HCEI Steering Committee Next Steps in Creating a Clean Energy Economy

July 22, 2012

2

I. Call to Order and Welcome

I. Review and approve minutes for April 12, 2012

II. Chair’s Remarks

II. What Has Been Done

III. Where We Are

IV. Where Do We Need to Be

V. Identify Top Two Systemic Issues in Key Areas

I. Power Generation:

I. Interisland Transmission

II. Permitting

II. End-Use Efficiency:

I. Code Adoption and Metrics

II. Building Retrofits

III. Transportation

I. Need for Aggressive Transportation Strategy

II. Opportunity, Progress and Challenges of EVs

IV. Fuels:

I. Need for Aggressive Public Policy

II. Land and Water Allocations for Biofuels Projects

V. What Have We Not Talked About

VI. IRP

VII. Roadmap

VIII. Communications and Outreach

I. Lunch

I. Department of Defense Perspective

II. What Are We Going to Do

I. Group Discussion

II. Establish Tangible Action Plans

III. Close

HCEI Steering Committee Meeting Agenda

June 22, 2012, 8:30am - 3pm

Liljestrand House

3300 Tantalus Drive

(808) 537-3116

Overview

Stakeholders

Body of Knowledge

Legislative and Regulatory Accomplishments

Permitting Assistance

Project Accomplishments

RPS Status

Transportation Status

Fuels Status

3

HCEI Stakeholders

150+ Stakeholders including: • Government (Federal, State, County)

• Utilities

• Business Interests

• Investors

• Developers

• Transportation Fleet Owners

• Academia & Research Centers (Federal, Hawaii)

• Industry Associations and Community Groups

4

List of Stakeholders

5

Agriculture and Big Landowners

Alexander & Baldwin

Hamakua Springs Country Farms

Grove Farm

Kamehameha Schools

Maui Land & Pine

Auto and EV Industry

AeroVironment

Better Place

Chrysler Corp.

Enterprise Rent-A-Car

Ford Motor

General Motors

GreenCar Hawaii

Hertz

Hyundai

Mitsubishi Motors

National Car Rental

Nissan Motor

Phoenix Motor Cars

Plug in America

Toyota Motor

Biofuels and Waste-to-Energy

Aina Koa Pono

Aluvion EnergiesBioEnergy Hawaii

Cellana

Clear Fuels Technology

Covanta Energy (HPOWER)

General Atomics

Green Energy Hawaii

Hawaii BioEnergy

Honua Power

Hu Honua Bioenergy

Kuehnle Agrosystems

Pacific Biodiesel

Pacific West Energy

Phycal

Building Industry

Castle & Cooke

Gentry Homes

Forest City Hawaii

Pacific Resource Partnership

Development Boards

Enterprise Honolulu

Hawaii Island Econ Dev. Board

Kauai Econ Dev. Board

Maui Econ. Dev. Board

Engineering, Design and Consulting

AECOM

CH2M Hill

Ferraro Choi and Associates

Makai Ocean Engineering

Oceanit

Energy Companies and Utilities

Aloha Petroleum

Hawaiian Electric

Kauai Island Utility Cooperative

MidPac Petroleum

Tesoro

The Gas Company

Energy Efficiency and

Third-Party Admin.

Energy Industries

Hawaii Energy (SAIC)

Federal Government

Department of Agriculture

Department of Defense

Department of Energy

Hotels

Hawaii Hotels Engineering Assn.

Holiday Inn Waikiki Beachcomber

Hyatt Regency Waikiki

Kahala Hotel & Resort

Kyo-Ya

Marriott Maui

Ritz-Carlton Kapalua Maui

International Partners

CCPIT

Cyber Defense Institute

Hitachi

Hyosung

Korea Smart Grid Institute

LG Electronics

Ministry of Knowledge Economy

Mizuho Corporate Bank

Nara Controls

Mizuho Corporate Bank

NEDO

Okinawa Prefecture

Investors

Current Capital and Consulting

Kairos Energy Capital

Kolohala Ventures

Tioga Energy

Local Government

City and County of Honolulu

Hawaii County

Kauai County

Maui County

Nonprofits and RE Advocates

Blue Planet Foundation

Kanu Hawaii

Ulupono Foundation

RE Developers (Nonsolar)

BioLogic Capital

First Wind

Free Flow Power Corp.

Gen X Energy Development

Honeywell UOP

Honolulu Sea Water A/C

NextEra Energy

Oceanlinx

Pattern Energy

Puna Geothermal Venture

Sempra Energy

West Wind

Research and Education

Hawaii Energy Policy Forum

Hawaii Natural Energy Institute

NELHA

PICHTR

UH College of Engineering

UH Community Colleges

UH Center for Smart Building

& Community Design

State Agencies

DAGS

DBEDT

DCCA

DHHL

Department of Agriculture

Department of Transportation

Public Utilities Commission

Solar

Axio Power Holdings

Chevron Energy Solutions

Hoku

Pacific Energy Partners

REC Solar

RevoluSun

Scatec Solar

Solar Power

Sopogy

Sunetic

SunPower

Body of Knowledge

6

8 Reports: RPS, energy resources, GHG, geothermal, hydrogen, bioenergy, ERC, LBE

6 Reports : Bioenergy, Biofuels, Interisland Cable, RE to Displace Oil, ERC, LBE

12 Reports: Interisland Cable, Policy Analysis, Solar Resource, Wind Integration & Resoure, Energy Efficiency, HCEI Permitting Guuidebooks, ERC

8 Reports: HCEI Roadmap, Interisland Cable, Wind Integration, Net Zero Energy, Resource Assessment,

Renewable Power Options, Solar

2008

2009

2010

2011

2012

3 Complete + 9 in development: Programmatic EIS, Energy Storage, Interconnection Standards, PACE Technical and Business Analysis, Geo. Resource Assesment, Smart Inverter Deployment,

Hydrogen for Grid Mang., EAP, Updated Scenario Analysis

46 Reports since 2008

Technical Reports

7

Item Title Authoring Entity Date

1 Energy Resources Coordinator's Annual Report for 2008 DBEDT 2008

2 Hawaii Greenhouse Gas Inventory 1990 and 2007 DBEDT 2008

3 Bioenergy Master Plan Progress Report to Legislature DBEDT 2008

4

Analysis of Geothermally Produced Hydrogen on the Bis Island of Hawaii: A

Roadmap for the Way Forward Sentech, Inc. 2008

5 Draft Hawaii Greenhouse Gas Inventory: 1990 and 2007 IFC 2008

6

Report to the 2008 Hawaii State Legislature - Lead by Example - State of Hawaii

Agencies' Energy Initiatives - FY 2006-2007 DBEDT 2008

7

Report to the 2008 Hawaii State Legislature by the State Facilities Energy

Management Advisory Committe DBEDT 2008

8

Report Pursuant to HRS 196-41 Relating to State Support for Achieving Renewable

Portfolio Standard DBEDT 2008

9 Energy Resources Coordinator's Annual Reprot for 2009 DBEDT 2009

10 Hawaii Bioenergy Master Plan Project Final Report DBEDT/HNEI 2009

11 Hawaii Biofuels Assessment Report Black & Veatch 2009

12 Interisland Cable Ocean Floor Survey - Final Report SOEST 2009

13

Report to the 2009 Hawaii Legislature - Lead by Example - State of Hawaii

Agencies' Energy Initiatives - FY 2007-2008 DBEDT 2009

14

Potential of Renewable Energy to Reduce the Dependence of the State of Hawaii

on Oil NREL 2009

15 Energy Resources Coordinator's Annual Report for 2010 DBEDT 2010

16

Environmental Assessmen/Environmental Impact Statement Preparation Notice

for the Hawai'i Interisland Renewable Energy Program - Wind (HIRREP) DBEDT 2010

17

Notice of Intent to Prepare a Programmatic Environmental Impact Statement for

Hawai'i Interisland Renewable Energy Program - Wind (HIREP) DBEDT 2010

Technical Reports

8

Item Title Authoring Entity Date

18

Clean Energy Policy Analysis: Impact Analysis of Potential Clean Energy Policy

Options for the Hawaii Clean Energy Initiative NREL 2010

19 Kauai, Hawaii: Solar Resource Analysis and High Penetration PV Potential. NREL 2010

20 Hawaii Renewable Energy Permits and Approvals Guidebooks NREL/Sentech 2010

21

Identifying Cost-Effective Residential Energy Efficiency Opportunities for the Kauai

Island Utility Cooperative NREL 2010

22 Hawaii Clean Energy Initiative Existing Building Energy Efficiency Analysis: November 17, 2009 - June 30, 2010.NREL/BAH 2010

23 Clean Energy Policy Analysis: Impact Analysis of Potential Clean Energy Policy Options for the HCEINREL/AWS Truepower 2010

24 HCEI Road Map: 2011 Edition NREL/BAH 2010

25 Oahu Wind Integration and Transmission Study: Summary Report NREL 2010

26

Advancing Wind Integration Study Methodologies: Implications of Higher Levels of

Wind NREL 2010

27 Status and Perspective on big Wind/Cable Project Navigant Consulting, Inc. 2011

28

Oahu Wind Integration and Transmission Study (OWITS): Hawaiian Islands

Transmission Interconnection Project NREL/Electranix 2011

29

Phase 2 Report: Oahu Wind Integration and Transmission Study (OWITS); Hawaiian

Islands Transmission Interconnection Project NREL Electranix 2011

30 Measurement and Modeling of Solar and PV Output Variability, 2011 NREL 2011

31

Renewable Power Options for Electrical Generation on Kaua’i: Economics and

Performance Modeling NREL 2011

32 Kaneohe, Hawaii Wind Resource Assessment Report NREL 2011

33

Targeting Net Zero Energy at Marine Corps Base Kaneohe Bay, Hawaii: Assessment

and Recommendations NREL 2011

34 Differences Between Along-wind and Cross-wind Solar Variability, 2011 NREL 2011

Technical Reports

9

Item Title Authoring Entity Date

35 Initial Economic Analysis of Utility-Scale Wind Integration in Hawaii NREL 2012

36

Hawaii Clean Energy Initiative Scenario Analysis: Quantitative Estimates Used to

Facilitate Working Group Discussions (2008) NREL /BAH 2012

37 Kaupuni Village: A Closer Look at the First Net-Zero Energy Affordable Housing Community in Hawai'iNREL 2012

38 Evaluation of West Hawaii Civic Center’s Transportation & Energy Use NREL

Under

Development

39 Vehicle Technologies Report (Transportation Tools Application), 2011 NREL

Under

Development

40 An Assessment of Plug-in Electric Vehicle Distribution Grid Impacts in Hawaii NREL

Under

Development

41 Programmatice EIS for Undersea Cable

HNEI, USDOE, DBEDT,

National Laboratories

Under

Development

42 Geothermal Resource Assessment DOE

Under

Development

43 Smart Inverter Deployment DOE

Under

Development

44 Hydrogen for Grid Management

Naval Reserach

Laboratory

Under

Development

45 Energy Storage

PUC, Renewable

Standards Working Group

Under

Development

46 Technical/Business Analysis of Critical Energy Issues PACE

Under

Development

Legislative & Regulatory Accomplishments

10

• RE Infrastructure

Program Docket

• Maui County PV/Wind Permit Guide, DSA 18.0

• New home solar hot water heating mandate (HRS 196-6.5)

• Act: RPS revised to 25% by 2020, 30% by 2030; created EEPS (4300 GWh reduction by 2030); allowed EPC contracting

• Act: subdivision exemptions for RE

• Comp. Bidding Framework Docket

• Act: Created $1.05 “Barrel Tax” for HCEI and food

• Act: Gas Co to submit RPS reports

• Decoupling Docket

• Act: Customer sited generation is not “public utility”

• Act: RE includes customer site gen.

• Act: Modifies REFSP to allow biofuel 500Kgal/yr

• Act: Extends subdiv. exemption

• Act: Allows solar on better Ag lands

2008

2009

2010

2011

2012 • Bill: Cable regulation

• Bill: Creates HERA

• Bill: RE allowed for Ag ops

• Bill: Extends end. species taking law

• Act: EV law revision

• Act: PUC to consider diverse fossil fuels

• Act: Removes geothermal subzones

• HRS 201N refined

• C&CH Solar Permit ruling: 2012/INT-1

• Hawaii County Ord. for RE permitting

Open Dockets: • Intragovernmental Wheeling (opened in 2007) • HECO Feed-in Tariff (opened in 2008) • HECO Rule 14H (opened in 2010) • Implementation of Reliability Standards (opened in 2011) • Integrated Resource Planning (opened in 2012)

• HEI/State of Hawaii Energy Agreement

• RE Portfolio Standards Docket

• KIUC Tariff Docket

• Act: Allows solar on Ag lands

Permitting Assistance

Priority Processing

• County, State, Federal Agencies

HSEO Online Permitting Wizard (July 2012)

DOH ePermitting Portal (Public)

DPP Online Building/Electrical Permits (2011)

HSEO/Office of Planning GIS Mapping (2013)

11

RE Accomplishments

12

• Biofuels Plant (110MW)

• AKP, 16MGY

• FIT Tiers 1 & 2

• PPAs: Honua (6.6MW), KWP II (21MW), IC Sun (5MW), PGV II (8MW), KSP II (5MW), Auwahi (21MW), Kapaa PV (1MW), Poipu PV (3MW)

• Kauai Fm Fl, FPA

• Maui Smart Grid

2008

2009

2010

2011

2012

• HECO RFP (200MW)

• PGV II (8MW), KWP II (21MW), Kawailoa (69MW), Auwahi (21MW), Hpower Exp (33MW), KSP I & II (10MW), Honua (6.6MW), Hu Honua (20MW), Castle & Cooke PV (20MW), Hunt PV (5MW), AKP (24MGY), C&C Wind Farm (200MW), KSP I (5MW)

• KIUC Smart Grid Project

• KIUC Hydroelectric projects

• A&B PV (6MW), Anahola PV (12MW), Green E° (6.7MW), Poipu PV (3MW)

• UOP Pilot Plant

• Big Island Biodiesel (5MBY)

• HSWAC (7.7GWh)

• La Ola PV (1.2MW)

• Pub Ben Fee Adm PPAs: Kahuku (30MW), Green E° (130kW)

• General Atomics

• KWP I (1.5MW)

• HNU (16kW)

• HECO Biofuel RFP (42MGY)

• KREP PV (1MW)

• New DSM Programs

• Kahuku (30MW)

• Kapaa PV (1MW)

• Gas Co. Pilot RSG

• PPAs: Kawailoa (69MW), Green E° (6.7MW)

• KFF, FPA

• Kahuku (15MW)

• La Ola 1.2MW)

• Poipu (1.5MW)

• KIUC Smart Grid

• HECO RFP (100MW)

• Waiawa HS (1MW)

• Hawi (1MW)

• KWP II (10MW)

• Kihei Sub (1MW)

• Auwahi (11MW)

• MECO Flow (1.2MW)

• HELCO (2x 248kW)

• A&B (2x 1.5MW)

2013

RPS: 9.2%

RPS: 9.0%

RPS: 11%

RPS: 9.3%

EE Accomplishments

13

• DOE Awarded DBEDT $9.5 million in Energy Efficiency and Conservation Block Grant Funds

• State launches $34M Capital District project

• PUC awards $38M contract to SAIC for Utility EE programs

• DOT signs PPAs for 7 PV systems

• 15 Kauai schools get solar PV systems

• Navy invests $2.2M solar thermal at Pearl Harbor, Hickam

• State DPS invests $25.5 million in retrofits

• UH Community College system plans $32.8 million EE investment

2008

2009

2010

2011

2012

• Castle Med completes $2.3M EE upgrades

• Aiea H.S. installs solar PVs.

Honolulu Museum of Art $1.5M EE

• Hawaii Energy, Forest City launch Energy Smart Initiative

• Waikiki Resort Hotel upgrades chiller plants and cooling towers

• Honolulu Academy of Arts begins EE project

• Honblue retrofits cut usage by 20 percent

EE Savings

14

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2010 2011 Target

2011 PBFA / Other Demand

Management Savings

Prior Years PBFA Savings

Prior Years Utility Savings

Solar Water Heating (PBFA)

Solar Water Heating (Utility)

* Source: HECO

Reporting Entity

2011 PBFA Savings (MWh)

HECO 112,920

Hawaii Energy 157,498

1,365,000

MWh Energy Efficiency Savings Breakdown

1,215,463

960,302

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2008 2009 2010 2011 2015 2020 2030

Sta

te T

ota

l R

PS a

nd

EEPS (

%)

Year

Hawaii RPS Level (2008-2011) by Electric Utility

State Total RPS + EEPS % State Total RPS %

15

RPS Status (includes EEPS)

2030

Goal

2020

Goal

2015

Goal

2010

Goal

17.8% 18.8%

20.4%

24.4%

775 EVs are currently on the road vs. 4,000/year sales goal

• 2-3% hybrid penetration

VMT has reduced since 2007 due to economic downturn

Fleet average MPG is increasing towards target of 25 MPG

Transportation sector maintains current E10 standard

Biofuel sales at the pump data is under evaluation (Booz Allen)

16

775 4000

10000

0 5000 10000 15000

2012

2015

Number of EVs in Hawaii

Actual EVs vs. HCEI EV Goal

Goal

Actual

9,400

9,600

9,800

10,000

10,200

10,400

10,600

2006 2008 2010 2012 2014

Hawaii Total VMT (Millions)

19.3 19.9 20.5 20.3 21.5

0

5

10

15

20

25

30

2006 2008 2010 2012 2014

Average Vehicle Fuel Economy MPG

11% five-year improvement

Target: 25 MPG

Transportation Status

Target: 2% reduction

2010 2011

Biodiesel 7355 106972

0

20000

40000

60000

80000

100000

120000

Barr

els

Hawaii Biodiesel Consumption

Biodiesel demand is growing

HECO is purchasing 3 – 7 million gallons of biodiesel for electricity generation vs 12.6 MGY target

Pacific Biodiesel produced ~1 million gallons in 2011(10% increase from 2010). Current capacity is 2 MGP due to feedstock constrains

E10 standard is maintained

DOD purchasing 90,602 gallons of biofule vs 450,000 gallons target

17

Fuels Status

0

250,000

500,000

DoD Actual DoD Target

Ethanol Biodiesel

450,000

90,602

Military Biofuel Purchases

Ga

llo

ns

E10,

50MGY

Gasoline, 450MGY

Goal is to maintain E10

standard beyond 2015

Estimated Ethanol

Use in E10 Standard

-

2

4

6

8

10

12

MG

Y

12.6 MGY target

Running Monthly Biodiesel

Consumption vs HECO Target