Time for state Energy Office to justify worth

Each state government program exists to carry out a purpose specified by the Legislature. And, of course, each agency charged with managing a program must be accountable to state lawmakers and the public for its work — and spending.

Apparently failing to meet this most basic of job requirements is the Hawaii Energy Office, the agency tasked with leading the way to Hawaii’s goal of reaching 100 percent renewable energy generation. A state auditor report released this month found that, for starters, the office lacked documentation that clearly spells out its expected program-related contributions toward clean energy and other goals, and that the agency could not provide data supporting progress in recent years.

It’s possible that the Energy Office is flailing in its transformation from one that mainly handled outreach and training matters to a larger operation funded, in part, with more than $37 million from the American Recovery and Reinvestment Act of 2009. Even so, it’s a good bet that any agency unable to adequately articulate how it’s effectively and efficiently tapping state resources is wasting taxpayer money.

The influx of federal stimulus funds prompted the Energy Office to expand its staff from 20 in 2009 to 35 in 2012. Three years later, Gov. David Ige signed into law a bill that directs utilities to generate all of their electricity sales from renewable energy resources by 2045 — an ambitious mandate for the most petroleum-dependent state in the nation.

The Energy Office’s personnel costs now account for more than 90 percent of the office’s expenses, and in fiscal year 2016 expenses exceeded its revenue by nearly $600,000.

Addressing the agency’s overall status, the audit rightly noted: “The Energy Office needs to better define its mission, role, and priorities in the state’s energy independence effort, and together with the governor and the Legislature determine if the state can afford to pay for this effort.”

In a response, the state Department of Business, Economic Development and Tourism (DBEDT) said it has taken steps to cut costs in the Energy Office that include delaying hiring, closing out contracts and limiting travel and training. DBEDT Deputy Director Mary Alice Evans also took issue with some audit findings, maintaining that it did not acknowledge provided documentation of ongoing efforts. Regardless, the report was packed with examples of fumbling:

>> There was a cart-before-the-horse flub, in which the office awarded a $250,000-plus contract to plan a “state-of-the-art” energy innovation center last year, then seven months later commissioned another consultant to assess whether that center — envisioned as a showcase site for developing energy-saving policy and initiatives — is actually needed. The matter remains fuzzy.

>> A 2014 $500,000 contract with a nonprofit focused on “growing Hawaii’s next generation of innovators” in renewable energy technologies, but the audit found it yielded no evidence of correlation or connection to advancement of the state’s green-minded goals.

Perhaps most cringe-worthy was a survey commissioned by the Energy Office itself, which included interviews with over 45 energy industry stakeholders at 33 organizations. It found entrepreneurs and clean energy businesses operating in Hawaii were generally unfamiliar with the office, and did not generally see it as “highly relevant.” Further, the audit said, it was perceived as a “somewhat deskbound institution that does not interface with other players in the field.” Ouch.

With the state’s clean energy law in place, amid stops and starts, a transition to a fuller, homegrown renewable portfolio that promises to better the islands’ economy, environment and energy security is underway. In coming months, state lawmakers must scrutinize the value of the Energy Office in making strides toward the law’s 2045 goal.

A course correction is needed. The agency should heed the audit’s recommendations for establishing financial plans for opera- tional sustainability as well as a call to update a strategic plan created in 2012, underscoring why the state should not pull the plug on the Energy Office’s future. Office’s future.