How much money is generated by the public benefits fee from electric ratepayers, and how does your office use it?
The public benefits fee surcharge is collected as a fee on electric bills from Hawaiian Electric Co. customers and is managed by the Hawaii Public Utilities Commission (PUC). The total amount of money generated fluctuates each year as it is dependent on the surcharge percent established by the PUC and the total amount of electricity sales. The surcharge has ranged from 1-2% since its inception.
The Hawaii Energy program is funded through the Public Benefits Fee. Our mission is to empower island families and businesses to make smarter energy choices to reduce energy consumption, save money and pursue a 100% clean energy future. We encourage and reward practical energy-saving decisions with rebates and other forms of financial assistance, and we also provide technical assistance and training — all to increase the adoption of energy-efficient equipment.
What residential energy-savings programs have been successful, or seem promising?
We have seen tremendous energy savings from high-efficiency water heaters. Many may not realize this, but water heating can be one of the largest parts of our energy use in the home. In Hawaii, solar water heating, which harnesses the sun’s energy to heat water so your water heater uses less electricity to do the same work, is an excellent option. We have seen tens of thousands of systems installed over the last two decades.
More recently, we’ve seen growing interest in grid-interactive water heating, where special controls are added to a standard electric or heat pump water heater so that they can communicate with and be a resource for the utility grid. Grid interactive water heaters can be turned on and off, or ramped up and down, to help balance load across the islands. This is becoming increasingly important as we transition to 100% clean energy.
How would you approach encouraging more adoption of EVs?
The adoption of electric vehicles is critical to reducing greenhouse gas emissions and fossil fuels imports. Our program is focused on supporting the growth of the public EV charging network on all islands, as mandated by Act 142 passed in 2019 and Act 75 passed in 2021.
As the administrator of the state’s EV Charging Station Rebate program, we have seen how incentives can be the catalyst when property owners and facility managers decide to install EV chargers for customers or employees to use. The passage of Senate Bill 2720 by the state Legislature is a good step in supporting the rebate program.
Our focus is making charging accessible to those who can’t plug in at home, including renters, apartment/condo dwellers, and businesses with fleets. We want to work with organizations like AOAOs, developers and property managers to find solutions and educate them about the benefits and available incentives.
How much money is set aside for the new rebates for businesses that install energy storage systems, and what is the goal of the program?
Through our Power Move Commercial Energy Storage program, we hope to distribute $2.7 million in incentives for businesses to install energy storage systems over the next two years.
Storage is an energy solution that provides resilience and other benefits to both customers and the electricity grid. After the sun goes down in Hawaii, grid capacity becomes constrained because we lose much of our renewable generation.
The Power Move program incentivizes large energy users to reduce electricity demand in the evening and, in turn, support grid capacity. This is particularly important as we face the retirement of Oahu’s coal-generating plant starting this fall. With energy storage, customers can store electricity generated from solar during the day and either use it or dispatch it to the grid in the evening.
Besides solar, what else do you see as key to a clean- energy future?
Smart buildings will play a critical role in our clean energy future. According to the UN, currently the built environment generates 38% of the global CO2 emissions. In order to drive down emissions and accommodate more renewables, we need to be smarter about how and when energy is used.
Often referred to as “Grid-Interactive Efficient Buildings (GEBs),” buildings are becoming clean and flexible energy resources. GEBs combine smart, connected devices with energy-efficient and flexible loads. When done correctly, GEBs can lower customer bills, improve productivity and enhance comfort.
Bonus question
Where are new minimum- efficiency standards needed most?
Appliance and equipment standards specify the minimum energy and/or water efficiency levels of specific products. Many large household appliances — like refrigerators, washers and dryers — are regulated by national standards. Action at the state level has historically been the catalyst for national policy.
In 2019, the state Legislature passed House Bill 556, signed into law as Act 141, which established the state’s first-ever minimum efficiency standards for certain products — computers and computer monitors, faucets, showerheads, sprinklers and certain fluorescent lamps. The standards for those products are expected to save Hawaii residents and businesses up to $537 million in cumulative utility bill savings over 15 years.
By continuing to adopt additional minimum efficiency standards at the state level, Hawaii can fill in the gaps on household products that aren’t regulated by the federal government.
THE BIO FILE
>> Title: Executive director, Hawai‘i Energy.
>> Experience: Deputy director since 2015; previously coordinated reef education and water-quality monitoring, Kohala Center.
>> Education: Bachelor of arts in environmental studies, McGill University; master of science in geographic information and technology, University of Southern California.
>> Family: Mother to two daughters, ages 9 and 5.
>> Fun fact: Used to be on a roller derby team on the Big Island — my alias was “Global Warning.”