, the nation as a whole used oil for only four percent ofits electricity production. Coal accounted for over halfthe nation's electricity output.

Electricity Generation by Island: 1991 (Area of bars are proportional to electricity generation on each island)

Reliance on oil for electricity generation varies from island to island, ranging from total dependence on Lanai and Molokai to a low of67 percent on Kauai.

7,138,557 MWh p 100% e

r c e n

t 0% OAHU MAUl HAWAII KAUAI MOLOKAI LANAI

Oil .. Biomass D Hydropower • Other

III ApPENDIX A In 1991, electric utilities in Hawaii generated about 80 percent of the State's demand. Electricity generated by plantations and other private companies accounted for the remaining 20 percent, most ofwhich was sold to the electric utilities under contract. Petroleum was used to generate 90 percent ofHawaii's electricity, biomass including municipal solid waste supplied almost 8.5 percent while the remaining two percent came from hydroelectric, wind and other sources. This heavy reliance on oil varies widely from island to island ranging from 100 percent on Lanai to a low of67 percent on Kauai.

Electricity Generation by FuellYPe or Source, Hawaii: 1991 (Thousand kWh)

7,138,557 6,729,082 399,191 o 10,284 o o 493,677 330,257 110,540 52,880 o o o 892,488 686,421 157,308 22,419 19,261 7,079 o

Electricity Generation by FuellYPe or Source, Hawaii: 1991 (percent)

(1) Includes generation from Honolulu's municipal solid waste plant. (2) PV USA Maui photovoltaic * Less than 0.01 percent.

Source: Department ofCommerce & ConsumerAffairs, Division ofConsumerAdvocacy records; Department of Business, Economic Development & Tourism-Energy Division records.

ApPENDIX A lEI ;

Primary Energy Consumption by Source, Hawaii (Trillion Btu)

.1980 1981:... i 1982" '- . 1983 1984

r=revised; p=preliminary Source: Ll.S.Department of Energy, Energy Information Administration; Department of Business, Economic Development & Tourism.

lEI ApPENDIX A Primary Energy Consumption by Source, Hawaii (Percent by Source)

1965 •. 196 1967 1968 1969./

8.84 0.33 0 0 0 0 8.81 0.27 0 0 0.68 0 8.79 0.40 ·0.06 0 0.47 0 8.91 0.32 0.07 0 0.34 0 8.82 0.28 0.08 0 0.31 0

1985 89.64 8.69 0.37 0.07 0.80 0.06 0.36 0 1986 89.50 8.84 0.39 0.07 0.80 0.22 0.18 0 1987 90.22 7.81 0.34 0.05 0.77 0.29 0.52 0 1988 90.94 7.40 0.32 0.05 0.71 0.14 0.44 0 1989 91.83 6.60 0.32 0.05 0.74 0.13 0.28 0.05

1990r 91.58 5.91 0.35 0.00 0.76 0.09 0.29 1.02 100.00 1991p 91.85 5.68 0.31 0.00 0.73 0.12 0.26 1.04 100.00

r=revised; p=preliminary Source: u.s. Department of Energy, Energy Information Administration; Department of Business, Economic Development & Tourism.

ApPENDIX A II Primary Energy Consumption and Energy Consumption per Dollar of Constant Gross State Product Hawaii: 1960 to 1991

r=revised; p=preliminary Source: Department of Business & Economic Development, Data Book 1990; Energy Division records.

Em ApPENDIX A .n Primary Energy Consumption and Per Capita Consumption Hawaii: 1960 to 1991

1970 : 1971 " 197 197 197

1980 " 1981', .c 1982 ' 1983 1984

r=revised; p=pre1iminary (1) Computed on de facto population. Source: Department of Business, Economic Development & Tourism, Data Book 1991; Energy Division records.

APPENDIX A 1m Petroleum Consumption, Hawaii (Thousand BarTels)

r-revised: p=preliminary Source: u.s. Department of Energy, Energy Information Administration; Department of Business, Economic Development & Tourism.

II ApPENDIX A Electricity Sales & Gross State Product Hawaii: 1960 to 1991

' __~>~'_o~-"i ~ ~;~~~~;C,-_~;;;,,: ~;:-;',;;'~ -:-c:'_*'~:;;-'c/-~~'~-'; , ~~-, . ~~,-"'""""'""..~-,..--~- s ~ "; 51 1960 .' ~~ 5,248,100 1,602,197 580,849 1,021,348 305 I -r- --~j 10.14 1961 ,~ 1,766,031 624,730 1,141,301 336 ..' 5,250,000 .cse 6.83 1962 . '~:J 5,471,000 1,966,105 678,628 1,287,477 359 1963- Of;! 5,606,200 2,077,571 730,317 1,347,254 371 3.12 -r,-":~ 6,167,500 .2,284,275 786,118 1,498,157 370 -0.06 1964 :' --~~ -:~ -~~~;: 1965· 6,714,300 2,445,025 853,086 1,591,939 364 -1.68 -<-;~{ 1966 ", 7,083,500 2,639,866 912,616 1,727,250 373 2.34

1967 .' ~ --rj 7,329,400 2,832,469 989,785 1,842,684 386 3.70 '--1 1968 _. :.f1 7,932,500 3,109,256 1,083,233 2,026,023 392 1.43 1969 . -'-'J~ 8,905,600 3,426,052 1,174,502 2,251,550 385 -1.85

9,324,600 3,758,094 1,270,732 2,487,362 403 4.76 9,806,500 4,167,127 1,375,308 2,791,819 425 5.44 10,464,500 4,562,568 1,493,840 3,068,728 436 2.60 10,982,400 4,867,850 1,581,855 3,285,995 443 1.66 10,948,500 5,113,906 1,635,978 3,477,928 467 5.38

11,596,600 5,334,755 1,676,438 3,658,317 460 -1.51 11,746,400 5,615,210 1,750,618 3,864,592 478 3.91 12,103,300 5,831,610 1,779,314 4,052,296 482 0.79 12,482,900 6,004,891 1,799,024 4,205,867 481 -0.16 12,972,100 6,197,426 1,851,457 4,345,969 478 -0.69

1980 13,690,500 6,345,531 1,852,984 4,492,547 463 -2.98 1981 14,022,500 6,424,016 1,855,837 4,568,179 458 -1.16 1982 13,691,000 6,332,707 1,801,297 4,531,410 463 0.97 1983 14,210,000 6,425,578 1,814,336 4,611,242 452 -2.24 1984 14,637,000 6,606,255 1,837,954 4,768,301 451 -0.19

1985 15,046,400 6,635,158 1,879,027 4,756,131 441 -2.30 1986 15,738,400 7,025,739 1,959,447 5,066,292 446 1.23 1987 16,460,900 7,298,178 2,070,052 5,228,126 443 -0.68 1988 17,797,000· 7,719,029 2,148,275 5,570,754 434 -2.17 1989 19,114,000 7,970,360 2,239,356 5,731,004 417 -3.86

1990r 20,235,000 8,310,537 2,320,550 5,989,987 411 -1.51 1991p 8,524,088 2,385,276 6,118,756 r=revised; p-preliminary Source: Department of Business. Economic Development & Tourism records: Department of Commerce & ConsumerAffairs records.

ApPENDIX A 1m Electricity & Per Capita Electricity Sales Hawaii: 1960 to 1991

" o,,__ ~~_,,_=_c:~~*"~ '<-._-<,x" ,-~--;-"'-.:;,-:,:,,;;--;-~-,."-~- "";:"'"",,,; ,A-c~<-;~\ :...""~____~~o_

651,200 1,602,197 580,849 1,021,348 2,460 668,200 1,766,031 624,730 1,141,301 2,643 10.14 693,600 1,966,105 678,628 1,287,477 2,835 7.25 694,500 2,077,571 730,317 1,347,254 2,991 5.53 711,200 2,284,275 786,118 1,498,157 3,212 7.37

715,400 2,445,025 853,086 1,591,939 3,418 724,600 2,639,866 912,616 1,727,250 3,643 742,600 2,832,469 989,785 1,842,684 3,814 758,800 3,109,256 1,083,233 2,026,023 4,098 778,800 3,426,052 1,174,502 2,251,550 4399

798,600 3,758,094 1,270,732 2,487,362 4,706 6.97 833,100 4,167,127 1,375,308 2,791,819 5,002 6.29 869,800 4,562,568 1,493,840 3,068,728 5,246 4.87 901,300 4,867,850 1,581,855 3,285,995 5,401 2.96 923,700 5,113,906 1,635,978 3,477,928 5,536 2.51

943,500 5,334,755 1,676,438 3,658,317 5,654 2.13 970,300 5,615,210 1,750,618 3,864,592 5,787 2.35 992,300 5,831,610 1,779,314 4,052,296 5,877 1.55 1,014,300 6,004,891 1,799,024 4,205,867 5,920 0.74 1,042,700 6,197,426 1,851,457 4,345,969 5,944 0.40

1980 1,055,400 6,345,531 1,852,984 4,492,547 1981 1,062,500 6,424,016 1,855,837 4,568,179 1982 1,084,600 6,332,707 .. 1,801,297 4,531,410 1983 1,109,300 6,425,578 . 1,814,336 4,611,242 1984 1,130,600 6,606,255 1,837,954 4,768,301

1985 1,138,000 6,635,158· 1986 1,167,500 7,025,739 1987 1,186,600 7,298,178 1988 1,200,600 7,719,029 1989 1,245,500 7,970,360

1990r 8,310,537· 1991p 8,524,088·. ;~ ~'; <~~:'<;:"-_:-:":«~{"~;ii;;-;rc'dL'1-it;;{~',;~-;-- :: --i~ ~:>~' - ' / ' - '~~"".-:,;;<;->--- ='~----iI za ;\lit... r=revised; p=preliminary Source: Department of Business, Economic Development & Tourism records; Department of Commerce & ConsumerAffairs records.

Em ApPENDIX A ,

-State Electricity Sales: 1960 to 1991 Electric Utilities

">j.\ Other ' " ".; ']I,:,:,:",,,,,,,,,,,,, "" _ _'''_'~:','''''",:;i"""~j'"l""',',~,,,,," ,<",::""",",,'

580,849 1,021,348 39,284 17,265 22,019 624,730 1,141,301 42,137 18,153 23,984 678,628 1,287,477 46,282 19,603 26,679 730,317 1,347,254 48,499 20,733 27,766 786,118 1,498,157 52,134 21,971 30,162

853,086 1,591,939 55,472 23,519 31,953 912,616 1,727,250 59,362 24,905 34,457 » -c 989,785 1,842,684 63,685 26,763 36,922 -c ITI 1,083,233 2,026,023 69,599 29,034 40,565 Z o 1,174,502 2,251,550 75,417 31,181 44,236 X » '1,270,732 2,487,362 84,097 34,068 50,028 1,375,308 2,791,819 98,828 38,824 60,005 1,493,840 3,068,728 109,212 42,560 66,653 1,581,855 3,285,995 126,453 48,674 77,780 1,635,978 3,477,928 151,188 57,145 94,043

5,334,755' 1,676,438 3,658,317 215,678 76,881 138,797 5,615,210 . 1,750,618 3,864,592 235,999 83,957 152,042 ...• 5,831,610 '. 1,779,314 4,052,296 271,553 92,917 178,636 6,004,891. 1,799,024 4,205,867 313,722 105,846 207,876 6,197,426 1,851,457 4,345,969 354,595 118,862 235,733

6,345,531 . 6,424,016'. '. '.6,332,707 6,425,578, " 6,606,255

~3~,158.' 1,879,027 ,025,739 ."1,959,447 7,298,178" . 2,070,052 7,719,029 . 2,148,275 7,970,360 2,239,356

",;:~'" 'j." :",. , ,

r-revised; p-prelirnlnary Source: Department ofBusiness, Economic Development & Tourism records; Department ofCommerce & ConsumerAffairs records. Average kWh Use and Average Rates: 1960 to 1990 Electric Utilities

:r:­ ." ." ITI Z C >< :r:-

rerevised; p=preliminary . [1] Note: Consumer Price Index (CPI-U) for Honolulu. 1982-1984 average = 100 Source: Hawaii State Department of Commerce & ConsumerAffairs records. 'I

ENERGY PROGRAM FUNDING (DBEDT Energy Division Program Budget by Technology for the Fiscal Year Ending June 30, 1992)

CAPITAL OIL OVERCHARGE FUNDS FEDERAL GENERAL IMPROVEMENT APPROPRI- DESCRIPTION FUNDS PROJECTS Exxon Stripper Total ATIONS TOTALS ALTERNATE TECHNOLOGIES/RESOURCES

Wind 280,000 0 280,000 Geothermal 275,268 0 275,268 Solar Photovoltaics 7,816 7,816 7,816 Solar Thermal 0 0 » Ocean Thermal Energy Conversion 0 0 "'C "'C Biomass 33,2,820 0 332,820 IT1z Other 0 0 0 >< OJ Total-Alternate Technologies: 888,088 0 7,816 0 7,816 0 895,904 fa CONSERVATION

Buildings 100,000 433,681 482,179 915,860 1,015,860 Transportation 20,000 160,791 681,925 842,716 862,716 Education 27,800 633,420 387,761 1,021,181 70,313 1,119,294 Commercial/Industrial 40,435 40,435 40,435 Integrated Resource Planning 0 Demand-Side Management 108,000 220,000 250,000 250,000 578,000

Total-Energy Conservation: 255,800 220,000 1,518,327 1,551,865 3,070,192 70,313 3,616,305

ENERGY PlANNING

Strategic Energy Planning 65,000 168,000 168,000 619,475 852,475 Energy Emergency Planning 30,000 96,000 96,000 126,000 Regional Petroleum Reserve 50,000 100,000 100,000 150,000

Total-Energy Planning: 145,000 0 364,000 0 364,000 619,475 1,128,475

GRAND TOTALS: 1,288,888 220,000 1,890,143 1,551,865 3,442,008 689,788 5,640,684 Data Source: State ofHawaii, DBEDT-Energy Division, 1992 HYDROELECTRIC POWER PLANTS IN HAWAII

Annual Annual MW Milnon Oil Equiv.* Island Location Stream Capacity kWh 100 Rbi Owner

HAWAII Hilo Wailuku 1.5 7.3 12.2 HELCO Puueo Hilo Wailuku 0.8 5.5 9.2 HELCOPuueo Hilo Wailuku 0.8 5.3 8.8 HELCOWaiau Hilo Wailuku 0.4 1.0 1.7 HELCOWaiau Hilo Ainako 0.1 0.2 Wenco Energy Hawi Kohalo Ditch 0.2 1.5 2.5 Hawi Ag & Energy Waimea Waimea/ Waikaloa Pipeline ** 0.1 0.2 County Hawaii Haina Hamakua Ditch 0.8 3.2 5.3 Hamakua Sugar ** Hilo Wailuku 10.0 34.0 56.7 Wailuku River HydroPower *** Waimea Kahua *** *** *** KahuaRanch

Island Total: 14.5 58.0 96.8

KAUAI Waimea Waimea 1.0 6.9 11.6 Kekaha Sugar Waiawa Kekaha Ditch 0.5 2.3 3.8 Kekaha Sugar Lihue Wailua Ditch 0.6 3.1 5.2 Lihue Plantation Lihue Wailua Ditch 0.8 4.3 7.2 Lihue Plantation North Wainiha 3.7 30.0 50.0 McBryde Sugar Kalaheo Alexander Res. 1.0 4.7 7.8 McBryde Sugar Kaumakani Makawili 1.3 5.1 8.5 Olokele Sugar

Island Total: 8.9 56.4 94.1

MAUl Kaheka Wailoa Ditch 4.5 19.0 31.7 HC&S Paia Wailoa Ditch 0.9 3.0 5.0 HC&S Hamakua Wailoa Ditch 0.4 2.2 3.7 HC&S Lahaina Lauula 0.4 1.6 2.7 HC&S

Island Total: 6.2 25.8 43.1

STATE TOTAL: 29.6 140.2 234.0

* Oil equivalent based on 600 kWh per barrel ofoil. Totals are rounded. ** Facility under construction. Scheduled for completionJune 1993. *** Research facility.

EEl ApPENDIX C FE s ES

WIND FARM POWER IN HAWAII*

Tolal Annual No. 0' Capacity Capacity Oil Equiv. Island Location UnilS Model EachkW MW 1000 Rbi Owner

HAWAII KahuaRanch 18/1 Jacobs 17.5/10 0.3 1.2 Kahua KahuaRanch 3 Carter 25.0 0.1 0.3 Kahua/HNEI Lalamilo 81 Jacobs 20.0 1.6 5.9 HERS Lalamilo 39 Jacobs 17.0 0.7 2.4 HERS South Point 37 Mitsubishi 250.0 9.3 33.8 KamoaWind Energy Partners

Island Total: 179 11.9 43.6

MOLOKAI Moomomi 3 Vestas 100.0 0.3 1.1 Zond Pacific

+ Island Total: 3 0.3 1.1

+ STATE 182 12.2 44.7

* The above table does not include proposed wind projects on the Kahuku, Oahu Wind Farm. HERS has decided to close down this wind farm but has solicited and is evaluating bids from several organizations to take over and operate the wind farm. The wind farm has an installed capacity of 12.2 MW.

+In addition, there are approximately 10 small privately owned wind generators selling power to HELCO. The generators vary in size from 10-27kW.

Annual kWh are approximate, based on 0.25 capacity factor, and will vary with annual wind conditions.

Oil equivalent based on 600 kWh per barrel ofoil. Totals are rounded.

APPENDIX C II ENERGY LEGISLATION ENACTED IN 1992

The following legislation on energy-related subjects was signed into law by the Governor in 1992. Material presented here represents summarized information; for complete details refer to full copies of the Acts.

Act 130 INTERISLAND SHIPMENTS; FUEL OIL. Act 130, Relating to the Environment, provides for a temporary (untilJune 30, 1996) liability cap for the interisland shipment offuel oil at the level of available insurance coverage of$700 million. Also, it provides for temporary (untilJune 30,1993) payment for higher fuel costs to non-fossil fuel producers by the electric utility, and for the Public Utilities Commission to allocate costs to ratepayers statewide when rates increase by 15 percent or more, when such allocation is deemed to be in the public's interest. (Hawaii Revised Statutes (HRS) sections affected: 128D-6; 269-27.2) (HB 1817, SD 1, CD 1.)

Act 182 ENERGYEMERGENCYRESPONSE; PETROLEUM PRODUCTS. Act 182, Relating to Energy Emergency Response, establishes biennial energy emergency planning, whereby State and County plans are coordinated and calls for development ofa communication plan to ensure consistent State and County actions in response to a petroleum disruption. Repeals the provision in the law whereby the Counties are exempt from all or portions of the State's energy emergency . preparedness plans, and clarifies the conditions/process by which monies may be expended from the Petroleum Products Control Fund. (HRS sections affected: 125C-3; 125C-7, 125C-l1.)

Appropriates $130,000 for State energy emergency planning and $120,000 for the Counties' devel­ opment ofenergy emergency plans ($30,000 each). (HB 3134, HD 2, SD 1, CD 1.)

Act 268 DECLARES VOID RESTRICTIONS ON THE INSTALLATION OF SOlAR ENERGYDEVICES BY HOMEOWNERS. Prohibits preventing the owner ofany townhouse or single-family dwelling unit from installing a solar energy device under the terms ofany covenant, provision, condition, codicil or contract. Voids any lease, instrument or contract which prohibits the installation ofsolar water heaters. (SB 3098, SD 1, HD 1, CD 1.)

Act 255 INSTALLATION OF SOlAR WATER HEATERS INHFDC RESIDENTIAL DEVELOPMENT PROJECTS. Requests the Housing Finance and Development Corporation (HFDC) after 1/1/93 to require the installation ofsolar water heating equipment to heat residential water as a condition ofapproval of residential development projects built with State funds, located on State lands, or otherwise subsidized by the State. Requires solar water heating for 30 percent ofthe units approved in 1993, 40 percent in 1994 and 50 percent in 1995. Exempts projects developed on behalf of the Hawaii Housing Authority, multi-unit buildings and when the HFDC determines that conditions render solar heating ineffective or impracticable.

Requires DBEDT to adopt rules with respect to alternate water heating systems that shall be installed in the remaining units not required to have solar equipment.

Requires DBEDT to submit a report to the 1996 Legislature evaluating the overalllife-cycle cost and energy efficiency ofall types ofwater heating systems and solar water heating equipment installed in projects approved by HFDC between 1993 and 1995. (HB 2319, HD 2, SD 1, CD 1.)

Em ApPENDIX D - ACRONYMS

BWS Honolulu Board ofWater Supply CIP Capital Improvement Project DBEDT Hawaii State Department ofBusiness, Economic Development & Tourism DEdue Hawaii State Department ofEducation DLNR Hawaii State Department ofLand and Natural Resources DOH Hawaii State Department ofHealth DOT Hawaii State Department ofTransportation DSM Demand-Side Management EES Energy Extension Service EPA United States Environmental Protection Agency ERC Energy Resources Coordinator ETBE Ethyl Tertiary Butyl Ether EWC East-West Center GASCO The Gas Company H-POWER Honolulu Project ofWaste Energy Recovery HC&S Hawaiian Commercial & Sugar Company HCEOC Hawaii County Economic Opportunity Council HECO Hawaiian Electric Company (Oahu) HEES Hawaii Energy Extension Service HELCO Hawaii Electric Light Company (Hawaii) HEP Hawaii Integrated Energy Policy Development Program HERS Hawaiian Electric Renewable Systems HES Hawaii Energy Strategy Program HFDC Housing Finance and Development Corporation HNEI Hawaii Natural Energy Institute HSEA Hawaii Solar Energy Association HT&B Hawaii Tug and Barge ICP Institutional Conservation Program IRP Integrated Resource Planning KE Kauai Electric kW Kilowatt kWh Kilowatt hour UHEAP Low Income Home Energy Assistance Program LPG Liquefied Petroleum Gas MECO Maui Electric Company mph Miles Per Hour MTBE Methyl Tertiary Butyl Ether MW Megawatt NEED National Energy Education Development Project NEllIA Natural Energy Laboratory ofHawaii Authority OTEC Ocean Thermal Energy Conversion PGV Puna Geothermal Venture PICHTR Pacific International Center for High Technology Research PRJ Pacific Resources Inc. . PUC Public Utilities Commission PV Photovoltaics RLA R. Lynette & Associates SECP State Energy Conservation Program SEGS Solar Electric Generating System SWEEP Statewide Energy Education Program UH University ofHawaii U.S. DOE United States Department ofEnergy WAP Weatherization Assistance Program WEST Wind Energy Storage Test

ApPENDIX E Em DBEDT THE DEPARTMENT Of BUSINESS, ECONOMIC DEVELOPMENT & TOURISM WE'RE IN THE BUSINESS OFHELPING PEOPLL

Prepared by the Hawaii State Department of Business, Economic Development, & Tourism Energy Division

335 Merchant Street, Room 110 Honolulu, Hawaii 96813 (808) 587-3800