(Mock Testimony) Statement of Scott Black representing HAWAII A MODERN PARADISE FOUNDATION before the HOUSE COMMITTEE ON ENERGY & ENVIRONMENTAL PROTECTION and SENATE COMMITTEE ON ENERGY AND ENVIRONMENT Tuesday, November 25, 2008 1:30 p.m. Capitol Room 309 in consideration of HSB 2 RELATING TO RENEWABLE ENERGY PORTFOLIO STANDARDS Dear Chair Morita, Chair Gabbard, and Members: I represent Hawaii A Modern Paradise Foundation. HAMPF works to increase the quality of life on Oahu by harmonizing Hawaii’s promise of paradise with the realities of the modern age. HAMPF is fully behind the statement made by Governor Lingle when she stated at the October 20, 2008 signing of the Energy agreement, “seventy percent by 2030 [from renewable electrical energy] is a bold but reachable goal. Hawaii cannot afford to make small incremental energy changes in a world that is rapidly changing, we need to take giant strides.” I am here testifying on renewable portfolio standards. This bill proposes to modify current law, HRS § 269-92 (2008), on the basis of two new documents expressing Hawaii’s commitments to end its dependency on fossil fuel. The new commitments are expressed in: (1) Memorandum Of Understanding between The State of Hawaii and the U.S. Department of Energy, January 2008 (MOU), and (2) the Energy Agreement among the State of Hawaii, Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, and The Hawaiian Electric companies, October 2008 (Agreement).1 A Renewable portfolio standard, (RPS), means the percentage of electrical energy sales that is represented by renewable electrical energy.2 Hawaii’s current RPS are set in HRS § 269-92 that has a goal of “20 percent of Hawaii’s net electricity sales being produced by renewable energy by 2020. Specifically § 269-92 states, “(a) Each electric utility company that sells electricity for consumption in the State shall establish a renewable portfolio standard of: (1) Ten percent of its net electricity 2008 Environmental Law Class – Mock Legislative Hearing – Scott Black – Testimony November 25, 2008. Page 1 of 2 sales by December 31, 2010; (2) Fifteen percent of its net electricity sales by December 31, 2015; and (3) Twenty percent of its net electricity sales by December 31, 2020.” The proposed amendments adjust Hawaii’s goal to 70 percent of net electricity sales being produced by renewable energy by 2030, in a similar tiered scheme. (a) Each electric utility company that sells electricity for consumption in the State shall establish a renewable portfolio standard of: (1) Ten percent of its net electricity sales by December 31, 2010; (2) Fifteen percent of its net electricity sales by December 31, 2015, with no more than thirty percent of the Hawaiian Electric utilities’ total RPS may come from imported biofuels consumed in utility-owned units; (3) Twenty-five percent of its net electricity sales by December 31, 2020; and (4) Forty percent of the Hawaiian Electric utilities’ total RPS must be provided from renewable sources by December 31, 2030. We support this bill because the need for electrical energy is a reality of the modern age. The replacement of fossil fuel power generators with renewable electrical energy generators will increase the quality of life in Hawaii by; creating a new industry, decreasing harmful fossil fuel emissions, and keep billions of dollars from leaving the state increasing Hawaii’s self-sufficiency. Hawaii will benefit from the development of a new industry. Hawaii’s dependence to a tourist economy is showing its weakness during this current global financial crisis. Tourism is down and continuing to decrease. Hawaii’s stated commitment to renewable energy production will create an industry that will be independent from tourist economy pressures. Hawaii will also benefit from decreasing harmful fossil fuel emissions from electrical energy power plants. Hawaii is suffering from the emissions of burning fossil fuel. Hawaii’s environment is fragile Hawaii is currently paying $5-$7 billion a year to purchase imported oil. Renewable electrical energy will make Hawaii more self-sufficient and decrease that financial drain on the State’s economy. The new RPS are bold giant strides toward energy production on Hawaii and will help to realize the promise of Hawaii as a modern paradise. Thank you for the opportunity to provide this testimony. 1 Energy Agreement among the State of Hawaii, Division of Consumer Advocacy of the Department of Commerce and Consumer Affairs, and The Hawaiian Electric companies (Oct. 20 2008). 2 HRS § 269-92 (2008) 2008 Environmental Law Class – Mock Legislative Hearing – Scott Black – Testimony November 25, 2008. Page 2 of 2