Hawaii Hydrogen Implementation Working Group Meeting November 24, 2015

FTZ Conference room #9

Stan Osserman (HCATT), David Rolfe (Hawaii Auto Dealers Assn.), Mitch Ewan (HNEI), Dave Rodrigues (DOT)

Jeff Finch (Aloha Petroleum)-joining via phone

Meeting called to order: 9:21a

Stan: Thanks attendees and goes around the room to make introductions. Identifies the major agenda item of the day: to review the draft report to legislature (the draft)-highlight changes suggested from last meeting, discuss additional proposed changes and make final call for amendements

Revisions from last meeting:

Relief for non-attainment status: Suggestion is to ask CODEL to seek a new status designation for Hawaii. There was consensus that seeking a designation unique to Hawaii would be preferred as opposed to seeking exemptions under current FTA designation. Dave Rolfe (DR) highlighted the history of Hawaii and it’s purposeful decision to be a non-ZEV (non-zero emission vehicle) state and how an exemption could potentially negate Hawaii’s efforts to remain non-ZEV). –This will be incorporated into the report
Role of state government and Governor’s office: a diesel-electric hybrid vehicle discussion should be had to encourage this type of hybrid as a stepping stone to fuel cell electric vehicles. This type of hybrid is 80% “there” on the way fuel cell electric vehicle. Request to add information asking Executive branch to support all hybrid vehicles with a firm goal and or statement. –This will be incorporated into the report
DR: if we encourage hybrids, we can use the same fuel, with a common infrastructure to encourage the transition to a renewable fuel transportation sector. The success of this campaign will be indicated by the level of public awareness. DEDICATED MARKETING/PUBLIC AWARENESS CAMPAIGN WILL BE PIVITOL TO SUCCESS.
“Off the pump” Tax replacement scheme:
DR: the gas tax will be around well into the next century as complete elimination of fossil fuel use for transportation is unlikely to be seen in this century, so although it is important to think of another form of revenue for the State Department of Transportation (to fix the highways), it may not be an imperative tax policy discussion right now.
Stan: this section will be reviewed and amended accordingly.
Economic impact of fossil fuels:
Stan: the report needs to show the economic impact of importing fossil fuels to Hawaii. Report will address the dollars that leave Hawaii to purchase fuel that are not maintained in the Hawaii economy because businesses are off shore. Renewable fuel use that is locally produced can make a HUGE impact on the economy. The HIWG intends to ask the legislature to commit resources to studying an analyzing this impact.
DR: would like to include the graph from figure 2 in this section of the report (and would like to revise it to include additional graphics). The Hawaii Clean Energy Initiative (HCEI) goals are off by a factor of ten. A goal that could be realized with concentrated communication/information outreach strategy (communication campaign) would be 40,000 (at best). The projected savings would be close to 13 million gallons per year (fossil fuel reduction, from the widespread voluntary compliance of the auto industry and consumers in Hawaii-no ZEV state designation needed). Dave’s information reflected in the graphs (which will be in the in appendices) is the compilation of about 400 work hours and depicts graphic representations of petroleum use and reduction projections and electric vehicle adoption projections.
Historic information/data presentation:
SO: Mitch Ewan’s revisions highlighted sharing historic information about HCEI and the formulation of the Hydrogen Implementation Working Group (to include legislation review and original working group plans).
Use of National Labs for needed research:
SO: Will add a paragraph that asks the State Legislature to request National Labs study with Dept. of Energy funds to better understand market adoption of H2 vehicles and other price point/economic impact concerns. Greg Moreland suggested that the working group request study bills from the State Legislature.
DR: A study applying the “Scarf Algorithm” to Hawaii’s market adoption of H2 vehicles would be useful in identifying the projected adoption timeline.
DR: A study on ZEV state mandates and the REAL impact not only on the market, but the environment as well (i.e. is the system more a cap and trade system that does not so much impact fuel consumption as much as it shifts the costs and fuel use to different uses?)
DR: National Labs could be used to do a study on the adoption of natural gas as a bridge fuel versus a commitment clean hydrogen.
SO: clean H2 should be a mandate for the state, but private sector can proceed as practicable
Interstate collaboration with California:
SO: Will propose in report that Hawaii Department of Transportation (DOT) connect with the Port of Long Beach, CA to share best practices on how they are transitioning to clean harbors. This port is a huge port with which Hawaii regularly does trade and they are implementing fuel cell technologies in their clean harbors initiative.
SO: Also Hawaii Department of Commerce and Consumer Affairs could be brought into the hydrogen implementation discussion as licensing responsibilities will fall to this agency. Permitting efficiency will be important as infrastructure plans are implemented. Involving this office in the early phases will be important. Are there lessons learned that can be adapted to Hawaii?
i.e. drawing the line between commercial enterprise and home use of an electrolyzer (how much is too much explosive force?)
Appendices:
Items proposed to be included in the appendices- Original house bill, Dave Rolfe’s graphs, original hydrogen plan (Mitch Ewan), Department of Energy (DOE) production projection (still awaiting approval to include), energy market analysis, call for other items..
ME: DOE has adoption rate info that could be mined for info specific to Hawaii, also HNEI projects, HCATT projects and perhaps Blue Planet projects could be added.
Last mention items:
ME: we must be realistic about H@-it is still expensive, and the technology still needs advancement. We should qualify that research is still needed
SO: “We didn’t get out of the stone age because we ran out of stones”-Roy McCallister
Stan will work closely with Mitch and HCATT team to complete report by deadline (Nov. 30, 2015)
Lynda from State Energy Office will follow up w/ Mark and Chris for additional comments (if any) and will communicate with Stan to incorporate at needed
Next meeting to develop leg strategy projected for mid –December. Exact date will be posted on state calendar when determined.
Meeting adjourned at 11:05a