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William T. Takaba Managing Director

William P. Kenoi Mayor Walter K.M. Lau

Deputy Managing Director

County of Hawaii

Office of the Mayor

25 Aupuni Street, Suite 2603 Hilo, Hawaii 96720 (808) 961-8211 Fax (808) 961-6553

KONA: 75-5722 Hanama Place, Suite 102 Kailua-Kona, Hawaii 96740

(808) 327-3602 Fax (808) 326-5663

Aloha,

Vision 20/15 Green Government Action Plan is an exciting and ambitious plan to transform County of Hawaii into the greenest government and the renewable energy leader in the State of Hawaii.

This landmark effort draws on the collective talents and expertise of dozens of government departments, community representatives and local and national nonprofits along with dedicated residents striving to make our island a better place to live, work and play.

At the beginning of my administration in 2009, I formalized the Green Team and Energy Advisory Commission to improve our islands energy security and accelerate the development of a renewable energy economy. This action plan is the result of that work. Inside you'll learn about the countys present use of resources and a roadmap toward a greener government.

This plan aims to maximize taxpayer dollars and green the economy by reducing fossil fuel use, slashing carbon emissions and cutting energy costs. Our target, a 20-percent reduction within the next five years, will save $3.4 million annually or $34 million in 10 years, after the initial return on investment.

Together we will realize the benefits of sustainability and through it establish the County of Hawaii as an island on the cutting edge of innovation in the 21st Century.

Mahalo

Billy Kenoi

MAYOR

County of Hawaii is an Equal Opportunity Provider and Employer.

Roderick Hinman William P. Kenoi Chairman Mayor

Steven Burns Randall M. Kurohara Vice-Chairman Director

Laverne R. Omori Deputy Director

County of Hawai`i DEPARTMENT OF RESEARCH AND DEVELOPMENT

ENERGY ADVISORY COMMISSION 25 Aupuni Street, Suite 1301 Hilo, Hawai`i 96720-4252

(808) 961-8366 Fax (808) 935-1205 E-mail: chresdev@co.hawaii.hi.us

May 18, 2011

Aloha kakou,

On behalf of the Mayor's Energy Advisory Commission, we enthusiastically express our support for the goals and recommendations contained in this document, the Vision 20/15 Green Government Action Plan. Achievement of the goals set forth herein will make County government more energy efficient, reduce expenditures on energy and waste management, and create greater self-reliance. Recognizing the likelihood of energy price increases beyond those witnessed in recent years, the Commission encourages the County to take full advantage of this report. It sets out a reasonable path to follow to achieve new sustainability objectives. By reducing energy use and greenhouse gas emissions, we will also do our part to minimize negative impacts to the land, ocean, and every living thing existing interdependently.

It is the kuleana of the Mayor's Energy Advisory Commission to advise the Kenoi administration on energy issues and on a strategy for development and implementation of an energy sustainability plan for Hawaii County. As such, the Commissions work is focused on energy issues and planning both within County government operations and more comprehensively for the island as a whole. Because Hawaii County government is a large energy consumer and highly visible to residents of the entire island, the Commission believes that this effort has the great potential to lead by example, showing residents why and how to become more efficient. It is essential that a public education process associated with this initiative be implemented, encouraging many more people to take similar steps in their own homes and businesses.

This report represents the volunteer effort of a number of individuals on the Mayor's Green Team. The Commissioners applaud their efforts and encourage all County employees to kokua to make this project a long-term success.

Mahalo,

Roderick T. Hinman, Chairman Michael Kaleikini Steven Burns, Vice Chairman Julie Myhre Hank Banquer Richard Nelson Curtis Beck Guy Toyama Thomas Goya Alex Woodbury

Hawai`i County is an Equal Opportunity Provider and Employer

EXECUTIVE SUMMARY

The threats posed by our dependence on fossil fuels and climate change continue to grow, but in difficult economic times it is essential that our efforts to reduce our energy use, waste, and emissions are targeted to where they will be most cost effective. Recommendations from Vision 20/15 will help reduce the cost of government in a strategic, responsible manner while improving our critical infrastructures and public services.

Mayor William P. Kenoi

Energy and Climate Challenge

Delivering essential local government services require significant use of energy and resources. The county government spent $33 million to pay for electricity and fuel in Fiscal Year 2007-2008, to support services such as public safety, parks and recreation, water delivery, solid waste disposal and wastewater services. This represents 7 percent of the islands usage of electricity.

The cost of electricity increased from $11.4 million to $24.3 million in 10 years (from FY2000 to FY2010), an increase of 115 percent due to the rising price of fossil fuels and growth in population. Finally, the management of the islands waste disposal cost over $28 million in FY2007-2008.

The combination of fossil fuel use and waste disposal processes contributed to the County of Hawaiis municipal operation emitting 134,130 metric tons of COe (Greenhouse Gas, a primary cause of climate change) from direct emissions, emissions from electricity consumption and select other indirect sources in FY 2007-2008 or the equivalent of using 311,930 barrels of oil.

Hawaii is the most petroleum dependent state in the United States. The cost of fossil fuel based electricity and fuels are expected to stay unstable due to:

Increasing demand from China, India, Brazil, and other emerging countries; and

Decreasing supply (peak oil) and instability in North Africa and Middle East which holds 60 percent of proven world oil reserves.

Projecting the potential cost of energy at $200 dollars per barrel of oil will cost at least $51 million or 14 percent of the total FY 2011-2012 County Operating Budget to power buildings and facilities, to fuel the transportation fleet, and to maintain public services in the near future.

This basic scenario highlights the precariousness of the continued reliance on fossil fuel based energy and the prudence to proactively manage current and future risks. As the cost of energy and resources continue to increase, it is essential for local government to invest and improve operational efficiency, save taxpayer dollars, and encourage development of a renewable energy economy.

Acknowledgment

Finance Department Nancy Crawford Director

Office of Management Bobby Command Mayors Executive Assistant*

Department of Water Supply Julie Myhre Energy Management Analyst*

Department of Public Works Noland P. Eskaran Building Project

Coordinator*

Ron Thiel Traffic Division Director

Ted Schrey Office Manager Traffic Division

Randy Riley Automotive Division Director

Ted Toriano Construction Repair Supervisor

Planning Department Christian Kay Long Range Planner*

Susan Gagorik Long Range Planner*

Environmental Management Dora Beck Waste Water Division Director

Terin Gloor Civil Engineer IV*

Linda Peters Recycling Coordinator*

Christopher Chin-Chance Recycling Specialist*

Angela Kang Recycling Specialist*

Craig Kawaguchi Recycling Specialist*

Rebekah Sluss Recycling Specialist*

Editor Mary Park

*Green Team Member Past and Present

Information System Lisa Nahoopii GIS Analyst III*

Civil Defense Bill Hansen Civil Defense Administrative Officer*

Human Resources Charmaine Kamaka Human Resource Manager*

Research and Development Alex Frost Sustainability Coordinator*

Will Rolston Energy Coordinator*

Mass Transit Tom Brown Mass Transit Administrator

Tiffany Kai Mass Transit Specialist

Police Nori Ishii Accountant III

Mayors Energy Advisory Commission Henry Banquer

Curtis Beck

Steven Burns

Tommy Goya

Roderick Hinman

Richard Nelson

Michael Kaleikini

Guy Toyama

Alex Woodbury

Table of Contents

Chapter 1: Introduction ----------------------------------------------------------------------------- 10 1.1 Purpose of This Action Plan 1.2 Planning Process

Chapter 2: Baseline and Projection ------------------------------------------------------------ 13 2.1 Trend and Projection: Electricity and Fuel Cost 2.2 Risk Management - $200 Dollar Barrel of Oil

Chapter 3: Vision 20/15 ----------------------------------------------------------------------------- 16 3.1 Save 20 percent by 2015 3.2 Long Term Sustainability Vision & Values

Chapter 4: Principles and Thematic Areas --------------------------------------------------- 18 4.1 Built Environment 4.2 Transportation 4.3 Purchasing

Chapter 5: Background, Goals, Objectives, Policies and Actions ------------------- 21 5.1 Buildings and Facilities 5.2 Streetlights and Traffic Signals 5.3 Water Delivery Facilities 5.4 Wastewater Facilities 5.5 Solid Waste Facilities 5.6 Vehicle and Mass Transit Fleet 5.7 Employee Commute 5.8 Sustainable Procurement

Chapter 6: Priorities for Action ------------------------------------------------------------------ 31 6.1 Establish a Green Government Initiative 6.2 Implement Green Government Projects 6.3 Financing Mechanism 6.4 Conclusion

APPENDIX A: Implementation Matrix

Tables

Table 1. Triple Bottom Line Approach Table 2. FY 2007-2008 County of Hawaii Government Operation Environmental, Energy, and Economic Impact and Baseline Table 3. Ten Green Government Projects

Figures

Figure 1. County of Hawaii Electricity Expenditure FY 2001 to FY 2011 Figure 2. County of Hawaii Greenhouse Gas Emissions Reduction Target: 20 percent by 2015 Figure 3. Common Principles for Eight Government Sectors

List of Abbreviations and Acronyms

B20 20% Biodiesel Blend Btu British Thermal Unit COe Carbon Dioxide Equivalent COH County of Hawaii DPW Department of Public Works DWS Department of Water Supply FY Fiscal Year GHG Greenhouse Gas Emissions kW Kilowatts (one thousand watts) kWh Kilowatt-hour (one thousand watt-hours) LED Light-Emitting Diode LEED Leadership in Energy and Environmental Design MW Megawatts (one million watts) PV Photovoltaic SCADA Supervisory Control and Data Acquisition VMT Vehicle Miles Traveled WHCC West Hawaii Civic Center

Phase Two: Assessments. Sustainability assessments evaluated the energy and resource use of county government. There were two types of assessments: High-level assessment scanned wide range of performance areas (e.g., common organizational functions and energy and greenhouse gases inventory of county government). Specific assessments focus on one or a few areas of performance (e.g., building energy audit, waste audit, fleet audit). Examples include:

High-Level Assessments

SCORE (Sustainability Competency and Opportunity Rating and Evaluation) -looked at the common functions that all organizations share (top management, purchasing, HR, finance, marketing, etc.) and defined the practice areas relevant to sustainability - Completed July 2010.

County Government Operation Carbon and Energy Footprint tracked baseline greenhouse gas emissions, financial cost and fossil fuel use for FY2007. A first municipal level inventory in the State of Hawaii completed April 2011.

Specific Assessments

Wastewater Energy Audit - identified over $165,000 in savings, conducted via EPA support - Completed Feb. 2010

Pull the Plug: Way to Motivate Energy Conservation Behavior of County Employee identified employee perception about energy conservation in partnership with students from University of Hawaii Hilo - Completed May 2010.

Large Buildings and Facilities Energy Audit Evaluated opportunities for reducing energy use and cost saving opportunities that improve the bottom line up to $500,000 in savings identified for 10 major county facilities - Completed June 2010.

Renewable Energy Analysis - examined the feasibility of installing on-site renewable energy generation capacity on county facilities Updated June 2010.

County Fleet Analysis - examined the average vehicles miles traveled, gallons consumed, and average cost per vehicle to identify efficiency opportunities. Completed April 2011.

West Hawaii Waste Audit examined the waste stream to identify opportunities to reduce waste and to find ways to divert residual products to better uses. Most of the implementation is being initiated to have the West Hawaii Civic Center be a Zero Waste Facility -Completed December 2009.

Phase Three: Vision and Goals. Vision and goals define the parameters of success for county government. The long-term vision and values are rooted in the four sustainability principles, as adopted by the County Council. The strategic goals and objectives define the overarching objectives and scope of the Green Government Action Plan.

Phase Four: Action Plan. The Green Government Action Plan was created through integration of all the materials generated by the first three phases. Recommendations contain policies and implementation measures that the local government can initiate to green the government and save money. The MGTs mission concludes with the submittal of the recommendations to the Mayor.

Phase Five: Early Action. Many early actions have been initiated to increase on-site renewable energy generation and improving energy efficiency. The formal implementation mechanism to take the green actions to scale is highlighted in this document.

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fossil fuel is unsustainable for several additional reasons:

1. Peak Oil - easily-accessible fossil fuels will at some point run out, resulting in a far reaching quest for other less accessible sources of fossil fuels at spiraling costs.

2. Security of Supply over 60 percent of the proven world oil reserves are located in politically unstable regions of Middle East and North Africa.

3. Financial Leakage - Hawaii Island spent $750 million on imported energy in 2007.

4. Impact on Families - A typical household on Hawaii Island with two cars spends approximately $2,500 per year in gasoline and $2,300 in electric bills5 .

5. Climate Change 75 percent of the islands greenhouse gas emissions are released from the use of fossil fuels that lead to global climate destabilization6 .

Because energy is a vital component of all economic and governance activities, and considering Hawaii Island's over-dependence on fossil fuel and imported goods, any disruption in shipping services or a spike in fossil fuel prices will make an enormous negative economic impact to island residents.

2.2 Risk Management - $200 Dollar Barrel of Oil

The potential cost and impact of $200 dollar barrel of oil is calculated based on Central Station Component of HELCO Energy Cost Adjustment Factor Calculation (appendix x). At $200 dollar barrel oil, a HELCO average cost per kWh is projected to go from $0.32 cents kWh to $0.48 cents kWh.

Between Fiscal Year 2006 to 2010, the annual county government kWh consumption averaged around 78.9 million kWh. Based on these assumptions:

Electricity expenditure to maintain basic county services will be roughly $38.9 million dollars, or 62 percent increase in operating cost from FY 2010 at $200 dollar barrel of oil.

The cost of purchasing 1.5 million gallons of fuel (FY 2007) to maintain fleet and mass transit operations will be roughly $12 million dollars or 42 percent increase7 at $200 dollar barrel of oil.

The combined cost of electricity and fuel at $200 dollar barrels of oil to the County Government will be close to $51 million dollars or 14 percent of the total FY 2011-2012. County Operating Budget.

These assumptions do not take into account the increase of operational cost based on expansion in personnel to meet the growing demand in services as the population continues to grow on Hawaii Island. This basic scenario highlights the precarious nature of continued reliance on fossil fuel based energy and urges prudence to proactively manage future risks.

5 Johnson, J., et al. 2006. Hawaii County Baseline Energy Analysis. Hilo, HI: The Kohala Center. 6 Frost, Alex. 2011. Hawaii County Greenhouse Gas Emissions Inventory FY2007-2008. Hilo, HI: County of Hawaii. 7 At conservative estimate of $8 dollars a gallon of gasoline and diesel costs.

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3.2 Long Term Sustainability Vision & Values9

The greening government is all about doing less harm or improving eco-efficiency. Genuine sustainability requires local government to cause no harm and contribute to the regeneration of society and ecosystems. Moving to a vision of a regenerative society will require shedding old norms, values, beliefs and practices and embracing new paradigm and processes to improve government services. This transition will be fraught with difficulties, but the reward for preparing and starting the process of transition will be a healthier community, economy and environment for today and tomorrow.

The sustainability vision and values provide the long-term

direction for resilient governance. A resilience governance system is well prepared, proactive,

and works effectively across silos to improve the health and well-being of children, youth and

families.

To build upon our strong track record of resilience in face of natures power, by 2030 the Island

of Hawaii will be one of the most sustainable communities in the world. This in part will be

achieved through a leadership role assumed by the county government in its own operations.

As an organization, the long term opportunity and challenge before the County is to

demonstrate how sustainability can be implemented considering these values:

Fiscally Responsible all short-term actions must be achieved on the basis of

prudent long-term stewardship for our natural, social, and financial capital.

100% Renewable Energy our workplaces will be powered hundred percent by indigenous renewable energy sources.

Zero Emission our operations will have a net zero contribution of greenhouse gases into the atmosphere.

Zero Waste our operations will be based on a closed-loop system, having a zero contribution of materials to disposal.

Zero Toxicity our work and our workplaces will be free of materials harmful to human or environmental health.

Leadership and Community Empowerment our operation will facilitate transition towards sustainable practices through continual investment in learning and innovation; to maximize value and service to improve the well being of island citizenry.

9 Refined from Green Team Strategic Plan and County Sustainability Resolution and Principles.

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CHAPTER 4: PRINCIPLES & THEMATIC AREAS Chapter 4 presents the key thematic principles, goals, objectives, polices and actions related to eight government sectors. These recommendations are aligned with direction set forth by the County of Hawaii Sustainability Policy. Figure 3 illustrates the larger thematic areas of Built Environment, Transportation and Purchasing, with relevant common principles for eight government sector areas:

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Three thematic areas highlight common principles underlying sector specific goals, objectives, policies, and action. Common principles for Built Environment and Transportation are focused on reducing cost, energy and resource use, waste and pollution. Common principles for purchasing are focused on reducing toxins and environmental impact based on lifecycle assessment and promotion of a greener economy.

Built Environment

Built Environment comprises major county infrastructures and assets required for provision of basic public services, such as: buildings and facilities, streetlight and traffic signals, water delivery facilities, wastewater facilities, and solid waste facilities. There are four common principles underlying the goals, objectives, policies and actions of buildings and facilities, streetlights and traffic signals, water deliver services, wastewater facilities, and solid waste facilities:

1. Reducing kWh (kilowatt hour) through conservation, efficiency, and energy and emission management systems.

2. Increasing renewable energy use through onsite solar power, micro hydro, wind, biogas, and state level policy advocacy.

3. Reducing waste stream and increasing opportunities for revenue generation through source minimization and optimization (waste as resource), diversion and recycling, and creative financing mechanism (i.e. feed-in-tariff).

4. Monitoring, Training, and Education through tracking of electricity usage, public and employee outreach and education to highlight the advantages and purpose of reducing fossil fuel use, energy cost and pollution.

Transportation

Transportation comprises physical assets and driving behaviors related to county fleet operations, mass transit services, and employee commute. There are four common principles underlying the goals, objectives, policies and action of county fleet and mass transit and employee commute:

1. Reducing VMT (vehicle miles traveled) through eliminating and/or consolidating trips and improving scheduling and routing.

2. Increasing fleet fuel economy through acquisition of higher fuel economy vehicles, optimum maintenance of vehicles, driving more efficiently and avoiding excessive idling.

3. Increasing alternative fuel use through displacement of petroleum base fuels with electricity, hydrogen, and biodiesel blends.

4. Monitoring, Training, and Education - through tracking of fuel usage and vehicles miles traveled and employee outreach and education to highlight the advantages and purpose of reducing fossil fuel use, energy cost and pollution.

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Purchasing

Purchasing comprises of the money spent or procurement practices on buying materials and goods to maintain everyday operations. There are four common principles underlying the goals, objectives, policies and action of sustainable procurement:

1. Reducing toxins through substitution of synthetic chemicals with biologically base chemical compounds that do not harm people or the environment.

2. Reducing environmental impacts through purchasing of recycled products and assessing products based on life cycle analysis.

3. Increasing local purchasing - through preferential purchasing of locally sourced products and services permitting availability.

4. Monitoring, Training, and Education - through materials consumption baseline, public and employee outreach and education to highlight the advantages and purpose of sustainable procurements.

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1.2 50 percent of County facilities energy consumption will be from indigenous renewable energy source.

1.3 50 percent recycling and waste diversion at all County facilities.

Policy and Action

Objective 1.1 Energy Conservation, Efficiency and Monitoring Standards

1.1a - Develop an energy conservation policy for all facilities and facilitate implementation through employee engagement, education and outreach.

1.1b- Develop a Sustainable Design and Development Policy to incorporate energy and location efficiency standard in all Capital Improvement Projects.

1.1c - Implement recommendations from County Energy Audit by seeking/securing funding or initiating performance contracting process10.

1.1d - Evaluate potential savings in energy for county buildings via four-day workweek.

1.1e - Track electric, fugitive, and natural gas consumption at all county facilities and establish goals that reflect energy savings in departmental budgets starting in FY 2012.

1.1f - Pilot automated energy monitoring and management system at the West Hawaii Civic Center.

Objective 1.2 Renewable Energy Development and Standards

1.2a - Support state level policies, especially in areas of: storage process for curtailed renewable energy; expanding geothermal baseload power; creating intra-governmental wheeling; obtaining reliability standard and funding for smartgrid.

1.2b Encourage outside investment and secure international partnership. Expand renewable energy technologies such as Ocean Thermal Energy Conversion (OTEC) at NELHA.

1.2c - Investigate, identify, and pilot innovative financing tools to increase on-site

renewable energy generation.

1.2d - Pilot energy management system to track solar generation and improve energy usage and efficiency optimization at major county facilities.

Objective 1.3 Resource (waste) Diversion and Monitoring Standards

1.3a - Develop County Office and Facility Zero Waste Policy.

1.3b - Pilot zero waste management system at the West Hawaii Civic Center.

1.3c - Determine the feasibility of installing three bin systems (HI-5, Mixed Recycling, & Organics) at all county facilities.

10 Detail recommendations are outlined in 2010 Energy Evaluation Result for Ten County Buildings and Facilities

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1.3d Determine the feasibility of tracking resource/waste diversion rate at West Hawaii Civic Center.

2. Streetlights and Traffic Signals

Background

The County maintains over 7,000+ streetlights and traffic signals to provide safer roadways and well-lit public spaces. These safety lights and signals consumed 3.9 million kWhs of electricity, costing tax payers $1.4 million dollars and releasing over 2,740 metric tons of CO2e (scope 2) or 2 percent of total emissions in FY 2007-2008.

Goal and Objective

To reduce energy use and save money, every street signals and outdoor security lights shall be high performance - safe, visible, low maintenance, and energy efficient signals and lighting. The objectives to achieve these goals by 2015 are:

2.1 20 percent reduction in electricity consumption of county streetlights and signals from 2007 baseline.

Policy and Action

Objective 2.1 Energy Conservation, Efficiency and Monitoring Standard

2.2a - Field test performance of LED lights.

2.2b - Convert at least 500 streetlights to LED.

2.2c - Measure, monitor and verify energy use, overall efficiency performances and cost savings from LED lights.

2.2d - Secure additional funding to convert all streetlights to LED or other energy efficient technology.

2.2e - Explore feasibility of reducing the amount of energy the county uses for lighting streets and outdoor lighting for public spaces with implementation of a program like BLISS or other Dark Sky Initiative (www.darksky.org).

3. Water Delivery Facilities

Background

Department of Waster Supply (DWS), a semi-autonomous agency, is responsible for appropriating, treating and distributing water to people connected to the county water system. DWS operates treatment facilities, booster stations, in-line pumps, storage facilities and

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http:www.darksky.org

reservoirs. These facilities consumed over 57 million kWhs of electricity to pump and distribute ground and surface water in FY 2007-2008.

DWS spent $17.9 million dollars for electricity and contributed to a release of 53,039 metric tons of CO2e (scope 2) or 40 percent of total government operation emissions in FY 20072008. Despite the fact energy cost make up more than half of the total operational budget of DWS, their 20-Year Water Master Plan (2006) does not assess associated pollution from energy use and potential economic impact of relying on fossil fuel based energy for future expansion.

Goals and Objectives

To encourage commitment of the Hawaii County Board of Water Supply and the Department of Water Supply (DWS) to promote significant reductions in electricity and fuel usage and its associated pollutions: including management of its sources, storage, and distribution system, and its buildings, vehicles, and minimizing its wastes. Objectives to achieve these goals by 2015 are:

3.1 Reduce un-metered water loss to 15 percent (national average) and promote consumer water conservation and facility energy efficiencies.

3.2 Increase on-site renewable energy generation by 10 percent.

3.3 Develop policies, plan, secure funding, and monitor standards that incorporate environmental, energy, and economic performance and challenges.

Objective 3.1 Energy Conservation and Efficiency Standard11

3.1a - Identify, develop, and apply resources, such as tax and other incentives, grants, and favorable financing to implement, energy conservation and energy self-sufficiency projects.

3.1b - Became a partner in the EPAs WaterSense program to encourage consumer education on the benefits of water conservation.

3.1c - Determine energy use reduction and cost savings from community water conservation program.

3.1d - Lead by example in the county by fostering energy conservation practices by improving education of DWS personnel and consumers.

Objective 3.2 Renewable Energy Standards

3.2a - Secure extended lease on Lalamilo site and explore adding renewable system, such as wind to power adjacent wells.

3.2b - Partner with National Renewable Energy Laboratory to initiative development of Lalamilo Wind Farm and realize its full site potential.

11 Aligns with Recommendations from County of Hawaii Water Use and Development Plan 2010.

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3.3c - Submit a grant and/or secure funding to install four additional micro-hydro

generators.

Objective 3.3 Energy Monitoring Standards

3.3a - Develop policy for adoption by Hawaii County Board of Water Supply and the Department of Water Supply (DWS) to promote significant reductions in energy usage and greenhouse gas emissions: including management of its sources, storage, and distribution system, and its buildings, vehicles, and minimizing its wastes.

3.3b - Develop Water and Energy Management Plan in partnership with Environmental Protection Agency (EPA) and determine the impacts on energy usage on new projects and policies.

3.3c - Maintain a formal energy management program that includes a designated energy manager and DWS Energy Management Analyst Team to work on achievement of its goals and to work under the guidance of DWS mission statement and energy policy.

3.3d - Identify, develop, and apply resources for instrumentation systems (i.e. SCADA, SmartGrid) to analyze real-time power loads, develop motor efficiency testing program, establish long-range planning with system efficiency priorities, and to forecast Operations loads and associated electrical expenses.

4. Wastewater Facilities:

Background

The Department of Environmental Management, Wastewater Division operates five facilities used for the transportation, collection or treatment of wastewater/sewage. Typically this includes treatment facilities, booster stations, inline pumps, and lift stations. These facilities consumed 5.4 million kWhs of electricity at an estimate cost of $2 million dollars and utilize significant amounts of natural gas. Overall, the five facilities released over 3,870 metric tons of CO2e or 3 percent of total emissions in FY 2007-2008.

Goals and Objective

High performance waste water facilities reduce energy use, save money, capture value by generating energy from outputs and improve moral and operation of all waste water facilities. Objective to achieve this goal by 2015 is:

4.1 20 percent energy efficiency improvement (PGS) of wastewater facilities by 2015.

Policy and Action12

Objective 4.1 Energy Conservation, Efficiency, Renewable Energy and Monitoring Standards

4.1a - Operate dewatering odor control fan only during dewatering period.

12 Detail Implementation Recommendation Energy Assessment Report Hilo Wastewater Treatment Plant.

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4.2b - Eliminate 1 of 3 primary tanks in use and optimize primary sludge pump operations.

4.3c - Improve water pumping systems and enhance energy management system.

4.4d - Conduct economic feasibility of recovering energy and resources from biosolids or sludge.

4.5e - Improve operations efficiency by implementation of an Asset Management Program.

4.5f - Secure energy evaluation funding from Hawaii Energy and procure qualified wastewater facility energy performance auditors.

5. Solid Waste Facilities

Background

The Department of Environmental Management operates two landfills and 21 transfer stations to manage the islands solid waste and recycling efforts. Managing the disposal of consumer products and materials required $28 million dollars to maintain the transportation, source separation and maintenance of the landfills. The two landfills in East and West Hawaii released over 41,000 metric tons of CO2e (Scope 1) or 31 percent of total emissions in FY 2007-2008.

Goals and Objective

In December 2007, the County adopted Resolution 356-07: A Resolution to Embrace and Adopt the Principles of Zero Waste as a Long-Term Goal for Hawaii County. The 2009 County of Hawai`i Integrated Resources and Solid Waste Management Plan13 recommends a series of programs to reduce the type, volume and toxicity of waste and resources entering the landfill, to make improvements to existing infrastructure, and to incorporate greenhouse gas emissions reduction strategies into a waste management decision-making process. The objective to achieve this goal by 2015 is:

5.1 50 percent island wide recycling and waste diversion by 2015.

Policy and Action

Objective 5.1 Island wide Resource (waste) Diversion and Monitoring Standards

5.1a - Facilitate development of a policy that will reduce waste going into landfills.

5.2b - Develop an implementation plan based on the recommendations from the County of Hawaii Integrated Resources and Solid Waste Management Plan Update.

5.3c - Implement an Organics Diversion Program through compost operations in East and West Hawaii to divert organics from the landfills (currently represent approximately 50% of the landfill waste).

13 Update has been prepared in compliance with the Hawai`i Revised Statutes (HRS) Chapter 342G.

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field-workers with laptops or other remote office technologies to cut back on the number of trips to the office.

6.1c - Set up a pilot program vehicle tracking system to study the driving behaviors and habits of county employees.

6.1d - Educate employees to avoid unnecessary trips and provide strategies to reduce vehicle miles traveled.

6.1e - Consider feasibility of general-use pool of vehicles to include a variety of sizes and types of vehicles at the West Hawaii Civic Center.

6.1f - Require every department to track and monitor vehicles miles traveled (VMT), gasoline and/or diesel usage annually.

Objective 6.2 Fuel Economy and Fleet Optimization Standards

6.2a - Purchase new buses through federal grants.

6.2b - Right size county fleet by reviewing current fleet and task for which vehicles are typically used, and identify opportunities to downsize where appropriate.

6.2c - Conduct feasibility study of creating a Department of Transportation.

6.2d - Auction off existing vehicles that were driven less than 100 miles from the fleet analysis.

6.2e - Track revenue generation from fleet auction.

6.2f Join Clean Cities Initiative.

Objective 6.3 Alternative Fuel Standard

6.3a - Develop alternative fuels purchasing policy (i.e. electric, hydrogen, compressed air) to encourage vehicles powered by indigenous renewable energy sources.

6.3b - Pilot hydrogen bus system and monitor hydrogen buses and its performance.

6.3c - Secure funding to pilot Electric Vehicles Charging and Performance Study at the West Hawaii Civic Center and/or Hilo County Building.

6.3d Purchase bio-diesel (B20) and regularly analyze trends in indigenous bio-diesel production, technology advancements, and cost.

6.3e - Prioritize the approval of the permitting process for private developers of alternative fuel sources where it is apparent the county fleet can benefit by fueling its vehicles at such sites.

6.3f - Track use of alternative fuels.

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Goal and Objective:

To reduce the use of synthetic chemicals and toxins, purchase environmentally-preferred alternatives products and equipment, and educate county staff and the public on its health benefits. The objective to achieve these goals by 2015 is:

8.1 Increase the purchase of environmentally/locally preferred products and services by at least 50 percent.

Objective 8.1 Sustainable Procurement Standards

8.1a - Develop a Sustainable Procurement policy for purchases of materials, services and equipment.

8.1b - Develop a policy for Park and Recreation, DPW General Services and Highways, and other county facilities to go chemical-free and landscape with native plants, reduce watering, reduce mowing, and enhance standard for worker safety, handling of chemicals, etc.

8.1c - All major cleaning products in West Hawaii Civic Center will be environmentally preferred alternatives by December 2011 to comply with the LEED silver requirement.

8.1d - Identify environmentally-preferred alternative products and equipment, and educate County staff, County Council members, and the public on their use, performance, availability, etc. (including post-consumer content paper products, chlorine-free paper, low Volatile Organic Compound materials, etc.).

8.1e - Determine a baseline of major products purchased by the county including pesticides and chemicals currently purchased.

8.1f - Determine a baseline for paper purchasing

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Chapter 6: Priorities for Action Reductions in resource use and their related cost savings are great advantages in these difficult economic times, but achieving them requires focus, expansion of personnel, timely access to resource use information, and new management processes.

It is essential to connect the long term vision and values with the everyday planning and monitoring of county operations. To ensure integration into the day to day operation, the County Administration must take the lead on two key initiatives:

6.1 Establish a Green Government Initiative (no to low cost)

A. Appoint a representatives from the Mayors Office to oversee implementation and/or hire a sustainability coordinator as funding becomes available15;

B. Create an appointed organizational implementation and monitoring committee (internal/external) to review the Countys progress towards sustainability over time;

C. Draft and Introduce Executive Order to Upgrade Internal Policies for:

1. Sustainable Design New Construction and Existing Buildings 2. Energy and Resource Efficient Facility Use, Operation, and Maintenance 3. Sustainable Fleet Management 4. Sustainable Procurement 5. Tracking and Monitoring of Fossil Fuel Use at Departmental Levels

D. Conduct educational workshops for 20 departments and agencies to facilitate implementation of the Executive Order;

E. Align the green government action plan with departmental work plans and the budget process;

F. Integrate the accomplishment of sustainability objectives into the annual review process for staff and managers;

G. Track progress of environmental, energy and economic performance with the annual green government report.

Currently, the access to data on resource use (e.g., electricity, gas, and transportation fuel, water, waste) is poor, and data is not aggregated by specific facility or responsible departments. The large volume of data and views requires a detail management system that is straightforward, multiuser, and enterprise-level to capture, organize, manage, and report resource use and GHG emissions.

Integrating sustainability management processes into county operations will require new organizational responsibilities in individual departments, especially for driving changes in efficiency-related behaviors.

At the same time, the facilities function plays a critical matrix management role, typically having direct responsibility for infrastructure improvements. To maximize taxpayer dollars and

15 Recommendations from 2007COH Energy Sustainability Plan and 2010 COH SCORE Assessment.

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6.2 Implement Green Government Projects (Quick Return on Investment)

Table 3 provides cost estimates, cost savings, and return on investment for ten catalytic projects to improve the County Governments Environmental, Energy and Economic Performance. The estimates for upgrading infrastructure, facilities, and improving efficiencies are based on detail energy evaluations and departmental analysis.

Implementation of these ten projects will improve energy use, save money, reduce emissions, create jobs, and increase efficiency of local government operations. The initial capital expenditure to implement all ten projects is estimated at $4.2 million dollars. Annual savings and/or revenue generation from these projects, after payback, is estimated to be $3.44 million or cumulative savings of $34.4 million in ten years16.

6.3 Financing Mechanism

With the annual increase of the County Governments Energy Expenditure, continuing budget challenges, and expected growth in population and services, it is imperative to scale up existing programs and processes to improve energy and resource use. Financing Mechanism identifies menus of financing options to improving resource efficiency of existing infrastructures and assets.

o General Fund Revenues capital budgets to operate government services derived from local tax base.

o General Obligation Bond funding derived through issuance of bond to be paid back annually to support capital improvement projects.

o Power Purchase Agreement (PPA) for Renewable Energy Generation a third party investor owns and operates the equipment with an agreement by the agency to purchase power generated from renewable sources as a part of a long-term agreement to supply energy at a specific price. A PPA requires no up-front capital investment.

o Performance Contracting for Energy Efficiency Upgrade an innovative approach to implement energy and water conservation measures in a facility or facilities- using guaranteed energy and water savings to finance the projects.

o Revolving Energy Fund is a sum of money dedicated to energy efficiency, clean energy, or other energy reduction measures that is loaned out to qualified applicants/departments. Money borrowed from the fund is replenished via loan repayments based on energy savings for a predetermined set of time.

o Tax-Exempt Leave-Purchase (TELP) Agreement an effective alternative to traditional debt financing because it allows a public organization to pay for energy upgrades by using money that is already set-aside in its annual utility budget.

o Clean Water State Revolving Fund Program provides low interest loans for the construction of point source and non-point source pollution control projects managed by the State of Hawaii Department of Health, Wastewater Branch.

16 The potential savings will be significantly higher if barrels of oil reach $200 dollars.

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o Grants an award of financial assistance from a federal agency, state agency, and/or foundation to implement projects.

Identifying the right mix of financing mechanisms is critical to successful implementation. There are many existing revenue sources such as public utilities franchising fee, fuel tax surcharge, and barrel tax that could be re-allocated to improve energy and resource use. With quick payback periods, taxpayer dollars can be maximized to facilitate the transition towards a green economy.

6.4 Conclusion

Delivering essential local government operations for 20 departments and agencies requires use of energy and materials. The cost of electricity increased from $11.4 million dollars to estimated $30.9 million dollars in 10 years (from FY 2000 to FY2011) or additional expenditure of $19.5 million dollars to power county buildings and facilities. The transportation fuel price and maintenance of the County Government fleets cost over $7 million dollars in FY 20072008. The management of the islands waste disposal cost over $28 million dollars in FY 2007-2008.

The combination of energy use and waste disposal processes contributed to the County of Hawaii municipal operation emitting 134,130 metric tons of COe (Greenhouse Gas, a primary cause of climate change) from direct emissions, emissions from electricity consumption and select other indirect sources in FY 2007-2008 or the equivalent of using 311,930 barrels of oil.

The cost of electricity and fuel derived primary from fossil fuels are expected to grow due to several reasons:

o Increase in demand due to population and economic growth of China, India, Brazil and other emerging nations.

o Decrease in supply due to peak oil and instability in North Africa and Middle East with 60 percent of the proven world oil reserves.

Projecting potential cost of energy at $200 dollar barrel of oil will cost at least $51 million dollars or 14 percent of the total FY 2011-2012 County Operating Budget to power buildings and facilities and fuel transportation fleet.

Despite the ballooning growth in energy expenditures, the County Government currently does not allocate any significant funding to tackle the challenges associated with fossil fuel dependence, climate change, and sustainability. The only exception is a $70,920 dollar annual funding from the State of Hawaii via statewide barrel tax, enacted in July 2010, at $1 dollar per barrel to accelerate energy and food security and the energy analyst position at Department of Water Supply.

The residents of Hawaii Island paid roughly $679,000 dollars into the barrel tax in FY 2010201117, yet only 10 percent of this funding directly returns to the County of Hawaii in form of $70,920 dollar funding for the energy program. Reductions in resource use and their related cost savings are great advantages in these difficult economic times, but achieving them

17 State of Hawaii Department of Taxation Liquid Fuel Tax Base & Tax Collection December 2010.

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requires focus, equitable allocation of funding, expansion of personnel, timely access to resource use information, and new management processes.

Solutions to Improve Environmental, Energy and Economic Performance

The County of Hawaii has already taken many actions to tackle the challenges associated with energy and resource management in the past five years, but in a piecemeal approach. This plan sets forth a holistic 20/15 vision, goals, and action to reduce resource cost and resource use by 20 percent from government operations. By making an upfront investment in energy saving technologies, renewable energy generation, waste diversion, and conservation practices, the county government can work to decrease the environmental impact and improve economic performance of local governance.

Specifically, by 2015 the county will accomplish (from FY 2007-2008 Baseline18):

20% Reduction in Fossil Fuel Use (Electricity and Fuel)

20% Reduction in Energy Cost

20% Reduction in Greenhouse Gas Emissions (GHG)

Implementation of government sector specific recommendations outlined in this plan will improve energy use, save money, reduce emissions, create jobs, and increase efficiency of local government operations. Annual savings, after payback, from ten catalytic projects are estimated to be $3.44 million or the cumulative savings of $34.4 million in ten years. The return on investment and savings will grow if energy and waste disposal cost continue to rise. Capitalization of smart infrastructure investment can be achieved by creating a green government program to implement green government projects.

Upgrading Government Policies and Processes

Currently, the access to data on resource use (e.g., electricity, gas, and transportation fuel, water, waste) is poor, and data is not aggregated by specific facility or responsible departments. The large volumes of data and views require a detail management system that is straightforward, multiuser, enterprise-level to capture, organize, manage, and report resource use and GHG emissions.

Integrating sustainability management processes into county operations will require new organizational responsibilities in individual departments, especially for driving changes in efficiency-related behaviors. This will require at minimum, an appointed sustainability coordinator at the Office of Management, proper allocation of funds, innovative approaches, and unprecedented inter-departmental collaboration.

To maximize taxpayer dollars and value by reducing resource use and emission will require strategic emphasis on departmental responsibility to improve environmental, energy, and economic performance as part of every decision making process. This plan outlines a path to achieve improvements in local governance for a healthier economy, community and environment for island children, youth and families.

18 FY 2007-2008 Baseline based on the first comprehensive Government Energy and Emissions Inventory.

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