Washington, D.C. -- Three measures passed by the U.S. House of Representatives in the last two weeks contain provisions authorizing federal grants and the use of state and city-county bonds to finance energy saving projects and the development of alternative energy fuels and sources, including investment in the production of electricity from a number of alternative sources.

The Energy Independence Act aims at ensuring that domestic oil and gas production do not threaten the environment or surrounding communities, at reducing the effects of global warming, and at setting new efficiency standards for appliances.  The law invests in renewable energy and creates a grant program to help states and cities implement local energy efficiency measures; and it provides federal help for the purchase of alternative fuel buses, locomotives and ferries.

Under the Energy Independence Act, The State of Hawaii and Honolulu would be able to advance their own energy projects, from seawater air conditioning to the replacement of aging buses with cleaner vehicles.

The Energy Act also promotes homegrown alternative fuels like sugarcane to ethanol, and provides assistance for the installation of E-85 fuel pumps.  It gives farmers, ranchers and small businesses more tools to increase efficiency and reduce energy costs.

Under the Renewable Energy Tax Act, the State of Hawaii could issue up to $25,400,000 in tax credit bonds; $15,200,000 of these in qualified energy conservation bonds ($4,470,000 directly for Honolulu), and $10,200,000 in qualified energy efficiency bonds.

These bonds would allow Hawaii to invest in the production of electricity from renewable sources, including wind, solar, biomass, geothermal, river currents, ocean tides, landfill gas, and trash combustion.  The bonds would also support production of biofuels, such as sugarcane to ethanol, and the deployment of renewable energy by electric cooperatives, such as the Kauai Island Utility Co-op.

Under the Farm Bill Extension Act, the University of Hawaii is designated as a Sun Grant Regional Center, part of a national network of land-grant universities and U.S. Department of Energy laboratories partnering to build a bio-based economy through development, distribution, and implementation of bio-based energy technologies.  UH joins five other regional, land-grant universities with biomass production potential and current involvement in bio-energy research: South Dakota State University, Oregon State University, Oklahoma State University, University of Tennessee-Knoxville, and Cornell University.

These regional centers will emphasize research, higher education, and Extension programs on renewable energy and bio-based industries.

The Energy Independence Act and the Renewable Energy Tax Act have been combined into one piece of legislation.  A conference committee of House and Senate members will meet to work out differences between their respective versions of the bill.

A Farm Bill Extension Act has not yet been considered by the Senate.

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