Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Status Report—DBEDT’sEnergy Program
Maurice KayaStrategic Industries Division
January 17, 2008
22
Clean Energy Must Remain aPriority for the State
• Energy Security• Energy Costs at $100/bbl oil• Implications of Carbon Regulation• Continue Investment in Energy Efficiency• Achieving Full Potential of Renewable
Energy• Sending Right Signals to Markets
33
Strong, Robust Energy ProgramNeeded
• State Policies Require Proper Execution• Need Appropriate Organizational Structure• Need Reliable Source of Funding• Necessary Authority for Success• Ability to Attract and Retain Qualified
Personnel
44
Expectations are Increasing
• Execution of Energy for Tomorrow
• Lead by Example
• Interagency Wheeling Docket/PUC intervention
• Senior Staff on NGA Task Force
• Consultations with Renewable Energy Developers
• Biofuels Program Coordination
• Greenhouse Gas Policies
55
Success Story: Lead by Example
• Energy Star Bldgs—5 certified• LEED Bldgs—3 completed, many under
design, architect/engr trained• DAGS developing statewide performance
contract RFP using DBEDT info• DOT/FTZ issued a RFP for solar PV, as
much as 34 MW• State Capitol assessment• Institutional Commitment by agencies
66
Status Report: Biofuels• Act 240, 2006—Biofuels Assessment Proj.
– Contractor: Black and Veatch, UH, Stillwater Assoc.– Feedstock assessment by Jan 2008– Technology and crop assessment by Jul 2008– Stakeholder engagement, integration, overall completion through
Jul 2009• Act 253, 2007—Bioenergy Master Plan
– Funding released– RFP drafted, to be issued early 2008
• Act 130, 2007—Non-Ethanol Gasoline– Formal Report Submitted to Legislature– Non-blended gasoline available on all islands except Maui
77
Status Report: GHG Task Force
• Task Force Appointed (Act 234)• Staffed jointly by DBEDT and DOH• 3 Meetings of the TF to date• Assessment Stage—Testimony of Experts• Seeking Release of Funds• Preliminary work plan developed• Will seek contract support for inventory,
policy analysis, and program management
88
Current Challenges for DBEDT’sEnergy Program
• Personnel
• Finances
• Keeping Up with Expectations
• Institutionalizing and Sustaining Program
99
Personnel Issues
• Level of existing staffing inadequate to addressworkload, assignments and expectations—seeTable 1 staff analysis, new starts
• Expect staffing issues to be exacerbated by staffretirements
• Historically energy staff have been cutback, withpositions recently frozen and reallocated to otherfunctions within DBEDT
1010
Table 1 Staff Analysis—NewStarts
Legis
Session
Fiscal
YearFiscal Year - New Requirement
FTE
Estimate/Request FTE Authorized
Additional FTE
Needed
Biofuels Study 0 0 0.3
Renewable Hydrogen 3 0 2
LBE Efficiency 2 2 0
FY 2007 Total FTEs 5 2 2.3
Greenhouse Gas Reduction Limits 2 0 2
Biofuels Master Plan 1 0 1
One-Stop Renewables Permitting 0 0 0.2
Certify Sustainable Palm Oils 0 0 0.2
Report No Ethanol Gas 0 0 0.1
FY 2008 Total FTEs 3 0 3.5
FY 2007, and FY 2008 TOTAL FTEs 8 2 5.8
20072006
20082007
1111
Finances• Rapidly diminishing PVE (“oil overcharge”)
funds—see Figure 1– 4 years remaining at current expenditure rate– Of SID’s FY08 budget, 66.6% and 14 filled Energy
Program positions out of 20 total are supported by PVEfunds.
• Just to maintain current services would requireconverting $1.94mm of MOF to general funds within 4years
• Impacts besides $--e.g. state ethanol/biofuels, energyemergency preparedness, utility policy, renewablehydrogen programs implemented using PVE fundedstaff
1212
Figure 1 Federal PVE Depletion ChartPetroleum Violation Escrow Fund Balances
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2004 2005 2006 2007 2008 2009 2010 2011Fiscal Year
Beginning Balance Total Revenues Personal Services Other Operations Total Expenditures
1313
SID StrategicObjective—Supplemental Funding
through Grants• “Stretch” PVE dollars
• Leverage appropriated federal funds fromformula grants
• High early success rate of competitive awards
• Support from Congressional delegation
• Federal special project award now gone
• Increased competition among states
1414
Trend Comparisons of Annual (FY) Funding Levels fromAwards of Competitive Federal Grant Funds to
Hawaii State Energy Program
$411,238
$561,481
$514,635
$352,891
$493,768
$476,223
$537,097$553,768
$569,680
$512,689
$470,561$453,623
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2001 2002 2003 2004 2005 2006 2007
Fiscal Year
Com
petit
ive F
edera
l Gra
nt A
ward
s -
Annual A
vera
ges (
$ D
olla
rs)
5-Yr Moving Annual Average
(1995-2007)
3-Yr Moving Annual Average(1995-2007)
Shorter run averages reflects increased competition for reduced
levels of grant funding -- a recent reality expected to continue.
Longer run averages reflect Hawaii's larger historic grant
awards, and past availability of more federal funds.
USDOE SEP Special
Projects Grants Cycle
Discontinued as Annual
Program in 2006.
Note: Both five-year and three-year moving averages are based on the grant funding awards over the 13 fiscal years, 1995 through 2007.
1515
$2,237,686 $2,565,935 $2,751,541$2,124,859 $2,240,095 $2,378,643
$2,995,209$2,298,355
$1,129,324$1,279,438$1,382,798
$1,160,057 $927,599$1,198,347
$1,398,347
$1,143,447
$800,000
$11,030,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2001 2002 2003 2004 2005 2006 2007 2008
Fiscal Year
Fed
era
l, a
nd
Sta
te G
F -
Bu
dg
ete
d &
No
n-B
ud
gete
d
Annual Non-Budgeted*
Annual Budgeted
Annual Federal (USDOE)
Fede
ral,
and
Stat
e G
F-B
udge
ted
& N
on-B
udge
ted
Annual Non-Budgeted GF*
Annual Federal (USDOE)
Annual Budgeted GF
DBEDT SID Annual Operating Budget – Federal (USDOE), andState GF Funds – Budgeted, and "Non-Budgeted"* Appropriations
Fiscal Years 2001 through 2008
*Non-Budgeted GF; i.e., Legislative appropriations via separate bills; e.g., Act 234, SLH 2007 – Greenhouse Gas Reduction Bill, etc.
2007 – Energy for Tomorrow
• Biofuels Study
• Renewable Hydrogen
• LBE Efficiency
2008• Greenhouse Gas Limits
• Biofuels Master Plan
• 1-Stop Renewables Permitting($0 - Unfunded Mandate)
• Certify Sustainable Palm Oils($0 - Unfunded Mandate)
• Report No Ethanol Gas($0 - Unfunded Mandate)
New RequirementsNew Funding
Staff Resources:Net lossloss 1 position…
1616
Additional FTE Are Essential To Implement Priority Energy Initiatives --Restoration of Previously Authorized Levels Minimum to Meet New Requirements
*Non-Budgeted GF; i.e., Legislative appropriations via separate bills; e.g., Act 234, SLH 2007 – Greenhouse Gas Reduction Bill, etc.
$2,237,686 $2,565,935 $2,751,541$2,124,859 $2,240,095 $2,378,643
$2,995,209$2,298,355
$1,129,324$1,279,438$1,382,798
$1,160,057 $927,599$1,198,347
$1,398,347
$1,143,447
$800,000
$11,030,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2001 2002 2003 2004 2005 2006 2007 2008
Fiscal Year
_
Annual Federal (USDOE) Annual Budgeted Annual Non-Budgeted*
28
26 26 26
21
27
2423
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
___________________________________________________
0
5
10
15
20
25
30
35
40
Sta
ff &
FT
E P
os
itio
n (
Co
un
t #
)
Pers on Staff (Count #)
26.3
28.8
Needed FTE + Pers On Staff
Fede
ral,
and
Stat
e G
F-B
udge
ted
& N
on-B
udge
ted
Staf
f & F
TE P
ositi
on (C
ount
#)
Annual Non-Budgeted GF*Annual Federal (USDOE) Annual Budgeted GF
1717
What Do We Need?
• Personnel—6 additional FTEs– Biofuels Program Manager
– Renewable Hydrogen Prog. Mgr.
– Energy Economist/PUC lead
– Energy Research Statistician
– Greenhouse Gas TF Program Manager
– Project Assistant/Researcher
1818
What is in DBEDT’s BudgetRequest (MOF)
• Biofuels Program Manager (U)• Renewable Hydrogen Prog Mgr (B)• Energy Economist/PUC Lead (U)• Energy Research Statistician (U)
• Energy Permit Facilitator (U)– Ref: Report on SCR 164, Streamlining
Permitting
1919
What Do We Need?• Funding
– $1.2 MM to complete Biofuels Master Plan
– $ 0.7 MM to complete GHG program effort
– $ 0.3 MM for contract support, PUC dockets
– $ 0.3 MM for technical contractor forLBE—Perf. Contracts, Commissioning, LEEDstudies
– $0.1 MM for technical support for sustainablebio-oils
2020
Funds in DBEDT Budget Request
• $0.7 MM for Bioenergy (U)• $0.3 MM for PUC Docket support (U)• $0.2 MM for LBE (U)
Note: (1)U funds represent transfer fromEnvironmental Response Revolving Fund.(2) Positions and funding for GHG not inadmin budget.
2121
Conclusions
• SID energy staff has been “stretched” for several years• Need to address staffing, or
– Division performance expectations will not be met– Quality and timeliness of outputs will deteriorate
• Must address near-term depletion of PVE funds• Timely to address appropriate organizational questions
as well• Transition being given the support and attention it
needs