honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Friday, April 25, 2008

State going private for energy work

By Greg Wiles
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Russ Saito

spacer spacer

The state of Hawai'i is looking to private companies to fund and install energy-saving equipment and improvements to 108 of its largest buildings as it searches for ways to boost energy efficiency and independence.

Yesterday, the Department of Accounting and General Services said it had issued an invitation to companies to submit proposals and be considered for such work. Individual agencies and departments such as the University of Hawai'i and Department of Transportation would use this list of pre-qualified contractors for work on individual projects.

"This is a real solution for what we're trying to do if we can make it work," said Russ Saito, state comptroller.

The request for proposals is in line with Gov. Linda Lingle's desire to lessen the state's dependence on electricity generated from petroleum and increase use of energy from renewable resources. The proposal is aimed at a group of companies that make use of the latest technology and engineering to make buildings more efficient.

Known as energy service companies, or ESCOs, the firms typically perform audits to come up with a list of improvements, which they fund, operate and maintain. In return, building owners sign long-term contracts under which the companies would recover their investment and make a profit with money the government would otherwise have spent on energy.

Such projects can include installation of more efficient air-conditioning systems, solar water heaters and photovoltaic panels and updated energy management systems. They also can include less technologically complex solutions such as compact fluorescent lights and tinted windows.

Saito said the use of ESCOs also will help the state get the improvements at little cost at a time when the legislature is dealing with tighter budgets.

If successful, Hawai'i figures to be one of the few states that have a large-scale program with ESCOs. Earlier this year, the Hawai'i Public Housing Authority issued its own request for proposals as it looked for an ESCO for 67 of its low-income housing projects that are federally subsidized and have more than 5,300 units.

In doing so, the housing authority wants to make use of a U.S. Department of Housing and Urban Development program that allows such contracts. Housing managers then use money received from HUD for energy costs to pay off the contractors. In some instances, the managers can keep the remainder of the HUD energy money to devote to other uses.

Saito said the state wants to assemble a list of pre-qualified ESCOs to help facilitate implementing the projects on a cost-effective basis. He said the program hopes to have contracts for the first facilities by the end of this year.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.