FOR IMMEDIATE RELEASE: HAWAIʻI STATE ENERGY OFFICE HIGHLIGHTS MORE THAN $1 BILLION IN PROJECTED ENERGY SAVINGS FROM ENERGY PERFORMANCE CONTRACTING
STATE OF HAWAIʻI
KA MOKU ʻĀINA O HAWAIʻI
JOSH GREEN, M.D.
GOVERNOR
KE KIAʻĀINA
DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM
KA ʻOIHANA HOʻOMOHALA PĀʻOIHANA, ʻIMI WAIWAI A HOʻOMĀKAʻIKAʻI
JAMES KUNANE TOKIOKA
DIRECTOR
KA LUNA HOʻOKELE
HAWAIʻI STATE ENERGY OFFICE
KE‘ENA HANA UILA MOKU‘ĀINA
MARK B. GLICK
CHIEF ENERGY OFFICER
LUNA IKEHU
HAWAIʻI STATE ENERGY OFFICE HIGHLIGHTS MORE THAN $1 BILLION IN PROJECTED ENERGY SAVINGS FROM ENERGY PERFORMANCE CONTRACTING
Statewide Collaborations on Performance-Based Project Partnerships Yield Efficiency Gains and Carbon Reductions in Public Facilities and Campuses
FOR IMMEDIATE RELEASE
September 29, 2026
HONOLULU — The Hawaiʻi State Energy Office (HSEO) today highlighted Hawaiʻi’s long-standing leadership in Energy Performance Contracting (EPC), a financing and project-delivery approach that lets public agencies modernize aging infrastructure using guaranteed operational savings to pay for improvements over time.
Since HSEO introduced Hawaiʻi’s performance contracting program in 1996, state and county agencies have entered into 13 performance contracts totaling approximately $507.1 million in investment, with an estimated $1.19 billion in guaranteed energy and operational savings over the life of the contracts. The projects have covered more than 295 buildings and facilities and more than 112 million square feet of public infrastructure.
“Energy performance contracting gives public agencies a clear path to address aging infrastructure and rising energy costs, while making long-term investments in the facilities our communities depend on,” said Mark Glick, chief energy officer at the Hawaiʻi State Energy Office. “Hawaiʻi has decades of experience with this approach, working with state and county agencies to identify opportunities, evaluate projects and structure successful performance contracts.”
“We’re proud of the work our teams have done alongside Hawaiʻi’s public agencies to turn energy savings into real infrastructure improvements,” said Michael Trovato, senior account executive of Johnson Controls for the state of Hawaiʻi “Partnerships like this show what’s possible when performance-based contracting is done right — better facilities, lower costs and measurable progress toward the state’s clean-energy goals.”
A Statewide Record of Results
Hawaiʻi’s EPC portfolio spans a broad range of public facilities and infrastructure, including airports, highways, office buildings, courthouses, prisons, community colleges, hospitals, wastewater facilities and water infrastructure. HSEO’s technical assistance has included reviewing energy service company proposals, evaluating investment-grade audits, reviewing contracts and financing packages, conducting technical training and providing ongoing project support.
The Hawai‘i Department of Transportation (HDOT) has been a major participant in the state’s EPC program. Its statewide EPC covers airports, highways and harbors, with a total contract amount of more than $309 million and approximately $795.6 million in guaranteed energy savings — which is the largest single state EPC in the nation.
The project includes energy-efficiency improvements across the statewide transportation system and demonstrates the potential for performance contracting to address large, complex portfolios of public facilities rather than individual buildings.
Daniel K. Inouye International Airport’s energy performance contract was the largest in the United States when first adopted and saves an estimated 64 MWh of electricity annually — equivalent to $275 million in cost savings in the 11th year of the contract. Upgrades included lighting systems, HVAC equipment and the addition of solar photovoltaic systems. The airport has already installed 8 MW DC of solar photovoltaic capacity, supported by a 1 MWh energy storage system for load shifting, further reducing its reliance on nonrenewable energy sources.
“These cost-saving investments play a key role in our continuing efforts to modernize Hawai‘i’s transportation infrastructure, which is vital to driving economic growth and keeping our residents connected,” said HDOT Director Ed Sniffen. “The advances made through this initiative are helping to increase Hawai‘i’s energy security, reduce energy costs to HDOT annually, and work toward achieving the state’s clean energy goals.”
The Department of Accounting and General Services (DAGS) has also used EPC to modernize state facilities. Its historical portfolio includes DAGS Phase I, covering 10 large office buildings, and DAGS Phase II, covering 33 buildings. Together, those projects represented more than $54 million in contract investment and approximately $101 million in projected savings.
“We recognize the ongoing value of providing access to these incredibly important energy savings programs that have proven to be cost effective for our operations,” said Acting Lieutenant Governor Keith Regan, also the DAGS director and state comptroller. “Given the advances in technology, we anticipate additional opportunities to further reduce energy consumption and, through those savings, put more funds toward mission-focused purposes.”
University of Hawaiʻi Community Colleges have also used performance contracting to implement campus-wide energy efficiency and renewable-energy improvements. The university’s contract totals approximately $34.2 million, with $37 million in projected savings.
New Opportunity for State Agencies
Building on this record, DAGS has created a new procurement opportunity to help state and county agencies pursue Energy Savings Performance Contracting (ESPC) projects. The procurement gives agencies access to qualified Energy Service Companies (ESCOs) to support planning, development, implementation and administration of EPC projects.
The new opportunity is designed to help agencies evaluate potential projects, develop appropriate scopes of work, assess proposed energy-saving measures and financing approaches, as well as to navigate the technical requirements of performance contracting. The DAGS procurement is intended to support both DAGS-managed facilities and other state and county agencies.
The initiative builds on the state’s established EPC framework and HSEO’s technical assistance role. HSEO has developed guidance, model templates and best practices for state and county agencies and serves as a technical resource for agencies considering performance contracting.
Hawaiʻi’s performance contracting record has also received national recognition. From 2012 through 2019, Hawaiʻi received the Energy Services Coalition’s Race to the Top recognition for the nation’s highest per-capita investment in performance contracting, and HSEO has cited Hawaiʻi’s EPC program as a model for using guaranteed energy savings to advance public-sector infrastructure improvements.
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