HomeMy WebLinkAboutREP AWESC 010 04/30/2013 (2012-2014) REPORT OF THE
COMMITTEE ON AGRICULTURE, WATER AND
ENERGY SUSTAINABILITY
DATE: April 30, 2013 Re: Comm. No. 236/Res. No. 99
PLACE: Council Chambers
Kona, Hawai`i
TIME: 10:00 a.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Your Committee on Agriculture, Water and Energy Sustainability, to which was referred
Resolution No. 99-13, reports as follows:
Resolution No. 99-13 transmitted by Council Member Margaret Wille via Communication
No. 236, dated April 9, 2013, is a resolution urging the Administration to install photovoltaic
systems on as many County facilities as possible using third-party financing such as solar power
purchase agreements.
Committee Chair Wille relinquished the Chair to Committee Vice Chair Poindexter.
Council Member Wille stated she believed that this is budget related and that the County of
Hawai`i should take advantage of the economies of scale and partner with private businesses
(which can utilize tax credits that are not directly available to municipalities)through solar
power purchase agreements to help reduce the cost of electricity. The reduction in cost would be
substantial considering that electricity costs are one of the major expenditures in many of the
departments' budgets. She further stated that the County of Maui began to install photovoltaic
systems on its facilities in 2011 and urged the Kenoi Administration to do the same here in
Hawaii County wherever feasible and practical.
She further explained that this budget suggestion was made by a member of the public, and this
should stand as an example of encouraging the public to come forth with good ideas for the
County to balance its budget.
The Department of Research and Development's Economic Development Specialist III William
Rolston stated he understood the desire to install more photovoltaic systems to help decrease
electricity costs, but was concerned that reducing the County's electricity costs will negatively
impact other ratepayers. He explained that as the County installs more photovoltaic systems, it
might be pushing Hawai`i Electric Light Company's (HELCO) costs on to other customers,
including the poor and elderly that cannot afford it. He suggested that it should be done only at
the right sites with a complete system, like the one being used at West Hawai`i Civic Center
which includes batteries for power storage. He believes wind farms such as those being installed
at wastewater treatment center by the Department of Water Supply may be a better option.
AWESC Rept. No. 10
AWESC-10 Page 2 April 30, 2013
Council Member Ford stated that reducing the costs of the County's expenses, such as electricity,
saves taxpayers from possible real property tax rate increases. She added that all residents pay
for property tax, including the poor and the elderly, either by owning or renting a residence. She
supports the Resolution; and encouraged the Administration to establish a special revolving fund
to capture and identify the savings.
Public Member Steve Holmes, a former City and County of Honolulu Council Member and the
Energy and Sustainability Coordinator, stated that decoupling and the Hawai`i Clean Energy
Initiative protects the consumer from costs being pushed on to them. He also stated that the State
Department of Education has a goal to install photovoltaic systems in all schools within the next
five years. He added that with solar power purchase agreements, there is an immediate savings as
well as long term savings and that it is the fiduciary responsibility of the Council to save
taxpayer money.
Council Member Kern stated that he grew up off the grid and that he believes a balanced
approach needs to be taken and he supports this Resolution as it allows the Administration to
decide where it is appropriate to install the systems. Council Member Yoshimoto concurred
adding that the Resolution is fine the way it is written.
Council Member Ilagan supports the Resolution and stated that if Maui County is already doing
this, Hawai`i County needs to as well. He further stated that since the public is trying to save on
electric costs, the County should as well.
Committee Chair Poindexter confirmed that a solar power purchase agreements is a commitment
to purchase electricity for a fixed number of years even after the system is paid for. Mr. Holmes
responded by adding that at the starting point the County would pay less for electricity than
HELCO is charging.
Your Committee on Agriculture, Water and Energy sustainability is in accord with the purpose
and intent of Resolution No. 99-13 and recommends its adoption.
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AYES NOES A&E EX Respectfully submitted,
EOFF X
FORD x COMMITTEE ON AGRICULTURE, WATER
ILAGAN x AND ENERGY SUSTAINABILITY
KANUHA X 7:0 KERN X .6
ONISHI X
POINDEXTER x MARGARET WILLE, CHAIR
WILLE X AWESC REPORT NO.: 10
YOSHIMOTO x ADOPTED: MAY 1 5 2013