That’s the analysis from Rocky Mountain Institute, which praised Republican Gov.Linda Lingle's Energy for Tomorrow bill. RMI's 2004 study, Winning the Oil Endgame, a ground-breaking business-lead strategy for ending U.S. oil dependence, detailed a comprehensive list of policy actions that would accelerate society's adoption of efficient technologies and biofuels, and move America into a post-oil era. Lingle's bill, announced Thursday, is a comprehensive energy policy package that incorporates many of RMI's policy recommendations.
"This bill embraces Winning the Oil Endgame's strategy to reduce oil dependence through efficiency, renewables, and biofuels while strengthening the economy through agricultural revitalization," said Kyle Datta, RMI senior director of research and consulting, who coauthored the report. "We knew that energy leadership had to come from the state-level, but Hawaii, with the highest energy prices, a 90 percent dependence on oil for energy, and few traditional energy options, could become a test lab for redesigning our entire nation's energy architecture on a state-by-state basis."
According to Datta, who has worked on dozens of energy policy initiatives and efficiency projects in Hawaii, the state has never seen such a broad-ranging and comprehensive suite of policies aimed at ending the state's addiction to oil. The increase in oil prices since 2002, has, he said, cost the state over $1 billion. While Hawaii has no fossil fuel resources, it has the full portfolio of renewable energy resources. RMI will be working with the state to provide an energy strategy and implementation plan.
The "Energy for Tomorrow" bill establishes a framework of measures to encourage and support market-based development of reliable, cost-effective, and self-reliant energy systems, according to RMI. The bill's five major components include:
• Savings through efficiency
• Independence through renewable energy
• Fuels through farming
• Security through technology
• Empowering consumers."
The bill calls for the creation of a public benefits charge that will be used to directly fund efficiency and distributed renewable energy through an independent third party. The approach is based on Vermont's efficiency utility, Efficiency Vermont, which was created to implement energy efficiency services and programs. Today, Efficiency Vermont has achieved twice the national average in energy savings of other states' efficiency programs, while Hawaii currently achieves roughly half the national average.
The bill also contains provisions that strengthen Hawaii's renewable portfolio standard, setting it at 20 percent and explicitly tasking the public utilities commission with defining a methodology for valuing the long-run benefits of renewable power in reducing fossil fuel risk. The bill also calls for sharing the fossil fuel risk between the utility and its ratepayers.
A Democratic majority energy package also under consideration mirrors the call for state leadership in energy efficiency by requiring LEED (Leadership in Energy and Environmental Design) silver certification, and providing significant funding for energy efficiency in state buildings and photovoltaics in schools. The critical innovation is the Pay As You Save (PAYS) pilot program that provides a revolving fund to finance solar water heating for low-income residents that is paid back through energy savings.
This bill, Mr. Datta noted, would be good for Hawaiians, good the environment, and good for business. Implementation of all the conservation, renewable energy, and alternative transportation fuels components of this package, he said, are expected by the year 2020 to displace 110.5 million barrels of imported crude oil, saving Hawaii's consumers $6.32 billion; and avoiding 48.9 million tons of carbon dioxide emissions.
