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88–082 PDF 2014

S. HRG. 113–286 

SUCCESSES AND CHALLENGES OF MEETING 

SUSTAINABILITY GOALS IN HAWAII AND THE 

PACIFIC 

HEARING 

BEFORE THE

SUBCOMMITTEE ON WATER AND POWER 

OF THE

COMMITTEE ON 

ENERGY AND NATURAL RESOURCES 

UNITED STATES SENATE 

ONE HUNDRED THIRTEENTH CONGRESS 

SECOND SESSION 

TO

EXAMINE THE SUCCESSES AND CHALLENGES OF MEETING SUSTAINABILITY GOALS IN HAWAII AND THE PACIFIC, INCLUDING OVERSIGHT 

OF EXISTING ACTIVITIES AND FEDERA-ISLAND PARTNERSHIPS IN ENERGY, WATER, LAND USE, MARINE RESOURCES, AND OTHER SECTORS 

HONOLULU, HI, APRIL 16, 2014 

( 

Printed for the use of the 

Committee on Energy and Natural Resources 

(II) 

COMMITTEE ON ENERGY AND NATURAL RESOURCES 

MARY L. LANDRIEU, Louisiana, Chair 

RON WYDEN, Oregon 

TIM JOHNSON, South Dakota 

MARIA CANTWELL, Washington 

BERNARD SANDERS, Vermont 

DEBBIE STABENOW, Michigan 

MARK UDALL, Colorado 

AL FRANKEN, Minnesota 

JOE MANCHIN, III, West Virginia 

BRIAN SCHATZ, Hawaii 

MARTIN HEINRICH, New Mexico 

TAMMY BALDWIN, Wisconsin 

LISA MURKOWSKI, Alaska 

JOHN BARRASSO, Wyoming 

JAMES E. RISCH, Idaho 

MIKE LEE, Utah 

DEAN HELLER, Nevada 

JEFF FLAKE, Arizona 

TIM SCOTT, South Carolina 

LAMAR ALEXANDER, Tennessee 

ROB PORTMAN, Ohio 

JOHN HOEVEN, North Dakota 

ELIZABETH LEOTY CRADDOCK, Staff Director 

SAM E. FOWLER, Chief Counsel 

KAREN K. BILLUPS, Republican Staff Director 

PATRICK J. MCCORMICK III, Republican Chief Counsel 

SUBCOMMITTEE ON WATER AND POWER

BRIAN SCHATZ, Hawaii, Chairman 

TIM JOHNSON, South Dakota 

MARIA CANTWELL, Washington 

BERNARD SANDERS, Vermont 

DEBBIE STABENOW, Michigan 

JOE MANCHIN, III, West Virginia 

AL FRANKEN, Minnesota 

MIKE LEE, Utah, Ranking 

JOHN BARRASSO, Wyoming 

JAMES E. RISCH, Idaho 

DEAN HELLER, Nevada 

JEFF FLAKE, Arizona 

TIM SCOTT, South Carolina 

MARY L. LANDRIEU and LISA MURKOWSKI are Ex Officio Members of the Subcommittee 

(III) 

C O N T E N T S 

STATEMENTS 

Page 

Abercrombie, Hon. Neil, Governor, State of Hawaii, Honolulu, HI ..................... 2 

Jimenez, Julia Valentino, Roosevelt High School, Mililani, HI ........................... 10 

Lippert, Dawn, Director, Energy Excelerator, (a program of PICHTR), Honolulu, HI .................................................................................................................. 26 

Meguro, Wendy, Assistant Professor, Sustainable Buildings and Community 

Design, University of Hawaii, Manoa, School of Architecture and Sea Grant 

College Program, Honolulu, HI ........................................................................... 30 

Morimoto, Julian Mangadlao, Roosevelt High School, Honolulu, HI .................. 13 

Morita, Hermina M., Chair, Hawaii Public Utilities Commission, Honolulu, 

HI .......................................................................................................................... 21

Pauley, Stephen, M., MD, President, Edwin W. Pauley Foundation, Ketchum, 

ID ........................................................................................................................... 45 

Rue, Harrison, Community Building and Tod Administrator, City and County 

of Hololulu, Department of Planning and Permitting, Honolulu, HI .............. 33 

Schatz, Hon. Brian, U.S. Senator From Hawaii ................................................... 1 

Tam, William M., Deputy Director, Hawaii Commission on Water Resource 

Management, Department of Land and Natural Resources (DLNR), Honolulu, HI .................................................................................................................. 37 

Thiel, Jackie Kozak, Sustainability Coordinator, State of Hawaii, Honolulu, 

HI .......................................................................................................................... 2 

(1) 

SUCCESSES AND CHALLENGES OF MEETING 

SUSTAINABILITY GOALS IN HAWAII AND 

THE PACIFIC 

WEDNESDAY, APRIL 16, 2014 

U.S. SENATE, 

SUBCOMMITTEE ON WATER AND POWER, 

COMMITTEE ON ENERGY AND NATURAL RESOURCES, 

Honolulu, HI. 

The subcommittee met, pursuant to notice, at 1:10 p.m. at the 

East-West Center at the University of Hawaii, Manoa Campus, 

Honolulu, Hawaii, Hon. Brian Schatz, presiding. 

OPENING STATEMENT OF HON. BRIAN SCHATZ, U.S. SENATOR 

FROM HAWAII 

Senator SCHATZ. Good afternoon—the Subcommittee on Water 

and Power is holding a field hearing here in Honolulu. We’re 

pleased to have all of you. 

We are here today to examine the successes and challenges of 

meeting sustainability goals in Hawaii and the Pacific. Hawaii is 

a national leader in sustainability and we want to continue to encourage that strong tradition. We’ll discuss existing Federal-Island 

partnerships in energy, water, land use, marine resources and 

other sectors as well as initiatives by local and State government. 

This weekend the United Nations International Panel on Climate 

Change released a stark report on the need for all countries to 

begin reducing carbon pollution immediately in order to avoid the 

most devastating impacts of climate change. Following its release 

Secretary of State, John Kerry, said this report makes very clear 

we face an issue of global willpower not capacity. Secretary Kerry 

is correct. We have the tools necessary to win this fight. What we 

need is the will, at all levels, to use them. 

Hawaii is one example that the statement is making progress. 

But it is also a place that will suffer if climate change continues 

unchecked. Hawaii’s geographic isolation, limited physical resources, unique ecosystems and growing population create a unique 

set of challenges. 

We need reliable and affordable energy, water, agricultural land 

and other resources that are vital to a sustainable and growing 

economy. U.S. affiliated Pacific Island territories and freely associated States face similar challenges. Most islands currently manage 

or must prepare for projected water shortages, for urbanization and 

changing rainfall patterns, high energy costs due to heavy reliance 

on imported energy, increasing land use conflicts from loss of land 

2 

due to sea level rise and growing populations and control of 

invasive species that made outside effects on fragile island ecosystems. 

To address these and other resource challenges, Hawaii has aggressively pursued a variety of policies to decrease reliance on imported energy, reduce overall energy use, more effectively use limited urban and suburban land and ensure future access to water 

for drinking, agricultural and other uses. 

Hawaii is highly dependent upon imported fuels for energy. In 

2011 the State imported 93 percent of its energy. Like many relatively small islands, uses mostly fuel oil to generate electricity. As 

a result Hawaii has historically had the highest electricity prices 

of any State, sometimes reaching 4 times the national average. 

In order to reduce energy costs and encourage clean energy the 

State implemented a renewable energy goal of 40 percent by 2030 

along with a goal of reducing total energy demand by 30 percent 

by 2030. We are also beginning to pursue strategies to reuse and 

recycle water and to use water more efficiently. Different islands 

in the State confront different challenges and opportunities in 

meeting their energy, water and land use needs. 

The challenges are most acute on Oahu where over 70 percent 

of our State’s 1.4 million residents live. So we must simultaneously 

pursue different energy and resource conservation strategies. Hawaii’s water supplies as well as many other Pacific Island supplies 

are highly dependent upon rainfall and are threatened by increased 

hotter and drier weather, the loss of watershed forests and encroachment by rising sea level. 

Nearly 50 percent of Hawaii’s water supply comes from ground 

water sources and the rest come in from the approximately 376 

streams that flow throughout the year. Ground water, which is also 

used for agricultural, industrial and domestic purposes is the principle source of municipal water supplies in Hawaii. All of these 

characteristics of our State and other island communities mean 

that we have to be especially careful stewards of our precious resources. Decisions we make today, especially as we face a changing 

climate and all that comes with it, will have a major impact on our 

future. 

The goal of this hearing is to understand more deeply the challenges that Hawaii and other Pacific Islands face, highlight our 

successes, identify future opportunities and understand how the 

State can work more closely with the Federal Government to advance its goals. 

We have 2 panels today. 

Our first witness is Governor Neil Abercrombie. Governor Abercrombie will be followed by Mr. Julian Morimoto from Roosevelt 

High School and Ms. Julia Valentino Jimenez from Mililani. 

Thank you all for being here and welcome. 

Governor Abercrombie. 

STATEMENT OF HON. NEIL ABERCROMBIE, GOVERNOR, STATE 

OF HAWAII, HONOLULU, HI; ACCOMPANIED BY JACKIE 

KOZAK THIEL, SUSTAINABILITY COORDINATOR 

Mr. ABERCROMBIE. Thank you. 

3 

Senator SCHATZ. Thank you for being here. Let’s start with you 

and move down the line. 

Mr. ABERCROMBIE. Thank you very much. 

Senator SCHATZ. I’m told to tell you to take 5 minutes for your 

testimony, but I’m pretty sure that staff will understand. 

[Laughter.] 

Mr. ABERCROMBIE. Thank you very much, Senator. It is a pleasure for me to be here with these 2 fine, young people, who are 3 

dimensional embodiment of the future that you referred to. 

I have a copy of the letter that you sent me to me where it says, 

very specifically, please limit oral summation of your written testimony to 5 minutes. So you did, I move. Everybody knows that I 

was coming prepared. 

[Laughter.] 

Mr. ABERCROMBIE. So I thank you very much for that opportunity. A point of fact, I would like to submit for the record, with 

your permission, formal testimony for the field hearing which I 

have before me and would like to summarize if I might. 

Senator SCHATZ. Yes, please. 

Mr. ABERCROMBIE. For you. 

So that I would like to submit. 

I would like to submit as well for the record, with your kind permission, a packet of material which has been shared with the 

President’s Task Force on Climate Change and Resiliency including 

the work of our sustainability coordinator, Jackie Kozak Thiel, entitled, Navigating Change, Hawaii’s approach to adaptation. 

This was, in fact, a report for the first meeting of the State, Local 

and Tribal Leaders Task Force on climate preparedness and resilience in December of last year which we’ve been following up on. 

It includes our resolutions from the Hawaii Invasive Species Council which, I think, directly, again, addresses some of the points that 

you have raised. Our initiative here in the State on the rain follows 

the forest which is our Department of Land and Natural Resources 

approach to water conservation and preservation, if you will, in the 

midst of the global climate change and warming phenomenon. 

Again, with your permission, please? 

Senator SCHATZ. Yes. 

Mr. ABERCROMBIE. Mr. Chairman. 

Senator SCHATZ. These will be a part of the record. 

Mr. ABERCROMBIE. Thank you so much. 

In summary, I would like to in reference to the term, testimony, 

just refer you to page 2, if you have a copy of it there. Just with 

one little reference, if I might that speech to the particular necessities associated with being in the Asian Pacific region. As you 

know and as you are well aware of and as you’ve stated yourself 

on many occasions, we are Island People. We regard the Pacific 

Ocean as not separating us in the Asian Pacific region, but connecting us in the Asian Pacific region. 

If you’ll go to the paragraph on climate change on page 2, you’ll 

notice with, recognizing this, that islands are windows to the future. The State of Hawaii has become the first sub national government to sign onto the Majuro Declaration for Climate Leadership 

along with the U.S. and Pacific Island nations. 

4 

I hope it doesn’t seem presumptuous to other people that a State 

would sign into, sign onto, ask permission to sign onto a national 

treaty, in effect. The Declaration indicates that climate leadership 

is what is necessitated, particularly for island nations and for those 

nations that border the Asian Pacific region. Cite that because we 

do believe that Hawaii is a microcosm for global sustainability 

challenges and solutions. 

When I first ran for office, Senator, in 1974, when I first ran for 

the State legislature, I should say, for the seat which you subsequently occupy, I made water and its conservation the principle 

element of my campaign. At the time it was thought to be an odd 

focus, thought to be a little bit abstract for a local legislative contest, if you will. But I didn’t think so. I thought we were vulnerable. I thought we were vulnerable on the energy side, the food 

side, the natural resource and affordability of all of these aspects. 

So going back then all the way to that time, to the present, this 

has been on the front line of concern for Hawaiians. Climate 

change and global warming has brought this to a higher degree of 

perception, publicly, I think, than ever before. 

So we see, our islands, as a test bed for innovation. We’re very, 

very grateful for the opportunity that you sit on, on this very valuable committee, in terms of its potential benefit for and your opportunity to make genuine progress, not only for our islands, but for 

the nation. 

This enables us to have an integrated approach with that which 

the Federal Government is able to do for our Federal partnerships 

then are key. So we’re committed to action on the Hawaii Clean 

Energy Initiative, on climate change and what we propose for the 

future which the testimony elaborates on at greater length than I 

have time for right now, our Aloha Plus Challenge for Sustainability. 

Back there in 1974 we called it carrying capacity. That’s transformed itself, I guess, in nomenclature to sustainability. It comes 

to the same thing. 

Just let me elucidate a moment or 2 on those 3 elements, our Hawaii Clean Energy Initiative, of which you were a key element 

when you were Lieutenant Governor. 70 percent clean energy by 

2030. The recognition of the oil import crosses of over 4, between 

$4 and $5 billion. 

We propose to be a national leader in energy efficiency. We’re, 

right now, we’re ahead of schedule to meet our renewable goals. 

Our Federal partnerships will help us with a smart grid and storage and transportation elements all associated with that. 

On climate change itself I’ve already mentioned that the President’s Task Force on Climate Preparedness and Resilience. Again, 

I’m aided in this with the very able assistance of Jackie Thiel and 

the various departments of our State government that are committed to that. 

We thank you for your leadership in the Congress on this issue. 

I’m glad in the time that you’ve been there, you’ve been recognized 

for that, not only with your committee assignment, but with your 

chairmanship of the subcommittee. 

This is a priority issue, climate change for Hawaii, across the 

whole Pacific, as I indicated. We are hopeful that the recommendaVerDate Nov 24 2008 12:24 Jun 06, 2014 Jkt 000000 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 G:\DOCS\88082.TXT WANDA
5 

tions that we will be forwarding to the President are—we know 

that they’re the result of activities and action that we’re taking 

here in Hawaii. We think it’s applicable across the nation. 

So we’re taking climate change seriously. We already are experiencing the impacts, that’s for certain. So we want to share what 

we’re able to learn and what we’re able to do with everyone across 

the country. 

Finally, in this area, I mentioned this Aloha Plus Challenge. 

Without going into too much detail, that will be forthcoming in the 

days and weeks to come. 

Your conference yesterday was about making sustainability happen. So leaders have to make commitments to act together to put 

policies into place that provide direction and incentivize. 

So Hawaii was invited by the Global Island Partnership to make 

an international commitment to sustainability. We certainly accept 

that invitation. We’re working with the mayors throughout the, the 

mayors and councils throughout the islands and the chair and 

members of the Office of Hawaiian Affairs to bring that about. 

The Aloha Plus Challenge will set targets for 2030. This goes beyond political. In other words, we’re not trying to make this oriented toward a political timeframe, but rather the timeframe necessary for us to address these serious issues. The Aloha Plus Challenge will deal with clean energy, global food production, natural 

resource management and invasive species prevention, waste production, smart growth and climate resilience and green jobs creation and education. All, I think, clearly the heart of the subject 

matter of the conference yesterday and your hearing today. 

So we’ll be announcing some details with regards to the Aloha 

Challenge, the Aloha Plus Challenge. We’ll be working with the 

public and private sector to—for Hawaii’s green growth. Of course, 

we’re going to support the United State’s Department of State in 

the upcoming United Nations Conference in Samoa on island sustainability. 

So, Mr. Chairman, we have in the written testimony some more 

specific recommendations, a few more general recommendations 

based on my summary. 

We can’t build sustainable futures alone. We know that. We need 

private investment. We need private support. We need public support. We intend to try and bring that about. 

We’re committed, I can assure you, to being a model for integrated sustainability. We invite the Nation and the world to learn 

with us, not necessarily from us, but with us. We want to join with 

everyone as a part of that commitment. 

I want to inform you that we’re working very, very hard. Hope 

to have an answer, perhaps, within a month’s time from the World 

Conservation Congress in 2016. It’s never been held in the United 

States before. I think we’re down to, perhaps, 2 sites. We’ve had 

a very successful site visit from the team from the Conservation 

Congress. This is entirely compatible with the goals of this conference and this hearing. 

But we think that Hawaii has something unique to offer. I hope 

they conclude the same. 

Also, you had yesterday the advantage and the opportunity to 

hear from Nainoa Thompson. The Hokule’a World Wide Voyage, 

6 

Mr. Chairman, I think summarizes what I have to say today. I 

think summarizes what the commitment of everyone here is all 

about. I hope gives a clear direction to the activities associated 

with the past 2 days. 

This is the message of Aloha. This is the message that our diversity in this world should define us rather than divide us as we say 

here. I am happy to be able to recite to those who wonder what the 

message of Hawaii is that the aloha spirit, in fact, unites us as the 

Pacific Ocean unites us as brothers and sisters. That this message 

is something that should be taken not just to our friends and 

neighbors on the mainland in the United States and throughout 

the United States, but it’s one, I think, that can usefully be taken 

to the world. 

As part of the packet then, Mr. Chairman, I’ve included for the 

formal inclusion in the testimony I hope our Aloha law, the State 

law, HRS 5-7.5 which is in fact the Aloha spirit, the kindness, the 

unity, the realness, the pleasantness, the humility and the patience 

expressed with perseverance that represents aloha. I know that 

your activities here today are an expression of that. I thank you for 

the opportunity to be able to present this summary and to share 

with you, not only our State’s priorities, but our aloha for you and 

all you’re trying to accomplish. 

Senator SCHATZ. Thank you very much. 

Mr. ABERCROMBIE. Mahalo, very much. 

[The prepared statement of Mr. Abercrombie follows:] 

PREPARED STATEMENT OF HON. NEIL ABERCROMBIE, GOVERNOR, STATE OF HAWAII, 

HONOLULU, HI 

Aloha Chair Schatz and Subcommittee members. As the Governor of the State of 

Hawai‘i, I thank you for the opportunity to testify about our State’s sustainability 

goals and how existing and new partnerships with Congressional leaders and the 

Federal Government can strengthen our ambitious efforts. 

As isolated islands, Hawai‘i is a microcosm of the sustainability challenges facing 

the planet. We import 80-90 percent of our food and energy, impacting our economy 

more than $8 billion each year. Hawai‘i is the endangered species capital of the U.S, 

and we join other Pacific Islands on the frontlines of climate change. Despite our 

alarming vulnerability, Hawai‘i has a distinct vantage point at the crossroads of the 

Asia-Pacific region and a unique opportunity to serve as a model for integrated, 

whole system solutions to these challenges. Our island perspective and indigenous 

host culture naturally leads to interconnected thinking and collaboration, and we 

are committed to developing nexus solutions for energy, water, waste, agriculture, 

natural resources, and community design. 

Today, I will highlight three major initiatives with strong statewide support that 

illustrate Hawai‘i’s achievements, aspirations, and commitment to action: 

• Excellent early progress on the Hawai‘i Clean Energy Initiative; 

• Our emerging national and international role in climate change leadership; and 

• The Aloha+ Challenge: our shared leadership commitment to build a more resilient, sustainable and secure economy across our islands with six ambitious sustainability targets for 2030. 

Hawai‘i Clean Energy Initiative 

As the most fossil fuel dependent state in the nation with $4.5 billion in annual 

outlays from our historical addiction to oil, clean energy is a matter of security and 

resilience in Hawai‘i. The Hawai‘i Clean Energy Initiative, jointly led by the State 

of Hawai‘i and the U.S. Department of Energy, is a perfect example of how federal 

partnerships have helped to advance our state goal of 70 percent clean energy by 

2030 through 40 percent renewable energy and 30 percent energy efficiency. In 

2013, my Administration announced our commitment to go beyond 40 percent renewable. The clean energy sector has set the pace in Hawai‘i. I am proud to report 

that we are currently at 18 percent renewable, beating our interim 2015 goal of 15 

7 

percent ahead of schedule. With the highest energy costs in the U.S., and as a national leader in energy efficiency and a pioneer in the frontier of renewable energy 

penetration into the grid, Hawai‘i is uniquely positioned to serve as an international 

clean energy test bed and a model of Federal-State and Federal-Island partnerships. 

Climate Change 

Clean energy transformation is paramount for mitigating the impacts of climate 

change. I appreciate the Senate’s leadership on climate change, including the Up all 

Night event in Washington D.C. organized by Hawai‘i’s Senator Schatz and others. 

I have been honored to share Hawai‘i’s perspectives as a member of President 

Obama’s State, Local, and Tribal Leaders Task Force on Climate Preparedness and 

Resilience. At the first Task Force meeting, I presented a special report called Navigating Change-Hawai‘i’s Approach to Adaptation, which outlines our distinct challenges, solutions, and initial recommendations. Every region of our nation is represented on the Task Force, and I assure you that climate change is a priority issue 

for all of us. Governor Calvo of Guam and I have highlighted the special urgency 

of climate impacts on island communities and indigenous populations, including 

more severe storm events, less rainfall and fresh water, proliferation of invasive species, rising temperatures, ocean acidification, and sea level rise. Islands are windows 

into the future. With this recognition, the State of Hawai‘i became the first sub-national government to sign onto the Majuro Declaration for Climate Leadership 

alongside the U.S. and Pacific Island nations. 

Task Force members are developing recommendations for the President to help 

strengthen Federal support for State, Local, and Tribal efforts in disaster management, community health and development, natural resources and agriculture, and 

built systems and infrastructure. Through our Resilient Hawai‘i Forums & surveys, 

we engaged over 1,000 citizens to identify diverse concerns and suggestions. The 

message is clear-the people of Hawai‘i are taking climate change seriously and want 

to see action at every level of government. This is no longer about projections. We 

are already seeing the impacts in Hawai‘i. Ranchers are struggling with drought. 

Our world-renowned beaches are disappearing due to erosion. Federal support is 

critical to help us understand, mitigate, and adapt to the impacts of climate change. 

Hawai‘i’s major recommendations to the Task Force encourage greater flexibility 

for adaptive, place-based responses. We also call for stronger, ongoing horizontal coordination across federal agencies and vertical coordination with State, Local, and 

Tribal governments to ensure cost-effective alignment of proactive efforts and integration of programs. Additionally, in order to make adaptation-planning decisions, 

Hawai‘i and other islands need adequate spatial and temporal resolution for modeling climate projections. Like many islands and coastal states, much of Hawai‘i’s 

critical infrastructure is located along the coast. We will need federal assistance in 

identifying vulnerable assets and strategies for decentralization and relocation. 

Hawai‘i is uniquely positioned to serve as a hub for coordinating domestic and 

international climate change efforts in the Asia-Pacific region. We recommend that 

the East-West Center be considered as a venue for an International Climate Change 

Resilience Forum. As home base to the U.S. Pacific Command, the State of Hawai‘i 

also has the opportunity to build strong partnerships with the U.S. Department of 

Defense for building climate resilience in the region. 

As a Task Force member, I will produce a report of Hawai‘i’s full list of detailed 

recommendations and plan to share them with our Congressional delegation for consideration before the end of the year. 

Aloha+ Challenge—He Nohona ‘Ae ‘Oia-A Culture of Sustainability 

The intent of this hearing is to examine successes and challenges of meeting sustainability goals. The State of Hawai‘i has made sustainability a priority in our 

State Planning Act and incorporated an official definition, goals, and principles into 

law. Last year, I accepted the invitation from the Global Island Partnership to the 

State of Hawai‘i to make an international commitment to sustainability in 2014 and 

to share and learn with other islands. It has been a pleasure to work with our four 

Mayors and the Chair of the Office of Hawaiian Affairs to develop the Aloha+ Challenge, our shared leadership commitment to 2030 targets in clean energy, local food 

production, natural resource management, waste reduction, smart growth, climate 

resilience, green jobs creation, and education. This effort is supported by our State 

Legislature and a cross-section of public and private sector leaders in Hawai‘i Green 

Growth. We plan to formally launch the Aloha+ Challenge in the next few months 

with a joint, statewide commitment to: 

1. Clean Energy—70 percent clean energy, including 40 percent from renewables and 30 percent from efficiency 

8 

2. Local Food—Double the local food production with a goal of 20-30 percent 

of food consumed being grown locally 

3. Natural Resource Management—Reverse the trend of natural resource loss 

mauka to makai by increasing watershed protection, community-based marine 

management, invasive species prevention and control, and restoration of native 

species 

4. Waste Reduction—Reduce the solid waste stream prior to disposal by 50 

percent through source reduction, recycling, and bioconversion 

5. Smart Sustainable Communities—Increase livability and resilience in the 

built environment through planning and implementation at the state and county levels 

6. Green Workforce—Increase local green jobs and education to implement 

these targets 

Federal partnerships and support are crucial to progress on all six targets. I will 

highlight a few key successes, challenges, and opportunities for federal support of 

the Aloha+ Challenge targets. 

Clean Energy 

To guide Hawai‘i’s clean energy revolution, my Administration established a statewide energy policy in 2013 with five key elements: (1) diversifying our energy portfolio; (2) connecting the islands through integrated, modernized grids; (3) balancing 

technological, economic, environmental, and cultural considerations; (4) leveraging 

our international status as a clean energy test bed; and (5) allowing the market to 

pick winners. 

We have a strong start on Hawai‘i’s clean energy transformation, but future gains 

will require even smarter solutions. Continued state and federal investments in 

analysis, planning, and infrastructure are required to catalyze the clean energy revolution. We greatly appreciate our successful MOU with the U.S. Department of Energy, which has provided vital support for Hawai‘i to meet our 2030 statutory clean 

energy goals while reducing greenhouse gas emissions. 

Due to this success, Hawai‘i is keenly focused on removing barriers for renewable 

energy penetration by interconnecting our Oahu and Maui grids and improving grid 

infrastructure at the energy consumer/distribution and transmission levels. It is 

critical to ensure that dedicated funding is continued in order to commit resources 

to both short and long-term initiatives required to achieve Hawai‘i’s clean energy 

goals. 

Partnerships and assistance in the following areas will also help to support 

Hawai‘i’s clean energy target: 

1. Developing definitive, accurate renewable energy resource assessments on 

each island that consider technical constraints, costs, the environment, and 

community support and benefit. 

2. Building a clear set of scenarios based on the island-based renewable energy resource assessments. 

3. Working with utilities to develop methods to address curtailment risk as 

renewable energy penetration forces limitations at the substation, circuit and 

system level. This would include pursuing specific paths towards grid modernization, smart grid—advanced metering infrastructure; storage; alternative 

fuels like natural gas; and submarine transmission. 

4. Developing a transportation plan, starting with a design charrette of local 

stakeholders to assess options for reducing large volumes of petroleum-based 

gasoline, diesel, jet fuel and marine fuels with a focus on policies and actions 

that can be achieved in Hawai‘i through a roadmap and supporting analyses of 

costs, benefits, and sources of funding. 

Local Food Production and Water 

Part of my New Day Plan is to spark an Agricultural Renaissance in Hawai‘i. The 

Waimea Nui Agricultural Complex project, with a Veteran to Farmer program, is 

a great example of our creative Food Self-Sufficiency Strategy in action. The complex will also include a biodigester that will create energy for a kitchen and processing facility where farmers can create value-added products to increase their revenue stream. This project would greatly benefit from additional support from USDA. 

As the emergency drought in California underscores, water and food security are 

vitally linked. Federal partnerships can help us in both increasing our efficiencies 

in agricultural irrigation practices and reclaiming storm water, grey water, and 

rainwater to replace potable water in urban and agricultural applications. 

9 

Invasive Species 

Invasive species are one of the top threats to Hawai‘i’s agriculture, natural resources, and human health. I have directed my departments to effectively work 

across silos through the interagency Hawai‘i Invasive Species Council. We recently 

passed resolutions urging federal agencies to support Hawai‘i’s efforts to strengthen 

biosecurity. The resolutions are attached with opportunities for partnership with the 

U.S. Departments of Agriculture, Interior, and Defense. 

The State of Hawai‘i would also like to be considered as one of the U.S. Department of Agriculture’s pilot sites to create a harmonized national systems approach 

to nursery certification. 

Natural Resource Management 

Healthy forests, wetlands, coral reefs, and other natural ecosystems are critical 

to sustainability and resilience in a changing climate. In 2011, my Administration 

unveiled a plan to replenish Hawai‘i’s source of water through the Rain Follows the 

Forest Watershed Initiative. In 2013, we updated our Ocean Resources Management 

Plan to identify management priorities and interagency implementation actions. We 

need healthy watersheds and reefs to continue to deliver fresh water, absorb greenhouse gases, control runoff and erosion, protect shorelines from storm surge, 

produce sustainable seafood, maintain our unique biodiversity, and provide other 

natural benefits that allow us to survive and thrive in the middle of the Pacific 

Ocean. 

Federal partnerships and support have been critical in matching our state investment in natural resource management, such as the U.S. Fish and Wildlife Service’s 

Cooperative Endangered Species Recovery Fund and State Wildlife Grant program. 

A restoration of these funds (to FY2011 and FY2014 levels respectively) would help 

Hawai‘i to make progress on simultaneously protecting water supply, preserving biodiversity, and preparing for the impacts of climate change through ecosystem-based 

adaptation. 

Waste Reduction 

Solid waste management is a unique challenge in Hawai‘i because we are a geographically-isolated island state. Currently, we import the vast majority of goods 

used in the state, which in turn creates waste that requires management. Hawai‘i 

has developed a variety of innovative waste management systems to address the 

state’s solid waste issues, including development of H-Power (Honolulu Program of 

Waste Energy Recovery), the Deposit Beverage Container Program (HI-5), the Advance Disposal Fee Program for glass, and electronic waste recycling. 

In order to meet our 2030 target of reducing our solid waste stream by 50 percent, 

Hawai‘i needs federal assistance to: 

1. Establish a market for recycled products 

2. Reduce the level of packaging in transported goods 

3. Establish standardized best practices for manufacturing that will create 

less waste 

All these measures would be useful to other jurisdictions that are also working 

to reduce waste. 

Smart Sustainable Communities 

Ninety percent of our state’s population lives on this island. We need to make 

sure that our urban and rural communities are resilient, livable, and age-friendly. 

Transit-oriented development is a central component to sustainable community design and smart growth. Interagency programs like the HUD-DOT-EPA Sustainable 

Communities Partnership should be replicated and expanded to encourage innovation, collaboration, and performance monitoring at a state and local level. In order 

to better incentivize sustainable community design throughout the country, we need 

to better align transportation costs and usage. As the Federal Highway Trust Fund 

decreases from the reduction of vehicle miles travels (VMT) and increased fuel efficiency, we need to transition from a fixed cost system to a variable cost system that 

accounts for VMT. A VMT pricing system could be used in place of the existing gas 

tax system and help to pay for new resilient infrastructure. This approach would 

support performance measures for all modes of transportation and broader community goals that link land use, community design, health, safety, equity, and environmental sustainability. 

Education—Student participation on the witness panel today demonstrates the 

importance of empowering the next generation of leaders through education. We 

need to make sure that our children are obtaining the 21st century skills and multiVerDate Nov 24 2008 12:24 Jun 06, 2014 Jkt 000000 PO 00000 Frm 00013 Fmt 6633 Sfmt 6621 G:\DOCS\88082.TXT WANDA
10 

disciplinary knowledge from pre-school through higher education. This is a key investment in the integrated sustainability solutions of the future. 

Green Jobs—As we strive toward all of these targets, we will create a diversified 

workforce through the economic and entrepreneurial opportunities presented by 

solving these challenges. Hawai‘i is already one of the top states in the nation for 

clean energy job growth. 

Government cannot and should not build a sustainable future alone. Private sector investment, innovations, and partnerships are critical. Government’s key role is 

to reduce risk, increase market reliability, and strategically leverage government 

funding to mobilize major private finance. The combination of clean energy policies 

in the Hawai‘i Clean Energy Initiative and Hawai‘i’s Energy Excelerator is a powerful example of this approach. $10 million in federal funding leveraged over $55 million in private sector investment and resulted in over 400 green jobs. There are 

similar entrepreneurial opportunities in agriculture, natural resource management, 

waste reduction, and green building that would benefit from federal investment and 

incentives. 

Yesterday’s Ascent Conference at the University of Hawai‘i reflects the type of integrated thinking and public-private solutions that are needed to meet the sustainability challenges in Hawai‘i and around the world. Hawai‘i is ready to serve as a 

model of integrated and innovative approaches that can be scaled up for national 

and international benefit. We welcome others to learn with us. 

The Ho ̄ku ̄le‘a, the traditional Hawaiian voyaging canoe, is embarking on the 

Worldwide Voyage to share Hawai‘i’s sustainability message around the globe and 

carry lessons learned from other ports and places with a focus on ocean connections. 

We are working closely with the U.S. Department of State to help represent our 

country at the upcoming United Nations Conference for Small Island Developing 

States focused on island sustainability in September 2014 in Samoa. In 2016, we 

hope to be the first U.S. location to host the World Conservation Congress, where 

we will showcase real progress on all our Aloha+ Challenge targets. 

My Administration is committed to leading sustainability efforts through interagency coordination, public-private partnerships, and strategic investments. The 

State of Hawai‘i sincerely appreciates collaboration with the Federal Government to 

advance our 2030 targets. I thank you for your leadership to elevate the pressing 

issues of climate change and sustainability in Congress and for the opportunity to 

highlight Hawai‘i’s priorities. 

Senator SCHATZ. Thank you, Governor. 

Ms. Jimenez. 

STATEMENT OF JULIA VALENTINO JIMENEZ, ROOSEVELT 

HIGH SCHOOL, HONOLULU, HI 

Ms. JIMENEZ. Good afternoon. 

My name is Julia Jimenez. I’m a homeschooled senior, who has 

had the privilege of being a part of the Schatz Senior program. I’d 

like to thank Chairman Senator Schatz for allowing me to speak 

before the committee today. 

As the next generation to join the work force and venture out 

into the world, we have a vested interest on the issues of climate 

change and sustainability. We see these problems. We see our future. For truly these problems are our future. 

If nothing is done now, it is my generation that will have to pick 

up the pieces. That is why I am here today, to urge Congress to 

address these problems while we still can. For it is much easier to 

move a vase away from the edge than to glue it back together once 

it has been broken. 

Although climate change and sustainability may be important 

issues that are often talked about, I found that people of the community truly don’t understand the depth of the problem. In my own 

circles of family and friends very, very few even recognize that climate change is actually happening. There is a certain ignorance or 

denial that allows people to turn a blind eye. 

11 

Before we can begin to solve climate change and prevent an 

unsustainable future we must recognize that there’s something to 

change and prevent. Congress must partner with the communities 

to make a true difference. In order to do this education must be 

a priority, for citizens and businesses alike. 

I recommend that Congress invest in research on what is the 

best way to reach the communities whether that be through unbiased curriculum in the schools or innovative outreach programs. 

Another recommendation would be for Congress to set up an incentive plan so that companies would be encouraged to educate 

their customers about sustainable technologies. If these environmentally conscious products were introduced into our lives I believe 

it would not only educate citizens but encourage them to take an 

active role in a sustainable future. 

Climate change is primarily caused by greenhouse gases that are 

often caused by the emission of carbon dioxide after its source has 

been used for fuel for certain technologies. Last night former Vice 

President, Al Gore, said a wonderful quote, saying, ‘‘It is like we 

decided to use the atmosphere as an open sewage line for gas 

waste.’’ He also compared the pollution of human kind to releasing 

400,000 Hiroshima bombs in 24 hours. This is why it is up to us 

to keep careful watch of our own carbon footprints as individuals 

and as a Nation. 

A program is being created in Hawaii called Ka Hei. This program allows schools to become environmentally conscious and sustainable while reducing the carbon footprints of the infrastructures 

themselves. This program sets us a clear plan toward sustainability and green energy including the goals of reducing costs in 

255 DOE schools, implementing sustainability and energy efficiency, supporting the goal of 90 percent clean energy by 2040 and 

having more educational opportunities concerning sustainability 

and stimulating the economy through local construction labor. 

Even though this program was created for schools it is not limited to that capacity. 

I would like to recommend for the committee to set in place Federal incentives for companies, offices and schools implement plans 

similar to this. 

Too often do I walk into a government building and see the old 

school lights that hike up electricity costs and the use of desktop 

computers when the use of laptops could save more energy. It is 

for this reason that I would recommend the committee put forth a 

timeline for government buildings to become more cost effective 

and energy efficient and diminish their own carbon footprint. 

When we talk of such massive issues as climate change and sustainability every bit of help counts. If we, as a nation, can commit 

to adapting our infrastructures to be environmentally conscious I 

believe that we can make a true difference in the fight against climate change. 

For years I lived in a city called Bakersfield in California. Bakersfield is surrounded by a horseshoe of mountains where smog 

will come to sit. This created a horrible air quality that actually affected my lung capacity and gave me breathing problems. No one 

wants our beautiful island to become like this nor do we want our 

nation to become like this. That is why climate change is such an 

12 

important issue, not only for our generation, but also for your generation now. 

Thank you again to Senator Schatz for allowing myself and my 

fellow intern to testify today. We are grateful that Congress and 

the committee is dedicated to addressing climate change and sustainability for the actions that you do now will affect our future. 

Thank you. 

[The prepared statement of Ms. Jimenez follows:] 

PREPARED STATEMENT OF JULIA VALENTINO JIMENEZ, ROOSEVELT HIGH SCHOOL, HONOLULU, HI 

Good afternoon. My name is Julia Jimenez and I am a homeschooled senior who 

has the privilege of being a part of the Schatz Seniors program. I would like to 

thank Chairman Senator Schatz for allowing me to speak today before the committee. 

As the next generation to join the work force and venture out into the world, we 

have a vested interest on the issues of climate change and sustainability. We see 

these problems and we see our future, because truly these problems are our future. 

If nothing is done now, it is my generation that will be left to try and pick up the 

pieces. That is why I am here today: to urge Congress to address these problems 

while we still can. It is much easier to move a vase away from the edge then to 

glue it back together again. 

Although climate change and sustainability may be an important issues that are 

often talked about, I have found that people of the community truly don’t understand the depth of the problem. In my own circles of friends and family, very, very 

few even recognize that climate change is happening. There is a certain ignorance 

or denial that allows people to turn a blind eye. Before we can begin to try to solve 

climate change and prevent an unsustainable future, we must first recognize that 

there is something to solve and prevent. Congress must partner with communities 

to make a true difference. And in order to do this, education must be a priority, for 

citizens and businesses. I recommend that Congress invest in research on what is 

the best way to reach the communities, whether that be through more unbiased curriculum in schools or innovative outreach programs. Another recommendation would 

be for Congress to set up an incentive plan, so companies would be encouraged to 

educate their customers about sustainable technologies. If these environmentally 

conscious products were introduced in our lives, I believe it would not only educate 

citizens, but encourage them to take an active role in a sustainable future. 

Climate Change is primarily caused by greenhouse gasses, which are often caused 

by the emission of carbon dioxide after its source has been used as fuel for certain 

technologies. That is why it is up to us to keep careful watch of our own carbon 

footprints, as individuals and as a nation. A program is being created in Hawaii call 

Ka Hei. This program allows schools to become environmentally conscious and sustainable, by reducing the carbon footprint of the infrastructures themselves. This 

program sets up a clear plan towards sustainability and green energy, including the 

goals of reducing costs of 255 DOE schools, implementing sustainability and energy 

efficiency, supporting the goal of 90 percent clean energy by 2040, having more educational opportunities concerning sustainability, and stimulating the economy 

through local construction labor. 

Even though this program was created for schools, it is not limited to that capacity. I would like to recommend for the Committee to set in place federal incentives 

for companies, offices, and schools to implement plans similar to Ka Hei. Too often 

do I walk into a government building and see the old-school lights that hike-up electricity costs, and the use of desktop computers when the use of laptops could save 

more energy. It is for this reason that I would recommend the Committee put forth 

a timeline for government buildings to put in place cost effective and energy efficient measures to diminish their carbon footprint. When we talk of such massive 

issues as in climate change and sustainability, every bit of help counts. If we as a 

nation could commit to adapting our infrastructures to be environmentally conscious, I believe we could make a true difference in the fight against climate change. 

Thank you again to Senator Schatz for allowing myself and my fellow intern to 

testify today. We are grateful that Congress and the Committee are dedicated to addressing climate change and sustainability, as the actions you do now will affect our 

future. 

Senator SCHATZ. Thank you very much. 

13 

Mr. Morimoto. 

STATEMENT OF JULIAN MANGADLAO MORIMOTO, ROOSEVELT 

HIGH SCHOOL, HONOLULU, HI 

Mr. MORIMOTO. Good afternoon. Good afternoon, everyone. 

My name is Julian Morimoto. Before I begin I would like to 

thank Chairman Schatz and the Subcommittee on Water and 

Power today for taking the time to listen to our testimony. I’d also 

like to take this time to acknowledge my fellow interns in the audience. Interns, please wave. Because truly, without them, I would 

not have had the opportunity to be here today and discuss our efforts to create a better future for the State. 

My fellow intern, Julia Jimenez and I, are grateful to be here 

today on behalf of the Schatz Seniors Program to testify on matters 

regarding sustainability efforts. How we, not as individuals, corporations or groups, but as a community, can finally bridge the dismal gap between ourselves and the brighter, greener, more sustainable future. My one wish is that after today we can all step out of 

this building with a clear vision for the future of our country. 

The Schatz Seniors decided to undertake an innovative project to 

create a system that would rank schools in terms of their environmental friendliness. Hopefully once the system is finally complete 

it will serve as a model for schools in other States. We would like 

to share with you what we have been working on and where we 

plan to go with this in the future. 

The purpose is to create an annual, publicized ranking system by 

which we can compare local high schools in terms of their sustainability. We decided that there were 3 main questions that needed 

to be answered. 

One is already being done to rate the eco-friendliness of schools. 

What should we propose be included in such criteria? 

How would we implement such a system? 

We then proceeded to collect information from schools, programs 

and institutions throughout the island. 

The main 7 criteria proposed were energy usage, water waste diversion, educational opportunities, food services, responsible resource management, transportation and campus initiative. 

In addition to these basic ideas some sample questions that 

would be needed to—that would need answers would be other 

courses offered that are dedicated to teaching students about sustainability and environmental awareness, other regular school 

sponsored events promoting environmental awareness and other 

active student led organizations dedicated to sustainable practices. 

It is our hope that this will be implemented in both public, private and charter schools by 2016. 

I present this project to you today in hopes that the Senate will 

take these programs to the next level. Instead of merely implementing them only in Hawaii why not expand and give schools 

throughout the United States the incentive to be greener both on 

campus and off campus. These incentives could include national 

awards and merits and will encourage schools they should want to 

take part in creating a sustainable future. 

At the end of the day by providing incentives and deciding what 

makes up these criteria, the people of the United States will know 

14 

that these issues are important and that our government is dedicated to them, to fixing them. Student engagement is critical to affecting change, developing leaders of the future and creating 

awareness of global, national and local issues also. 

While we support Federal legislation such as Senator Boxer’s 

Carbon Tax bill, we know that that effort will take time. However, 

as Senators, hosting conversations within their States can be done 

now and will make an impact. 

Yesterday former Vice President, Al Gore, spoke to an audience 

of 9 thousand including over 4,000 students. More importantly the 

conversation and excitement continued as the students boarded 

buses and left for over 30 different schools. We strongly encourage 

the Senate to reach out to students and young people and engage 

them in meaningful conversations about sustainability. 

By hosting summits, lectures and community conversations with 

students of all ages changing the vocabulary to explain technical 

and regulatory issues in easy to understand terms and avoiding 

acronyms. 

Giving concrete examples that young people and their families 

can implement regardless of geography and income. 

Keeping the message short and focused. 

Also creating programs such as high school internships, school 

awards, contests that include and inspire students to get involved 

and learn. 

The Gore lecture also proved to be a rather inviting and informative experience. We think that the 2 most important take aways 

are that there is hope. There is statistically significant evidence 

that suggests we are moving in a better direction. Furthermore, 

our actions today will affect the world we live in tomorrow. 

Projects like the Green School Ranking System aren’t just about 

breathing cleaner air and fixing climate change. As leaders it has 

been our obligation to not only better the world of today, but also 

to shape the world of tomorrow. We hope that eventually similar 

systems to the Green School Ranking will soon be implemented in 

other States and serve as sustainability models throughout the 

country. 

Thank you once again. 

[The prepared statement of Mr. Morimoto follows:] 

PREPARED STATEMENT OF JULIAN MANGADLAO MORIMOTO, ROOSEVELT HIGH

SCHOOL, HONOLULU, HI 

Good afternoon everyone! My name is Julian Morimoto, and before I begin I would 

like to thank Senator Brian Schatz, Governor Neil Abercrombie, the Senate Committee on Energy and Natural Resources, and all the witnesses present today who 

took the time to hear our testimonies. I’d also like to take this time to acknowledge 

my fellow interns in the audience (interns please wave to the rest of the audience); 

for without their hard work, I would not have had the spectacular opportunity to 

stand here today and discuss our efforts to create a better future for this wondrous 

state. My fellow intern, Julia Jimenez, and I are gratefully here on behalf of the 

Schatz Seniors’ program to testify on matters regarding sustainability efforts and 

how we—not as individuals, corporations, or groups, but as a community—can finally bridge the dismal gap between ourselves and the brighter, greener, more sustainable future. My one wish, is that after today, we can all step out of this building 

with a clearer vision for the future of our glorious country. 

The Schatz Seniors Program give high school students precious first-hand exposure to the areas of public policy and public administration. For me—and many others—this opportunity has been one of the highlights of my senior year. The program 

15 

has greatly broadened our intellectual horizons, and given us skills we can use to 

continue positively impacting our community for years to come. This year, the 

Schatz Seniors embarked on a revolutionary journey to impact the way schools 

throughout Hawai’i integrate sustainability through curriculum, student-led programs, infrastructure, and community integration. 

The project began when Senator Schatz learned colleges were being ranked in 

terms of their eco-friendliness. In this, he saw opportunity. He wondered if it would 

be possible for such a system to be implemented in Hawai’i to positively impact public educational institutions in the state of Hawai’i. The team captains of this project 

were seniors Erin Carroll, Kara Tanaka, and myself. We decided that there were 

three main questions which needed answers: 

1. What is already being done to rate the eco-friendliness of schools? 

2. What should we propose be included in such criteria? 

3. How would we implement such a system? 

We then proceeded to collect information from schools, programs, and institutions 

throughout the island. The main seven criteria we proposed were: 

1. Energy usage 

2. Waste diversion 

3. Educational opportunities 

4. Food services 

5. Responsible resource management 

6. Transportation 

7. Campus initiative 

I am sad to say, however, that our time as Schatz Seniors is almost over, and 

that we will have to leave the actual implementation of this system to the next 

group of Schatz Seniors; and I hope, that they will learn and grow just as much 

as we did throughout the course of this project. 

I present this project to you today in hopes that you will take programs like these 

to the next level: instead of merely implementing them only in Hawai’i, why not expand, and give schools throughout the United States the incentive to be greener 

both on-campus and off-campus? These incentives could include national awards and 

merits, and will encourage schools nationwide to take part in creating a sustainable 

future. To the senate committee on energy and natural resources, perhaps you could 

also play a part in determining what should be taken into consideration when ranking schools around the nation. At the end of the day, by providing incentives and 

deciding what makes up these criteria, the people of the United States will know 

that these issues are important, and that our government is dedicated to fixing 

them. 

Projects like the Green School Ranking aren’t just about breathing cleaner air or 

fixing climate change. From the time I was old enough to count, my generation has 

always heard, ‘‘You are the leaders of tomorrow.’’ Now, I stand here today, at the 

near-end of my high school career, finally beginning to understand what this meant. 

As leaders, it has been our obligation to not only better the world of today, but also 

to shape the world of tomorrow. My fellow interns and I each had our own reasons 

for taking part in this project, and I will share mine. I took part in this project because I wanted to ensure that twenty years from now, I can look into the pure eyes 

of a child and say, ‘‘You are a leader of tomorrow.’’ knowing that he or she can learn 

and grow to be a remarkable individual in a greener, brighter, and greater country. 

Senator SCHATZ. Thank you very much to the testifiers. 

I’ll start my questions for Governor Abercrombie. 

Mr. ABERCROMBIE. Thank you. 

Senator SCHATZ. Governor, I know you’ve been appointed to the 

President’s Climate Task Force. I wonder whether you wouldn’t 

mind giving us an update on how it’s working, who comprises the 

task force and what their timeframe is in terms of providing a 

work product for some national policy changes? 

Mr. ABERCROMBIE. I would be delighted to do that. 

This is in the packet that I was providing to you. It’s our report 

to the initial conference. The—it covers fresh water coastlines, 

ocean resources, security, culture, sensitivity to culture, actual information decisionmaking context, how to facilitate coordination, 

etcetera. 

16 

It involves, more formally, tribal leaders, mayors, council members, Governors, all across the country to try to address both the 

regional and national conditions and circumstances that are—that 

climate preparedness and resilience. It’s not just a matter of addressing the idea that there is climate change, global warming, for 

which we have to be prepared for what to do in terms of being able 

to be resilient to do it. 

The—there’s been a meeting in Los Angeles and another coming 

up in Iowa. With your permission I’d like to give the opportunity 

to Jackie Thiel to summarize that for you because she is our Sustainability Coordinator. I think it would give you some of the details which show that this more than just a forum or an academic 

exercise, but an opportunity for us to move genuine recommendations forward for legislation. 

Senator SCHATZ. Please, Ms. Thiel. 

Ms. THIEL. Hello, Senator. 

Thank you, Governor, for the opportunity to add. 

It’s been a great honor supporting our Governor in this role. He’s 

one of only 8 Governors that were appointed to the task force. So 

it’s a tremendous opportunity for Hawaii. Actually the Governor of 

Guam is another. 

So I know this hearing is about Hawaii and other islands. So it’s 

been great for Governor Abercrombie and Governor Calvo to bring 

the message of islands to this task force. They are 2 of 26 members. So as the Governor mentioned mayors and county commissioners are also involved. 

The task force is focusing on 4 major areas of climate resilience. 

So, built systems which includes a lot of the things that we talked 

at ASCENT yesterday, the water/energy nexus, transportation, a 

lot of those built assets that we have there that are going impacted 

by sea level rise and other climate change impacts, also natural resources and agriculture, community health and developments. 

We are really lucky in Hawaii that we don’t have mosquito borne 

illnesses like malaria and dengue fever, but these have been identified as climate sensitive diseases. 

Finally, disaster managements. 

One thing that I think was really striking at our first meeting 

in DC is that many of the other task force members have recently 

suffered a disaster. They were there for super storm Sandy, for 

Irene, fires and floods and Fort Collins Mayor, Mayor Weitkunat 

spoke of that. So I think that Hawaii is really in a position to learn 

from these other places that have more recent disasters than we 

have. 

Governor ABERCROMBIE. So one of the things we’re doing then is 

having what we call resiliency forms here. Again maybe Jackie can 

elaborate a little bit on what we’ve already done and what we plan. 

Ms. THIEL. So one of the things that the White House really 

asked us to do is that could only ask, you know, only appoint 26 

members, was to really reach out and engage stakeholders in our 

region, in our States. So we’ve engaged over 1,000 citizens in Hawaii through online survey and Resilient Hawaii forms. One was 

during the Pacific Risk Management ‘‘Ohana Conference recently 

that NOAA. NOAA has been an amazing partner to us through this 

17 

process, helping to support our resilient white forms. I think a 

great example of Federal partnerships. 

Senator SCHATZ. So Governor, I have a question about—— 

Mr. ABERCROMBIE. Could I just add one point to that? 

Senator SCHATZ. Go ahead. 

Mr. ABERCROMBIE. It’s a fact of nature. What do we do about rising water, for example? What we’ve gone through is proposals concerning reefs, concerning what we can do to deal with the question 

of rising water because it’s one thing to talk about it in the abstract or in mega terms. It’s another one, literally, every inch of our 

land mass is coastline. So and each island, within different regions 

and sections of the island, has its own issues associated with it. 

So that’s the kind of thing that that the resiliency forms are 

dealing with. We know that we don’t have a cookie cutter approach 

that’s going to work where one size fits all. It’s going to have to 

be site specific and regional specific. 

Senator SCHATZ. At the level of mayor and Governor and county 

commissioner is there bipartisan cooperation? Is there a recognition? You know, what I found even in the halls of the Senate is 

that if we talk about disaster preparedness, if we talk about severe 

weather, if we talk about civil defense, then I can find common 

cause with bipartisan dance partners. 

I’m wondering with, in the context of this task force, if you can 

get mayors who are Republicans to participate as long as you’re 

careful with your language? 

Mr. ABERCROMBIE. Yes. Yes. 

Let me put it this way. Disasters like Hurricane Sandy know no 

ideology. There is no political points to be scored. 

The climate change, global warming, is no respecter of particular 

partisan interests. So that is well recognized that the language 

that we indicate is one of coordination and cooperation because 

these things are not isolated in political jurisdictions. A city boundary means absolutely nothing to a hurricane or a cyclone or a flood 

or a heat wave or as you probably experienced much to your great 

regret, more often than not, a freeze wave. 

Senator SCHATZ. Polar vortex. 

Mr. ABERCROMBIE. Polar vortex. Yes. Yes. 

[Laughter.] 

Mr. ABERCROMBIE. Another phrase that has been added to the 

mix. 

So the short answer is yes. It is possible by focusing on what we 

have in common rather than what differences can be conjured on. 

Senator SCHATZ. So one final question for the Governor and perhaps for your Assistant Building Coordinator before I move on to 

the students and allow you to get back to your work. 

I’m interested, very much, in the progress that State and county 

governments are making here, but also nationally in energy efficiency performance contracting and would love it if you would talk 

a little bit about what State and I know the city and county of 

Honolulu has made good progress. 

Mr. ABERCROMBIE. Yes. 

Senator SCHATZ. Talk about how the economics have shifted in 

ways that provide us real opportunities? 

Mr. ABERCROMBIE. Let me just give you a little example. 

18 

At the Honolulu International Airport we’ve signed a contract on 

energy efficiency and light that is going to save in 2013-2014 dollars, $10 of millions of dollars, perhaps into hundreds of millions 

of dollars by the time it’s over by changing, simply by having a relentless approach to modernizing our technology, utilizing modern 

technology, in light. Just that alone saves money instantaneously. 

That’s money that can be invested back into further activity in 

order to make everything work more efficiently. 

That is going across the country. Our on bill financing to enable 

people to get energy efficiency through renewable energy, the resources that otherwise might not be possible in terms of financing. 

If you can pay it on your energy bill and pay it off just as if it was 

a mortgage, this is something that brings it down to the grass roots 

level and gives visible evidence to a family that they are not just 

subject to energy prices, the object of it, but rather that they can 

get control over their own lives, financially and otherwise. 

What this does, in my judgment, is an opportunity for people 

then to say, look, I can do something about it. I’m not just the victim here. I’m not just an observer of something being done to me. 

I’m able to, not only participate, but take an active role and seem 

to then meet the energy challenge of this century. 

Senator SCHATZ. Thank you very much, Governor, for providing 

your testimony. 

Feel free to stay with the other testifiers, but if you have to—— 

Mr. ABERCROMBIE. Thank you. 

Senator SCHATZ. Go, we understand. 

Ms. Jimenez, I have a question for you about your—about people 

your age and their awareness of climate change as an issue. I’m 

wondering whether your average teenager is aware at all about 

this problem. 

My sense is that young people in Hawaii care very much about 

the environment, but it tends to be more local intensity, more land 

use based intensity, more about your personal experience in the environment. As important as climate change is, I understand it’s 

somewhat abstract for a 15 year old. I’m wondering whether my assessment is correct or whether the awareness is growing? 

Ms. JIMENEZ. I would have to say that there definitely is a disconnect between what the teenagers of Hawaii, at least that I 

know, believe is happening and what is actually happening. There 

seems to be a problem of not truly understanding with that of the 

problem. It’s not an issue that is in normal conversation, at least 

in my circles. 

I would have to say that in my circles we are usually very politically competent. We keep up with the news. We know the legislatures. We actually go out and campaign. We discuss political topics 

on a day by day basis. The topic of sustainability has not come up 

once. 

That’s just something from my own personal experience of 

they’re not understanding the true depth of the issue. I think that’s 

why it’s important for there to be a more integration of education 

for the teenage community in Hawaii on not just the overreaching 

issue of global warming and to go down to the more specifics of sustainability, specifically to water sustainability. 

Senator SCHATZ. Thank you very much, Ms. Jimenez. 

19 

I have a question for Mr. Morimoto and then a question for both 

of you. This is my third question for both of you is purely to satisfy 

my own curiosity. 

[Laughter.] 

Senator SCHATZ. My question for you is what’s happening from 

your standpoint because I know from the Department of Education’s standpoint what’s happening in environmental education. 

But I want you to tell me what’s happening in environmental education at Roosevelt High School. 

Mr. MORIMOTO. OK. 

At Roosevelt High School we have a little garden by the Science 

Department building. I think it was a really cool innovation. Usually the Green Club goes and checks in on it. They really integrate 

themselves into learning how to properly take care of plants. I’m 

sure they also learn, like, what is also really harmful and detrimental to the growth of plant life in Hawaii. 

What we also have is AP Environmental Science which that is 

also teaching young students how to play an active role in creating 

a better environment for their future. 

A few years ago we had the Law and Leadership Academy. AP 

Environmental Science was one of the required presences. I’m assuming that the faculty knew that environmental issues were going 

to become a very integrated part of discussions of the modern world 

today. 

Senator SCHATZ. Thank you very much. I appreciate that. 

Let me just ask one final question for the both of you. 

How do you and how do your peers get your information primarily? 

Ms. JIMENEZ. My situation is a little unique since I am 

homeschooled. The greater majority of my friends are also 

homeschooled as well. So honestly we get our information just from 

regular news sources, just as an adult may. 

We watch the news. We read newspapers. We talk about it 

amongst ourselves. It’s honestly also the conversation that’s going 

around us, what the adults are also talking about, we’ll chime in 

with our own opinions. 

We don’t have the luxury of the public and private schools that 

have the classes integrated into the system. We have to go find our 

own information. 

Senator SCHATZ. Mr. Morimoto, how luxurious is Roosevelt? 

[Laughter.] 

Senator SCHATZ. Where do you and your friends get your information? 

I mean, obviously, your teachers. But I’m more interested in how 

you consume the news and how you get factual information. 

Mr. MORIMOTO. In regards to daily life or regards to the Green 

School project? 

Senator SCHATZ. I mean more generally in terms of what’s happening in the world. Are you—is it social? Is it television and the 

newspaper like the rest of us? Is it mostly the web or where are 

you getting your information? 

Mr. MORIMOTO. I believe that currently at my school at least 

what I’ve noticed over the years is that the medium of which information is transferred between individuals is very different. ComVerDate Nov 24 2008 12:24 Jun 06, 2014 Jkt 000000 PO 00000 Frm 00023 Fmt 6633 Sfmt 6602 G:\DOCS\88082.TXT WANDA
20 

paring schools I know some schools are still using Facebook while 

others are, like, you know, Facebook was so 10 years ago. 

[Laughter.] 

Mr. MORIMOTO. With our—— 

[Laughter.] 

Ms. JIMENEZ. Twitter and Tumblr. 

Senator SCHATZ. Now you have his complete attention. 

[Laughter.] 

Mr. MORIMOTO. However, at Roosevelt the main media of communication is, in fact, social media. 

The teachers are very integrated with their class, with their students. So they also share information as well. 

Nowadays with smart phones, you may or may not already be 

aware of this, but a lot of us won’t, no that’s not right, but—— 

[Laughter.] 

Mr. MORIMOTO. A lot of us have apps like CNN. So I get CNN 

reports on my phone very often throughout the day. I even got a 

few during yesterday’s session which I didn’t look at, obviously. 

But those—that is also a really common media is through cell 

phones and social media. That can be mobile. Because that’s what 

this world today is all about, right? Mobile. You’re always on the 

go. 

So if you really want to reach out to people of my age and hopefully for future generations. I will be out of touch 1 day, but until 

that day comes. 

[Laughter.] 

Mr. MORIMOTO. I think that going mobile. Going mobile and 

being integrated in that system is a great way to go. 

Senator SCHATZ. Thank you. 

Ms. JIMENEZ. If I may? 

Senator SCHATZ. Sure, Ms. Jimenez and then we’ll move on to 

the next panel. 

Go ahead, please. 

Ms. JIMENEZ. Going on with what he said. If you asked a 16/17 

year old to sit down and watch an entire news program or documentary on climate change you will get glassed over eyes and a lot 

of texting. 

[Laughter.] 

Ms. JIMENEZ. But if you post on Facebook and you ask them to 

go look at Facebook they can do that. 

If you ask them to go look at Twitter, they can do that and 

Tumblr and all of the other social media sites. It’s something that 

we do daily. So that is definitely a way to reach the younger generation. 

Senator SCHATZ. Thank you very much. We’ll take your testimony—— 

Mr. ABERCROMBIE. Thank you for not asking me that question. 

[Laughter.] 

Senator SCHATZ. Thank you very much to the testifiers. We appreciate your testimony. 

Ask the second panel to go ahead and sit at the testifier’s table. 

Mr. ABERCROMBIE. Thank you, Chairman. 

Senator SCHATZ. With us today we have Hermina Morita, Chair 

of the Hawaii Public Utilities Commission. 

21 

Dawn Lippert, Director of the Energy Excelerator in Hawaii. 

Wendy Meguro, Assistant Professor of Sustainable Buildings and 

Community Design at the University of Hawaii, Sea Grant Program. 

Harrison Rue, County Building and TOD Administrator for the 

City and County of Honolulu, Department of Planning and Permitting. 

Bill Tam, Deputy Director of the Commission on Water Resource 

Management, Department of Land and Natural Resources. 

Dr. Stephen Pauley, President of the E.W. Pauley Foundation. 

Thank you all for being here. Your written testimony will be included in the record. So please take about 5 minutes to summarize 

your main points. 

Ms. Morita, we’ll start with you and move down the line. 

STATEMENT OF HERMINA M. MORITA, CHAIR, HAWAII PUBLIC 

UTILITIES COMMISSION, HONOLULU, HI 

Ms. MORITA. Thank you, Senator. 

So I’ll just get straight to the point. 

You know, last October I had the privilege of participating in a 

State efficiency and renewable power policy roundtable which was 

convened by the former Chair of the Senate Committee on Energy 

and Natural Resources, Jeff Bingaman and the former Secretary of 

State, George Schultz at Stanford’s Steyer-Taylor Center for Energy Policy and Finance. The roundtable included the Chairs from 

4 States, the PEC Chairs from 4 States, Hawaii, Kansas, Texas 

and Washington and the Chair of the New York State Energy Research and Development Authority. It was an effort to identify 

which State level energy policies have proven to be the most effective and which ones have succeeded and ultimately which policies 

can attract bipartisan support to help mitigate climate change. 

My understanding is the report should be out this summer. 

The roundtable discussion was focused in 4 areas. 

Renewables. 

Energy Efficiency. 

Customer Generation. 

Financing Mechanisms. 

So I’m going to focus in these 4 areas so you have a basis for 

comparisons with other States when the report becomes available. 

So the first is renewable energy. We are on track to exceed our 

2015 renewable portfolio standards target of 15 percent and expected to meet our 2020 target of 25 percent. 

The Hawaiian electric companies have achieved a consolidated 

RPS of 34.4 percent in 2013. But remember this includes energy 

efficiency savings as well as solar water heating technologies. 

So excluding those types of energy savings the HECO Company’s 

renewable energy generation percentage is at 18.2 percent. 

The 2013 RPS report for the Kauai Island Utility Cooperative 

has not been filed with the Commission yet. However, KIUC increased its percentage from 14.69 percent in 2011 to 16.64 percent 

in 2012. They anticipate to have online by 2015 an additional 24 

megawatts of photovoltaics and 6.7 megawatts of biomass. That’s 

pretty amazing for a utility with a system peak of approximately 

76 megawatts. 

22 

Regarding energy efficiency. 

Hawaii’s energy efficiency portfolio standards mandate target is 

43 hundred gigawatt/hours electric use reduction by 2030. Hawaii 

is on track to achieve more than 1,550 gigawatt hours in savings 

by 2015. That exceeds our internal target by more than 12 percent. 

Hawaii Energy, the ratepayer funded energy efficiency services 

provider which administers the public benefit fee, is an essential 

component of the State’s efforts to capture untapped energy efficiency resources contributing more than 80 percent of the energy 

savings achieved since 2009. In the program year ending June 

30th, 2013 Hawaii Energy programs will deliver 1.4 billion kilowatt/hours in lifetime savings at a total program cost of 2.3 cents 

per kilowatt/hours. This, in turn, will save an estimated equivalent 

of 2.4 million barrels of oil and 1.2 million tons of greenhouse gas 

emissions. 

At an average electricity price of 30.7 cents per kilowatt/hours 

customers will save approximately 450 million dollars on their electricity bills over the life of the installed efficiency measures. 

With regard to customer generation. 

Hawaii’s electric utilities lead the Nation in the installation of 

group photovoltaics relative to the size of our island grids. Since 

2005 Hawaii has seen exponential growth in the amount of PV installed on each island and the level of PV capacity relative to the 

demand on each island is approaching 20 percent. 

Senator, when we passed the 2001 net legislation the system 

peak at that time that we’re striving for was .5 percent. So, you 

know, we’ve made some strides there. 

On Oahu approximately 10 percent of residential customers have 

installed PV systems on their home. No other State or utility is 

currently experiencing such high levels of customer sided PV. For 

this reason there’s considerable interest in the next steps Hawaii 

will take as we continue to forge new ground. 

With regard to financing. 

It’s a really exciting area for Hawaii. The Commission will self 

launch by summer its on bill program where electricity customers 

will be able to pay for efficiency or renewable improvements on 

their electricity bill through a tariff mechanism. The on bill program will have 2 components, an on bill financing mechanism 

where the public benefit fee will be leveraged for fixed efficiency 

improvements like solar water heaters and an on bill repayment 

mechanism where other entities may access the customer’s electricity bill for repayment such as the Department of Business Economic Development and Tourism’s Green Energy Market’s 

Securitization or GEMS. 

GEMS is a pioneering program which combines 2 tried and true 

financing methods, a traditional rate reduction bond structure and 

on bill financing in a synergistic model. This innovative structure 

can open the door for a whole new financing market in renewables 

and energy efficiency. So although the GEMS program was invented in Hawaii to serve Hawaii’s residents and businesses the 

program has drawn national attention and could potentially serve 

as a model for other States. 

DBEDT hopes to file its application for the GEMS program with 

the Commission to implement the program by this summer. The 

23 

Commission has just circulated its term sheet within the investment community and hope to get responses by the end of April for 

its efficiency program. 

Just to sort of sum up our largest challenge in moving toward 

clean energy transformation. 

I feel our biggest challenge and I think you’ve heard me mention 

this before, is moving from clean energy 1.0 to clean energy 2.0 and 

beyond. Clean energy 2.0 recognizes that transformation requires 

a systems approach requiring technology and economics to inform 

and shape policy, energy policy, to provide clean, safe, reliable, affordable electricity and achieve environmental and societal goals 

within a regulatory framework. 

The second biggest challenge is the strategy and transition for a 

new electricity, electric utility business model and the regulatory 

reform necessary to facilitate this transition in a timely way, especially since we are so on the leading edge. 

So recently my fellow Commissioner, Lorena Akiba remarked, 

Hawaii is a coast guard for the future. So while we’re often cited 

for our success we are also trailblazers with big challenges before 

us. 

So, thank you for this opportunity. 

[The prepared statement of Ms. Morita follows:] 

PREPARED STATEMENT OF HERMINA M. MORITA, CHAIR, HAWAII PUBLIC UTILITIES

COMMISSION, HONOLULU, HI 

Thank you for the opportunity to testify on Hawaii’s success and its challenges 

in meeting its sustainability goals. Hawaii’s Public Utilities Commission (‘‘Commission’’) is responsible for the oversight of meeting Hawaii’s clean energy statutes 

through its regulation of Hawaii’s electric utilities and mandated programs. Today, 

I would like to share with the Committee (1) the key policy drivers under the jurisdiction of the Commission to accomplish Hawaii’s clean energy transformation with 

an overview and status of each key policy driver; and (2) the challenges of accomplishing Hawaii’s clean energy transformation. 

Hawaii articulates a multi-prong approach in the implementation of Hawaii’s 

clean energy future through the following laws: 

• Renewable Energy Portfolio Standards (‘‘RPS’’) • Energy Efficiency Portfolio Standards (‘‘EEPS’’) • Public Benefit Fee (‘‘PBF’’) • Act 99, SLH 2012 (‘‘Act 99’’) 

—the public utilities commission shall consider the costs and benefits of a diverse fossil fuel portfolio and of maximizing the efficiency of all electric utility 

assets to lower and stabilize the cost of electricity 

In its totality, Hawaii’s energy policies attempt to shift the focus from individual 

renewable energy generation projects to a systems approach, requiring technology 

and economics to inform and shape energy decisions to advance three regulatory 

goals, while capturing environmental and social benefits: 

1. Encourage prudent investments in and the utilization and optimization of 

all assets, both utility and non-utility, centralized and distributed, that bring 

efficient and cost-effective benefits and value to the electric system to serve the 

public good. 

2. Appropriate allocation of fixed costs to maintain and enhance the electric 

system, i.e. a customer pays for the services received from the grid and is fairly 

compensated for services a customer provides to the grid. 

3. Accessibility, fairness and the opportunity for all electricity customers to 

benefit from clean energy policies and programs. 

KEY POLICY DRIVERS TO ENABLE HAWAII’ S CLEAN ENERGY TRANSFORMATION

Renewable Portfolio Standard 

—10 percent of net electricity sales by December 31, 2010 

24 

1 Beginning January 1, 2015, electrical savings shall not count toward renewable energy portfolio standards. 

—15 percent of net electricity sales by December 31, 2015 

—25 percent of net electricity sales by December 31, 2020 

—40 percent of net electricity sales by December 31, 2030 

I am happy to report that Hawaiian Electric Company, and its subsidiaries, Hawaii Electric Light Company and Maui Electric Company (collectively the ‘‘HECO 

Companies’’), have achieved a consolidated Renewable Portfolio Standard of 34.4 

percent in 2013, which includes electrical savings from energy efficiency and solar 

water heating technologies.1 This is an increase from the 28.7 percent achieved in 

2012. Excluding electric energy savings, the renewable energy generation percentage for the HECO Companies is 18.2 percent. 

The 2013 RPS report for Kauai Island Utility Cooperative (‘‘KIUC’’) has not been 

filed with the Commission yet, however, KIUC increased its percentage from 14.69 

in 2011 to 16.64 percent in 2012 and anticipates to have on-line by 2015 an additional 24 megawatts of utility scale photovoltaic and 6.7 megawatts of biomass. 

Every five (5) years the Commission conducts a review of the RPS to ensure it 

is effective and achievable. Attached below is a link to the report: 

Report to the 2014 Legislature on the Public Utilities Commission Review 

of Hawaii’s Renewable Portfolio Standards—Issued Pursuant to Section 

269-95(5), Hawaii Revised Statutes: http://puc.hawaii.gov/wp-content/ 

uploads/2013/04/2013-PUC-RPS- ReportllFINAL-w-Appnds.pdf 

Several principal findings in this Report include: 

• The 2015 RPS requirement of 15 percent is achievable for both the HECO 

Companies1 and Kauai Island Utility Cooperative (‘‘KIUC’’). • It appears likely that the 2020 RPS requirement of 25 percent is achievable for 

both the HECO Companies and KIUC, provided that reasonably expected 

amounts of currently proposed utility-scale renewable energy projects and distributed renewable generation are successfully developed and integrated on the 

utility systems. • The 2030 RPS requirement of 40 percent may possibly be achievable, but this 

cannot be determined with confidence at this time due to uncertainties regarding the magnitude of future utility sales and several substantial outstanding 

challenges regarding the successful and economical siting and incorporation of 

requisite renewable energy generation resources. Nonetheless, this target is sufficiently aggressive to effectively focus efforts to address several challenges to 

the extensive incorporation of renewable resources on the Hawaii utility systems. A number of key issues must be thoughtfully considered when assessing 

whether current RPS targets should be adjusted or whether additional benchmarks should be established. • The RPS remains effective in helping the State achieve its policies and objectives with respect to developing renewable energy resources in Hawaii through 

the 2030 timeframe. 

The Commission anticipates that the results of pending investigations and reviews relevant to the RPS will further inform consideration of possible future 

amendments to the RPS targets. 

Energy Efficiency Portfolio Standard 

Hawaii’s energy efficiency goals were enacted in 2009 and codified in Section 269- 

96, Hawaii Revised Statutes, establishing the EEPS at 4,300 gigawatt-hours 

(‘‘GWh’’) of electricity saving by 2030. 

Every five (5) years the Commission conducts a review of the EEPS. Attached 

below is a link to the report: 

Report to the 2014 Legislature on Hawaii’s Energy Efficiency Portfolio 

Standard—Issued Pursuant to Section 269-96, Hawaii Revised Statutes: 

http://puc.hawaii.gov/wp- content/uploads/2013/04/2013-PUC-EEPS-ReportllFINAL.pdf 

Key findings of this Report include: 

• The EEPS goals has proven effective at accelerating deployment of energy efficiency resources throughout the State. An estimated 794 GWh of electricity savings have been achieved statewide since the EEPS law took effect in 2009. 

• While there is uncertainty about energy efficiency savings for future years, Hawaii is on track to achieve more than 1,550 GWh in savings by 2015, exceeding 

the interim 2015 EEPS target of 1,375 GWh by more than 12 percent. 

25 

• Hawaii Energy, the ratepayer-funded energy efficiency services provider, is an 

essential component of the State’s efforts to capture untapped energy efficiency 

resources, having contributed more than 80 percent of energy savings achieved 

since 2009. 

• The long-term EEPS goal remains achievable. The cost-effective energy efficiency resource available statewide by 2030 exceeds the EEPS goal by nearly 

50 percent. Energy efficiency remains a lower cost resource than most supplyside energy options, and provides many other important benefits to Hawaii’s 

electricity utilities and ratepayers. 

Public Benefit Fee 

The Public Benefits Fee (‘‘PBF’’) was enacted in 2009 and established in Section 

269-121 through 125, Hawaii Revised Statutes, is collected by the HECO Companies 

from ratepayers through a demand-side management surcharge. The funds are used 

to support energy- efficiency programs and services, subject to the review and approval of the Commission. The law authorizes the Commission to contract with a 

third party administrator to implement and manage energy efficiency programs 

funded by the PBF. The program is called Hawaii Energy and administered by 

Leidos Engineering, LLC. 

June 30, 2013 marked the completion of Hawaii Energy’s fourth program year 

(the program year 2012 covered July 1, 2012 to June 30, 2013). The current surcharge amount is 1.5 percent of forecasted utility revenues, the PBF two-year budget for FY 2012 and FY 2013 was $71,103,608. The target for FY 2012 was 

$33,472,166. As detailed in Hawaii Energy’s PY 2012 Annual Report, Hawaii Energy’s programs for PY 2012 will deliver 1.4 billion kilowatt hours (‘‘kWh’’) in lifetime 

savings at a total program cost of 2.3 cents per kWh (all in cost). This, in turn, will 

save an estimated equivalent of 2.4 million barrels of oil and 1.2 million tons to 

greenhouse gas emissions. At an average electricity price of 30.7 cents per kWh, customers will save approximately $405 million on their electricity bills over the life 

of the installed efficiency measures. 

Hawaii Energy’s programs are designed to evolve to enable Hawaii’s clean energy 

transformation cost-effectively focused on the following: 

• Legacy Demand Side Management Programs—modifying and upgrading programs to meet cost-effective tests 

• Efficiency For All—ensuring all ratepayers benefit from the PBF including the 

underserved, neighbor islands and hard to reach customers like low-income 

ratepayers and renters 

• Conservation—effecting behavioral changes, outreach and ally development 

• Transformation—training and educational programs, developing energy leadership 

• Sustainability—targeting indirect energy relationships like water-energy nexus 

For additional information, the Hawaii Energy Annual Report can be found at the 

following address: http://puc.hawaii.gov/wp- content/uploads/2013/04/ 

HawaiiEnergyPY2012AnnualPlan7.19.2012.pdf 

Act 99, 2012 Session Laws of Hawaii 

More than half of an electricity customer’s bill is comprised of fuel and purchased 

power cost. Through Act 99, the Legislature mandated the public utilities commission to consider the costs and benefits of a diverse fossil fuel portfolio and of maximizing the efficiency of all electric utility assets to lower and stabilize the cost of 

electricity. Currently, Hawaii’s electricity and gas utilities are carefully examining 

the feasibility and cost benefit analysis to consider the importation of liquefied natural gas to help reduce the cost of fuel and improve air quality as well as the choice 

of fuel to enable more flexible generators to increase the penetration of variable renewable resources such as wind and solar. 

As a regulator and as a community, one of the challenges of effecting a clean energy transformation is moving the discussion and focus off of Clean Energy 1.0 to 

Clean Energy 2.0. In Clean Energy 1.0, our energy policies were based on rewarding 

early adoption of renewable energy technologies. Clean Energy 1.0 is simple to understand, quantify, discuss and promote. These policies, such as net metering and 

the renewable energy income tax credit, were primarily focused on the cost of a renewable project. However, as technologies advance and cost are driven down, these 

policies have distorted the market where we are now faced with some perverse effects on the ratepayer who is unable to afford or cannot participate in these renewable programs. Unfortunately, these type of political policies are not structured to 

react quickly to fix these market distortions. 

26 

Clean Energy 2.0 recognizes that transformation requires a systems approach, requiring technology and economics to inform and shape desired energy outcomes. 

Hawaii’s electric grids represent the critical energy infrastructure that is required 

to advance to and beyond Clean Energy 2.0 and to serve the public good. 

—The grid provides essential system support services for all customers to enable electricity to be used efficiently, reliably and safely and, desirably, at affordable rates. 

—The grid is required also integrate clean, lower-cost, renewable energy from 

large scale, centralized solar and wind plants. 

—The grid is also required in order to accept excess generation from customersited distributed PV used to offset energy usage (e.g., the NEM program) as 

well as provide the services required to ensure reliability when there is no 

generation or inadequate generation from those sites. 

However, the existing grid infrastructure was not designed to accommodate large 

amounts of distributed, variable generation that is being rapidly added to each island system due to customer demand and technological improvements that have significantly reduced the cost of these alternative customer options. 

It is viewed that the future of Hawaii’s electric grids will be integrated systems 

with diversified portfolios of modern, quick-starting, flexible, and efficient generation combined with substantial amounts of lower-cost renewable generation (both 

centralized and distributed), as well as new technologies such as demand response 

and energy storage to provide the necessary grid services to ensure reliable power. 

Modernizing Hawaii’s island grids is a fundamental responsibility of the electric 

utilities and a prerequisite for meeting customer demands and the state’s clean energy goals. This leads me into the second challenge of Hawaii’s clean energy transformation which, I believe, can only be acted upon by the utility, that is, the electric 

utility as the system integrator. As the system integrator, the utility would be agnostic and price sensitive in utilizing a diverse portfolio of resources and technologies in optimizing the system to achieve an affordable, safe, reliable and sustainable energy services not only to support the electric system, but also our economic objectives and environmental values. 

With emerging smart technologies and its corresponding data management and 

analytics, forwarding thinking utility executives, like many of their counterparts in 

other sectors are becoming increasingly aware of and taking advantage of big data 

as the next frontier for innovation, competition and increased productivity. Progressive electric utility executives understand the paradigm shift smart technologies 

brings to the generation, overall operations and distribution of electricity, as well 

as how it will redefine a utility’s relationship with its customers and other service 

providers to the electric system. How timely a utility can process, analyze, synthesize and effectively use the information it gathers will require a huge cultural 

change within the utility, between and within silo’ed functions, to accommodate a 

data driven utility. Without this deep organizational cultural change, I am afraid 

Hawaii’s clean energy transformation will be difficult to realize. The need to take 

a systems approach and how quickly and effectively utility can gather, analyze, synthesize and use the information in the management of the electric system are key 

drivers to effectuate Hawaii’s clean energy transformation and the key to all this 

is the ability to optimize the productivity of an intelligent electrical grid. 

Senator SCHATZ. Thank you very much. 

Ms. Lippert. 

STATEMENT OF DAWN LIPPERT, DIRECTOR, ENERGY 

EXCELERATOR, (a program of PICHTR), HONOLULU, HI 

Ms. LIPPERT. Aloha and thank you to Senator Schatz and this 

committee for the invitation to testify today. 

I’d actually like to take this opportunity to speak about the Energy Excelerator and what, I believe, it has taught us about the 

role of public/private partnerships in accelerating innovation. 

The Energy Excelerator is a program of PICHTR and startup 

program designed to help energy innovation companies succeed 

starting in Hawaii. 

Why starting in Hawaii? 

27 

The Senator knows the answer to this question. But 7 years ago 

I was fortunate enough to join the analysis team drafting the Hawaii Clean Energy Initiative which we’ve spoken about today. It is 

bold initiative to set the stage for energy transformation in Hawaii 

from an economy 90 percent dependent on oil to one powered by 

70 percent clean, local energy. 

At the time it would have been impossible to predict how powerful that was and the accelerated moment that this State has seen 

toward clean energy and the role we played as a model for other 

parts of the world. By many standards we are making great strides 

toward that goal. As Mina said, solar, for example, has increased 

60 fold over the last few years. Eleven percent of Oahu households 

now have solar. 

This success has also led to challenges. It’s not easy to integrate 

all of these new renewables onto our island grids. We now know 

that we actually can’t reach the 70 percent clean energy goal unless we adopt new technologies and develop new approaches. 

This is where entrepreneurship becomes linked with the future 

of Hawaii and where I believe the Energy Excelerator comes in. 

Hawaii is now a fertile place for energy entrepreneurs. Entrepreneurs like to go to where the pain is highest and the urgency 

is most immediate. 

To energy entrepreneurs Hawaii and other island nations are not 

seen as vacation destinations, but rather lands of opportunity. 

Our Energy Excelerator has capitalized on this opportunity to 

launch a unique program that was designed based on interviews 

with entrepreneurs. We asked them what they really needed to 

move their technology from the lab to the market. Our new model 

borrows the best from tech accelerators like Y Combinator which 

are designed for web and mobile technologies and the traditional 

grant process organizations like the Department of Energy to create the combined structure of Energy Excelerator. 

What are the best of each of these that we’ve picked? 

We’ve adopted the cohort aspect of Y Combinator with a major 

focus on peer to peer learning and from the Department of Energy 

we emulate significant technology funding of up to $1 million needed to support technology commercialization along with an insistence on customer development and business models. 

A vibrant ecosystem is needed to sustain these business relationships. Our companies work and grow together and even stay together in one house in a kind of real world clean tech. It’s created 

a family style community of clean energy startups. If you talk to 

any of our entrepreneurs they’ll tell you that this feeling of Ohana 

is something that sets us apart. 

But there’s one other thing that makes us different. We call it 

place centered innovation. We don’t just pick the 15 hottest energy 

companies each year. We pick the 15 most likely to transform the 

Hawaii energy system to help us integrate the next trench of solar, 

to fill gaps in our transportation system, to make buildings smarter 

and more efficient. 

This is really a systems approach to innovation. It is starting in 

Hawaii. But we believe it can be applied throughout the Nation 

and around the world in outreach and partnerships. 

So the question is does this work? 

28 

Can we do 2 things at once? 

Immediately impact the success of clean energy startups and also 

transform the Hawaii energy system through place centered innovation? 

The jury is, frankly, still out. But early metrics are positive. Our 

companies have raised $55 million in follow on funding and created 

over 400 jobs. 

Over 1,000 startups have expressed interest in this program putting Hawaii on the map for investors and entrepreneurs around the 

world. So far we have raised nearly $35 million in public and private funding from for the Energy Excelerator from organizations 

such as the Department of Defense, Office of Naval Research, the 

Department of Energy, Hawaiian Electric Industries and others. 

We are just getting started. 

But time will tell this vision requires long term investment and 

commitment. 

While over 1,000 energy startups have expressed interest in the 

Energy Excelerator we have funded just 32. It is important to recognize that these companies come not just with ideas but often 

with millions of dollars of grant funding already invested in research. The government has invested significant resources in research and development for important technologies that have not 

yet made it to market. 

We designed Energy Excelerator specifically to get these companies across the gap that exists between the lab and commercial 

sales. We iterate and evolve our program continuously to better 

achieve this goal. 

Based on my personal experience in the Hawaiian Clean Energy 

Initiative and the Energy Excelerator innovative public/private 

partnerships like ours, can be major catalysts to deploying sustainable clean energy technology while also playing a major role in addressing local challenges and creating a vibrant economy in the 

process. For all of here one of the deeply important elements of 

achieving our clean energy goals is the opportunity to create high 

quality jobs in a knowledge based economy, the types of jobs that 

our children will aspire to. 

I was encouraged to see the interns here today. I’m also happy 

to announce that we’re launching an internship program with our 

companies to put interns in all of our clean energy startups. I think 

this is a really important piece of developing the next generation 

clean energy task force that can work productively with emerging 

technology. 

Finally, on a personal note I just want to say this has not been 

an easy road. We are embarking on a journey that is ambitious, 

risky and highly entrepreneurial. 

I’d also like to sincerely thank Senator Schatz and his staff, our 

Congressional delegation, this committee, our public and private 

partners and others in the community who have believed in this vision and help make it possible. 

Thank you. 

[The prepared statement of Ms. Lippert follows:] 

29 

PREPARED STATEMENT OF DAWN LIPPERT, DIRECTOR, ENERGY EXCELERATOR (A

PROGRAM OF PICHTR), HONOLULU, HI 

Aloha and thank you to Senator Schatz and this committee for the invitation to 

testify today. I’d like to take this opportunity to speak about the Energy Excelerator 

and what I believe it has taught us about the role of public-private partnerships in 

accelerating innovation. 

Innovation in a Hawaii Context 

The Energy Excelerator, a program of Pacific International Center for High Technology Research, is a startup program designed to help energy innovation companies 

succeed, starting in Hawaii. Why starting in Hawaii? Seven years ago I was fortunate to join the analysis team drafting the Hawaii Clean Energy Initiative. It is a 

bold initiative to set the stage for energy transformation in Hawaii—from an economy 90 percent dependent on oil to one powered by 70 percent clean, local energy. 

At the time, it would have been impossible to predict how powerful that was, and 

the accelerated momentum this state has seen toward clean energy and the role 

we’ve played as a model for other parts of the world. By many standards, we are 

making great strides toward that goal. Solar, for example, has increased 60-fold over 

the last few years. Eleven percent of Oahu households now have solar. This success 

has also led to challenges—it’s not easy to integrate all of these new renewables 

onto our island grids. We now know that we actually can’t reach the 70 percent 

clean energy goal unless we adopt new technologies and develop new approaches. 

This is where entrepreneurship becomes linked with the future of Hawaii—and 

where the Energy Excelerator comes in. Hawaii is now a fertile place for energy entrepreneurs; entrepreneurs like to go where the pain is highest and the urgency is 

most immediate. To energy entrepreneurs, Hawaii and other island nations are not 

seen as vacation destinations, but rather lands of opportunity. 

Place-based Innovation 

Our Energy Excelerator organization has capitalized on this opportunity to launch 

a unique program that was designed based on interviews with entrepreneurs. We 

asked them what they really needed to move their technology from the lab to the 

market. Our new model borrows the best from tech accelerators like YCombinator, 

designed for web and mobile, and the traditional grant process of organizations like 

Department of Energy, to create the Energy Excelerator. What are the best of each 

that we’ve picked? We have adopted the cohort aspect of YCombinator, with a major 

focus on peer-to-peer learning, and from the Department of Energy, we emulate significant technology funding of up to $1 million needed to support commercialization, 

along with an insistence on customer development. A vibrant ecosystem is needed 

to sustain these business relationships. Our companies work and grow together, and 

even stay together in a kind of Real-World-Cleantech. It’s created a family-style 

community of clean energy startups, and if you talk to any of our entrepreneurs, 

they’ll tell you that this is something that sets us apart. 

But there is one other thing that makes us different. We call it ‘‘place-centered 

innovation.’’ We don’t just pick the 15 hottest energy companies each year. We pick 

the 15 most likely to transform the Hawaii energy system—to help us integrate the 

next tranche of solar, to fill gaps in our transportation system, to make buildings 

smarter and more efficient. This is a systems approach to innovation. It is starting 

in Hawaii but we believe it can be applied throughout the nation and around the 

world with outreach and partnerships. 

How it’s Worked So Far—Results 

So the question is—does this work? Can we do two things at once: 1) meaningfully 

impact the success of clean energy startups and, 2) also transform the Hawaii energy system through ‘‘place-centered innovation’’? Early metrics are positive; our 

companies have raised $55 million in follow-on funding and created over 400 jobs. 

Over 1000 startups have expressed interest in the program, putting Hawaii on the 

map for entrepreneurs and investors around the world. So far we have raised nearly 

$35 million in public and private funding for the Energy Excelerator—from organizations such the Department of Defense’s Office of Naval Research, the Department 

of Energy, Hawaiian Electric Industries, and others, and we’re just getting started. 

But time will tell; this vision requires long-term investment and commitment. 

While over 1000 energy startups have expressed interest in the Energy 

Excelerator, we have funded 32. It is important to recognize that these companies 

come with not just ideas, but often with millions of dollars of grant funding already 

invested in research. The government has invested significant resources in research 

and development for important technologies that have not yet made it to market. 

We designed the Energy Excelerator specifically to get these companies across the 

30 

gap that exists between the lab and commercial sales. We iterate and evolve our 

program continuously to better achieve this goal. 

Based on my experience in the Hawaii Clean Energy Initiative and the Energy 

Excelerator, innovative public-private partnerships like ours can be major catalysts 

to deploying sustainable energy technology, while also playing a major role in addressing local challenges—and creating a vibrant economy in the process. For all of 

us here, one of the deeply important elements of achieving our clean energy goals 

is the opportunity to create high quality jobs in a knowledge-based economy—the 

types of jobs that our children will aspire to. 

In Closing 

On a personal note, I want to say that this has not been an easy road; we are 

embarking on a journey that is ambitious, risky, and highly entrepreneurial. And 

I would like to sincerely thank Senator Schatz and his staff, our Congressional delegation, this committee, our public and private partners, and others in the community who have believed in this vision and helped make it possible. Mahalo. 

Senator SCHATZ. Thank you very much. 

Ms. Meguro. 

STATEMENT OF WENDY MEGURO, ASSISTANT PROFESSOR, 

SUSTAINABLE BUILDINGS AND COMMUNITY DESIGN, UNIVERSITY OF HAWAII, MANOA, SCHOOL OF ARCHITECTURE 

AND SEA GRANT COLLEGE PROGRAM, HONOLULU, HI 

Ms. MEGURO. First I would like to thank you for this invitation 

to speak about sustainability challenges and opportunities in Hawaii and also to summarize some of the themes from our ASCENT 

conference yesterday. 

The overarching message that you mentioned in your introduction that I heard yesterday was that we have the knowledge. We 

have the technology to live sustainably here in Hawaii. Now we 

need the political will. 

As Vice President Al Gore said yesterday, political will is a renewable resource. So Senator Schatz, the people of Hawaii trust 

you to be the steward of that political will. 

The subject that I would like to focus on is green buildings, specifically managing the energy water nexus in the built environment. 

Here in Hawaii where our environment is our economy, buildings 

use over 25 percent of our energy. In addition the energy water 

nexus illustrates that the energy is used to transport and treat 

water and water is used in power plants to create our electricity. 

For example, the Board of Water Supply is one of Hawaiian electric company’s largest customers. 

There are many aspects to green buildings but we chose to focus 

on efficiency in our session yesterday. Improving energy and water 

efficiency in buildings is one of the easiest and most cost effective 

ways to mitigate climate change to improve our local air and water 

quality and to reduce utility costs for consumers. 

So why focus on efficiency? 

It’s estimated that a dollar spent on development of technology 

that improves the efficiency of building infrastructure is considerably worth $3 to $4 worth—spent on renewable energy technology. 

One successful example which has been cited multiple times 

today of Federal, State and private collaboration to address energy 

efficiency in buildings is the Hawaii Clean Energy Initiative. 

So I applaud the efforts so far. I also wanted to point out I think 

it’s particularly useful because of its quantitative energy reduction 

31 

targets and also specific recommended strategies. So I would like 

to emphasize those as we move into the future. 

I think we should continue to monitor our progress and communicate our updated recommendations for building energy efficiency 

to the public. 

In addition we should continue to foster advancements in energy 

saving building technologies and practices on the horizon. 

Next, I would like to discuss how policymakers might address 

some challenges and opportunities to reduce energy use in buildings. 

First, Hawaii’s building energy and water codes are outdated. 

There’s an opportunity to push for the adoption of current building 

energy and water codes by all counties. This also happens to align 

the HCEI recommendations. In parallel training on the new codes 

should be provided for building code inspectors and design professionals. 

Second, in Hawaii green building incentives do not yet reflect the 

caliber of a building’s environmental benefit. Consider creating incentives for green building projects which are ratcheted to reward 

exemplary performance, particularly in water and energy savings. 

In addition, consider giving awards to recognize exceptionally high 

performance buildings and developments. 

Third, yesterday we talked in the opening session about acceptable return on investments. The question came up the ROI of 

what? What are we measuring? 

Higher first costs can discourage building owners from implementing energy efficient practices or technologies. We need to have 

adequate construction budgets or without that, provide financial incentives to offset those higher first costs. The goal is to be able to 

recognize and assess the quantity of value associated with water 

and greenhouse gas emission savings, reduce demands on municipal infrastructure and improved occupant health. 

In a commercial building the ratio of first cost to operating cost 

to personnel cost is about 1 to 5 to 200. So this highlights the economic benefit that green buildings provide occupants in terms of 

day lighting, high indoor air quality, control over one’s comfort. 

Moving on to the subject of water and buildings. 

Challenges in Hawaii include maintaining our sustainable water 

supply and also reducing greenhouse gas emissions from water 

transport and treatment. Moderate water savings have been 

achieved already which, I applaud, using green building rating systems for both fleet buildings and for schools. 

I think this is a great start. But Hawaii has not yet seized the 

opportunity to save water and energy by capturing and using non 

potable water, onsite, in large scale buildings. Potable water is defined as suitable for human consumption and we typically do not 

need potable water to flush our toilets, to irrigate and to send to 

our cooling towers. So there’s an opportunity here to match water 

quality with its appropriate use. 

We have multiple sources of water in a building which can be 

captured, treated and used onsite including green water, grey 

water, black water, cooling tower blow down, air conditioning condensate, etcetera. Multiple of our Hawaii based plans already encourage Hawaii or Hawaii to recycle and use non potable water inVerDate Nov 24 2008 12:24 Jun 06, 2014 Jkt 000000 PO 00000 Frm 00035 Fmt 6633 Sfmt 6602 G:\DOCS\88082.TXT WANDA
32 

cluding the Hawaii 2050 Sustainability Plan, the Hawaii Green 

Business Guide and the Hawaii Water Conservation Plan. So why 

aren’t we on board yet or why don’t we have these big projects yet? 

I would suggest that you consider initiating pilot projects with 

onsite water treatment and non potable water use in a large scale 

building or district. Relevant stakeholders to include in the conversation include the State Building Code Council, the Public Utilities Commission, the Board of Water Supply, the Department of 

Health, Worker’s Unions and individuals who have already been 

involved in our non potable water workshops series. Pilot projects 

would establish a processes for permitting and inspection as well 

as training for code officials, designers and laborers. 

In addition, consider a study to quantify the potential energy and 

economic benefits of distributive water treatments verses the traditional centralized municipal water system. This might be timely 

considering the upcoming municipal water treatment plant upgrades that are required by the EPA. 

I appreciate your time and look forward to discussion. 

[The prepared statement of Ms. Meguro follows:] 

PREPARED STATEMENT OF WENDY MEGURO, ASSISTANT PROFESSOR, SUSTAINABLE

BUILDINGS AND COMMUNITY DESIGN, UNIVERSITY OF HAWAII, MANOA, SCHOOL OF

ARCHITECTURE AND SEA GRANT COLLEGE PROGRAM, HONOLULU, HI 

I would like to thank you for the invitation to speak about sustainability challenges and opportunities in Hawai‘i, and to summarize themes from the Ascent conference on April 15th. 

The subject I would like to focus on is ‘‘green buildings,’’ specifically, managing 

the energy-water nexus in the built environment. Here in Hawai‘i, where the environment is the economy, buildings use over 25 percent of our energy. (Energy Information Administration) Most of that energy generation relies on imported fossil 

fuels and contributes to climate change. In addition, the energy-water nexus illustrates that energy is used to transport and treat water, and water is used in power 

plants to create energy. The Board of Water Supply is one of Hawaiian Electric 

Company’s largest customers. 

Improving energy and water efficiency in buildings is one of the easiest and most 

cost effective ways to mitigate climate change, improve our local air and water quality, and reduce utility costs for consumers. Why focus on efficiency? It is estimated 

that $1 spent on the development of technology that improves the efficiency of building and transportation infrastructure is conservatively worth $3-4 (likely as high as 

$8-10) spent on renewable energy technology (Lawrence Berkeley National Laboratory). 

A successful example of a federal, state, and private collaboration to address energy efficiency in buildings is the Hawai‘i Clean Energy Initiative (HCEI). One of 

its goals is to reduce energy use by 30 percent by 2030 through efficiency and conservation (not including renewable energy). HCEI is especially useful because it has 

quantitative energy reduction targets and specific recommended strategies. We 

should continue to monitor our progress and communicate updated recommendations to the public. In addition, we should continue to foster advancements in energy-saving building technologies and practices. 

Next, I would like to discuss how policy-makers may address some challenges and 

opportunities to reduce energy use in buildings. 

First, Hawai‘i’s building energy codes are outdated. There is an opportunity to 

push for the adoption of current building energy codes by all counties. This also happens to align with HCEI recommendations. In parallel, training on the new codes 

should be provided for building code inspectors and design professionals. 

Second, in Hawai‘i, green building incentives do not reflect the caliber of the 

building’s environmental benefit. Consider creating incentives for green building 

projects which are ratcheted to reward exemplary performance, particularly in 

water and energy savings. 

Third, higher first costs can discourage building owners from implementing energy efficient practices and technologies. We need to have adequate construction 

budgets or provide financial incentives to offset higher first costs. The goal is to recVerDate Nov 24 2008 12:24 Jun 06, 2014 Jkt 000000 PO 00000 Frm 00036 Fmt 6633 Sfmt 6621 G:\DOCS\88082.TXT WANDA
33 

ognize and value the associated water and greenhouse gas emissions savings, reduced demands on municipal infrastructure, and improved occupant health. In a 

commercial building, the ratio of first costs to operating costs to personnel costs is 

about 1: 5: 200. (The Long Term Costs of Owning and Using Buildings, The Royal 

Academy of Engineering) This highlights the economic benefit of high performance 

buildings that provide occupants with daylight, high indoor air quality, and control 

over one’s comfort. 

On the subject of water and buildings, challenges in Hawai‘i include maintaining 

a sustainable water supply and reducing the greenhouse gas emissions from water 

transport and treatment. Moderate water savings have been achieved by using 

green building rating systems in State buildings and schools. (Lead by Example and 

Collaborative for High Performance Schools) 

This is a good start, but Hawai‘i has not yet seized the opportunity to save water 

and energy by capturing and using non-potable water on-site in large scale buildings. Potable water is defined as suitable for human consumption, and we typically 

do not need potable water to flush our toilets, irrigate, or use in cooling towers. 

There is an opportunity is to match water quality and its appropriate use. 

A building has multiple water resources which can be captured, treated, and used, 

including rainwater; greywater from sinks, showers, laundry; blackwater from water 

closets; cooling tower blow down; air conditioning condensate; pool filter back flush; 

and more. Multiple Hawai‘i-based plans encourage water recycling or non-potable 

water use, including the Hawai‘i 2050 Sustainability Plan, the Hawai‘i Green Business Guide, and the Hawai‘i Water Conservation Plan. 

Consider initiating pilot projects with on-site water treatment and non-potable 

water use in a large-scale building or district. Relevant stakeholders include the 

State Building Code Council, the Board of Water Supply, and the Department of 

Health, workers unions, and individuals involved in the existing non-potable water 

workshop series. Pilot projects would establish processes for permitting and inspection as well as training for code officials, designers and laborers. In addition, a 

study is recommended to quantify the potential energy and economic benefits of distributed water treatment versus the traditional municipal water system. It is timely 

considering upcoming municipal water treatment plant upgrades are required by 

the EPA. 

I appreciate your time and welcome discussion. 

Senator SCHATZ. Thank you very much. 

Mr. Rue. 

STATEMENT OF HARRISON RUE, COMMUNITY BUILDING AND 

TOD ADMINISTRATOR, CITY AND COUNTY OF HOLOLULU, 

DEPARTMENT OF PLANNING AND PERMITTING, HONOLULU, 

HI 

Mr. RUE. Senator Schatz, thank you so much for the opportunity 

to testify today. But first I do have to say how delighted I was to 

hear the testimony of the gentleman from Roosevelt. My son graduated Roosevelt a dozen years ago and go, Rough Riders. That’s all 

I have to say. 

[Laughter.] 

Mr. RUE. Great testimony. 

I’d like to talk about the City and County of Honolulu’s Community Building and Transit-Oriented Development program and offer 

some suggestions on what Federal agencies and Congress can do to 

support local actions in sustainable community design or transportation. These also highlight some of the discussions in our community design panel at yesterday’s ASCENT conference. 

I would like to also to thank you for your support for the conference and for your—yesterday. 

The TOD program is a community based program planning effort 

to help revitalize neighborhoods, increase transportation and housing choices and create more livable neighborhoods around the city’s 

20 mile rail transit system now under construction. We’ve develVerDate Nov 24 2008 12:24 Jun 06, 2014 Jkt 000000 PO 00000 Frm 00037 Fmt 6633 Sfmt 6602 G:\DOCS\88082.TXT WANDA
34 

oped neighborhood TOD plans for two-thirds of the 21 stations so 

far. We’re updating land use ordinances and overlay zoning to require operable mixed use development. 

While we have big plans, policies and projects, we need to remember this is really about people and their neighborhoods and 

how we can connect families with jobs, housing, gathering spaces 

and each other. It’s not an infrastructure project. 

The city’s new TOD subcabinet is a working group of department 

directors modeled on the HUD, DOT, EPA Sustainable Communities Partnership. We meet weekly to identify and solve obstacles, 

address feasibility infrastructure availability, coordinate strategies 

and budgets and act together on collaborative projects. The TOD 

team works effectively with outside partners including several 

State agencies, land owners and developers and non profits and allied organizations. 

Other work underway include a proposed bike share system to 

reduce parking standards, new complete street standards, protected bike lanes and updated housing strategy and a TOD financial tool kit. This work will increase transportation choice access 

and safety, reduce energy use and emissions, by the way, that may 

be some of the missing things that are not in the HTI plan, a good 

percentage can come in there, folks, help protect water resources 

through compact development and green infrastructure and improve human and environmental health. 

To support these ongoing activities and partnerships we suggest 

that the Federal Government consider the following options most 

of which can be done with an existing authority and not asking for 

new money. 

We suggest replicating and expanding the successful interagency 

coordination programs like the HUD, DOT, EPA, Sustainable Communities Partnership. This is an excellent combination of funding, 

technical assistance that encourages innovation, collaboration and 

performance monitoring. 

I was just talking with one of the former directors yesterday who 

was at the conference. She noted that it has touched one third of 

the U.S. population in various programs. 

There’s a strong need for continued technical assistance to the 

hundreds of existing grantees, expanded guidance and training materials based on lessons learned and most importantly corporation 

partnerships, principles and collaborative approach in the conventional statutory funding and regulatory programs. 

We also suggest that expanding this interagency approach to address broader issues using a variety of funding streams across 

other different agencies. One way to consider, you know, streamlined performance would be to use, it sounds simple, but just using 

the reporting and public involvement requirements for the single, 

cognizant agency much like when we received Federal grants. Only 

one cognizant agency is bonded to those grants. So you could actually rather than have 4 different agencies, environmental justice 

and public participation requirements just follow one of them. 

We suggest rewarding local efforts to strengthen interagency coordination and targeted budgeting for our areas much like the Federal partnership. The—our TOD subcabinet, that I noted, has the 

records of all relevant departments meeting weekly to coordinate, 

35 

and prioritize projects and move them forward. Suggest maybe 

making such local coordination a consideration for demonstrating 

potential for follow through and grant making. 

We’re also suggesting leveraging existing and future funding toward more integrated resilience efforts. Statutory programs tend to 

produce the same kinds of projects each year. Reallocating a larger 

percentage of existing, available funding toward innovative, local 

projects, such as DOD Tiger grant program, would require proof 

that investments will cost effectively meet multimodal, environmental and safety performance codes. 

We also suggest adjusting the MAP 21 rules in future reauthorization legislation to require a more sustainable performance measures that address broader community goals and link land use, community design, health, safety, equity and environmental sustainability. 

Not only do we encourage agencies like EPA to continue stepping 

out of their regulatory framework to work cooperatively with local 

and State governments to develop more cost effective, long term solutions to rain water and waste water issues. 

Green infrastructure can do an equal or better job of protecting 

watersheds while supporting other sustainability goals like compact development, transportation, housing choice to reduce energy 

use. 

Thank you again for the opportunity to testify. We appreciate the 

committee’s willingness to conduct this hearing and to work on 

these critical issues. 

[The prepared statement of Mr. Rue follows:] 

PREPARED STATEMENT OF HARRISON RUE, COMMUNITY BUILDING AND TOD ADMINIS- TRATOR, CITY AND COUNTY OF HONOLULU, DEPARTMENT OF PLANNING AND PER- MITTING, HONOLULU, HI 

Thank you so much for the opportunity to testify today. In addition to briefly summarizing the City and County of Honolulu’s Transit Oriented Development Program, my testimony will focus on what federal agencies and Congress can do to support state and local actions in sustainable community design and transportation initiatives. 

The City and County of Honolulu’s TOD Program is a community-based planning 

effort to help revitalize neighborhoods, increase transportation and housing choices, 

and create more livable communities around the City’s 21 rapid transit rail stations. 

After four decades of heated discussion, public opinion, political support, and financial capacity have aligned to begin construction of The Honolulu Rail Transit 

Project, a 20-mile high capacity transit system that will connect families with jobs, 

housing, gathering spaces, and each other. Together with public and private partners, the TOD Program is turning the focus toward using the transit investment 

to enhance and revitalize neighborhoods. The TOD team has developed Neighborhood TOD Plans for 2/3 of the 21 stations, with the remainder under way. The City 

is updating land use ordinances and developing overlay zoning to encourage 

walkable, mixed-use development. 

Our implementation strategy is intended to catalyze development opportunities, 

infrastructure investments, and neighborhood enhancements around the rail stations. The City’s new TOD Sub-cabinet is a working group of infrastructure, transportation, environmental, housing, and planning directors who meet weekly to focus 

inter-agency efforts on expediting catalytic projects in the TOD areas, with a focus 

on feasibility, infrastructure availability, market interest, and ability to leverage 

other investments. This approach is modeled on the success of the HUD-DOT-EPA 

Sustainable Communities Partnership. The subcabinet meets weekly to identify and 

solve obstacles, facilitate development, coordinate strategies and budgets, and act together on catalytic projects. The TOD team also works effectively with outside partners including state and federal agencies, landowners and developers, and non-profits and allied organizations including union and construction industry partnerships. 

36 

Related efforts include a proposed bikeshare system, reduced parking standards, 

new complete streets polices and standards, protected bike lanes, and a TOD financial toolkit. Together, these plans, policies, and projects will increase transportation 

choice, access, and safety; reduce energy use and emissions; help protect water resources through compact development and green infrastructure; connect people with 

jobs and businesses with customers; and improve human and environmental health. 

We have been working with several State agencies on TOD-related issues, including the Department of Education (potential redevelopment opportunities and school 

access); Department of Health (potential bike share system and environmental/ 

brownfields issues); Department of Accounting and General Services (potential State 

facilities and projects in TOD areas); Department of Planning (TOD planning and 

policy); Department of Hawaiian Home Lands (East Kapolei, Kalihi and downtown 

TOD plans); HCDA (Downtown and East Kapolei Plans, and mobility and infrastructure improvements in Kakaako); HHFDC (housing policy and project finance); 

Hawaii Public Housing Authority (Kalihi and Downtown TOD plans); DLNR (development of the East Kapolei TOD Plan); and the University of Hawaii system (West 

Oahu, Leeward Community College, and Honolulu Community College campuses 

and long-term redevelopment potential). We have initiated the Airport Neighborhood TOD Plan, and will be working closely with the Hawaii Department of Transportation on that plan, as well as transit station access and safety improvements 

for the station areas along Farrington and Kamehameha highways. 

To support these ongoing activities and partnerships, we suggest that the federal 

government consider the following options: 

• Replicate and expand successful interagency coordination programs like the 

HUD-DOT-EPA Sustainable Communities Partnership. These have worked exceptionally well to encourage innovation at the local and state level. They are 

an excellent combination of funding and technical assistance that encourages innovation, collaboration and performance monitoring. These included HUD’s regional planning and community challenge grants (which Honolulu received), 

DOT’s TIGER grants, and EPA’s robust technical assistance and research. 

Many of these included adaptation and resilience strategies for transportation, 

water, energy and infrastructure. There is a strong need for 1) continued technical assistance to the hundreds of existing grantees; 2) expanded guidance and 

training materials for other interested local government partnerships based on 

lessons learned to date; and 3) incorporation of the Partnership’s principles and 

collaborative approach into conventional and statutory funding and regulatory 

programs. 

• This interagency approach could be expanded on to encourage more integrated 

resilience strategies that address multiple infrastructure issues and utilize a variety of funding streams across different agencies. While it can be more difficult 

to ‘complicate’ grant-making and reporting this way, the government should 

consider ways to streamline grantmaking and reporting when coordinating 

funding awards, such as using the reporting and public involvement requirements of a single cognizant agency (much like the approach to using a single 

cognizant agency’s requirements in auditing funding). 

• Encourage local efforts to develop more integrated resilience solutions by rewarding local and state efforts to strengthen interagency coordination and targeted budgeting priorities, much like the HUD-DOT-EPA Partnership. One example of this is the City and County of Honolulu’s TOD Sub-cabinet, which has 

directors of all infrastructure, planning, environmental, transportation, economic development, operations, and housing departments meet weekly to coordinate and prioritize projects in neighborhoods along the city’s 20-mile rail 

transit project (now under construction). Such local coordination could potentially be a consideration for demonstrating potential for follow-through in 

grantmaking. 

• Provide more opportunities to leverage existing funding toward integrated resilience efforts (in addition to developing new funding streams). Much of the existing funding in transportation, housing, water, energy, and environmental programs is statutory in nature, and goes through older programs and existing 

agency structures at federal, state, and local levels. Re-allocating a larger percentage of available funding toward more innovative programs that can go directly to local integrated projects, such as DOT’s TIGER grant program, would 

help advance and prove the results of innovation. Statutory formula funds tend 

to produce the same kinds of projects each year; innovation-driven programs 

like TIGER require proof that investments will cost-effectively meet 

multimodal, environmental, and safety performance goals. 

37 

• Adjust the MAP-21 rules and future Reauthorization legislation to encourage/ 

require performance measures that address broader community goals that link 

land use, community design, health, safety, equity, and environmental sustainability. 

• Encourage agencies like EPA to step out of their regulatory framework to work 

cooperatively with local and state governments to develop more cost-effective 

long-term solutions to stormwater issues that do an equal or better job of protecting watersheds, while supporting other sustainability goals like compact development, transportation and housing choice, and reduced energy use. Include 

training, technical assistance and funding support for revising local and state 

codes and standards to allow/encourage/require green infrastructure and resilience solutions. 

Thank you again for the opportunity to testify; we appreciate the committee’s willingness to conduct this field hearing and to work on these critical issues. 

Senator SCHATZ. Thank you, Mr. Rue. 

Mr. Tam. 

STATEMENT OF WILLIAM M. TAM, DEPUTY DIRECTOR, HAWAII 

COMMISSION ON WATER RESOURCE MANAGEMENT (CWRM), 

DEPARTMENT OF LAND AND NATURAL RESOURCES (DLNR), 

HONOLULU, HI 

Mr. TAM. Thank you, Senator Schatz. 

First we’d like to thank you for your introduction of the Secure 

Water Act of 2014 which will allow the State of Hawaii to compete 

for grants, water smart grants, water efficiency, water optimization, VUE grants and advance water treatment demonstration 

projects. We think this is an important addition to our ability to 

be nubile in the future. 

We’d also encourage you to pay attention to the decline in the 

number of stream gauges and the monitoring wells which are important in Hawaii. Both have suffered from lack of funding. We 

think these are critical. If you are a patient that’s concerned about 

being healthy you do not want to take the monitor away when you 

most need it. 

In Hawaii all the water is local. Water and energy have a very 

interesting combination, but they move in different ways. Water is 

heavier, obviously. It can’t be moved around in the same way energy can be. So it’s important to look at the cost effects of that as 

we go forward. 

The World Economic Global Risks 2014 identified water prices 

and the failure of climate change. Mitigation adaptation is the 

third and fifth, respectively in its ranking order of the 10 global 

risks of highest concern in 2014. They considered these risks to 

have a high likelihood and a high impact, unlike the proverbial 

black swan which has low probability, but high impact. The climate 

change issues coming before us are both high impact and high 

probability. 

So this is a gale force wind that is coming toward us. As Nainoa 

Thompson reminded us yesterday, you’re building a canoe to sail 

around the world you don’t plan for the sunny afternoon offshore, 

you plan for the gale force winds and the low tide channels in 15 

foot seas at night. So the question is is the—are the lashings correctly done. Is the crew ready? Because when a voyage goes around 

the world, one bad night and the voyage is over. 

So as we design our climate change adaptation and resilience, we 

need to take into account that that’s what we have to look for. 

38 

Economics is very important. I’m going to talk about that in just 

a moment. The goal of the journey is to get there. It’s not to do an 

accounting, necessarily, where we meet and auditors report, although those things have their place. 

So when we think about these issues we could do something 

that’s cheap. But I think what we have to look at is what is the 

black swan of a major event? What happens if Fukushima earthquakes 1,000 miles South comes at us from the Southwest on 

Oahu, hits the—power plant, takes out—and Honolulu. It takes out 

Sand Island wastewater treatment plant. The harbors and our airports are hit. 

What do you do to build a future when that is a possibility? 

There’s a huge earthquake. The Pacific is a rich area in seismic 

events. We need to think about how to build those resiliencies into 

our system which suggests that local, distributed and simple—systems that are in a community and that’s a new way of doing 

things. 

With the model we’ve built from the 50s and 60s was good for 

that time. But we’re now faced with a different set of circumstances. So we need to think about how to build resistance and 

duplication into our systems. 

To give you a simple example of what Hermina eluded to earlier 

about the cost of water and what some of the savings might be. 

Rural water supply was an issue yesterday spends about $28 million, $26 million for 87 million kilowatt/hours pumping 43 million 

gallons a day which is about $187,500 to pump 1 million gallons 

for a year. That’s on the front side of the water cycle. 

On the back side of the water cycle environmental services 

pumps—or costs about—spends about $24 million to pump 74 million, I’m sorry. It used to be 74 million kilowatt/hours for about 100 

million gallons. That’s about $244,000 a year to pump 1 million 

gallons of sewage. 

So combined the electrical costs alone to move a million gallons 

of water is $431,500 a year. That’s not including—on top of expenses or disrupted—of electricity. 

You can buy down a million gallons per day of water savings 

through conservation activities in the agricultural areas and the 

other areas. So that’s where—that’s a line we can start to look at. 

Senator SCHATZ. You said $430 odd thousand a year per million? 

Mr. TAM. Per million gallons of water. 

Senator SCHATZ. How many gallons are we moving? 

Mr. TAM. That’s the average for one million gallons to be pumped 

out of the ground, transferred to your home, transferred to the 

wastewater treatment facility and then moved 2 miles offshore off 

Sand Island or Honolulu. 

Senator SCHATZ. Wait. But how many gallons are we moving on 

Oahu annually? 

Mr. TAM. Annually? I don’t know the aggregate, but we’re moving about 144 million gallons are being pumped daily from the foreign water supplies. So that’s probably a good surrogate. 

These are for the Oahu system. We can get you that data. 

Mr. TAM. But it could take Oahu, the most popular island where 

you have a more centralized system that’s probably a good number. 

39 

There’s about a hundred million gallons going out into the water 

into the ocean. As Gary Hill indicated yesterday, waste water is 

simply water or it could be waste. There’s things we put into it, we 

can simply take those things out. 

There’s methane. There’s phosphates. There’s a lot of things to 

be taken out. Those are separate income streams that, properly organized, could then become actually a way to reduce your overall 

costs. 

So the point of it is conservation is, as been indicated, is the single most cost effective way to deal with water energy. There have 

been studies by—at this University over the last 15 or 20 years. 

This is not new information. Looking at the cost benefit of investing in watershed manifers as a way of increasing supply while the 

technical aspects of that would require looking at their papers, essentially if you have a choice between building a new well which 

is going to move motors when down further and requires more and 

more pipelines or managing the watershed which then can capture 

more of that rainfall, put it back into the ground. That’s the real 

supply side economics. 

That’s where you’re actually increasing, for example an aquifer 

from say, 10 million gallons to 12 million. You still use your existing infrastructure to take on one, as opposed to building a well and 

take out one more of a $10 mine. So the watershed management 

has multiple benefits aside from what just happens on the surface. 

Aside from the fact they’re hiring young people to go out and 

work in the natural resources. You’re actually increasing your supply. As the indications are often to climate—the university and 

elsewhere the rainfall pattern around the Hawaiian Islands are indicating that the clouds that fit the windward side of the mountains where you have to—our water are getting thinner both pressure down and pressure up from the heat. Therefore the amount 

of water hitting the mountains which is the source of our rainfall 

that caused a thinner—that cost more and more money. 

USGS indicates that in the last 80 years primarily from the 

1940s to the present that aggregate stream flows now 20 to 22 percent aggregate rainfall just in the last 30 years it’s down 10 to 12 

percent. If those patterns continue we’re going to have less water 

in the streams, less water in the ground. To take advantage of 

what we can do in the forests, bring back native plants, cut down 

the invasive because as this happens, by the way, the invasives 

move up. Invasives are now taking over our forests. 

That trend is very dangerous because they have high, rapid transpiration rates. They do not put the water back in the ground. The 

Strawberry Guava throughout the islands, that is going to—that is 

really more and more mountain. If you talk to Senator Ruderman 

and—observed in his lifetime different kinds of weeds and 

invasives that he saw—topography. That’s happening everywhere. 

So those phenomenon while not by themselves spectacular, in the 

aggregate have a major impact on our water supply. 

We would encourage you to look at conservation measures just 

as a cost efficient method to do this. 

The last thing I would like to say is that water integrates Ag, 

waste water use, water for consumption and the energy costs so 

that it integrates this in ways that others things do not. So saving 

40 

1The Hawaii Commission on Water Resources Management website http://dlnr.hawaii.gov/ 

cwrm/ provides extensive information about the Commission’s work and links to many primary 

and secondary sources. 2 Juliet Christian-Smith and Peter Gleick, A Twenty-First Century U.S. Water Policy, Oxford 

University Press (2012) 3World Economic Forum Global Risks 2014 (www.weforum.org/risks) 

water distribution is a way of paying down other costs and allowing 

greater efficiencies. 

The last point I guess I would make would be that we’ve dealt 

with this on a regional basis. If we do, simply do this on a bilateral 

contract basis we will not have the efficiencies. So we’re going to 

do waste water management, central water, for example, there 

would be savings in different places. But we need to figure out a 

way to allocate those savings and allocate those budgets in a way 

so everybody gets to play. 

I would encourage you to look at the work that the Army is doing 

at Schofield Air—and should be a model for the rest of this—— 

Thank you for your time. 

[The prepared statement of Mr. Tam follows:] 

PREPARED STATEMENT OF WILLIAM M. TAM, DEPUTY DIRECTOR, HAWAII COMMISSION

ON WATER RESOURCE MANAGEMENT, DEPARTMENT OF LAND AND NATURAL RESOURCES (DLNR), HONOLULU, HI 

Aloha, 

On behalf of the Hawaii Department of Land and Natural Resources and the 

State Commission on Water Resource Management, thank you for inviting us to 

speak with you about Successes and Challenges in Meeting Sustainability Goals for 

Water in Hawaii.1

My name is William Tam. I am Deputy Director, Commission on Water Resource 

Management (‘‘Commission’’), Hawaii Department of Land and Natural Resources. 

I. INTRODUCTION 

The Hawaii State Constitution (article XI, §7) (1978) and the State Water Code 

(Haw. Rev. Stat. chap 174C) (1987) charge the State with a dual mandate: provide 

for reasonable and beneficial uses of water and protect public trust water resources 

for this and for future generations. Integrating reasonable and beneficial uses and 

long term resource protection requires sustainable water supplies. 

The challenge of climate change to Hawaii’s water resources will alter how we 

manage our natural resources-and ourselves—for decades to come. This is an epochal change and a fundamental shift to a new paradigm. The hard path of big supply projects will no longer meet our needs. Not only will the infrastructure change. 

The way we use water will change. In some areas, we are approaching ‘‘peak water.’’ 

So different water qualities will be needed to satisfy different kinds of demand. And 

it will be more decentralized and distributed because the cost of energy will require 

it. It is time for a twenty-first century water policy?2

II. CLIMATE CHANGE 

The World Economic Forum Global Risks 2014 identified ‘‘water crises’’ and ‘‘failure of climate change mitigation and adaptation’’ as third and fifth, respectively, in 

its rank ordering of the ten global risks of highest concern in 2014.3 They considered 

the risks to have a high likelihood and to have a high impact. The report concluded 

that (1) trust is necessary if stakeholders are to work together; (2) long-term thinking is a prerequisite to any approach to global risks; (3) collaborative multi-stakeholder action is required as no single entity has the tools and the authority to tackle 

systematic risks; and (4) new governance models are needed. 

In Hawaii, all water is local. Hawaii faces climate change-related impacts on our 

water resources different in kind from our sister states on the continental United 

States. Even dry states may (under certain circumstances) transport fresh water 

across state borders. Hawaii does not have that option. Each island is on its own 

when it comes to water. There is no Plan B to import or transport fresh water in 

life sustaining quantities. Each island must adapt to the uncertainties of climate 

change in its own way. 

41 

4 ‘‘Water Reuse: Potential for Expanding the Nation’s Water Supply through Reuse of Municipal Wastewater,’’ National Research Council, National Academy of Science (2012) (http:// 

www.nap.edu) 

The observed trends in climate change and projections of reduced future freshwater supplies make it imperative that Hawaii 1) aggressively pursue water conservation; 2) explore and expand the use of reused and reclaimed water; and 3) prepare for both persistent drought conditions (on the leeward sides of the islands) and 

less frequent, but larger rain events that run off quickly, fail to recharge the 

aquifers, transport soil onto near shore reefs; and 4) collect reliable hydrologic data 

to understand and monitor conditions in order to respond nimbly to new conditions. 

In the future, the leeward sides of all the major Hawaiian Islands are likely to 

be even drier. It is critical to collect and expand our collection of hydrologic data 

to refine future projections. 

III. SECURE WATER AMENDMENTS ACT OF 2014 (S.2019): CONSERVING 

WATER RESPOURCES; PROMOTING SUSTAINABILITY 

First, Senator, we would like to thank you for introducing the Secure Water 

Amendments Act of 2014 (S.2019). This Bill will allow Hawaii to compete for grants 

under the Department of Interior’s WaterSMART Program, increase funding for 

drought projects, provide resources for better data collection and analysis of water 

supply. This will help Hawaii improve our water supplies’ resiliency and sustainability. Hawai’i will become eligible for WaterSMART cost share Water and Energy 

Efficiency Grants, System Optimization Review Grants, Advanced Water Treatment 

and Pilot and Demonstration Project Grants, and Grants to Develop Climate Analysis Tools. Water resource stakeholders will be able to partner and collaborate with 

the Department of Interior. 

The four County departments of water supply, the County wastewater departments, the Commission on Water Resource Management, the Department of Land 

and Natural Resources, the University of Hawaii, the Department of Agriculture, 

the Department of Hawaiian Home Lands, and other water-related entities will benefit from this legislation. 

IV. WASTEWATER REUSE AND STORMWATER RECLAMATION 

Wastewater reuse and stormwater reclamation are growing rapidly (especially in 

the West) as communities realize that every part of the water cycle is valuable, just 

mislabeled.4 But large- scale wastewater reuse and stormwater reclamation are relatively new in Hawaii and not widely understood. As Hawaii’s population and water 

demands grow and water supplies come under new pressures, wastewater reuse and 

stormwater capture will be key components in sustainable water resource management for non-potable needs. 

OPPORTUNITY AND CHALLENGE 

In 2008, the Hawaii Commission on Resources Management in partnership with 

the U.S. Bureau of Reclamation completed an appraisal-level study of opportunities 

statewide for the large-scale stormwater reclamation. Of twenty opportunities identified statewide, stormwater reclamation and reuse at Wheeler Army Air Base and 

Schofield Barracks (Wheeler) was determined to have the most stakeholder support 

and greatest likelihood for success. A pilot project at Wheeler could potentially use 

a significant amount of existing infrastructure for collection, treatment, storage, and 

conveyance of stormwater. The idea is to collect stormwater from the approximately 

190 acres of runway and impervious surfaces at Wheeler airfield, where average annual rainfall is 40 to 50 inches/ year. The Schofield Barracks Wastewater Treatment 

Facility (located at Wheeler) contains several unused clarifiers that could be used 

to treat and improve the stormwater quality. An unused pipeline extends from the 

Wheeler property to nine 1.8 million gallon (16.2 million gallon total) underground 

former oil storage reservoirs at Waikakalaua Fuel Annex. Waiahole Ditch, or a parallel pipeline in the ditch easement, could convey the stormwater to downstream irrigation users, which include agricultural lands, golf courses, and other green 

spaces. An extension of the pipeline would allow surplus stormwater to be used to 

recharge the Pearl Harbor Aquifer or, further makai, the Ewa Caprock Aquifer. 

Commission records indicate that over 25 million gallons per day of high-quality 

potable groundwater from the Wahiawa and Waipahu-Waiawa Aquifer System 

Areas are currently permitted for non-potable uses. If these non-potable uses could 

be converted to non-potable sources, high-quality groundwater could be conserved 

for potable uses. In addition, development of this opportunity will help to meet 

Clean Water Act requirements. Currently, stormwater from Wheeler enters Waikele 

Stream, eventually discharging to the West Loch of Pearl Harbor. Both of these 

42 

5 In September, 2012, EPA released is updated 2012 Guidelines for Water Reuse, U.S. EPA, 

EPA/600/R-12/6/18 (2012) 6 ‘‘Triple Bottom Line’’ refers to an accounting framework for sustainability that includes financial, social, and environmental measures (often referred to as People, Planet, and Profits). 

While the metrics for each may differ, projects may nonetheless be compared on each alone. This 

creates a mechanism to evaluate the ramifications of alternative decisions from a truly long 

term perspective much as a series of cash flows may be compared by reducing each to its present 

value. 

water bodies are identified as impaired on the Department of Health §303(d) list. 

Implementation of Total Maximum Daily Loads (TMDLs) to receiving waters by the 

Department of Health will eventually require a higher level of treatment for 

stormwater.5 The treatment required to comply with TMDLs will potentially offset 

the treatment required for other uses, particularly irrigation. 

The State is currently investigating how non-potable water could be developed regionally in Central Oahu. Land use is in transition. With the decline of plantation 

agriculture, vast tracts of former sugarcane lands lie fallow. There are plans for increased agricultural activity in the Kunia Road corridor, expansion of military housing at U.S. Army Schofield Barracks, and proposals for new urban developments. 

There is significant non-potable water demand associated with each of these 

planned activities. 

There are also a number of sources of non-potable water in the Central Oahu. In 

addition to stormwater, 1) there are two wastewater treatment plants, Schofield and 

Wahiawa that are capable of producing R-1 water; 2) Lake Wilson, which has a current capacity of 2.5 billion gallons and a pass through stream flow estimated at 36 

million gallons per day; 3) the Waiahole Ditch; 4) new wastewater treatment facilities associated with new developments; and 5) new re- sourcing treatment facilities 

that could divert and treat wastewater from existing pipelines near or on-site for 

landscaping or agricultural use (thereby saving energy costs of pumping water miles 

away to large treatment plants). 

V. COORDINATE AND INTEGRATE WATER RESOURCE PLANNING ACROSS 

JURISDICTIONS ON A LIFE-CYCLE, TRIPLE BOTTOM LINE BASIS 

There is a need for new, coordinated, and integrated water resource planning 

across jurisdictions, and on a life-cycle, triple bottom line basis.6. If water supply 

planning and implementation continue in a piecemeal fashion, the opportunity to 

partner and leverage resources may be lost. This may result in higher capital and 

operating costs, lost efficiencies, and unfavorable outcomes. By taking a regional approach and involving multiple stakeholders, there may be new economies in savings 

and avoided costs. Specifically, benefits and costs may be redistributed geographically or across time to enable an integrated plan to succeed where none of the component parts alone would start, let alone survive. 

For example, reusing wastewater in Central Oahu could reduce the size and capital costs to expand the planned secondary treatment facility at the Honouliuli 

Wastewater Treatment Plant. That could also reduce operations and energy costs 

to pump the wastewater to Honouliuli. 

Through a regional plan, there may be a combined benefit among entities that 

would not pencil out financially for any single party acting independently. 

Given the many interested stakeholders in the area, there is a need to engage all 

stakeholders—landowners, farmers, developers, the military, wastewater treatment 

plant operators, Board of Water Supply, Department of Health, and others in a collaborative planning effort that looks at all resources, all potential demand, and identifies solutions in the best interests of the community and the State. The Commission wants to ensure that water supply, wastewater, and stormwater planning in 

Central Oahu proceed in a way that can address these issues and concerns early 

in the process and to mitigate any foreseeable conflicts. The Commission is working 

to finish its non-potable water planning in the fall, 2014. 

Pending completion of this work, developing and implementing a proof of concept 

pilot project is important to demonstrate the feasibility of stormwater reclamation 

and reuse and establish its viability, associated technical issues, costs and budget, 

and build support for the larger effort. This regional undertaking will require close 

working relationships among federal, state, county, and private parties. Above all, 

it will require leadership and innovation. 

VI. FULL CYCLE ENERGY COSTS OF WATER 

The cost to pump groundwater, transport it to end users, move it again as sewage 

(by gravity piping and force mains) to wastewater treatment plants, remove the 

chemicals and solids, force it into long ocean outfalls, and comply with the Clean 

43 

7 ‘‘Implications of Future Water Supply Sources for Energy Demands,’’ Heather Cooley (Pacific 

Institute) and Robert Wilkinson (UC Santa Barbara), WateReuse Research Foundation and Bureau of Reclamation (DOl) (2012); ‘‘Energy Down the Drain- The Hidden Costs of California’s 

Water Supply,’’ NRDC and Pacific Institute (August 2004) 

Water Act is expensive. While the energy costs of water are appreciated on the 

mainland,7 they have received little attention in Hawaii. 

In the first 11 months of FY 2012, the Honolulu Board of Water Supply paid approximately $26.8 million for 87.9 million kilowatt hours to pump 143 million gallons I day for one year. That is about $187,500 to pump one (1) mgd for one year. 

In FY 2013, the City and County of Honolulu Department of Environmental Services paid approximately $24.3 million for about 74 million kilowatt hours to treat 

and pump about 99.4 mgd of sewage for a year. That is about $244,000 I year per 

one (1) mgd of sewage treated. 

Combined, the BWS and Environmental Services’ energy cost to pump, transport, 

treat, and dispose of one mgd of water is about $431,500 /year. And that is just the 

electrical costs. It does not include the capital, the infrastructure, the human labor, 

or the environmental costs. Imagine securing the service that potable water provides 

in a whole new way. Calculate the opportunity costs of leaving potable (and future 

drinking) water in the ground (the best reservoir there is- as Arizona’s groundwater 

recharge project demonstrates) and not pumping (lower energy costs). But the overall plan may only succeed if this savings can be allocated and distributed to other 

regional parties on an overall cost efficient basis. There will simply not be enough 

bi-lateral contracts to make the whole work. It requires a regional approach. 

It goes without saying that the Uniform Plumbing Code (′′UPC′′) and International Green Construction Code (‘‘IGCC’’), as well as local county ordinances provide important institutional pathways to the day to day implementation of real conservation. It is through these retrofitting mechanisms that old (as well as new) infrastructure is realigned in more efficient directions. Ironically, the cost I benefit 

payback period for investing in many of these retrofits is often less than one year 

and it generates new work for skilled labor in small and medium sized operations. 

One perverse effect of rising energy costs is it makes investment and rapid changes 

in new efficiencies more economic. 

VII. DROUGHT PLANNING, MITIGATION, AND RESPONSE 

The Commission is the lead agency for drought planning in Hawaii. The Hawaii 

Drought Council helps to coordinate drought mitigation and response activities 

across the state. In 2005, the Commission developed the Hawaii Drought Plan 

which led to working with drought stakeholders in each county to develop four 

County Drought Mitigation Strategies. The County Drought Mitigation Strategies 

identify projects to improve drought preparedness and resilience in the water supply; agriculture & commerce; and environment, public health and safety sectors. 

The Hawaii Water Resources Act of 2000 (P.L. 106-566, as amended) made Hawaii eligible for U.S. Department of Interior, Bureau of Reclamation programs for 

drought relief and drought planning. Hawaii was able to benefit from these programs during the droughts in the last decade through emergency drought assistance 

and planning assistance from the Bureau of Reclamation. The authority for emergency drought relief (Title I of P.L. 102-250, as amended) expired on September 30, 

2012. Reauthorization of this authority and appropriation of program funding could 

help stakeholders in Hawaii to better cope with drought. 

There are several federal agencies that offer programmatic assistance for drought 

mitigation and response, including U.S. Department of Interior’s Bureau of Reclamation and U.S. Department of Agriculture’s Natural Resources Conservation 

Service, Farm Service Agency, Rural Development Program and Risk Management 

Agency. The respective County Drought Mitigation Strategies have drought mitigation projects in need of funding sources and could qualify for one or more of the programs offered by these agencies, should funding opportunities become available. 

Hawaii also benefits from the work of the National Oceanic and Atmospheric Administration’s National Integrated Drought Information System (NIDIS). Continued 

support for NIDIS is important for maintaining a drought early warning system and 

for delivering products, tools, resources and programs to assist drought stakeholders 

to prepare for and mitigate the impacts of drought across the country. 

VIII. NEED FOR INCREASED CLIMATE AND HYDROLOGIC MONITORING 

AND RESEARCH 

Hawaii’s climate is extremely diverse. Micro-climates are the rule rather than the 

exception. We have rainforests and deserts, alpine mountains and coastal plains. 

Annual precipitation can vary by more than 100 inches/year in a span of just a few 

44 

miles. Rain gages and stream gages allow us to monitor trends in these elements 

over time. In order to get a clear picture of climate change, there needs to be monitoring with long periods of record and sufficient geographical coverage to represent 

our different climate regions across the state. The number of stream gages in Hawaii has declined from over 197 (1966) to only 59 in 2012. Rainfall stations have 

decreased from a peak of over 1000 in 1968 to around 340 in 2007. This decline in 

monitoring is leaving gaps in the data at a time when we need this long-term data 

the most. 

Stream gages operated by the U.S. Geological Survey are funded on a cost-share 

basis with cooperators, who are mainly state and county agencies. The recent fiscal 

crisis caused these cooperators to reduce funding for data collection resulting in the 

loss of important stream gaging stations. The National Weather Service administers 

a cooperative observer program in Hawaii, which comprises its volunteer rain gage 

network. Hawaii’s sugar plantations were prolific rainfall observers. Since the plantations closed, the network of rainfall stations declined precipitously. It is important 

to re-establish both stream gages and rainfall stations in key climatic regions where 

there is a long period of record of observations. The continuation of hydrologic data 

collection and analysis is fundamental in monitoring how Hawaii’s climate is changing and to ascertain the impacts of climate change on our water availability both 

now and in the future. 

Section 9506, Secure Water Act of 2009 establishes a Climate Change and Water 

Intergovernmental Panel in order to address the issue of data gaps in current water 

monitoring networks and how to improve data collection to better monitor and analyze water resources. 

Section 9507 of the Act authorizes the implementation of programs to enhance 

water data collection by the U.S. Geological Survey. 

Congress needs to appropriate sufficient funds to implement the provisions described above and for the U.S. Geological Survey in Hawaii to increase the number 

of stream gages in Hawaii, especially where critical, long-term stream gages have 

been discontinued. 

Congress also needs to appropriate fund to increase the number of Hawaiian rainfall stations and reestablish important rainfall stations with long periods of record 

through the Pacific Islands Climate Science Center or the University of Hawaii. 

Ensuring that hydrologic data collection continues in Hawaii is the only way to 

effectively monitor and analyze the impacts of climate change on our precious fresh 

water resources. This essential data set will benefit many sectors of the community—researchers and resource managers alike, including the University of Hawaii, 

U.S. Geological Survey, Hawaii Department of Land and Natural Resources, and 

many others. 

IX. ACTIVE LEADERSIDP AND ENGAGEMENT ACROSS JURISDICTIONS 

The key is active leadership. Money and legislation may be slow and hard to secure. But getting people from all levels of government, across multiple functions, 

and in conjunction with private actors to sit down and talk with one another requires only active leadership and personal time. It is the human contact that opens 

the doors. We have the means to communicate with one another. It is not expensive. 

It just requires convening meetings or hearings (like this one) to highlight innovations, encourage collaboration, re-imagine smaller more dynamic on-site systems, 

and share opportunities. 

Agency Collaboration 

Protect water resources through accelerated collaborative effort by City, State and 

Federal agencies. 

Planning 

Analyze true life cycle costs/value of water resources across jurisdictions, the full 

hydrologic cycle, and functions so that efficiencies and costs can be realized across 

multiple users. Compare alternative scenarios, including the cost of current course. 

Integrate energy costs into all water analysis. Integrate analysis and synchronize 

plans across all levels of government. Examine regulatory changes (practices and 

rules) needed to realize the proposals outlined here. 

Watershed protection 

Expand forest and agricultural public/private partnerships to combat invasive species, capture and enhance groundwater resources, restore native plants, and inVerDate Nov 24 2008 12:24 Jun 06, 2014 Jkt 000000 PO 00000 Frm 00048 Fmt 6633 Sfmt 6621 G:\DOCS\88082.TXT WANDA
45 

8 ‘‘Natural Infrastructure- Investing in Forested Landscapes for Source Water Protection;’’ 

World Resources Institute (2012). 9 ‘‘Financing Green Urban Infrastructure’’ (OECD Regional Development Working Papers 

2012/10; http://dc.doi .org/10.17875k92p0c6j6ro-en); Creating Clean Water Cash Flows- Developing Private Markets of Green Stormwater Infrastructure in Philadelphia (NRDC January 

2013; http://www.nrdc.org/water/stormwater/files/green-infrastructure-pa-report.pdf) 

crease resilience to climate change.8 Prevent runoff and pollution in ahupua’a and 

watershed area across jurisdictions (using mauka to makai approach) 

Infrastructure improvements and controls 

Investigate and support treating wastewater to R-1 for reuse from state, county, 

federal, and private facilities. Capture and reclaim storm water, grey water, and 

rainwater to replace potable water use in urban and agricultural applications. Expand grading and agricultural soil conservation efforts. Increase efficiencies in agricultural irrigation practices. Decentralize and relocate new and renovated infrastructure away from coastlines 

Finance 

Explore ways to engage private funding sources.9 Insurance companies calculate 

risk and have good reason to search out risk reduction strategies. Develop new pricing structures. Publish combined water & energy triple bottom line accounting for 

all projects. 

Multi-Agency Coordination Group 

Establish multi-agency coordination group with a specific mandate to analyze how 

to carry out the tasks described here (including how to engage private funding 

sources). Set a deadline to report back to this Committee in one year (May, 2015). 

Mid-Course Corrections: Flexible, Adaptive, and Responsive 

Increasingly, water, energy, and natural resource problems combine in new and 

faster ways. Old, isolated approaches fail to capture the interaction or the complexity of problems, their solutions, or their urgency. We need more mid-course corrections. Institutions designed 20-40 years ago need to work horizontally across jurisdictions and in near real time. Specifically, federal agencies (especially EPA and 

COE, but also USFWS and NOAA) need to get closer to the management problems 

and help States be flexible and more adaptive. Navigating requires regular midcourse corrections and quick feedback loops. 

X. GOING FORWARD 

Climate change poses great uncertainties and risks to sustainable water supplies. 

Water conservation, development of non-potable alternatives, integrated actions 

across multiple jurisdictions, drought planning, and mixed public-private financing 

and watershed protection require direct active leadership and attention. 

Hawaii is developing a number of initiatives that are still in their early stages. 

We would appreciate the opportunity to provide the Subcommittee with a more detailed account of these activities. To that end, we request that the record in this 

matter be kept open until April30, 2014 to supplement the testimony provided here. 

Thank you for the opportunity to share our views. We look forward to working 

with this Subcommittee and our federal partners to achieve a sustainable water future for Hawaii. 

Senator SCHATZ. Thank you very much. 

Dr. Pauley. 

STATEMENT OF STEPHEN M. PAULEY, MD, PRESIDENT, EDWIN 

W. PAULEY FOUNDATION, KETCHUM, ID 

Mr. PAULEY. Thank you, Senator Schatz, for this opportunity to 

recommend that Coconut Island, Kane’ohe Bay, Oahu, Hawaii 

serve as a living example for sustainable systems that will stimulate the building and implementation of similar systems by others 

in the Hawaiian Islands, most of North America and the Pacific 

Rim. 

When Coconut Island was gifted to the University of Hawaii 

Foundation the Pauley intended that in addition to the green 

sciences already in place at HIMB, the Hawaii Institute of Marine 

46 

Biology, that the island would become a model for sustainability. 

In my dedication speech in 1998, when I dedicated the island along 

with a newly built marine lab I said the following. 

‘‘If we can relate the first rate science being done at this new lab 

to improving ecosystems in this bay, the Hawaiian Islands and the 

Pacific Ocean, if we can make Coconut Island a model for sustainable living, if we can leave the comfort zone to our narrow disciplines to relate our science to others in the community, and to the 

diverse fields of humanities, of the humanities, if we can find the 

courage to shape public policy to improve our environment and if 

by doing these things we end up with a healthier ecosphere, 

through your efforts to reconnect people to the natural world, than 

our gifts to you in Hawaii will have real meaning, not only to our 

granddaughters, Hannah and Brooke.’’ We have 2 more since then. 

‘‘But to our future set of generation.’’ 

That was in 1998. Hannah is now 17, 18 and ready to go to college. The point being, it’s been a long time. 

[Laughter.] 

Mr. PAULEY. Coconut Island long range development in 1998 was 

drafted by 16 leaders from the University of Hawaii and surrounding communities, approved by the UH Board of Regents, cochaired by then UH President Ken Mortimer and me. 

The mission statement reads, ‘‘To promote the stewardship of the 

living oceans, restore, preserve and sustain marine ecosystems in 

Hawaii and the Pacific Rim to integrate scientific research, community involvement, education and example at Coconut Island.’’ 

Almost 16 years have passed and those goals have been minimally achieved. This has been a disappointment to the Board of Directors of the Pauley Foundation and the Pauley family. To many 

at UH who also see the potential for the island to serve as an example for sustainable systems that include the use of solar and 

wind energy, fresh water catchment, natural sewage treatment and 

the use of sustainable building materials. 

While first rate marine science is routinely conducted at HIMB 

the island’s overall potential is still lacking. The reasons for the 

lack of concerted action are many, most are budget related. There 

has been a lack of continuity at UH. Four presidents have served 

UH over the past 16 years. There needs to be both a political and 

strategic will to adhere to the zoning of environmental sustainability emissions stated in the 1998 Coconut Island long range development plan. 

Senator Schatz, you have firsthand knowledge of Coconut Island’s potential. We both served on the Board of Directors for the 

Center for a Sustainable Future. The organization was founded by 

former dean of SOEST, Dr. Barry Raleigh. 

CSF was funded by private foundations and donors. We studied 

issues such as coastal pollution, coral beaching, reduced fish populations, aqua cultures and strategies for the use of biofuels to replace dependency on imported oil. We also studied other environmental problems in Hawaii and the Pacific Rim. But funding fell 

short when it came to implementing sustainable systems. CFS was 

disbanded when Dr. Raleigh retired as Dean of SOEST. 

47 

So the specific request that I am making of the committee since 

we’ve been unable to achieve the progress on any other basis is to 

implement the Coconut Island master plan of 1998. 

No. 1, build sustainable energy, water and building system on 

the island so that the island can serve as an example of what to 

do correctly in the era of climate change, dependency on fossil fuels 

warming oceans and loss of coral reefs and fisheries. 

No. 2, build a conference center and visitor housing. This is all 

in the master plan. To bring together others in Hawaii and the Pacific Rim to study environmental issues such as food shortages, depleted fisheries, climate change and shoreline flooding. These are 

all issues obviously we all know about that threaten coastal communities. 

I thank you for this opportunity to state my views. 

[The prepared statement of Mr. Pauley follows:] 

PREPARED STATEMENT OF STEPHEN M. PAULEY, MD, PRESIDENT, EDWIN W. PAULEY

FOUNDATION, KETCHUM, ID 

Thank you Senator Schatz for this opportunity to recommend that Coconut Island, 

Kaneohe, Oahu, Hawaii, serve as a living example for sustainable systems that 

would stimulate the building and implementation of similar systems by others in 

the Hawaiian Islands, coastal North America, and the Pacific Rim. 

When Coconut Island was gifted to the University of Hawaii Foundation, the 

Pauley Foundation intended that in addition to the marine sciences already in place 

at the Hawaii Institute of Marine Biology (HIMB), that the island would become a 

model for sustainability. 

In my dedication speech in 1998, when I dedicated the island along with a newly 

built marine lab I said the following: 

‘‘If we can relate the first rate science being done at this new lab to improving ecosystems in this bay, the Hawaiian Islands & the Pacific Ocean; 

if we can make Coconut Island a model for sustainable living; if we can 

leave the comfort zones of our narrow disciplines to relate our science to 

others in the community and to the diverse fields of the humanities; if we 

can find the courage to shape public policy to improve our environment, and 

if by doing these things we end up with a healthier ecosphere through your 

efforts to re-connect people to the natural world, then our gifts to you and 

Hawaii will have real meaning not only to grand daughters Hannah and 

Brooke, but to our future 7th generation.’’ 

The Coconut Island Long Range Development Plan of 1998 was drafted by 16 

leaders from the University of Hawaii and surrounding communities, approved by 

the UH Board of Regents, and co chaired by then UH President Ken Mortimer and 

me. The Mission Statement reads: 

‘‘To promote the stewardship of the living oceans, restore, preserve, and 

sustain marine ecosystems in Hawaii and the Pacific Rim through integrated scientific research, community involvement, education, and example 

at Coconut Island.’’ ( 1998 Coconut Island Long Range Development Plan) 

Almost 16 years have passed and those goals have been minimally achieved. This 

has been a disappointment to the board of directors of the Pauley Foundation, to 

the Pauley family, and to many at UH who also see the potential for the island to 

serve as an example for sustainable systems that include the use of solar and wind 

energy, fresh water catchment, natural sewage treatment, and the use of sustainable building materials. 

While first rate marine science is routinely conducted at HIMB, the island’s overall potential is still lacking. The reasons for lack of concerted action are many. Most 

are budget related. There has been a lack of continuity at UH; four presidents have 

served UH over the past 16 yrs. There needs to be both a political and strategic 

will to adhere to the zoning and environmental sustainability missions stated in the 

1998 Coconut Island Long Range Development Plan. 

Senator Schatz, you have firsthand knowledge of Coconut Island’s potential. We 

both served on the board of directors for the Center for a Sustainable Future (CSF). 

The organization was founded by former Dean of the School of Ocean Engineering 

48 

Science and Technology (SOEST) at UH, Dr Barry Raliegh. CSF was funded by private foundations and donors. We studied issues such as coastal pollution, coral 

bleaching, reduced fish populations, aquaculture, strategies for the use of biofuels 

to replace dependency on imported oil, and other environmental problems in Hawaii 

and the Pacific Rim. But funding fell short when it came to implementing sustainable systems. CSF disbanded when Dr Raleigh retired as Dean of SOEST at the 

University. 

Specific Request of this committee 

Congressional funding for Coconut Island is requested to implement the Coconut 

Island Master Plan of 1998: 

1) build sustainable energy, water, and building systems on Coconut Island, 

Kaneohe, Oahu so that the island can serve as an example of what to do correctly 

in the era of climate change, dependency on fossil fuels, warming oceans, and loss 

of coral reefs and fisheries; 

2) build a conference center and visitor housing to bring together others in Hawaii 

and the Pacific Rim to study environmental issues such as climate change, food 

shortages, depleted fisheries, and coastal flooding— all issues that threaten coastal 

communities; 

Senator SCHATZ. Thank all of the testifiers. I do have a number 

of questions. 

I’ll start with Mr. Tam and, I think, Ms. Meguro. This is a general question because you know that I understand the water and 

power nexus. What I am still needing help with is that because we 

have the old, physical infrastructure and old statutory, regulatory 

infrastructure and old ways of doing things, that, you know, I had 

a workshop 6 or 8 months ago where we talked about this. 

I have very capable staff. I have access to all kinds of experts. 

Yet, the question of how, exactly, to manifest the thinking that’s 

expressed at this panel in terms of making sure that we make holistic decisions. There seems to still be a gap in terms of what 

changes, either at the regulatory or policymaking level, need to be 

made. 

I understand that projects can be done more intelligently. I understand that at the building level that people ought to be smarter 

about things. 

But given that, you have boards and departments of water supply and then you have electric utility companies and sort of, never 

the twain shall meet, except with the concept which is that utilities 

use a lot of water and electric utilities use a lot of water and then, 

of course, the water utilities use a lot of electricity. So it’s all intuitive except that in terms of effectuating long term, holistic planning, it’s not at all clear to me what kinds of changes at the policy 

level need to be made. 

Mr. TAM. Thank you, Senator. 

The first act is going to be an act of imagination because we have 

to understand how the water moves. Once you understand how the 

water moves, you’ve got to ask the question how might it move differently. 

I’ll give you a simple example. If the Coal Rich project proceeds 

they will have to build, under current plans, a pipeline from the 

new facilities or new subdivision down to the transfer station and 

then over Honolulu-Uley. That pipeline alone is $40 million. 

If instead they were to be asked or if they chose to build an R1 

facility so remembering our bio-rec facility, they could treat the 

water there to an R1 quality, use it on their lands, use it on adjacent lands, provide irrigation water that’s non potable, for example, 

49 

to the Patsy Mink Park which is right below that. Currently the 

border up supply pumps about a million gallons a day to irrigate 

potable water to irrigate land. 

If that could be done with R1 water you can save the potable 

water by pumping a million gallons a day. You could save—— 

Senator SCHATZ. Would the county or State laws need to be 

changed in order for them to be able to do this? 

Mr. TAM. I don’t think so. I think this is more an action of and 

I don’t have a direct answer, maybe some type of biospecs, but I 

think it’s more a decisionmaking across the groups. People might 

have to sit down and talk about it. 

Senator SCHATZ. But this would be the Land Use Commission requiring or the Department of Planning and Permitting do these? 

Mr. TAM. I don’t think so. I think—and I defer to the sum of the 

county process. But I think it’s more a matter of just figuring out 

the pathway forward and maybe some permitting requirements. It 

depends on each project. 

But I think in the first instance it’s sitting down and getting a 

plan figured out among people who will be affected. But I just 

wanted to take this as an example. If you leave a million gallons 

in the ground which is your best reservoir, you don’t have to pump 

it. 

Those savings are important. Now those savings will be realized 

primarily by the Board of Water Supply. The question is if you 

have a regional plan is can you reallocate those savings to some 

other part of the property so then you make cost efficiency work. 

Now the Board of Water Supply, of course, will tell you they’ve 

got to have all that savings. But if they’re going to play with everybody else it’s important that they shared some fraction to make 

other, less efficient parts of the plan work. 

Senator SCHATZ. Right. But it’s not trivial to—and I understand 

you’re giving me a specific example, but it’s, sort of, not trivial at 

all that we’re sitting here not clear whether we need changes in the 

law or not and not clear at all whether or not this is a question 

of leadership or a question of policy. I presume it’s both. 

But it seems to me that we are, sort of, knocking around on this 

issue because it’s so obviously the smart thing to do. Yet, the mechanics are not, you know, well articulated quite yet. 

Mr. TAM. I would make a suggestion and it’s in my written testimony on this point, actually, that there be a coordinating committee organized between the mayor or the Governor with the relevant people involved and come back and report to this committee 

at the end of the year so we have a forcing mechanism and come 

back with those specific suggestions that would make a difference 

in those areas. 

I think that’s—then we could get down to what the legal changes 

might have to be, what the purveying schemes are, but they vary 

by topography. 

For example, right now the Army Corps or rather the Army drew 

a contract and is working with aqua engineers to take all their own 

water. They use it for landscaping. People are going to move some 

R1 water to Kaneohe to some of the farmers down there. That 

would be a different kind of arrangement with the county. 

50 

So there are specific permitting requirements. But I don’t think 

we can give you that answer right now. 

Ms. MEGURO. So I’ve been trying to chase down the same question in the last maybe, 6 months. I would say that answer is a little 

fuzzy. But I can tell you what I’ve learned so far. 

First, I think there is a body who has been looking into this, the 

U.S. Green Building Council, Hawaii Chapter, Advocacy Committee. They have been reviewing some of the plumbing codes for 

recommendation for adoption by the State and counties. 

So as I understand they are looking at both the international 

green construction code and the uniform plumbing code 2012 as potential overlays or for full adoption by the counties. I don’t think 

that has come to a conclusion yet, in my understanding. 

Next, I was wondering if there was any hang up in the Department of Health, if for some reason their water quality standards 

that might be holding us back. 

My read of the codes so far, it looks like the Department of 

Health is willing to review design projects on a case by case basis 

and that that was not the hurdle. It sounds inefficient to, kind of, 

go on for every or review every design project on a case by case 

basis. But it was not the road block. 

One of the things that I did hear that is not necessarily a road 

block, but is definitely, slows us down, is a Hawaii Administrative 

Rule which requires building projects to hook up, pay to hook up 

to the sewer if it is available at your site. If you have a water treatment plant offsite or a system onsite that is sufficient for your 

building or set of buildings, then is it really necessary to pay to 

hook up to the sewer? 

So that’s, I think, one challenge that design teams are facing. 

Thanks. 

Senator SCHATZ. Thank you very much. 

Chairman Morita. 

Ms. MORITA. I just wanted to point out that I think a lot of the 

solutions to this is dealing with cultural changes within departments. Every department is so siloed. We need to pick up the 

phone and call each other and find out what’s happening. We have 

been. 

Using the public benefit fee we’ve been delving into the energy 

water nexus. Again, using the public benefit fee we have a publication coming out on water, waste water best practices, that will be 

distributed to the boards of water, even though we don’t regulate 

them, as well as the private water sewer companies that we are— 

that we do regulate. So there’s some cross pollination, pollinization 

going on between departments. 

Thanks to DLNR providing us with information, also Department 

of Health, we at least have staff talking to each other about how 

do we gain these additional efficiencies and how do we take these 

direct and indirect savings from designing within a system approach? 

Senator SCHATZ. Thank you. 

In the interest of time I’d like to move on. 

Mr. Rue, I appreciate your testimony. I appreciate that you delineated some ways that we can be helpful in terms of making sure 

that the Federal Government programs that already exist are coVerDate Nov 24 2008 12:24 Jun 06, 2014 Jkt 000000 PO 00000 Frm 00054 Fmt 6633 Sfmt 6602 G:\DOCS\88082.TXT WANDA
51 

ordinating best with the city and county of Honolulu on your 

projects. 

Which programs do you rely upon the most in terms of Federal 

revenue streams or individuals who are collaborating with you? 

Mr. RUE. Sure. 

I should confess that before joining, rejoining the city a few 

months ago, I did work as a consultant for several of the Federal 

agencies and help work on those programs myself. So I understand 

the inner mechanics a little bit. 

We do—we use a lot of funding from DOT, you know, in addition 

to the huge amounts that we are getting for the transit system 

itself, we get money for bus systems, for road repairs and building. 

Have a good working relationship there. 

We are in touch with the more innovative folks in the Livability 

program, both here locally as well as, you know, in DC and certainly get some wisdom from them. We are competing for a Tiger 

grant, you know, that’s due out now, in the next month. So, it will 

be, you know, certainly pursuing competitive grants as well. 

With EPA we have had a strong relationship with their smart 

growth program, you know, since actually before it was. We had an 

EPA site visit in 2004 that was even before the Environmental Department was really kicked off. They’ve done several workshops, 

many of them through the sea grant program. I’ve been involved 

in a lot of them over the years, even when I was in Ohio. 

So there’s a strong relationship there, particularly with sea grant 

on a lot of community designed issues. 

We recently applied for a Brown Fuels funding grant and we 

have a good relationship with those folks as well. 

Then with HUD we did receive a little over 2 million for the 

HUD Community Challenge grant. We set up an equitable housing 

fund. So we have a really good relationship with HUD, Office of 

Sustainable Housing and Communities, as well as with the ongoing 

regular statutory funding. I think one of their deputies was here 

recently working with our team on the homelessness issues and, 

you know, that kind of statutory funding 

Senator SCHATZ. Thank you very much. 

This goes for all the panelists and anybody in this room who is 

working in this phase. I know most of you already know this, but 

certainly our staff and our office and committee stands ready to assist you in all of the programs and projects that you’re working on. 

Dr. Pauley, I want to talk to you about the master plan for Coconut Island. I appreciate your dawet pursuit of this vision and your 

relentlessness because I know that it’s been, especially recently, 

quite challenging. 

My question for you, specifically is does the 1998 master plan, 

sort of, hold up? Does it need to be revised in order to attract the 

kind of leadership and funding that is required or is it essentially 

ready to go and just requiring some political will and some resources? 

Mr. PAULEY. I think it’s ready to go. There’s really, all the components are there based on the things we’ve been hearing the last 

few days, water, sewer, thinking of the natural sewer system, solar 

panels. You know, we’ve been talking about solar for a long time 

out there. It just hasn’t happened for one reason or another. 

52 

So I think it’s ready to go. 

Senator SCHATZ. Are we in arrears with respect to infrastructure, 

I mean, basic infrastructure at this point? Is there some? Do you 

have some sense of what the price tag would be? 

Mr. PAULEY. At one time we thought that would be about $13 

million. The sea walls are all falling down and I know that Governor Abercrombie and Clayton, he found some money in the State 

this year to build some of that up to help the infrastructure. We 

certainly appreciate that. 

When I say we are really not—anybody to call the shots anymore 

since you gave the gift. 

But obviously I want to see the dream filled, fulfilled, out there 

and so far it hasn’t happened. 

Senator SCHATZ. Thank you. 

Ms. Lippert, I have 2 questions for you. 

The first, what’s your mix of funding? I know, and could you separate out how much money actually flows through your Excelerator 

and then you, I think, you provided a number, 55 odd million in, 

I think, additional money raised, not necessarily coming through 

your organization. 

Could you separate those out by dollar amount and also give us, 

it doesn’t have to be precise, but a rough breakdown of Federal, 

State and private dollars? 

Ms. LIPPERT. Yes, absolutely. 

So on our funding side the rough breakdown of Federal, State 

and private funding is primarily Federal, very little State money 

and increasing private money. 

So, on the Federal side primarily we’ve worked with the Office 

of Naval Research in the last couple of years. They have a commitment of $30 million over the next 5 years to fund this program 

which was seeded with Department of Energy money. So we really 

consider the Federal funding both Department of Energy and the 

Office of Naval Research funding as seed funding to prove out the 

vision. 

I think there will always be a role for public funding in this kind 

of effort because we’re trying to achieve some really broad public 

policy goals, but ultimately what we’re trying to do is prove value 

there and use that to attract private funding. We attracted the first 

tranche of private funding on New Year’s Eve, actually, of this 

year, so December 31st from Hawaiian Electric Industries. I think 

that’s really the direction that we’re going to make it a true public/ 

private partnership. 

On the company side we’ve invested approximately $10 million 

of Federal funding so far and the companies have turned that into 

$55 million of follow on funding. 

Senator SCHATZ. Who owns the intellectual property? 

Ms. LIPPERT. The companies. Yes. 

So it’s a traditional, sort of, Federal company relationship where 

the companies retain intellectual property, but the government has 

license to that intellectual property if it’s of use to them. 

So this is a highly leveraged program where we’ve been able to 

match make investors with the companies to directly put capital 

into the companies. But in the future what we see as our role is 

a more direct fund where we actually have relationships with these 

53 

investors as well. But so far they’ve been directly investing into 

companies and into projects. 

Senator SCHATZ. I’m just going to give you a minute to plug the 

why. That’s my second question. 

[Laughter.] 

Ms. LIPPERT. OK, why unlimited renewable energy? 

So, I mean, the question here is why do we have a group, maybe, 

promoting renewable energy? 

Actually I think it goes back to something that we talked about 

yesterday at the ASCENT conference. It was one of the primary 

findings of our panel in public/private partnership which is the fundamental requirement for public/private partnership is trust. Why 

aren’t—a way to help build trust in the community. 

Then the second thing is just tapping into the diversity of our resources. I think it’s just really about finding talent within our community and tapping into talent wherever that may be to help 

achieve a transformation that’s real and tough, but really important. 

Senator SCHATZ. Thank you very much. 

My final question will be for Chairman Morita. 

Could you just describe for the purposes of the record really, the 

Federal role in HCEI from the DOE and DOD perspective? 

Ms. MORITA. OK, so first of all the partnership is extremely important to us. What it did was help bring resources to the State 

and help us leverage those resources in moving forward, accelerating the transformation to clean energy. 

Currently, now, we are looking at how to update the agreement, 

the partnership between the State and DOE. It’s been in effect 

since 2008 and the technologies have changed, priorities have 

changed. So looking forward to an updated agreement. 

The other big issue is getting access to the national labs and the 

technical and economic expertise that they provide as we move forward. As I said in my testimony the technical and economic analyses will help us lead to better environmental and societal types of 

decisions. So just having that access to the expertise throughout 

the labs. 

Then again, taking what we learned in Hawaii and having it applied to other areas. It, you know, we’re outliers in this area and 

as Commissioner Akiba said, you know, we’re a postcard from the 

future and so all eyes are on us right now as we move forward. I 

think in establishing partnerships, the systemic approach, that’s 

what we can demonstrate and prove out for, not only the rest of 

the country, but the rest of the world. 

54 

Senator SCHATZ. Thank the panelists, thank you very much. 

I want to thank the East-West Center. I want to thank the University of Hawaii Sea Grant and everybody in this room. We’ve had 

a very productive couple of days. I appreciate it very much. 

[Whereupon, at 2:57 p.m. the hearing was adjourned.] 

Æ