State Energy Efficiency Policy Database

Hawaii's energy efficiency programs provide opportunities for residential, commercial and industrial customers to save energy. Hawaii is currently expanding its energy efficiency efforts. The state signed a Memorandum of Understanding (MOU) with the federal Department of Energy in 2008. This MOU established the Hawaii Clean Energy Initiative, a long-term partnership between Hawaii and the DOE. This partnership will advance energy efficiency and renewable energy in Hawaii with the goal of supplying 70% of the state’s energy needs by 2030.

In 2009, the Hawaii Public Utilities Commission (HPUC) contracted with a third party, Science Applications International Corporation (SAIC), to administer HECO’s programs. The program is now called Hawaii Energy. Kauai Island Utility Cooperative (KIUC) operates its programs independently. Hawaii does not provide natural gas energy efficiency programs.

Hawaii electric utilities saved 113,159 MWh in the 2009/2010 program year. Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.

Links:

• Hawaii Energy Efficiency Program
• Database of State Incentives for Renewables and Efficiency
• Science Applications International Corporation (SAIC)

Summary: Hawaii's Renewable Portfolio Standard requires that utilities in the state generate 15% of their electricity from renewable sources by 2015; energy efficiency may meet a portion of this standard through the end of 2014.  Starting in 2015, all electricity savings from energy efficiency will count towards Hawaii’s Energy Efficiency Portfolio Standard, which sets a long-term energy reduction goal of 4,300 GWh by 2030, equivalent to 30% of forecast sales.

Energy efficiency is included within the definition of “renewable electrical energy” in Hawaii’s Renewable Portfolio Standard (RPS), which was codified in HRS §269-91, et seq., and amended in 2006, 2008, and 2009. The RPS requires investor-owned utilities and rural electric cooperative utilities to use “renewable electric energy”, which includes energy efficiency measures, to meet 10% of net electricity sales by the end of 2010, 15% by 2015, 25% by 2020, and 40% by 2030. The Public Utilities Commission may assess penalties against a utility for failing to meet the RPS, unless the failure was beyond the reasonable control of the utility. Beginning in 2015, electrical energy savings will no longer be able to count toward Hawaii’s RPS, but will instead count towards Hawaii’s Energy Efficiency Portfolio Standard (EEPS).

Legislation enacted in 2009 (HR 1464) established EEPS, which sets a goal to reduce electricity consumption by 4,300 GWh by 2030 (equal to approximately 30% of forecast electricity sales, or 1.4% annual savings). The Public Utilities Commission (PUC) must establish interim goals to be achieved by 2015, 2020, and 2025, and may adjust the 2030 standard to maximize cost-effective energy-efficiency programs and technologies. The PUC has yet to establish rules for the stand-alone EEPS, so the current energy efficiency targets in Hawaii are set in its RPS policy (Docket No. 2010-0037).

Hawaii has no Natural Gas EERS.

Links:

• Authority: HI PUC Order, Docket No. 2010-0037, January 2012
• Authority: HR 1464, July 2009
• Authority: HRS §269-91, December 2003

In July 2009 Hawaiian Electric Company (HECO) transferred administration of its energy efficiency programs to a third-party “Public Benefits Fee” administrator. The governor’s office claimed:  “Moving energy efficiency programs to an independent third party will remove the perceived conflict between the electric utilities' desire to sell more electricity to increase profitability and the desire to implement energy efficiency programs that will decrease electricity sales.”  The third-party contractor (Hawaii Energy) contracted to run HECO's energy efficiency program is compensated by the Commission for satisfactory performance of its contract. (See Hawaii Energy Executive Summary in Annual Report PY 2009) 

The Gas Company (TGC) and Kauai Island Utility Cooperative (KIUC) are subject to the Renewable Portfolio Standard but are excluded from DSM utility incentives. TGC does not currently operate any DSM programs and KIUC has not requested incentives. The most recent bill establishing an Energy Efficiency Portfolio Standard (EEPS) allows the PUC to establish incentives and penalties based on performance in achieving the EEPS.

Links:

• HECO press release