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Glenn Sato
Energy Coordinator - County of Kauai
Office of Economic Development
4444 Rice Street, Suite 200
Lihue, HI  96766
E-Mail:  
Voice:  808-241-6393
Fax:     808-241-6399
     
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  Energy Programs Minimize

KAUAI ENERGY EXTENSION SERVICE

ONGOING PROGRAM AREAS
The following program area descriptions are taken from the EES program description submitted and approved by the State Department of Business, Economic Development for an operation grant providing 86% of the Energy Extension Service program funding.  The balance of the funds are provided by the County.  The County also provides fringe benefits, office staff support and office space which are not included in the percentages.

1.  REGULATORY PROGRAMS

Integrated Resource Planning

Activities: Monitor and participate in Public Utilities Commission (PUC) and utility-related integrated resource planning activities, including but not limited to PUC workshops, externalities advisory group meetings, resource planning meetings and Kauai Island Utility Cooperative’s IRP Advisory Committee meetings.  PUC and utility-controlled programs provide information and valuable input into short and long-range planning that affects growth and economic development.  EES will continue to work collaboratively with the Department of Business, Economic Development and Tourism, the regulated utilities, community groups, private businesses, the other counties and the PUC.  Other research categories relating to PUC regulations, such as the potential of County ownership of the streetlight system on Kauai and the County wheeling of power are also included.

2.  ECONOMIC DEVELOPMENT PROJECTS

Energy Emergency Preparedness
Activities: Implement the provisions under Act 182, 1992 Session Laws of Hawaii, relating to the development of county energy emergency plans to be consistent with State Energy Emergency Plans.  The County of Kauai has set up its EEP County-type plan and structuring support infrastructure to be at the highest state of readiness.  The events of September 11, 2001 and related terrorism-response measures highlights the importance of preparedness.   Kauai County will improve communications and provide readiness training for the energy-related players.  This activity will also support the initiatives of Kauai’s Energy Council and includes Civil Defense emergency management training for the Energy Coordinator.

Performance Contracting
Activities: Kauai County’s performance contract for the Building Division has been completed and we have completed verifying the savings.  This performance period is for ten years.  Honeywell also completed the energy audit work for the Wastewater Division and the findings indicated that a cost-effective program is not feasible at this time.  The Wastewater performance contract has been postponed indefinitely.  The Water Department’s performance contract was similarly found to be economically unfeasible.  We are currently moving the concept of performance contracting into the private sector with a technical assistance grant funding an energy audit of the Kauai Lagoons golf course operations.  We are also assisting the Rebuild Hawaii Coalition members by providing information and input on performance contracting.

Recycling and Re-use Business Development
Activities: The Resource Exchange and Buy-back Center has been constructed and the County has stepped forward to operate the Center.  Island Recycling has been selected as the primary recycling contractor operating from the Center.  A glass re-manufacturing contract has recently been executed and this non-profit will need as much assistance as possible to succeed.  Other re-use vendors will be operating from the facility and will soon begin to produce saleable products.   Success in the establishment of new recycling businesses will create jobs and help to stimulate the economy.  The Energy Coordinator will also team up with local non-profit community development organizations championing recycling to create strong partnerships to ensure successes.  We will also support school and community education activities that promote reuse and recycling. 

Rebuild America
Activities: The County of Kauai has implemented its action plan in the Rebuild America program to the extent possible.  Unfortunately, performance contracts for both the Wastewater facilities and the Water Department facilities did not prove to be economically feasible.    The Energy Coordinator intends to use his experience in energy efficiency to move the energy efficiency concept out into the small business community.  Businesses will be encouraged to do lighting and equipment retrofits to save money.  EES funding and the Kauai Island Utility Cooperative’s rebate program will be used as incentives.  Participation in the Rebuild America program is envisioned as a direct economic stimulation tool for small businesses on Kauai.  The Department of Energy’s Rebuild America program will provide technical expertise for program participants.  Rebuild Kauai has revised its Action Plan and expanded it to a 5-year Action Plan to reflect more activity in the private sector.  The first project undertaken in the private sector is the energy audit for the Kauai Lagoons golf course operations.  Kauai is also participating in a Peer Exchange program and has shared expertise with other communities.

Renewable Energy/Energy Efficiency
Activities: The Energy Coordinator continues to keep abreast of any inquiries and activities concerning the development and promotion of renewable energy resources and energy efficiency on Kauai.  Current interests have included hydroelectric, solar, wind, bio-energy, waste-to-energy developments and improvements in energy efficiency technology.  Activities will include, but not be limited to support of small system residential PV and solar hot water systems, micro-hydro and wind units, fuel cells, micro-turbines, in addition to commercial photovoltaic systems and energy efficiency products.  EES also plans to encourage energy efficiency retrofits by small businesses by providing technical information and product samples to convince owners that there will be no degradation of lighting levels or performance.  Major focus will target County-controlled areas such as waste-to-energy, methane production and use, and photovoltaic power system at County facilities.  Partnership projects with other organizations include a PV system for Niihau School and a hydrogen fuel cell demonstration at the Lane Visitor Center at the National Tropical Botanical Gardens in Poipu.

Brownfields Assessment Program
Activities:  The Energy Coordinator is the project manager for the Brownfields Assessment Program.  In late 2003, the Office of Economic Development (OED) applied for a Brownfields assessment grant from the U.S. Environmental Protection Agency (EPA).  The County was subsequently invited to submit a formal application in July 2004 and was awarded a $200,000 two year grant for the assessment program. A cooperative agreement, effective October 1, 2004 was executed between the County OED and U.S. EPA.   The Brownfields assessment will seek to identify, inventory, characterize and assess sites potentially contaminated by hazardous substances, pollutants, or contaminant, including hazardous substances co-mingled with petroleum in the County of Kauai.  The study will produce a general inventory of potential sites that will be screened and up to five sites will be selected for Phase I environmental studies.  Ranking criteria may include, but not be limited to availability and market demand for the site, impact on surrounding land use, redevelopment potential, landowner support, developer interest and public input.  Upon examination of the Phase I results, discussions with landowners, and consideration of public input, up to two priority sites will be selected for Phase II environmental assessment studies.  Community outreach will be a key component of this program. 

3.  TECHNICAL MARKETING

Computer/Internet/Networking
Activities: The information superhighway has provided tremendous service and opportunities for the one-person Kauai Energy Extension Service.  The Internet capabilities has reduced the need to maintain an extensive energy library and greatly expanded the ability to communicate and receive timely information.  The use of e-mail has provided the means to increase workload without increasing staffing and sacrificing operational efficiencies.  Program funds will be used to improve technical capabilities via system upgrades such as, but not limited to a scanner, zip drive, and software upgrades.  Security from viruses and other “terrorist” activities will be a priority.

4.  PROGRAM PLANNING, ADMINISTRATION AND TRAVEL

Activities: This category covers the many tasks that the Energy Coordinator is required to address that are not in any defined categories.  It covers budget, report, grant, and other written and visual preparations, quarterly and final EES reports and administrative functions required in daily operations.  Other examples include, but are not limited t monitoring of the Model Energy Code (and adopting amendments as necessary), preparation of legislative testimony, review of planning documents, energy education workshops and networking via the State Energy Program Conference and other workshops/conferences.  Also, preparation/review of reports and environmental impact statements, interfacing with Federal, State and County agencies, and any professional development and skill enhancement training related to the optimum function of the Energy Coordinator are included in this category.  This category additionally covers cooperative programs with the State Department of Business, Economic Development and Tourism’s Energy, Resources and Technology Division.  This category also encompasses travel costs associated with the various programs and would be too restrictive if placed in each individual category.  Lastly, Program Planning and Administration would also cover projects as assigned by the Director or Mayor, and include information requests from the County Council and general public. 

GRANT OPPORTUNITIES

The Energy Extension Service does not provide grants to individuals, or private and non-profit organizations.  EES is essential an information service with links to other funding sources such as the U.S. Dept. of Energy, U.S. Dept. of Agriculture-Rural Development Service and the U.S. Environmental Protection Agency.


CURRENT ANNUAL REPORT

VII.     ENERGY EXTENSION SERVICE

A.   Program Description/Objectives
The Energy Extension Service (EES) strives to promote and support economic development through energy conservation, energy efficiency, and sustainable use of renewable energy resources and energy emergency preparedness programs. EES actively promotes economic development and stimulation through energy efficiency, energy conservation and energy-related programs such as equipment and fixture retrofits, recycling and renewable energy projects/education.  EES also tracks and participates in energy initiatives on the Federal and State levels to determine its impacts on the County and its programs.  These efforts include participation in state legislative efforts, utility sector energy planning programs and Public Utilities Commission dockets and initiatives relating to energy.

EES is funded in part by the State Department of Business, Economic Development and Tourism’s Energy, Resources and Technology Division through federal oil overcharge funds and state energy program grants from the U.S. Department of Energy.  The County of Kauai provides matching funds for personnel costs, fringe benefits and administrative overhead support.  Additional project funds are obtained via federal grants from various agencies.

B.   Fiscal Year Program Highlights and Accomplishments

Grant Funds
In FY 2003-2004, EES received grant funds from State and Federal sources totaling $106,528.00.  The majority of Federal and State grants are reimbursable grants in which the County advances the funds and is paid back every quarter upon completion of deliverables and submission of invoices.  The total included specific grant funds of $69,825 for EES operations and programs; $25,000 to plan and design a photovoltaic power system for Niihau School; $10,000 to test the methane quality at Kekaha Landfill, Phase 2; and a $1,703 rebate from Kauai Island Utility Cooperative for a lighting retrofit at the Lihue Neighborhood Center.

The EES grant funds covered personnel, operational and program expenses for EES energy programs, including energy emergency preparedness, Rebuild America and Rebuild Hawaii Consortium program support and EES program travel.  The grant funds also covered unanticipated expenses associated with participation in unbudgeted projects such as Public Utilities Commission dockets, Federal Energy Regulatory Commission filings and legislative proceedings.

Mayor’s Priorities

Mayor Brian Baptiste has infused optimism and enthusiasm in the County’s energy program by supporting and prioritizing the use of solar photovoltaic panels to produce electricity for the Piikoi Building; advocating the use of methane generated at Kekaha Landfill for energy production; and in seriously researching waste-to-energy power production options.  Mayor Baptiste has also endorsed partnerships with other organizations such as the Navy and State Dept. of Education for joint projects to maximize the benefits to the community.  One project well underway is the planning and design of a photovoltaic power system for Niihau School. 

The mindset is not to look at these areas as problems, but as opportunities and resources for the County’s benefit.  Descriptions of some of the active projects are provided below. 


PUC Dockets on Competitive Bidding and Distributed Generation

On April 2, 2004 the parties to Docket No. 03-0371, Public Utilities Commission Instituting a Proceeding to Investigate Distributed Generation in Hawaii and Docket No. 03-0372, Public Utilities Commission Instituting a Proceeding to Investigate Competitive Bidding for New Generating Capacity in Hawaii filed a Stipulated Prehearing Order with the Commission.  The parties included the Consumer Advocate; HECO, HELCO and MECO; Kauai Island Utility Cooperative; Hess Microgen; The Gas Company; Pacific Machinery and Johnson Control; Life of the Land; Hawaii Renewable Energy Alliance; County of Maui; County of Kauai; and the State Dept. of Business, Economic Development and Tourism.

An unanticipated development occurred when both Pacific Machinery and Johnson Controls withdrew from the proceedings.  Pacific Machinery and Johnson Controls (together with Noresco) filed an informal letter of complaint with the PUC, which, in part, contributed to the PUC opening Docket 03-0371.  Also withdrawing from the process was The Gas Company. The remaining parties are continuing to produce the agreed upon deliverables per the stipulated regulatory schedule.  The two dockets are expected to be resolved via a final order sometime in 2005.

Methane from Kekaha Landfill
The County received EPA’s final report, Landfill Gas Utilization Feasibility Study for Kekaha Landfill in April 2004.  The report, based on EPA’s E-Plus software, provided an estimate of the landfill gas potential for Kekeha.  The end use and economic evaluation study concluded that a sufficient amount of LFG is generated at the Kekaha Landfill to allow LFG recovery and utilization.  Considering available energy prices and economic models, the direct use of the gas is more economically feasible than the electricity generation option.  A direct use project selling LFG to an off-site end user would require a gas sales price above $3.55/MMBtu for the project to break even.  The economic feasibility of generating electricity is dependent on whether the actual buy-back rate from KIUC for LFG-generated power is greater than 7.8 cents/kWh.

These results indicate that selling the gas to the Pacific Missile Range Facility for cogeneration is likely to be a win-win for the County and the Navy.  Another distinct possibility is power generation from the methane and selling the power to KIUC.

The County also received a grant from the State Dept. of Business, Economic Development and Tourism to test methane from Phase 2 for quality of product.  A contractor’s bid to drill temporary collection holes will be issued by late fall.   The testing was deemed necessary to determine if there is any difference in gas quality between Phase 1 and Phase 2.  Phase 1 is unlined and has received solid waste from 1953 to 1993.  Phase 2, holding most of the Hurricane Iniki debris, is a lined landfill started in 1993 to the present.  There are concerns that the type of debris (treated lumber, toxic materials, etc.) buried in Phase 2 may impact the quality of gas being generated.  Phase 1 testing will be done cooperatively with the U.S. Navy’s cogeneration feasibility study funded by a Rebuild America grant.

Civic Center Photovoltaic System
EES-Kauai has completed 50 percent of the information gathering to produce a Request for Proposal document for the Lihue Civic Center PV system.  The competitive solicitation must wait for the completion of the Piikoi Building renovation and the move by the new tenants, expected to be completed by September 2004.  The Piikoi Building renovation includes office space construction below the flat roof areas anticipated for use for the PV system.  The renovation plans include the removal of an old chiller unit on the flat roof area, siting of a new electrical meter and the connection of a new chiller from the Kapule Building to the new meter.  Full occupancy is expected by the first week in September, 2004.  Once the building is occupied and normal County activities have been established, EES plans to request the Kauai Island Utility Cooperative to install a logger on the meter to determine the building’s load profile.  This profile is critical in determining the minimum load used by the facility that will impact the PV project.  Of concern is the ability to use all power generated by the system on holidays and weekends when normal County activities cease.   A positive development is the recent passage of the net metering legislation that increased the system size from 10 kW up to a 50 kW limit and qualifying government entities as qualified customer-generators.

Niihau School PV System
EES-Kauai and the State Dept. of Education (DOE) teamed up to submit a pre-proposal to the U.S. Dept. of Agriculture’s Rural Development Program for a grant to plan and design the Niihau School PV system.  The reliable solar power system for Niihau School will result in improvements to the nutritional health of the teachers and students by providing refrigeration for fresh fruits, vegetables and other perishable foods. 

Initial approval to apply for, receive and expend grant funds was received in the fourth quarter and the County of Kauai’s Energy Extension Service will be submitting a formal application in August 2004.  Once the application has been approve, a Memorandum of Understanding is expected to be executed.  A Notice for Professional Services is expected to be issue soon after, a consultant contracted and the design work completed by year’s end.  The work products from this initial planning and design grant will be used to bid the actual construction of the PV power project.  Funds for construction are also anticipated from USDA Rural Development.


Energy Program Evaluation/Impact
Since 1988, EES has brought in over $1.2 million dollars in funding to the County.  These funds have paid for salary, operational expenses, travel costs and special program expenses.  The energy programs have increased awareness of using energy wisely and also taught government workers and the public how to save dollars.  In addition to grant funds, EES (or related agencies) have also applied for and received numerous utility rebates, fee adjustments or technical assistance from the Kauai Island Utility Cooperative, U.S. Dept. of Energy, U.S. Dept. of Agriculture, the national laboratories and the State Dept. of Business, Economic Development and Tourism’s Energy Division.

EES involvement in regulatory and legislative issues increased dramatically with the opening of the legislative session and the increased emphasis by the legislators on energy issues. Topics such as net energy metering, government wheeling, ethanol tax credits, Public Utilities Commission, renewable energy support and hydrogen development resulted in much testimony from agencies and the public.  EES provided testimony on select issues directly related to Kauai. Much of the policies approved by the legislature and regulatory agencies will have much impact on the energy picture in the future.  It is critical to have local input from the County of Kauai in all instances to insure that County issues are taken into consideration in all energy-related decision-making.

Electronic communications have become the mainstay for EES, far outpacing the use of the mail or telephone.  E-mail has made the world smaller and communications faster than ever.  Our network has expanded worldwide. 

Program Measures

 

 

 

FY ‘02

Actual

FY ’03 Actual

FY 2004

Estimated

Energy Grants 

$75,010

$106,528

$169,825

Energy Savings-Bldgs./Water*

$80,812

$81,780

$81,780

Electronic/Office Contacts

782

853

875


*  Includes Building Division lighting retrofit and Water Dept. lighting retrofit based on calculated and verified savings.

Future Outlook

Funding for the core EES program continues to be approved at a consistent level, with no significant decrease anticipated. This is a testament to the importance that the State and Federal governments place on energy outreach at the local level.   The current high cost of oil and the unstable situation in the Middle East is also keeping energy-related issues high on the priority list for many agencies.  Grant opportunities cannot be predicted and EES continues to monitor, track and apply for grants for specific projects.  In many cases, EES refers the grant opportunity to other agencies or private sector companies that qualify for the solicitation.  One specific example of such a referral was a request by Oak Ridge National Laboratory to find a commercial business location to test a hybrid solar lighting system.  EES directed the inquiry to the Kauai Island Utility Cooperative and planning is currently underway for the installation of the test unit.  As the competition for grant funds increases, it is much more critical to establish partnerships to strengthen the applications and increase the chances for funding or technical assistance. 

Much of the focus this coming year will be on the development of renewable energy projects, especially those under the control of the County.  These projects include the use of photovoltaic panels to supply part of the Civic Center electricity from solar energy; the use of the methane gas being generated at Kekaha Landfill to provide income to the County via gas sales or power generation; and the move towards a waste-to-energy facility to deal with our solid waste problem.