The Price of Dependence
By Sen. Will Espero
Up to now, we have looked at the energy independence/global warming question as a matter of “we can’t afford to.” The more appropriate viewpoint is — we cannot afford not to. We must make the transition to independence from fossil fuels for the economic security and well-being of Hawai`i.
Since 2002, gasoline prices have increased 266 percent, in Hawai`i going from $1.27 to $3.38 per gallon for regular grade. These gas hikes gave Exxon the largest annual profit of a U.S. company last year, at nearly $41 billion, with other oil companies also posting comparably high profits. In the last year alone, sharp hikes in oil prices translated to a 25 percent hike in electricity and gas bills for local consumers. Besides this direct cost, the high cost of fuel is passed on along the chain of commerce, leading to increased product costs and operational expenses, which lower a business’ profitability and raise consumer prices.
Hawai`i’s already high cost of living – housing, commuting costs, health insurance – means that we are approaching a time when the survival of our businesses, residents and government agencies depends on our collective actions to reduce what costs we can. The technology is available to help Hawai`i decrease its dependence on the volatile prices and political unpredictability of fossil fuels. Increasing the fuel efficiency of cars would be a major step in that direction. Transitioning to renewable energy and energy efficient products should also help stabilize this component of the costs of living and doing business in Hawai`i.
Famous for our sunshine, ocean and volcanoes, we are the most obvious state to lead the transition to renewable energy. One of my bills, Senate Bill 2548, will require new developments of 50 or more housing units to include solar water heaters as part of the design to help cut home energy costs. Senate Bill 2549 will set quotas for electric car sales in Hawai`i in the next 10 years and give government agencies time to plan and install charging stations where needed.
Senate Bill 2885 will ban the sale (but not the use) of incandescent light bulbs as of January 1, 2009. The Philippines, Canada, Australia, Ireland, Venezuela and Brazil are phasing out this type of bulb because of its energy inefficiency. Only 5 percent of the energy produced by incandescent bulbs is given off as light, with 95 percent given off as heat. Compact fluorescent bulbs use one-fourth the energy of an old-fashioned incandescent bulb, last longer and are cooler. Changing just one 100-watt bulb to an equivalent 26-watt CFL, based on three hours’ use per day, can save $13.78 per year, per bulb. This means that consumers recoup the higher upfront cost of the CFLs through energy savings within the first year of bulb use. Consumers save twice: first from the more energy-efficient lighting, then from air conditioners not having to work so hard because the CFLs don’t generate the heat that incandescents do.
The Senate is also considering other bills to help reduce Hawai`i’s dependence on fossil fuels and slow down global warming.
- Senate Bill 2847 / House Bill 2502 would allow solar energy facilities to be a permitted use in some classifications of land in agricultural districts.
- Senate Bill 2849 / House Bill 2503 permit agricultural-energy facilities in agricultural areas, provided the primary purpose is agricultural.
- Senate Bill 2842 / House Bill 2504 establishes lighting efficiency standards.
- Senate Bill 2844 / House Bill 2505 establishes a renewable energy facility position with the Department of Business, Economic Development and Tourism.
- Senate Bill 2845 / House Bill 2506 will seek recommendations on the most efficient and effective way to reorganize agencies that deal with energy and environmental issues.