Energy Conservation Investment Tops $100 Million

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Hawai‘i Now Second in Energy Savings Performance Investment Per Capita

HONOLULU – Hawai‘i is ranked #2 in the United States in per capita investment in energy savings performance contracting, according to a ranking published by the Energy Services Coalition (ESC).  The ESC is a national nonprofit network working at the state and local level to increase energy efficiency through building upgrades.


“Being recognized nationally for the proactive steps we’ve taken to cut our energy and water consumption at government facilities reflects our strong commitment to lead by example in increasing energy efficiency and conservation, reducing operating costs and minimizing our impact on the environment,” said Governor Linda Lingle.  “In addition, this investment is providing income and jobs for the economy.” 

Energy Savings Performance Contracting (ESPC) uses guaranteed future energy and water utility bill savings to pay for the up-front capital costs of facility improvements.  In Hawai‘i, the State Energy Office has been providing technical assistance on performance contracting to state agencies and the counties, on request, since 1996.  

Investment in performance contracting projects by Hawai‘i State Executive Branch, University of Hawai‘i at Hilo, the Judiciary, state hospitals, City & County of Honolulu, and the counties of Hawai‘i and Kaua‘i for the period 1996-2008 totaled $68,218,183.  In 2009, an investment of approximately $33,900,000 for Phase I of the Department of Accounting and General Services (DAGS) ESPC project brought the total for the state to $102,118,183 (or $79 per capita). 

Specifically, the DAGS’ Phase I project covers 1.3 million gross square feet at ten state buildings in the Downtown Honolulu Capitol District and includes energy and water efficiency retrofits, the installation of on-site renewable energy, and improvements to operations and maintenance with a 30 percent energy reduction guaranteed over the 20-year term of the project.   

The State is moving forward on other Energy Savings Performance Contracting projects to further increase energy efficiency and reduce costs at State government buildings and facilities.  DAGS is planning to issue an invitation for proposal (IFP) for a Phase II ESPC for 28 buildings; DAGS on behalf of the Department of Public Safety has initiated an investment grade audit for two prisons and one jail; the Hawai‘i Public Housing Authority is finalizing agreements for a 789-building project; the Department of Transportation, with the Airports Division taking the lead, will issue a RFP for ESPC for 15 airports, 5 harbors, and highways facilities throughout the State; and the University of Hawai‘i Community Colleges, are nearing execution of ESPCs for four O‘ahu community college campuses, Kaua‘i Community College, and Maui Community College.

“With the other State agency projects moving forward in 2010 Hawai‘i will be in the #1 position and will probably hold that for a long time, since they are addressing state government, local government and public housing very aggressively,” Linda Smith, an ESC representative said.

In 2010, a team from Hawai‘i was selected, through a national competitive process, to attend a National Governors Association Center for Best Practices (NGA Center) technical assistance session that focused on energy efficiency in state government and provided information on executing a performance contract.  Participants included the Department of Accounting and General Services, Department of Business, Economic Development, and Tourism, Department of Transportation, and the University of Hawai‘i Community Colleges.  With support from the NGA Center and DBEDT, more ESPC projects are expected in 2010.

For more information, contact:

Ted Liu                                                            Ted Peck

Director, DBEDT                                            State Energy Administrator

Phone: (808) 586-2355                                Phone: (808) 587-3812