Cutting reliance on oil urged
A panel of consultants and analysts pushes for passage of bills to reduce energy imports
With gas prices at $3 a gallon and crude oil prices near record highs, a consortium of energy experts, consultants and policy analysts is urging lawmakers to take the last needed steps to adopt legislation aimed at reducing Hawaii's dependence on imported oil.
Energy-saving proposals
A look at some measures in the state Legislature aimed at reducing the dependence on imported oil and promoting the use of alternative energies in Hawaii:
» Renewing and extending existing tax credits to promote the use of certain solar-thermal and photovoltaic energy systems in homes and businesses.
» Establishing a pilot project to install photovoltaic energy systems at public schools on Oahu, Maui, Kauai and the Big Island.
» Promoting construction of energy-efficient structures by speeding up the permitting process for development projects that incorporate certain energy efficiency standards.
» Establishing a pilot project that would provide financing to help make residential solar hot water systems more affordable.
» Setting up a renewable hydrogen program and setting aside money to help spur investment in developing hydrogen power systems.
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Although the Hawaii Energy Policy Forum has not taken a position on the gas cap, the group's co-chairman said the high price of gas in Hawaii and nationwide serves as notice of how reliant we are on fossil fuels.
"We're starting to see that our energy security is very shaky, especially here in Hawaii with our dependence on imported fossil fuels," said Mike Hamnett, who also is executive director of the Research Corporation of the University of Hawaii. "We're just going to have to wean ourselves off (oil).
"There's insecurity in the Middle East that can cause tremendous spikes in price, and we're not out of the woods in the Middle East at all."
Lawmakers are poised to pass legislation in some form that supporters say would be significant steps toward reducing the islands' dependence on oil and promoting the use of alternative fuels. The legislation notes that the state relies on imported oil for 90 percent of its energy needs.
Critics say the measures that are still alive -- House Bill 2175 and Senate Bill 2957 -- do not go far enough.
Rep. Cynthia Thielen (R, Kaneohe-Kailua) supported the Senate bill as it passed through the House, but urged colleagues to consider including a key provision of Gov. Linda Lingle's package of energy proposals. The provision would have allowed the Public Utilities Commission to remove Hawaiian Electric Co.'s fuel adjustment clause, which allows the utility to automatically pass the cost of higher oil prices onto consumers.
Passing along the cost to consumers gives the utility no incentive to try to reduce its use of oil, Thielen said in a recent floor speech. Hawaiian Electric officials have told lawmakers they make no profit on the fuel adjustment and that the company is working on alternative energy projects such as wind farms and garbage-to-energy plants.
Lingle's proposals stalled in committee.
Members of the Energy Policy Forum say they are pleased with what has advanced so far, noting that many of the proposals contained in the two bills were adopted from a 10-point plan developed by forum members at a summit in 2004.
Another key measure is contained in House Bill 1021, Hamnett said. That measure would give the Public Utilities Commission greater authority in hiring analysts and legal assistants.
"Those are the people that provide the analysis to implement our energy strategy," Hamnett said. "The Public Utilities Commission is very important. It's not very visible, but it's an important piece to this whole process."
The Hawaii Energy Policy Forum is composed of representatives from 43 public and private-sector groups.