Hawaii would be the first state to wean itself off of all fossil fuels by 2045 under legislation signed by Gov. David Ige and praised by advocates as groundbreaking for the state and the rest of the world.
"It’s an historic day not only for Hawaii, but truly for the globe," Jeff Mikulina, executive director of the Blue Planet Foundation, said Monday after a bill-signing ceremony in the governor’s office. "Hawaii is really setting out a leadership position here and setting a goal of 100 percent renewable by 2045."
Ige signed four bills aimed at advancing Hawaii’s renewable-energy goals, including House Bill 623, which sets a standard of 100 percent use of energy from renewable sources such as wind and solar by 2045.
Other measures would designate a coordinator and working group to promote the expansion of hydrogen-based energy in Hawaii (HB 196); require the University of Hawaii to establish a collective goal of becoming net-zero with respect to energy use — producing as much energy as it uses — by 2035 (HB 1509); and establish a community-based renewable-energy program (Senate Bill 1050).
"It really does keep Hawaii at the forefront of energy policy," Ige said afterward. "We’re the only state in the country committed to a 100 percent renewable future for electricity generation.
HOUSE BILL 623
Sets a standard of 100 percent use of energy from renewable sources such as wind and solar by 2045
HOUSE BILL 196
Designates a coordinator and working group to promote the expansion of hydrogen-based energy in Hawaii
HOUSE BILL 1509
Requires the University of Hawaii to establish a collective goal of producing as much energy as it uses by 2035
SENATE BILL 1050
Establishes a community-based renewable-energy program
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"If you put it into context, every other state is connected to each other, and so their energy futures are interrelated. … In Hawaii we’re not connected to anybody else, so this really is a commitment to sustainability and self-reliance."
Among the measures still pending is SB 359, which expands the so-called "barrel tax" on imported fossil fuels such as oil, propane and liquefied natural gas but carved out a special tax break for coal that was sought by industry lobbyists.
Lawmakers this year had proposed to expand the reach of the barrel tax — $1.05 per barrel on all oil imported into the state — with new language to impose a new levy on synthetic gas, liquefied natural gas, propane and coal based on their capacity to generate energy.
AES Hawaii Inc., which produces about 20 percent of Oahu’s power at any given time by burning about 700,000 tons of coal per year at its plant in Campbell Industrial Park, was exempted from the new "BTU tax" until its current power purchase agreement with Hawaiian Electric expires in 2022.
Ige said he continues to study all measures passed by the Legislature ahead of his July 14 deadline to veto or approve all bills passed in the 2015 session. The governor must notify the Legislature by June 29 of any bills he intends to veto.
"We have been going through the bills," Ige said. "We’ll be engaging the advocates for the ones that we have concerns on, trying to get a better understanding and share the concerns.
"The aspiration is 100 percent renewable, and signing House Bill 623 today commits the state to that future," he added. "Obviously, lots of things will happen between now and 2045 in terms of making decisions about what is cost-effective for the consumer and the ratepayer as we progress toward 100 percent. So we’ll be looking at that bill (SB 359) in the context of what makes the most sense."
Advocates said despite the temporary exemption, the tax would be imposed on coal eventually, making it a good piece of legislation overall.
"We need all of our policies to play together if we’re setting this high goal of 100 percent," Mikulina said. "We have to have all those pieces of the puzzle working together."
He said SB 359 is the first step toward establishing a true "carbon tax" in Hawaii, to further spur renewable energy. Barrel tax proceeds are distributed among state environmental protection and cleanup programs as well as state programs to promote clean energy, reduce the use of fossil fuels and promote local agriculture.
"I don’t think we want him to veto it," Mikulina added. "It’s not a step backward, for sure, it is a small step forward, but we’d like to take the full step and include coal as well."
State Rep. Chris Lee (D, Kailua-Lanikai-Waimanalo) said the Legislature can always revisit the issue.
"Right now fossil fuels like coal and liquid natural gas are not covered by the barrel tax, so if there’s a spill, for example, those companies don’t pay for cleanup and that falls on taxpayers," Lee said. "We moved a bill this year that would close that loophole and make sure that all fossil fuels are covered.
"If we need to come back because the timeline — for coal, for example — is too far off, we can dial it back. But the important thing is that there’s a bill now that would cover all those fossil fuels, because in the long term, along with these bills, we have to be fossil fuel-free in order to save money and protect the environment."
