The website of the Hawaii State Energy Office describes a government office 鈥渓eading the charge鈥 to enable the state to reach its ambitious plan of producing 100 percent of its electricity from renewable resources by 2045.
But according to a new by the , it鈥檚 not clear what if anything the office is actually doing to help Hawaii reach its goals.
鈥淭he Energy Office could not provide us with documentation that clearly articulates聽its projects鈥 expected contributions to these goals, let alone the data that supports such accomplishments,鈥 State Auditor Les Kondo wrote in his summary of the audit. 鈥淲e also found that the Energy Office鈥檚 strategic plan includes goals and targets that are unrealistic and may be impossible to achieve.鈥
In conclusion, the auditor found, 鈥渢he Energy Office is not doing its job.鈥
The energy office referred calls Wednesday to Christine Hirasa, a spokeswoman for the Hawaii Department of Business, Economic Development and Tourism, which oversees the office. She declined to discuss the report.
DBEDT鈥檚 director, Luis Salaveria, issued a written statement saying the office already has 鈥渢aken action related to the audit鈥檚 recommendations.鈥
Salaveria wrote that DBEDT 鈥渂elieves in the hard work being performed by the Hawaii State Energy Office (HSEO) in coordinating Hawaii鈥檚 energy community to implement the state鈥檚 clean energy future.鈥
As for the auditor鈥檚 overarching finding, that the energy office cannot articulate how it has contributed to the state reaching its energy goals, Hirasa pointed to DBEDT鈥檚 written response published in the audit.
In that response, Salaveria accused Kondo of not acknowledging contributions the energy office has made to help the state reach its goals and said the audit report ignored some documents that the office provided.
Salaveria also said it submits regular reports to the U.S. Department of Energy, which has 鈥渆xpressed complete satisfaction with HSEO鈥檚 reporting.鈥
Still, the audit was replete with examples of the office not clearly reporting how its activities have contributed to the state reaching its goal of producing all its electricity with renewables in the next quarter-century.
A case in point is a discussion of the office’s $500,000 contract to support activities of the , a nonprofit that works with startup companies to develop renewable energy technologies in Hawaii. The contract included items like $90,000 to send the Elemental Excelerator鈥檚 staff to Silicon Valley to meet with potential partners and investors and $96,000 for a mentor program.
According to the audit, the contract called for the nonprofit to provide agendas from conferences attended and final summary reports. But none of this showed clearly that the contract pushed the state toward its goal, the audit reported.
鈥淲e could not find any evidence of a correlation or connection between the $500,000 contract and the advancement to the State鈥檚 renewable energy goal in the report and, more importantly, in the contract 鈥╥tself,鈥 the audit report said.
Lauren Tonokawa, a spokeswoman for the Elemental Excelerator, said, 鈥淥ur experiences with the Hawaii State Energy Office have overall been collaborative and positive. They are an important partner for Elemental Excelerator, and we believe they are moving our state forward in a positive direction.鈥
Although Tonokawa could not pinpoint connections between the contract and any investments in energy ventures forged in California to help Hawaii, she said the Elemental Excelerator has clearly established ties to Silicon Valley and the Bay Area due to reaching out there.
It has small startup ventures with companies like Oakland-based TerViva, which is partnering with Alexander & Baldwin in a venture to use old sugar land to grow pongamia, a shrubby tree with seed pods that are rich in oil for biofuel. 聽And it is working with San Francisco-based Stem Inc., which is rolling out 鈥渟mart battery鈥 systems in Hawaii, which utility executives say are the sorts of things the state will need to develop to reach its goals.
Involvement With PUC Criticized
The audit also contained a lengthy finding criticizing the energy office for participating as a party in cases before the Hawaii Public Utilities Commission. From 2011 to 2016, the report said the office has been involved in 10 regulatory matters, known as dockets, before the PUC. And the office spent some $1.1 million in legal fees to supplement its expertise, the auditor reported.
The auditor called the office鈥檚 participation in PUC dockets duplicative and 鈥渜uestionable,鈥 and supported the finding with comments of the Consumer Advocate, a public official charged with representing the interests of consumers before the PUC.
According to the audit, the Consumer Advocate said there were instances in which the energy office appeared to be focused on promoting the state鈥檚 clean energy goals even when the impact on utility rates was unclear. That may have created additional work for both sides, the audit found.
Although the energy office has said it will cease participating in PUC dockets based on the audit鈥檚 criticism, at least one observer said the auditor鈥檚 finding was off base.
鈥淚 don鈥檛 think that鈥檚 fair at all,鈥 said Colin Yost, chief operating officer of , a solar energy company. 鈥淚n fact, it鈥檚 kind of absurd.鈥
Yost said the energy office鈥檚 work on a docket related to a proposed merger of Hawaiian Electric Co. Inc. and NextEra energy was particularly helpful. 鈥淚t wasn鈥檛 duplicative of the Consumer Advocate鈥檚 work,鈥 he said.
Yost said it may be useful to have multiple executive offices working to help implement the state鈥檚 energy statute.
鈥淭hat鈥檚 what the executive branch does, by the way,鈥 he said.
The audit also questioned whether the energy office will have enough money to keep operating even in the near future. The office staff grew by 75 percent from 2009 and 2012, from 20 to 35 employees, thanks to federal stimulus money. But the office is now spending more money than it鈥檚 receiving through tax revenue, and its cash reserves will soon run out, the audit said.
Salaveria disputed the finding, but the auditor bluntly rebutted Salaveria鈥檚 response.
鈥淎t its current rate of spending,鈥 the audit reported, 鈥渢he office will be unable to pay its bills by 2019.”
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About the Author
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Stewart Yerton is the senior business writer for 天美视频. You can reach him at syerton@civilbeat.org.