Legislative Proposal

Hydrogen Infrastructure Legislation

Short Title: / Relating to Hydrogen Transportation Infrastructure
Background: / Existing Transportation Energy System
Hawaii relies on imported petroleum for the majority of its primary energy needs. In addition, once imported, fuel must be transported among islands thereby contributing to the State’s highest-in-the-nation costs for electricity and gasoline.
Hawai’i Clean Energy Initiative
The Hawai’i Clean Energy Initiative (HCEI) launched in 2008 is a partnership between the state of Hawai’i and the US DOE. It is a top-level program initiated by the State to transform Hawai’i’s energy economy from fossil fuels to indigenous renewable energy. The original goal of the HCEI was to meet 70% of Hawai’i’s energy needs by 2030 through energy efficiency (30%) and renewable energy (40%). The 2015 legislature increased the HCEI objectives and passed legislation that establishes the policy goal of the state to achieve 100% clean energy by the year 2045.
Blue Planet State of Hawaii 2015 “Energy Report Card”
While reasonable progress has been made in meeting HCEI Renewables (“A-minus”) and Energy Efficiency (“B-plus”) goals, transportation clean energy use has not increased and we are not on track for energy independence and rated a “D-minus”. That is because displacing/reducing fossil fuel use for transportation is verya diffiicult challenge.
Hydrogen can play a “game-changer” role in meeting transportation clean energy objectives.
State of Hawai’i Hydrogen Policies
The 2006 legislature found that hydrogen produced from Hawaii’s substantial renewable energy resources can benefit the State by, among other things:
1)Increasing Hawaii’s energy self-sufficiency by reducing its reliance on imported fossil fuel;
2)Improving the state economy by lowering energy costs and generating new jobs associated with the expansion of renewable energy technologies; and
3)Reducing harmful emissions by displacing fossil fuels-based energy sources.
In support of this finding the legslature enacted legislation to transform Hawaii to a Renewable Hydrogen Economy and established the following policies:
1) HRS 196-10 establishes the Hawaii Renewable Hydrogen Program in statute with the objective of transitioning the state to a renewable hydrogen economy.
2) HRS 211F-5.7 establishes the Hawaii Hydrogen Investment Capital Special Fund in statute with the objectives of:
1. Providing seed capital and venture capital investments in private and federal projects for research, development, and testing.
2. Implementing the Hawaii Renewable Hydrogen Program
3. Any other purposes deemed necessary to carry out the purposes of the Hawaii Renewable Hydrogen Program
Hawaii Renewable Hydrogen Plan 2010 to 2020.
A Hawaii Renewable Hydrogen plan was prepared by HNEI in support of the Hawaii Renewable Hydrogen Program. The plan identfied public funding to support hydrogen infrastructure as a major strategic objective to enable the achievement of a hydrogen economy. Infrastructure is comprised of renewable energy resources, hydrogen production systems, hydrogen storage, hydrogen delivery and hydrogen dispensing systems.
Major Hydrogen Projects Underway:
There are several major hydrogen projects underway that leveraged the Hawaii Investmet Capital Special Fund to attract significant federal funding including the Hawai’i Hydrogen Power Park technology validation project, and the grid hydrogen project.
General Motors (GM) Fuel Cell Electric Vehicle (FCEV) Rollout: General Motors selected Hawai’i as a major rollout location for its Equinox FCEVs and an initial fleet of 15 vehicles was introduced to Oahu. This positioned Hawaii as a major player on the global hydrogen map. The project was completed in August 2015.
Hawai’i Natural Energy Institute (HNEI) Hydrogen Program:
HNEI has developed a world-class hydrogen fuel cell test facility located in downtown Honolulu, and has developed in-depth expertise in fuel cells and the effects of contaminants in air and hydrogen on fuel cell performance. This is the real world environment in which hydrogen vehicles will need to operate and HNEI is a leader in characterizing the performance and durability of fuel cells operating under these conditions. HNEI is also leading significant hydrogen infrastructure projects on Oahu and on the Island of Hawaii.
Joint Base Pearl Harbor-Hickam (JBPH-Hickam) Hydrogen Program:
The first hydrogen production and dispensing facility was installed in 2010. It is located at JBPH-Hickam and is operated for the Air Force by the Hawai’i Center for Advanced Transportation Technologies (HCATT), a state sub-agency that is part of the Department of Business, Economic Development, and Tourism (DBEDT). HCATT has developed considerable expertise in converting a variety of military and civilian vehicles to operate on hydrogen as part of its Air Force projects, and this expertise is available to other Hawai’i hydrogen projects.
Hydrogen Fueling Stations:
A new hydrogen fueling station has been installed at the Marine Corps Based Hawai’i (MCBH) Kaneohe base to support part of the fleet of GM FCEVs. Stations are also planned for the Island of Hawai’i at Hawai’i Volcanoes National Park (HAVO) to support twoHAVO shuttle buses, and at the Natural Energy Laboratory Hawaii Authority(NELHA) to support a third FCEV shuttle bus.
Fuel Cell Electric Vehicle and Hydrogen Fueling Infrastructure Implementation Plan for Hawaii (“HIP”)
In 2014 HNEI and HCATT with significant planning and analysis support from the US DOE Fuel Cell Technologies Office prepared the HIP that focuses on near term (2015 - 2016) actions necessary to implement hydrogen infrastructure on Oahu and Island of Hawaii. This plan serves as a basis for the proposed hydrogen legislation for the 2016 legislature presented in this document.
The following 2020 targets are critical to this plan:
  • Fleet of 5,000 hydrogen-fueled vehicles comprised of buses and cars.
  • Supports HCEI transportation and infrastructure objectives.
  • Significant hydrogen infrastructure on Hawai’i & Oahu. New infrastructure projects on Kauai and Maui.
  • Supports HCEI electricity, transportation and fuel objectives.
  • GM and 2 additional major car company rollout FCEV fleets.
  • Supports HCEI fuel and transportation objectives.
  • Hydrogen fueling stations accessible to the general public (5 in Oahu and 10 in Hawai’i)
  • Supports HCEI transportation and fuel objectives.
  • 1 Renewable hydrogen production plant.
  • Supports HCEI transportation and fuel objectives.
  • 1 Rental car company renting FCEVs.
  • Supports HCEI transportation and fuel objectives.
  • 100 Hydrogen buses on Hawai’i and Oahu.
  • Supports HCEI transportation and fuel objectives.
Critical Success Factors
While the challenges are large and difficult, there are factors that give cause for optimism that can be termed “Success Factors”. These include:
Rising oil prices will stimulate the search for alternatives. Currently the price of oil is very low – less than $50 per barrel and as a result the public is not experiencing “economic pain” at the pump. At some point rising oil prices will motivate people to take action. New oil resources are becoming harder to find and produce. $200 per barrel oil would be devastating for Hawai’i’s economy. We have the chance to be proactive and insulate us from that eventuality.
Public support for protecting the environment.While not as impactful as economic pain, public support for a clean environment will find a natural ally with hydrogen. Hydrogen produced utilizing renewable energy sources supports a clean environment – the only product of conversion to electric power is pure water.
Availability of renewable energy sources. Hawai’i does not lack renewable energy resources. In fact it is estimated we have 150% more renewable energy available than is needed. Geothermal energy is the most attractive renewable energy source because it is abundant and it operates at steady state thus optimizing the capital investment of extracting it.
Department of Defense Initiatives. The DOD is a major player in Hawai’i’s energy system and has been historically an effective incubator of new technologies that later fed wide-scale civilian use. The Secretary of Defense designated energy initiatives as one of the top “transformational priorities” for the DOD. The National Defense Authorization Act (NDAA) 2009 mandated movement towards renewable energy sources for military installations. As a major energy user in Hawai’i, the DOD program to increase its use of renewables will have an impact on meeting HCEI goals.
General Motors’ rollout in Hawai’i. The fact that GM selected Hawai’i for the rollout of its hydrogen vehicles has given the Hawai’i Hydrogen Program a tremendous boost. The global interest and resulting public outreach has the potential to capture the imagination of Hawai’i’s public and its support for the Program.
Private industry recognizing business opportunities. Government can only set the conditions for success. It takes private industry to ensure the success. When private industry makes money from hydrogen, we will see its participation dramatically increase.
Political will and leadership. Giving priority to the conversion to hydrogen fuel over other competing energy sources will require political courage and determination. The establishment of the Hydrogen Fund was such an act of leadership and political will.
Dedicated funding. Dedicated public funding is an essential requirement of all successful high risk new technologies. This is a component of political will. The enactment of the “Barrel Tax” gives cause for cautious optimism that ongoing support might be available to support hydrogen technologies.
Establishment of the Hawaii Hydrogen Implementation Coordinator. The 2015 legislature established the Hawaii Hydrogen Implementation Coordinator resident with the Director of HCATT who is tasked with responsibility for developing and coordinating the implementation of state hydrogen plans.To assist the coordinator the Hydrogen Implementation Working Group has been formed to provide input in policies and plans that will be submitted in annual reports to the legislature.
Objective: / The purpose of the followingrecommended legislation is to support the installation of the necessary hydrogen infrastructure and prived market incentives for the acquaition on hydrogen vehicles to support the introduction of hydrogen fuel cell electric vehicle fleets in the 2017 to 2020 time frame.
Proposed Legislation: / Bill #1
Hydrogen Investment Captal Special Fund
Appropriate funds ($TBD) to be deposited into the Hydrogen Investment Capital Special Fund established in statute by HRS 211F-5.7. Funds to be used to support the establishment of hydrogen transportation infrastructure including hydrogen production, storage, delivery, and dispensing. Appropriations from an annual allocation from the Barrel Tax Fund and/or the General Fund until 2030. This supports the objectives of Hawaii Clean Energy Initiative.
Bill #2
City & County of HonoluluHydrogenStation
Appropriate funds ($TBD) to build a hydrogen station on Oahu to support a fleet of Fuel Cell Electric Buses to be operated by the City & County of Honolulu in support of public transportation.This supports the objectives of Hawaii Clean Energy Initiative.
Bill #3
MTA Hydrogen Station
Appropriate funds ($TBD) to build a hydrogen station on the Island of Hawaii to support a fleet of Fuel Cell Electric Buses to be operated by the County of Hawaii Mass Transit Agency in support of public transportation.This supports the objectives of Hawaii Clean Energy Initiative.
Bill #4
Hydrogen Purity Test Station
Appropriate funds ($TBD) to establish a hydrogen purity testing capability in Hawaii to meet the hydrogen transportation fuel purity requirements specified in SAE J2719 by checking contaminant levels in hydrogen: There is no capability in Hawaii and it is too expensive for private industry at this time. Funds required for the procurement of the equipment, training technicians, and ongoing operations. This supports the objectives of Hawaii Clean Energy Initiative.
Bill #5
Hydrogen “Burn Props” for First Responder Training
Appropriate funds ($TBD) to purchase hydrogen Burn Props for First Responder hydrogen fire training. One for each island and located at First Responder Training facilities. This supports the objectives of Hawaii Clean Energy Initiative
Bill #6
Thermal Imaging Cameras for First Responders
Appropriate funds ($TBD) for the purchase of Thermal Imaging Cameras for First Responders to be able to respond to hydrogen fires. The objective is for every fire truck to be equipped with a camera. This supports the objectives of Hawaii Clean Energy Initiative.
Bill #7
Fuel Cell Electric Vehicles
Amend the statutory definition of qualifying electric vehicles to include fuel cell electric vehicles with the same status as battery or plug-in and plug-in hybrid electric vehicles, particularly for the vehicle purchase tax credit and the rental vehicle surcharge exemption. Including fuel cell electric vehicles under the definition of electric vehicles for the purpose of access to reserved electric vehicle parking/charging spaces [HRS 291-71 and 291-72] is not necessary. Expand High-Occupancy Vehicle (HOV) Lane eligibility to include FCEVs, consistent with regulations currently in place for PHEVs and BEVs. Expand free municipal parking to include FCEVs, consistent with regulations currently in place for PHEVs and BEVs. This supports the objectives of Hawaii Clean Energy Initiative.
Bill #8
Fuel Cell Electric Vehicle Reporting & Procurement Requirements
Vehicle and Fuel Reporting Requirements and Government Fleet Procurement Requirements. Require reporting to ensure HCEI metrics can be measured and tracked:
  1. Require fuel distributors to report the amount and types of non-fossil fuel sold into the state’s fuel supply, whether liquid or gaseous. Apply/modify the definitions of fuel entities in HRS §196-2;
  2. Require city and county motor vehicle departments to track and report registrations of motor vehicles capable of utilizing hydrogen fuel, whether liquid or gaseous, to DBEDT at least annually. Retrofitted vehicles should be tracked and reported in the same manner as original equipment vehicles.
  3. Require state, city, and county governments to procure a percentage of FCEVs in their annual vehicle fleet procurements.
This supports the objectives of Hawaii Clean Energy Initiative.

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