Gov. Linda Lingle has released $900,000 in design and preliminary construction money for air-conditioning and energy-efficient climate control improvements as well as mold damage remediation at 'Iolani Palace.

The existing air-conditioning system has deteriorated and is failing to provide uniform climate control throughout the palace. Increasing utility costs tied to the system have contributed to an ongoing budgetary shortfall shouldered by the Friends of 'Iolani Palace, the organization that operates the palace.

Planning and design is expected to begin in September. Project cost is estimated at $5.4 million.