Hawaii Hydrogen Implementation Working Group Meeting

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Hawaii Hydrogen Implementation Working Group Meeting November 24, 2015
FTZ Conference room #9
Stan Osserman (HCATT), David Rolfe (Hawaii Auto Dealers Assn.), Mitch Ewan (HNEI), Dave Rodrigues
(DOT)
Jeff Finch (Aloha Petroleum)-joining via phone
Meeting called to order: 9:21a
Stan: Thanks attendees and goes around the room to make introductions. Identifies the major agenda
item of the day: to review the draft report to legislature (the draft)-highlight changes suggested from
last meeting, discuss additional proposed changes and make final call for amendements
Revisions from last meeting:
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Relief for non-attainment status: Suggestion is to ask CODEL to seek a new status designation
for Hawaii. There was consensus that seeking a designation unique to Hawaii would be
preferred as opposed to seeking exemptions under current FTA designation. Dave Rolfe (DR)
highlighted the history of Hawaii and it’s purposeful decision to be a non-ZEV (non-zero
emission vehicle) state and how an exemption could potentially negate Hawaii’s efforts to
remain non-ZEV). –This will be incorporated into the report
Role of state government and Governor’s office: a diesel-electric hybrid vehicle discussion
should be had to encourage this type of hybrid as a stepping stone to fuel cell electric vehicles.
This type of hybrid is 80% “there” on the way fuel cell electric vehicle. Request to add
information asking Executive branch to support all hybrid vehicles with a firm goal and or
statement. –This will be incorporated into the report
o DR: if we encourage hybrids, we can use the same fuel, with a common infrastructure to
encourage the transition to a renewable fuel transportation sector. The success of this
campaign will be indicated by the level of public awareness. DEDICATED
MARKETING/PUBLIC AWARENESS CAMPAIGN WILL BE PIVITOL TO SUCCESS.
“Off the pump” Tax replacement scheme:
o DR: the gas tax will be around well into the next century as complete elimination of
fossil fuel use for transportation is unlikely to be seen in this century, so although it is
important to think of another form of revenue for the State Department of
Transportation (to fix the highways), it may not be an imperative tax policy discussion
right now.
o Stan: this section will be reviewed and amended accordingly.
Economic impact of fossil fuels:
o Stan: the report needs to show the economic impact of importing fossil fuels to Hawaii.
Report will address the dollars that leave Hawaii to purchase fuel that are not
maintained in the Hawaii economy because businesses are off shore. Renewable fuel
use that is locally produced can make a HUGE impact on the economy. The HIWG
intends to ask the legislature to commit resources to studying an analyzing this impact.
o DR: would like to include the graph from figure 2 in this section of the report (and would
like to revise it to include additional graphics). The Hawaii Clean Energy Initiative (HCEI)
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goals are off by a factor of ten. A goal that could be realized with concentrated
communication/information outreach strategy (communication campaign) would be
40,000 (at best). The projected savings would be close to 13 million gallons per year
(fossil fuel reduction, from the widespread voluntary compliance of the auto industry
and consumers in Hawaii-no ZEV state designation needed). Dave’s information
reflected in the graphs (which will be in the in appendices) is the compilation of about
400 work hours and depicts graphic representations of petroleum use and reduction
projections and electric vehicle adoption projections.
Historic information/data presentation:
o SO: Mitch Ewan’s revisions highlighted sharing historic information about HCEI and the
formulation of the Hydrogen Implementation Working Group (to include legislation
review and original working group plans).
Use of National Labs for needed research:
o SO: Will add a paragraph that asks the State Legislature to request National Labs study
with Dept. of Energy funds to better understand market adoption of H2 vehicles and
other price point/economic impact concerns. Greg Moreland suggested that the
working group request study bills from the State Legislature.
o DR: A study applying the “Scarf Algorithm” to Hawaii’s market adoption of H2 vehicles
would be useful in identifying the projected adoption timeline.
o DR: A study on ZEV state mandates and the REAL impact not only on the market, but
the environment as well (i.e. is the system more a cap and trade system that does not so
much impact fuel consumption as much as it shifts the costs and fuel use to different
uses?)
o DR: National Labs could be used to do a study on the adoption of natural gas as a bridge
fuel versus a commitment clean hydrogen.
 SO: clean H2 should be a mandate for the state, but private sector can proceed
as practicable
Interstate collaboration with California:
o SO: Will propose in report that Hawaii Department of Transportation (DOT) connect
with the Port of Long Beach, CA to share best practices on how they are transitioning to
clean harbors. This port is a huge port with which Hawaii regularly does trade and they
are implementing fuel cell technologies in their clean harbors initiative.
o SO: Also Hawaii Department of Commerce and Consumer Affairs could be brought into
the hydrogen implementation discussion as licensing responsibilities will fall to this
agency. Permitting efficiency will be important as infrastructure plans are implemented.
Involving this office in the early phases will be important. Are there lessons learned that
can be adapted to Hawaii?
 i.e. drawing the line between commercial enterprise and home use of an
electrolyzer (how much is too much explosive force?)
Appendices:
o Items proposed to be included in the appendices- Original house bill, Dave Rolfe’s
graphs, original hydrogen plan (Mitch Ewan), Department of Energy (DOE) production
projection (still awaiting approval to include), energy market analysis, call for other
items..
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ME: DOE has adoption rate info that could be mined for info specific to Hawaii, also
HNEI projects, HCATT projects and perhaps Blue Planet projects could be added.
Last mention items:
o ME: we must be realistic about H@-it is still expensive, and the technology still needs
advancement. We should qualify that research is still needed
o SO: “We didn’t get out of the stone age because we ran out of stones”-Roy McCallister
 Stan will work closely with Mitch and HCATT team to complete report by
deadline (Nov. 30, 2015)
o Lynda from State Energy Office will follow up w/ Mark and Chris for additional
comments (if any) and will communicate with Stan to incorporate at needed
o Next meeting to develop leg strategy projected for mid –December. Exact date will be
posted on state calendar when determined.
Meeting adjourned at 11:05a
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