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HomeMy WebLinkAboutREP FESC 001 03/11/2008 2006-2008 REPORT OF THE COMMITTEE ON FOOD AND ENERGY SUSTAINABILITY DATE: March 11, 2008 RE: Comm. No. 1051/Res. No. 546-08 PLACE: Sheraton Keauhou Bay Resort and Spa 78-128 Ehukai Street Kailua-Kona, Hawaii TIME: 8:00 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Food and Energy Sustainability, to which was referred Resolution No. 546-08, reports as follows: Resolution No. 546-08, transmitted by Council Chair Pete Hoffmann via Communication No. 1051, dated February 25, 2008, recommends a minimum fuel-efficiency standard of 35 miles per gallon (mpg) for highway driving, as measured by the Environmental Protection Agency, for passenger vehicles purchased by the County. The Congress of the United States recently enacted H.R. 6, Energy Independence and Security Act of 2007, which was signed into law by President Bush on December 19, 2007. The Energy Independence and Security Act of 2007 raises the Corporate Average Fuel Economy (CAFE) standards for cars and light trucks, including SUVs, to an average of 35 mpg by 2020. The purpose of this resolution is to have the County of Hawaii take the lead in the effort to reduce the County's dependence on fossil fuels and other imported resources for electrical energy and transportation by requiring all future passenger vehicles purchased for the County fleet to have a minimum average of 35 mpg for highway driving. This resolution also requires the administration to monitor the performance of the first 10 new fuel-efficient vehicles purchased and to provide a cost-benefit analysis to the Council prior to the submission of the 2008-2009 Operating Budget on March 1, 2009. The only testifier, Ms. Hope Louise Cermelj, who testified from Kailua-Kona, stated that Yavapai County, Arizona, requires all their county vehicles to be 35 mpg or better. She also stated that Ford and Dodge give fleet prices for counties in the mainland and that it would probably be the same for Hawaii. Council Chair Pete Hoffmann stated that this is just the first step in moving forward with the efforts articulated in both the Hawaii 2050 Sustainability Plan and the Hawaii County Sustainable Energy Plan. He emphasized that the administration will monitor the performance of these vehicles to make sure that the County is on the right track and that there is proof that what's being done is the right thing. Chair Hoffmann asked his colleagues to support the resolution. FESC Report No. 01 Comm. No. 1051/Res. No. 546-08 March 11, 2008 Page 2 Council Member Donald Ikeda asked the following questions: 1. When will the resolution take effect? 2. Are there any SUVs, buses, vans, or four-wheel-drive vehicles that have 35 mpg now? (Council Member Ikeda supports the intent, but is concerned that the Council is putting in rules that the County cannot abide by. If the federal law doesn't take effect until 2011, then the Council may be jumping the gun.) 3. How does this affect the buses? 4. What about cost? (County purchases are usually based on cost. Council Member Ikeda is concerned that fuel-efficient vehicles will cost a lot more. He wants to make sure that the purchases are cost-efficient.) Chair Hoffmann responded to Council Member Ikeda's questions as follows: 1. The County already has a continuous program for purchasing vehicles as they go bad and/or need to be replaced. The resolution can take effect right away, but if the funds are not available, then it would take effect in the beginning of next fiscal year when the new budget is in place. 2. There are 35 mpg vehicles already on the road, such as the Honda Civic Hybrid, Honda Insight, Toyota Prius, and Toyota Yaris. These all exceed the 35 mpg standard, but they are not SUVs. (Council Member J Yoshimoto clarified that there are hybrid SUVs that can get about 30 mpg on the highway.) 3. The resolution only addresses passenger vehicles that are small cars, not buses. There are federal standards being worked on that would provide for a type of vehicle that would probably have an electric or hybrid motor. The federal government is working on making sure those are coming, as well as the federal funds that would be made available in the future. For instance, the federal funds that Senator Inouye achieved for the statewide bus fleet. By 2010-2011, we may begin to see the advent of those buses. 4. Cost figures were not available, but the hybrid vehicles mentioned in No. 2 are very cost- effective. This is why the requirement for an analysis report has been included in the resolution. There are several car manufacturers in the U.S. that provide cost-effective cars to governmental agencies, like counties and municipalities. The County is going to save money in the long run. Council Member J Yoshimoto stated that he owns a Honda Civic Hybrid that gets 47 mpg driving to Kona. He also stated that the payback period is about four to five years, and that there is a federal tax credit available for those who purchase a hybrid vehicle. Council Member Yoshimoto asked if the requirement for 35 mpg was based on the average of combined vehicles. Chair Hoffmann clarified that the intent of the resolution is that each vehicle is to have 35 mpg. FESC Report No. 01 Comm. No. 1051/Res. No. 546-08 March 11, 2008 Page 3 Council Member Dominic Yagong asked if the analysis report would be based only on the first 10 new vehicles and not any other vehicle purchased. Chair Hoffmann stated that that was correct and that it would not include any replacement purchases for a bus or SUV. The analysis would only be on the first 10 new fuel-efficient vehicles. Council Member Yagong commented that the County needs vehicles that can traverse horrible roads, like the ones in Hamakua. He also stated that he would support the resolution as it would not affect County employees' ability to perform their jobs safely and effectively. Your Committee on Food and Energy Sustainability is in accord with the purpose and intent of Resolution No. 546-08 and recommends its adoption. dwe AYES NOES A&E EX Respectfully submitted, FORD x HIGA x COMMITTEE ON FOOD AND ENERGY HOFFMANN x SUSTAINABILITY IKEDA x JACOBSON X NAEOLE x PILAGO x J S IMOTO, CHAIR YAGONG x FESC REPORT NO. 01 I YOSHIMOTO X ADOPTED: MAR 2 200a