 It's a Wednesday afternoon again, and it's time for Hawaii, the state of clean energy. I'm your host, Mitch Ewan, and our sponsor is the Hawaii Energy Policy Forum, which is a program of the University of Hawaii's College of Social Sciences with financial support from the Hawaii Natural Energy Institute. So I'm very pleased to welcome my guest today, Sage Lang, from the Hawaii State Energy Office, who is a Volkswagen Settlement Specialist. So, Sage, welcome to our show. Thank you. Thanks for having me. Very good. So let's turn to the first slide, and let's talk about what our energy goals are in Hawaii. Sure. So my name is Sage, and I'm the Volkswagen Settlement Specialist here at the Hawaii State Energy Office. So I'm going to share a little bit about our work. Firstly, a high-level overview of our energy and transportation goals, how we're working to achieve those goals, and then how you can get involved. So that's what I'm here to do, and if we can move on to the next slide, please. Thank you. So Hawaii set a goal to achieve a net negative carbon economy by 2045 or earlier. And a carbon economy refers to the energy that we import and generate. So meaning that the state of Hawaii is committed to investing in renewables, as well as greenhouse gas sequestration efforts. So if we want to decarbonize, we need to understand where most of the energy is used. So I've included a pie chart here that breaks down the energy consumption by sector. And we can see that transportation makes up well over 50% of energy usage. And most of those vehicles are currently running on imported petroleum. So considering that transportation makes up such a huge chunk of our energy usage, the state of Hawaii amended an energy planning objective to explicitly incorporate the decarbonization of the transportation sector, stating a goal to increase energy security and self-sufficiency through the reduction in ultimate elimination of Hawaii's dependence on imported fuels for electrical generation and ground transportation. So this graph, the yellow part is the transportation section of it. So is that strictly ground transportation? Because I know we find it really difficult to do anything about the aircraft industry transportation fuels. Yeah, as far as I know, that is just ground transportation. Air transportation is a whole nother beast that we're not necessarily going to cover today, but it's definitely something that Hawaii is considering and it's in the process. Yeah, so those are some pretty hefty goals. And if you can move on to the next slide, we're taking a three-pronged approach to achieving them. So firstly, we're going to be implementing a number of programs focused on alternative fuels over the next few years, and I'll talk about a few of those today. We're also collaborating with local stakeholders such as the energy utilities, local city and county governments, and other energy focus groups. And finally, we're communicating with groups across the country to make sure that we're coordinating our efforts, because ultimately, many states are working towards these same goals. So I'll go through each of those as we go through the presentation. And yeah, if you want to go on to the next slide, I can start talking about how we implement these projects. So one of the sources of funding that we draw from are the Volkswagen Settlement Funds. And I'll just offer up a brief overview of those funds. Basically in 2009 to 2015, Volkswagen sold vehicles equipped with defeat devices and tended to deceive federal emissions tests. So as a result of that, these vehicles excessively polluted their environment. So as part of their settlement with the Environmental Protection Agency, Volkswagen was required to provide billions of dollars towards clean air actions to mitigate that risk, not that risk, the effect of those defeat devices. So this included buckets of funding for each state and tribal entity, and Hawaii has an allocation of just over $8 million. And so it's really up to us to decide how we want to spend that money. So the Energy Office created a beneficiary mitigation plan using input from the community and local stakeholders that you can read if you visit that link. So through data analysis, oh, sorry, go ahead and mention. Yeah, yeah. So I actually visited the link in my prep for the show. And the link works, you'll be happy to know. You can actually get out there. And it's a pretty interesting plan. But what's the status of the plan? Has the plan actually been completed or is it work in progress still? Yeah, thanks. There's a ways to go. It's still in the early days. We have a number of years before the funds, before the end of the period in which we can use these funds that we have been allocated. So what we're doing right now is we're starting to design the programs that fall into each of those buckets so that we can efficiently and effectively use these funds to reach the goals that we have as a state. So I'll talk about a few of those in the next few slides. But there's still plenty of time for input. If people want to reach out to me, my contact information is at the end or anyone else in the Energy Office. We want to hear from people to make sure that we're using these funds and investing them in a way that makes sense to the residents of Hawaii. Well, as a hydrogen advocate, that's music to my ears. So it means all of us hydrogen nuts out here still have a chance to get some input into how you guys allocate some of the funds. Sure. And a lot of these buckets of funding target zero emission vehicles. So either replacing buses, such as heavy duty vehicles, such as buses with a zero emission vehicle, or installing zero emission infrastructure. And so zero emission usually refers to electric, but it can also refer to hydrogen. So there is an opportunity for the residents and the businesses locally to make their case and talk about how we can best use our options to reach our goals. Okay. Can you just go over the three buckets that we see here? Yeah, absolutely. So 15% of our funds or $1.2 million go towards light duty zero emission supply equipment. So those are the electric vehicle chargers or hydrogen chargers for passenger vehicles, smaller vehicles that you and I would drive around. 51% has been allocated towards replacing heavy duty buses, such as school buses, with the zero emission alternatives. And then 34% has been allocated towards the DERA option. And the DERA is the Diesel Emissions Reduction Act. So this allows us to use VW funds as a match on projects that meet the criteria of the federal DERA grant. So this allows the money that we have to go further by encouraging partnerships and allowing us to explore other avenues and additional funding sources. So my next question on the DERA is a quick question. Yeah, it's about, you know, it's a match. So what's the percentage? I mean, how much federal money can you leverage with the Volkswagen Settlement Fund? Is it like a 10% or 20, 30, 40? What about what percentage is it? Sure. So the way it currently works is the Department of Health would apply for the DERA grant. And we would offer our funding as match to the award. So in the past, it's been about $350,000. And we provide that same amount as a match. And that allows us to get an additional 50% of funds, of the match funds added to our allocation. So by matching our funds, by adding that to the application, we're able to get additional funds from the federal government. Okay. Thanks. That's a good deal. It is. It's a good way to leverage other sources of funding. And I'm glad it's included in the Volkswagen Settlement. So if we want to go on to the next slide. So one of the ways that we're using these funds is to create the Vehicle Assistance Program. And this will use BW funds, along with potentially other sources of funding, to incentivize fleet owners to make the transition to electric vehicles. And the initial focus of the program will be on funding buses, such as school buses and transit buses. And we chose these large buses as our initial focus because they're kind of the low hanging fruit. You know, an electric bus, replacing a diesel bus with an electric bus, would make a huge dent in avoided future emissions. And in the case of school buses, it reduces the amount of pollutants that children breathe while they wait for the bus. So we're hoping that this program will reduce some of the barriers to vehicle adoption. Price is a major barrier, especially for these vehicles. So we're hoping that covering nearly half of the costs of a new bus will encourage fleet owners to make the switch. Well, I have a question. So I was reading your plan, and I thought you had a really innovative part of that plan. I thought it was a really good part. And that's a Waikiki Circuit. Do you want to talk to us about that? I think you called the Health Circuit or whatever. Tell us about that. Sure. So that is still in the process of being developed. So there's not too much to share on that at the moment. We're still working with the City County of Honolulu and the Department of Health to get that implemented and see what we can do. So what's the overall concept? The concept is to replace a polluting older bus with a new electric bus that will serve a new route in downtown Honolulu. But at this point, there's not too much that we can really share. So I would suggest if anyone who's listening is interested, they can check back on our website for additional updates in the next few months when it is available. So let me just pontificate a little bit. So really the big advantage is this diesel bus generates a lot of noise and a lot of black ugly sweat and exhaust emissions, whereas the zero emission bus comes in. It's almost like a stealth bus. It's nice and quiet, silent, just slinks around the streets, not belching out smoke and no noise. It can stop at a hotel, doesn't have to shut down and turn off its air conditioning because of anti-idling stuff. So it's really going to improve the visitor and the local. I mean, even for us locals here, the experience of being downtown, I would think. Absolutely. Yeah, that's one of the big benefit to electrifying or transforming these older buses into zero emission buses is they're quieter. They, you know, if you're waiting for the bus, you're not breathing in a whole bunch of exhaust and they're just healthier. They're healthier to ride, they're healthier to be near and they don't emit as they're driving through our downtown. So yeah, I think absolutely, you know, improving the just walkability in terms of you're not breathing in all that exhaust and the local downtown for residents and visitors is a big benefit to having these. So another huge benefit on top of that, you know, layering it on is as an outreach to demonstrate this kind of technology to the local pop, you know, to the people of Hawaii. So they see the benefits of this kind of a bus. So being downtown Waikiki, which has, you know, thousands of people walking around, everybody's going to see the bus and they're going to go, wow, isn't this a great bus? And so that helps us introduce these kinds of buses, you know, statewide and starting off with Honolulu, which of course, you know, that's, and most people know about Honolulu, isn't it, one time or another. So that's a very smart program. So I congratulate the Energy Office for, you know, and yourself for coming up with this program. And it'll be really interesting to see how it unwinds. Well, thank you. I can't take too much credit. A lot of the work was done prior to when I came on board. I only came on board a few months ago. So I'll pass that along. But I think you're right. They're having electric buses driving around downtown, being so visible. I think we'll create a lot of confidence in locals and then also tourists to think, you know, maybe my next car can be an EV. This is reliable. It's clean. It's, you know, it's out there and it's normalized. So I think that's a great benefit to having them out in the world. Yeah, there's definitely a wow factor to it. So yeah. Yeah, definitely. So on to the next slide, please. Great. So one of the barriers to implementing large buses and then smaller vehicles as well is a lack of infrastructure, which can be very costly to install very costly to implement. And one of the ways that we're trying to reduce that barrier and encourage adoption of passenger EVs is by applying for an alternative fuel corridor designation. So an alternative fuel corridor is a road with a high speed, alternative fuel charger every 50 miles. So this could be electric vehicle charger, hydrogen charger, something like that. And by designating these roads as alternative fuel corridors and adding signage, we help drivers feel confident that there are chargers at regular intervals to meet their charging needs. So these designations, which we apply for, also open us up to receive additional federal funding in the future so that we can install more chargers along these corridors. So currently there are corridors on all the islands except Kauai, which is why we are currently working on an application for Kauai. And considering there are no fast chargers on the island currently, we're seeking a pending corridor designation, which will still allow us to receive federal funds if they become available in the future. So we're excited about the future, the possibility of collaborating with our partners on Kauai to install fast chargers in the future, potentially using Volkswagen funds, potentially using other sources of funding. Nothing's been decided, but we are really excited about continuing to work with them and figuring out what's best for the residents of Kauai and what will do best to encourage electric vehicle adoption and help us reach our energy goals. So on that same topic, Drive Electric Kauai is another statewide partnership that is working to promote electric vehicles across Hawaii. So it started with a straightforward goal to ensure that everyone has the tools and information they need to feel confident owning or leasing an electric vehicle. And so the the organization partners span multiple sectors, including government and nonprofits, and they formalized the partnership by signing a memorandum of understanding to reinforce the relationships that would help them create impact as a coalition. And so this organization is really about demystifying the EV ownership process and the charging process. And I highly recommend that anyone who is interested check out their website. They have a lot of resources. Charging can be confusing for a lot of first-time EV owners or leasers. So checking out their website, making sure that you're informed is a great way to start on that journey. So in order to put on events, like I think I've seen emails about Drive Electric rallies and, you know, around the islands and all that sort of thing, what kind of hands-on programs that they have, are you aware of? I know you just got to Hawaii, so maybe you're not too aware of that. Yeah, I can't really speak to the hands-on on projects because I just I got here in the middle of COVID, so there haven't been too many opportunities to go out and meet people. But I would direct people to their website. I'm sure they have a lot of resources there, and I'm sure once the world is in a more normal place, I'm sure they'll consider hosting events. So we've talked about what we're doing locally, and the State Energy Office is also working nationwide to develop action plans to make the transition to zero-emission vehicles. So this past summer, Hawaii, along with 14 other states and the District of Columbia, signed a Memorandum of Understanding that commits signatories to work together to encourage a market for zero-emission medium and heavy-duty vehicles. So I have a chart up there on the screen to help our viewers visualize what I mean by medium and heavy-duty, and the goal of this partnership is to ensure that 100% of all new medium and heavy-duty vehicle sales are zero-emission vehicles by 2050. There's also an interim target of 30% by 2030. So this is a really key market to address because while trucks and buses only account for 4% of the vehicles on the road, they are responsible for nearly 25% of local transportation sector greenhouse gas emissions. And in fact, emissions from trucks are the fastest growing source of greenhouse gas emissions, and the number of truck miles traveled on the nation's roads are forecast to continue to grow significantly in the coming decades. So this is a pretty crucial area to address, and this group will be creating a detailed action plan to help the signatory states achieve these goals. And this plan is still in the early stages, but one of the key elements to this process is to reach out to the community. So if we can go to the next slide, I can show you the portal for public input. Feel free to read through the goals, the process, think through what you'd like to see, what sort of incentives, what sort of programs, what technology should we focus on, and let us know. We're interested in hearing from people in all different areas of the transportation arena, and also individuals. I definitely recommend checking out that website. Well, in preparation for the show, I actually went to the site and checked it out. It looked like a pretty simple process to stick to, you know, to put in your comments, and there weren't like thousands of comments, which surprised, so I don't know how, you know, how long this has been up. But so I actually read through all of them. I guess I don't have a better thing to do with my time, but I did. And I think one of the themes that I came up, you know, the Engine Manufacturers Association and the Truck Manufacturers Association have a lot to say about it, obviously. And I think the big comment was they thought that the timelines for implementation was unrealistic. Like I think the engine manufacturers, particularly, like in two years, are supposed to be able to come up with some significant changes. And, you know, two years is a pretty short time to do that. They were concerned about the industry without very serious government incentives, i.e. money, help us out here, guys. It's going to take a lot longer than, you know, I think that we realize or consider. So it'd be interesting to see how that dialogue develops among the people that actually supply the trucks and engines, as opposed to the people who just want to have a, you know, not just much. We all want to have a clean environment, but there's going to be, you know, have to be a lot of give and take there. They're not to make realistic plans. They all accept the requirement to get to zero emissions, but they're just saying, hey, look, guys, this is going to take a little bit longer than you think. And I think, personally, I think they're right. Most of the big heavy-duty truck manufacturers are evolving to zero emission. In fact, Cummins, diesel, our engines bought a fuel cell and hydrogen company in the last year or so. That's pretty significant for them to get in the game in that way right from the get-go. So it'd be interesting to see how this develops. And I also encourage people here to go to the website, that website, and share, you know, as I said, share your thoughts. If you don't speak, you won't be heard. So whether it's pro or against or whatever, or you have another bright idea, you know, you need to share those. Yeah, absolutely. And then on my little dialogue. Yeah, no, the goals are definitely aggressive. And I think that's the point of many goals to be achievable, but aggressive. And obviously, if there are people in the private industry who have insight into how we can achieve those goals or if they have feedback, then that's what we want to hear. So yeah, definitely encourage everyone to go and comment, read through the documents, the resources, and let us know your opinion. I'm very encouraged that the State Energy Office is taking this open-minded approach that you don't have like a, you know, a closed mind. This is the way it's going to be, but you're willing to look at, you know, the whole, you know, the whole enchilada and be a little bit flexible in your plans as opposed to if you already made up your mind and that's it, this is the way it's going to be our way or the highway. So that's pretty encouraging. Sure. Yeah, we want to make sure that what we're doing makes sense for the residents of Hawaii and make sense to the people who are reading it. So we definitely want to hear input and make sure that we take that into consideration. We want to go on to the next slide. So lastly, in order to achieve our energy goals, the Energy Office participates in a number of interstate working groups such as the Volkswagen Working Group and the Climate Alliance. So the Volkswagen Working Group, it's really to enable state-to-state communication on the Volkswagen investments. So we can talk about questions about the settlement, share information, and then explore potential to coordinate across state lines with our efforts and really learn from each other because we're all at varying stages in this process. So that's one way that we're making sure that we're using this money and investing it in a way that's strategic and effective. And so another one of these kind of subgroups is the Volkswagen Data Working Group. So this is really to collect usable data from the Volkswagen project to make sure that we're tracking our process and making sure that we're really on track to achieve these goals. The Climate Alliance is focused on coordinated state action and by connecting even virtually, we're able to learn from each other and ensure that we're all focused on the energy goals that we're trying to achieve. So that's all I have for you today. I have a question, a few questions now. So what form does this coordination and communication take? I mean, you know, we can't travel and have conferences and workshops anymore. So what are the mechanics? How do you actually do that? Yeah, so it's webinars, it's phone calls, you know, virtual meetings. It's really, it's all virtual but we're able to share information, you know, at the speed of the internet. So in some ways, you know, not having the barrier of needing to travel or sit down with people can be a benefit. But we make sure that we have meetings, you know, every month, every few weeks with these, a variety of these groups to make sure that we're all communicating and learning from each other and just making sure that we're all working towards these collective goals. Because that's really about what it's about, you know, energy goals transcend a single state, climate goals transcend a single state. So we're, it's wonderful because there's no competition, little competition, very little competition, you know, in what we're doing here. We're all really working towards the same angle. Well, on that happy note, we've come to the end of our time. I told you it would be, it would go fast. I've been very delighted to have Sage Lang on board from the Hawaii State Energy Office. It sounds like the Hawaii, like the Volkswagen settlement fund is being well managed and open to other suggestions. So I'm very encouraged by that. And I hope our audience is also encouraged by that. So flip up the last slide. And there are Sage's coordinates, if you want to reach out to her. And on that, Sage, thank you so much. It's been a delight having you on the show. Yeah, thanks so much for having me. And so this is Hawaii, the state of clean energy staying aloha. And we'll see you next Wednesday.