Hawai'i is well positioned to effectively use hundreds of millions of dollars available through the federal economic stimulus bill recently signed by President Obama. This is one message I conveyed to our federal partners during nearly a week of meetings and presentations in Washington, D.C.

Each February, governors convene in our nation's capital at the National Governors Association meeting to share ideas and outlooks. This year, we focused on the fiscal challenges states are facing as their tax revenues decline. Several key themes emerged from these meetings that are important to Hawai'i as we work together over the next several years to improve our economic outlook.

First, Hawai'i is ahead of many of our sister states because we have been working on issues Washington wants to address, notably clean energy, broadband communications and infrastructure modernization.

One of the first meetings I had with members of the Obama administration was with the new Secretary of Energy, Dr. Steven Chu, to share the significant progress Hawai'i is making through the Hawai'i Clean Energy Initiative, a partnership formed with the U.S. Department of Energy last year, to reach our goal of 70 percent clean fuels within one generation.

Ted Liu, state director of the Department of Business, Economic Development and Tourism, joined me in updating Secretary Chu on Hawai'i's progress in the areas of wind, solar and geothermal power, as well as planning for wave energy, upgrading the state's electric grid and pursuing undersea cables to interconnect our islands and integrate renewable power into the system.

Sen. Daniel K. Inouye was also interested in the progress of the cable during our meetings with him and pledged his help in moving the undersea power cable project forward. Sen. Inouye and his key staff have been actively involved in Hawai'i's Broadband Communications initiative that will allow us to provide higher speed, lower cost, access to the full spectrum of communications technologies available now and in the future. We had the opportunity to update him on pending legislation to streamline the regulation of our communications sector as well as steps to encourage more communications choices for Hawai'i residents.

Like energy, broadband is an area where federal investment dollars are available through the American Recovery and Reinvestment Act.

Several NGA sessions were devoted to the topic of infrastructure — the need to upgrade our highways, bridges, ports and airports. Hawai'i has been ahead of the curve launching our Airports Modernization Plan in 2006, Harbors Modernization Plan in 2007 and Highways Modernization Plan earlier this year. The state Department of Transportation is working closely with our congressional delegation to ensure we maximize the federal funds available through the stimulus initiative.

A second key point that became clear during the meetings, including a session with President Obama and members of his Cabinet, was the essential role governors will play in disbursing the $787 billion included in the Recovery Act.

Governors will be responsible for reporting to the federal government and our own citizens how we are effectively using the funds. Congress realized governors are in the best position to determine where federal money can maximize its impact. Many of the details are still being developed on how we will apply for the funds and what measures will be used to evaluate performance. I have asked my Cabinet directors to stay in close contact with their federal agency counterparts as specifics are formulated for getting federal stimulus money to the states and localities.

Finally, my time in our nation's capital reaffirmed that the American Recovery and Reinvestment Act funds will not close our state's budget gap. While there is some opportunity to use federal dollars in lieu of state funds, particularly for Medicaid reimbursements, Hawai'i will still need to make critical decisions to close our projected $1.8 billion revenue shortfall.

In December, I provided the state Legislature with a specific plan to reduce the gap by $1.1 billion and prior to my trip also submitted my plan to the House and Senate to close the FY 2009 shortfall. This still leaves an estimated $650 million that needs to be found for FY 2010 and FY 2011. I intend to provide the Legislature a clear, well-thought-out proposal to do this in early March.

At the same time, it will also be important to continue to implement my five-point plan for economic action, including accelerating more than 1,500 capital improvement projects totaling more than $1.8 billion and continuing to work closely with private investors in our state.

Much work lies ahead, but I am pleased that Hawai'i is in a very good position to effectively use its share of federal economic stimulus dollars while remaining focused on immediate and longer-term steps we can take ourselves to move Hawai'i's economy in the right direction.

Reach Linda Lingle at (Unknown address).

Gov. Linda Lingle wrote this commentary for The Advertiser.