Mr. President, in the shadow of crude oil prices that have reached nearly $50 per barrel, and with the specter of higher gasoline prices forecast by the Department of Energy's Energy Information Administration, I rise today to offer a bill that will help Hawaii and potentially other insular areas grapple with the difficult choices ahead with respect to energy independence.
The bill directs the Secretary of Energy to assess the short- and long-term prospects of oil supply disruptions and price volatility and their impacts on Hawaii. It also directs the Secretary to assess the economic relationship between oil-fired generation of electricity from residual fuel and refined products consumed for transportation needs of Hawaii. Hawaii uses crude oil to produce electricity, gasoline, and jet fuel. Changing the mix of these products will have significant economic implications for Hawaii. We need to have a clear picture of the impacts of going down these roads to a different energy mix. In addition, the study would address the technical and economic feasibility of increasing the contribution of renewable energy resources and the use of liquified natural gas (LNG) for generating electricity and other needs. In Hawaii, the costs of gasoline, electricity, and jet fuel are intertwined in an intricate relationship, because they all come from the same feedstock, and changes in the use of one could potentially drive consumer prices up or down. We need to know the implications of increasing the percentage of renewable sources of energy or switching to LNG, and whether these choices will leave us enough residual fuel for our transportation system and jets. Finally, the bill calls for an analysis of the feasibility of production and use of hydrogen from renewable resources on an island-by-island basis, an energy source I have championed for a long time.
Mr. President, Hawaii is heavily dependent on imported oil. About 90 percent of the State's energy needs for residents and visitors is produced by refining and burning crude oil. We import 28 percent of our oil from Alaska, but 72 percent comes from foreign sources including Indonesia, China, Papua New Guinea, and Vietnam. We use 26 percent of the oil for generating electricity. Being an island state, marine transportation between the islands is very important. Air transport for residents of Hawaii, as well as for our tourism industry, is critical. For many high school athletic and academic teams to compete in intramural activities, it means getting on planes to go to another island. Many families live on multiple islands. We use 32 percent of the oil for air transportation, and 23 percent for ground and marine transportation. My State's dependence on oil poses potential risks to Hawaii from sudden price increases or supply disruptions as were experienced several times in the last five years alone.
Hawaii uses its energy very efficiently. Our per capita energy use is well below the national average. In part, this is due to the fact that Hawaii is blessed with comfortable climate and short driving distances. Nonetheless, we have been paying some of the highest prices in the nation for our energy. We continue to have the highest gasoline prices in the country. For a long time our electricity rates also have been the highest in the country. Consistent high energy prices affect the economic vitality of the state. Before we invest in a different energy mix and infrastructure, we need to make transparent all the relations between fuels and the consequences of the directions we choose.
Our State has been proactive in seeking energy solutions. The State of Hawaii has income tax credits for the installation of solar, photovoltaic, and wind energy. Hawaii has the largest solar water heating program in the nation. Governor Linda Lingle has called for a 20 percent renewable energy standard by 2020. Last year we obtained about seven percent of electricity sales from renewable sources, compared with a national average of about two percent. The Hawaiian Electric Company (HECO), Hawaii's largest utility, announced in January 2003 the formation of a new subsidiary that will invest in renewable energy projects for Hawaii.
The Hawaii Energy Policy Forum, a deliberative body of over 40 community leaders and energy stakeholders, met many times over a period of a year and developed an energy vision for Hawaii through the year 2030. Its report, "Hawaii at the Crossroads; A Long-Term Energy Strategy," identifies strategic principles for Hawaii's future, including diversifying the sources of imported energy and beginning the transition to a long-term hydrogen economy.
Mr. President, energy security includes supply security, price security, and economic security. Supply security means ensuring that energy is available despite market disruptions elsewhere. Price security means that energy consumers are protected against price fluctuations and chronically high prices. Economic security results from both of the above. Hawaii is dependent on oil for both transportation and electricity in ways that are without parallel in continental states. Hawaii also has an abundance of renewable energy resources. It is the intent of this bill to assess these challenges and opportunities, and to help us develop a suitable roadmap for Hawaii's energy future. This bill will help Hawaii identify the challenges and decision points along the way to energy security.
I urge my colleagues to support this bill and ask unanimous consent that the text of the bill be printed in the Record immediately after my remarks.
