HomeMy WebLinkAboutREP FESC 002 03/24/2008 2006-2008
REPORT OF THE
COMMITTEE ON FOOD AND ENERGY SUSTAINABILITY
DATE: March 24, 2008 RE: Comm. 1060/Res. 550-08
PLACE: Councilroom
Ben Franklin Building
333 Kilauea Avenue, 2nd Floor
Hilo, Hawaii
TIME: 11:37 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Food and Energy Sustainability, to which was referred Resolution 550-08,
reports as follows:
Resolution 550-08, transmitted by Council Chair Pete Hoffmann via Communication 1060, dated
February 20, 2008, encourages the installation of solar water heating systems and photovoltaic
energy systems on County buildings.
The purpose of this resolution is to reduce the County's dependence on fossil fuels and to save
money by utilizing free energy produced by the sun. This resolution also calls upon the Mayor
to assign qualified administrative personnel to help determine the funding requirements and to
oversee installation of solar systems on County facilities in order to meet the County's energy
goals. Lastly, this resolution asks the Mayor to report the funding requirements for installation
of solar systems on County facilities to the Council prior to submission of the Operating Budget
on March 1, 2009.
The only testifier, Mr. Robert Arrigoni, testified from the Kona Council Office. He stated that
there are a number of different financing mechanisms available to governments, such as Power
Purchase Agreements and Energy Performance Contracts, both of which are approved by the
State. Another mechanism is to use a third-party agency to provide the capital to install these
systems. Mr. Arrigoni further stated that the County of Hawaii has been using Energy
Performance Contracts for the past 10 years, and the only thing that is preventing the County
from moving forward with installing these systems is, basically, the will to do so.
Council Chair Pete Hoffmann informed the Council that Mr. Arrigoni worked several years for
the County of Hawai`i's Department of Research and Development. He also thanked Mr. Arrigoni
for assisting the County and for all his hard work.
Council Member Bob Jacobson asked Mr. Arrigoni when these systems could be implemented.
Mr. Arrigoni responded that a solicitation to install the systems could be available sometime
within six to eight months. The whole process, including both the RFP (Request for Proposal)
and the selection process, could be within one year. He further stated that all departments have
FESC Report No. 02
Comm. 1060/Res. 550-08
March 24, 2008
Page 2
to be comfortable with the process, and that it would probably be best to direct one department to
take the lead. Mr. Jacobson also asked if it would be cheaper for the County to use outside
funding. Mr. Arrigoni replied that it would be cheaper to use outside funding, because
governments cannot take advantage of State and Federal tax credits. If a third party is the owner
of the system, then they are able to receive tax credits and pass on the savings to the County in the
form of less expensive power. For example, the County is now paying approximately 35 cents
per kilowatt for energy. Using a third party would lower it to 20 cents per kilowatt. Mr. Jacobson
urged the Council to use this method of financing.
Council Member Brenda Ford suggested establishing an ad hoc committee to determine what
changes are needed and to make recommendations on moving forward with this concept.
Ms. Ford also pointed out that the Department of Public Works should be involved as this would
affect the Building Code. Council Chair Hoffinann indicated that his staff is already working on
revising the Energy Code for the County as well as other energy-related proposals. He also
stated that he would be willing to participate on the ad hoc committee if one is created.
Your Committee on Food and Energy Sustainability is in accord with the purpose and intent of
Resolution 550-08 and recommends its adoption.
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AYES NOES A&E EX Respectfully submitted,
FORD X
RIGA X COMMITTEE ON FOOD AND ENERGY
HOFFMANN X SUSTAINABILITY
IKEDA X
JACOBSON X
NAEOLE X
PILAGO X J YOSHIMOTO, CHAIR
YAGONG X FESC REPORT NO. 02
YOSHIMOTO X ADOPTED: APR 9 ZO