As entrepreneurs and professional leaders, Pacific Edge readers are role models for adapting to change and using innovation to overcome obstacles and capitalize on opportunities. Just as the small business community has contributed to Hawai‘i’s economic growth in the past, our Administration believes they must play a significant role in our energy future.
Today, 90 percent of our energy supply is derived from imported fossil fuels, making us the most oil dependent state in the U.S. This has resulted in Hawai‘i having the highest utility and transportation costs in the country. Businesses also bear these costs in the form of high shipping fees and other operating expenses, and the reduced ability of their customers to pay for their products and services.
Together, we can change this paradigm, and transform our economy into one that takes advantage of our abundant renewable energy resources to power our daily lives.
The state has taken important steps toward energy independence since 2004, when we implemented a requirement that gasoline sold in the Islands be mixed with 10 percent ethanol. In January, I announced the Hawai‘i Clean Energy Initiative, an unprecedented partnership with the U.S. Department of Energy that aims to have at least 70 percent of Hawai‘i’s power come from clean energy by 2030. In addition, the state Department of Transportation is moving forward on an historic plan to develop large solarpower arrays at 10 government sites across the state, including airports.
Each day, headlines tell of more Hawai‘i businesses that are investing in energy-saving technologies to decrease their operational costs. Their efforts serve the community by improving available technologies and creating new businesses and careers in the Islands. Imagine the possibilities if the $5 billion currently spent on importing oil to Hawai‘i was invested in our local economy instead. It is part of the clean energy future that we all must pursue together.
At the Mauna Lani Resort on the Big Island, solar panels are powering the entire hotel and 50 percent of its golf course operations. Photovoltaic panels at Windward Auto Spa on O‘ahu are providing 40 percent of the power needed to run the facility’s car wash. Costco Wholesale has installed solarelectric systems at its Kona and Lihu‘e stores. On the Valley Isle, systems harnessing the sun are helping to power Island Dodge in Kahului and Maui Linen Supply in Wailuku.
The state provides several incentives to promote the use of renewable energy technologies. In 2006, I signed into law Act 240, which significantly increased the dollar cap for renewable energy systems installed by residential and commercial property owners. Ranging from 30 to 35 percent of the cost of installation – and up to $500,000 for the installation of commercial wind-powered and photovoltaic systems – Hawai‘i’s tax credits are among the most generous in the nation. Incentives also exist to encourage high-tech companies – like those specializing in renewable energy technologies – to relocate and invest in Hawai‘i. These include a 100-percent tax credit on investments of up to $2 million per company, which is more than double offered by any other state.
There are other creative ways for businesses to support Hawai‘i’s energy transformation. A good example is Kona Brewing Company, which has reduced its garbage by 50 percent through recycling and uses grain leftover from its brewing operation to feed Big Island cows. The company has also hired a sustainability coordinator to expand on these efforts.
Whether it’s changing to compact fluorescent light bulbs, changing the temperature on thermostats, or installing solar panels, entrepreneurs in Hawai‘i are demonstrating that good business and green business go hand in hand.
I would like to thank both our up-and-coming and already established business professionals for all they do for our economy and the community. I welcome your thoughts and suggestions and look forward to working with you during the 2009 legislative session to strengthen our economy and improve our business environment. Please e-mail my office at governor. lingle@hawaii.gov and visit my Web site at hawaii.gov/gov to sign up for my weekly electronic newsletter.
Mahalo!
Governor Linda Lingle
808.586.0034
