All posts by Richard Ha

Community, Lowering Electric Rates, Peak Oil, Sustainability

Great Info Meeting on How Kaua‘i Formed its Electric Utility Co-op

December 21, 2014 Richard Ha 1 Comment

Richard Ha writes:

We had an interesting presentation Friday from two executives from Kaua‘i’s electrical utility, the Kaua‘i Island Utility Cooperative (KIUC). David Bissell is CEO, and Dennis Esaki was a founding member who only recently left the KIUC board.

It was amazing to hear what KIUC went through to purchase Kaua‘i Electric Company and form the utility cooperative. The Kaua‘i County Council and mayor were originally against the purchase, and the PUC turned down its first purchase bid as not being in the best interest of the users. But the founding group continued to rework its plan and was ultimately successful the second time it presented a bid.

In total, it was about a two-year process and the group purchased Kaua‘i Electric Company in 2002 for $215 million. And, Esaki said, referring to the county administrators, “they’re all on board now.”

This month, Kaua‘i’s electricity rates are lower than any of the islands but O‘ahu’s (mostly because of the oil price decline). Most months, its rates are a little lower than the Big Island's and a little higher than Maui.

Since 2003, ratepayers have received $30 million in refunds and patronage capital — the amount of money left after all the bills are paid, and the co-op has met its lenders’ requirements. This is money that circulates back into the community.

Members have $80 million in equity, which is what they own of the co-op. When the utility was purchased 12 years ago, it was 100 percent debt-financed, so the equity at that time was zero.

KIUC has gone from about five percent renewable energy in 2009 to 18 percent today. It will be at about 40 percent by the end of next year.

From the KIUC 2013 Annual Report (click to enlarge):

The organization of the co-op also reflects what the people of Kaua‘i want, because its board is selected by the people. Esaki and Bissel said that at first there was almost total, and repeated, board turnover as ratepayers regularly voted out board members who weren’t doing what they wanted. Eventually, they said, the board has stabilized.

Projects are financed through national co-op financing, which results in much lower financing costs.

You can watch a video of the meeting below. Thanks to Chester Lowrey for videotaping!

There was a lot of community interest in the KIUC presentation, with a good turnout from various community groups. The presentation was sponsored by three organizations:

The Big Island Community Coalition, the steering committee of which is made up of David DeLuz, Jr., Rockne Freitas, Michelle Galimba, myself, Wallace Ishibashi, Kuulei Kealoha Cooper, Ka‘iu Kimura, D. Noelani Kalipi, Robert Lindsey, H. M. Monty Richards, Marcia Sakai, Ku‘u Lehua Veincent, and William Walter.

The board of the Hilo-Hamakua Community Development Corporation, which is President Donna Johnson, Judi Steinman, Glenn Carvalho, Eric Weinert, Jason Moniz, Gerald DeMello, Colleen Aina, and Richard Ha.

And Hawai‘i Farmers and Ranchers United, which represents more than 90 percent of the farming goods produced on the Big Island.

Ed Olson donated the use of his Wainaku Executive Center for the meeting.

We have formed a steering committee to discuss this further. The committee consists of Gerald DeMello, Michelle Galimba, Wally Ishibashi, Donna Johnson, Eric Weinert, Vincent Paul Pontieux, Marco Mangelsdorf, Russell Ruderman, and myself. I’ll keep you posted on further developments.

Edited 12/21/14 at 10:45 pm; 1/5/15; 1/30/15.

Renewable Energy Sources, Sustainability

Island Photovoltaic Permits in Dramatic Decline

December 16, 2014 Richard Ha 2 Comments

Richard Ha writes:

Marco Mangelsdorf, who owns ProVision Solar in Hilo, is one of the most credible commentators I know of in the energy industry. The fact that he owns a solar company has never affected his intelligent analyses. He has no bias but just calls it like it is. I respect his integrity explicitly.

He recently sent me this information about November photovoltaic (PVV) permits, and I got his permission to reprint it here:

[November was the] nineteenth straight month of year-over-year decline. I believe a case can be made that the island’s PV industry may be in a state of terminal decline as far as roof-top PV. It’s hard to see factors that would lead to a sustainable upswing at least in the next several years. With the federal tax credit scheduled to disappear for residential PV as of January 1, 2017 and go down from 30 percent to 10 percent for commercial PV, grid penetration issues and NextEra’s apparent preference for utility-scale PV over distributed generation, the skies seem unlikely to brighten in the near-term for the local PV industry. And forget any immediate relief coming from some magic bullet in the form of energy storage. Ain’t gonna happen no matter how much some commentators predict it along with a mass exodus from the grid. Said pundits have likely never spent any time, let along months or years, living off the grid and the considerable energy, time, resources and conscientiousness that off grid living entails.

November 2014 PV permits—520, a drop of 50 percent over last year. (November 2013 PV permits—1,040.)

January-November 2014—5,914, a drop of 51 percent from the same period last year. (January-November 2013 PV permits—12,163.)

The number one PV permit puller on the island, Vivint Solar, has seen their numbers take a substantial dive in October and November. Their monthly average January-September 2014 = 92 PV permits. In October, they obtained nine permits while they pulled 15 last month.

January-November 2014

Big Island, Community, Philippines, Renewable Energy Sources, Sustainability

Kauai Island Utility Co-op Execs To Brief On How They Formed Their Co-Op

December 15, 2014 Richard Ha

Richard Ha writes:

We have invited Dennis Esaki, a founder of Kauai Island Utility Cooperative (KIUC), and David Bissell, CEO of KIUC, to speak to us about how one forms a community-based utility. Having such a utility cooperative here on the Big Island would give us more control over our destiny.

It will be held this Friday, December 19, 11:30 a.m., at the former C. Brewer Executive Center in Wainaku. The event is sponsored by the Big Island Community Coalition, the Hilo Hamakua Coast Development Corporation, and the Hawaii Farmers and Ranchers United. The Ed Olson Trust is providing the Wainaku Executive Center facilities. Please R.S.V.P.

The Kauai Island Utility Cooperative was formed in 2002 when Citizens Communications’ Kauai Electric announced that it was selling the Kaua‘i utility. We have a similar situation right now in that Hawaiian Electric Industries (HEI) recently announced it is selling to NextEra.

NextEra plans to use utility-scale solar, backed up by liquid natural gas (LNG) as a bridge fuel. The average shale oil and gas well lasts only five years, so that model is a concern for Big Island rate payers. (This link is an even more in-depth explanation of how shale oil is massively over-hyped, and analyzes the best data available.) Fortunately, we have geothermal we can use in place of LNG on the Big Island. We have options.

This is not an endorsement of converting to a co-op so much as it is an informational briefing.

Please R.S.V.P. to richard@hamakuasprings.com.

Current Affairs, Geothermal, Peak Oil, Renewable Energy Sources, Sustainability

Aren’t the Falling Oil Prices Great?

December 8, 2014 Richard Ha 1 Comment

Richard Ha writes:

Isn’t it great that the price of oil has dropped so low all of the sudden?!

Wait – is it??

In the short term, for maybe five years, we’re going to be pretty happy here in Hawai‘i. More tourists will travel here, food and electricity costs will drop, and we will have more consumer confidence. We’ll feel like everything’s fine.

But everything is interconnected in our big world now, and could there be any problems with such a sudden and steep drop in oil prices?

Gail Tverberg, the former insurance actuary I sometimes refer to here who is very knowledgeable about such things on a macro level – and who writes the blog Our Finite World – just wrote about this.

In her post Ten Reasons Why a Severe Drop in Oil Prices is a Problem, she writes about the big picture.

From Our Finite World:

Let me explain some of the issues:

Issue 1. If the price of oil is too low, it will simply be left in the ground.

The world badly needs oil for many purposes: to power its cars, to plant it[s] fields, to operate its oil-powered irrigation pumps, and to act as a raw material for making many kinds of products, including medicines and fabrics….

Issue 2. The drop in oil prices is already having an impact on shale extraction and offshore drilling.

While many claims have been made that US shale drilling can be profitable at low prices, actions speak louder than words. (The problem may be a cash flow problem rather than profitability, but either problem cuts off drilling.) Reuters indicates that new oil and gas well permits tumbled by 40% in November…

…

Issue 4. Low oil prices tend to cause debt defaults that have wide ranging consequences. If defaults become widespread, they could affect bank deposits and international trade.

With low oil prices, it becomes much more difficult for shale drillers to pay back the loans they have taken out. Cash flow is much lower, and interest rates on new loans are likely much higher. The huge amount of debt that shale drillers have taken on suddenly becomes at-risk. Energy debt currently accounts for 16% of the US junk bond market, so the amount at risk is substantial.

Dropping oil prices affect international debt as well. The value of Venezuelan bonds recently fell to 51 cents on the dollar, because of the high default risk with low oil prices. Russia’s Rosneft is also reported to be having difficulty with its loans….

Tverberg writes about some pretty extreme consequences of nearing the limits of our finite resources. I’ve said many times that I cannot disagree with her. My approach, though, is to look for workarounds for us here in Hawai‘i.

I’ve also said plenty of times that we are so lucky to have geothermal. It’s not quite “infinite,” but the Big Island will be over the geothermal “hot spot” for 500,000 to a million years, and that’s close enough.

We’ll see where all this takes us. It’s uncharted waters. On the state level, it will be good for us in the short term, but on a higher level – where Gail Tverberg operates and what she writes about – we need to pay serious attention to what’s going on. Have a look at her post. It’s important and enlightening.

It’s been a very interesting week in terms of energy and other issues affecting the Big Island and all the rest of it. Stay tuned. I have more to say!

Current Affairs, Geothermal, Lowering Electric Rates, Peak Oil, Renewable Energy Sources, Sustainability

Thoughts on the NextEra Purchase of HEI

December 4, 2014 Richard Ha 2 Comments

Richard Ha writes:

NextEra Energy’s purchase of Hawaiian Electric Industries (HEI), just announced yesterday, will be very good for Hawai‘i.

Here’s what we know about NextEra: It’s a publicly traded company headquartered in Florida. Its principal subsidiaries include Florida Power & Light Company, which was recognized by Market Strategies International earlier this year as the nation’s most trusted electric utility, and NextEra Energy Resources, which together with its affiliated entities (NextEra Energy Resources), is North America’s largest producer of renewable energy from the wind and sun.

NextEra says it will spin off HEI’s American Savings Bank, which makes a lot of sense.

NextEra has the balance sheet and other resources to support significant investment in Hawai‘i’s transmission and distribution system to enable much higher levels of renewable energy sources.

Most of all, this change in ownership of our electrical utility will finally make much needed new and different approaches possible. What we all want is a lower cost of electricity.

And each island needs to take advantage of its own resources. One size does not fit all.

For example, the Big Island and Maui each have the options of using wind, solar, and possibly geothermal and some biofuel.

O‘ahu has wind, solar and biofuel but no proven geothermal and so limited opportunities to lower rates. Solar is a possibility. Coal is cheap, but unacceptable. LNG is possible as a bridge fuel.

Maui has its own issues, which are different from both O‘ahu and Maui.

We are unique on the Big Island. Beside solar, wind and biofuels, we have proven geothermal. Once it’s developed, geothermal wants to run 100 percent of the time, and the more it runs, the cheaper it is to the rate payers.

What if we guaranteed the geothermal developer, say, 25MW, and put no restriction on generating electricity for hydrogen manufacturing over and above the 25MW. If, for instance, the geothermal company installed a 30MW generator, they could sell 25MW to the utility and sell the excess 5MW cheap to make hydrogen. That would solve our liquid transportation problem, via hydrogen fuel cells, and we could make nitrogen fertilizer so as not to be dependent on petroleum byproducts. That’s only one example of what we could do with new thinking.

I would resist the temptation to advocate for a cable going from the Big Island. We need to see demonstrated results first.

This sales is an unexpected but very interesting turn of events. We welcome NextEra.

Big Island, Food Security, Hawaiian Role Models, History, Maku‘u Stories, Peak Oil, Sustainability

Maku’u Stories, Part 5: What Uncle Sonny Kamahele Taught Me About Business

November 18, 2014 Richard Ha

Let me tell you something really interesting I learned from my Uncle Sonny Kamahele. He had 20 acres in Maku‘u, in Puna on the Big Island. There was a rare kipuka there with soil that was 10 feet deep, no rocks or anything. There was a spring in one corner of his property.

I was just out of college with an accounting degree and lots of ideas about business. So I looked at his land and wondered if he would lease me 10 acres to grow bananas. I scratched my chin and thought about how I could grow 35,000 pounds per acre on those 10 acres. Maybe 300,000 pounds a year if I took into account turn around space.

And yet on the other 10 acres, Uncle Sonny was making his living with just 10 or 20 hills of watermelons, with maybe four plants on each hill. People would come from miles around to buy his watermelons. It provided him with enough income to support himself and to send money to his wife and son in the Philippines.

Here’s the lesson I learned from him: It’s not about how big your farm is. Your business is successful if it supports your situation. I learned a lot from Uncle Sonny, but I think that’s the most important thing I learned from him.

That’s what I always look at when I visit a farm. Not how big it is, or how much money it makes, but how it operates, and whether it solves the problem it is trying to solve.

Here’s why I’m telling you this right now. We have a real energy problem looming. I think the situation with oil is very serious, and there are definitely going to be winners and losers in the world. We need to position ourselves to be winners, and it’s going to take all of us, big and small.

How are we going to feed Hawai‘i?

Every one of us is going to play a role in it – from the largest farmers to the small folks growing food in their backyard. Do you remember in the plantation camps, especially the Filipino camps, how the yards were always planted with food? Beans, eggplants, the whole thing. I don’t see it so much anymore, but we can do it again.

We are lucky on the Big Island. We’re not crowded and everybody has room to grow food. You know how you can tell we have plenty space? Everybody’s yard is too big to mow! We have the ability to do this.

It’s going to take all of us. It’s not just about any one of us, it’s about all of us, from the biggest to the smallest.

I’m lucky to have had my Uncle Sonny Kamahele to learn from when I was younger. I spent a lot of time with him and I got a real feeling for how he made decisions, which was old style.

His lifestyle was a real connection to the past, too. His lawn and the whole area were always immaculate, practically manicured. He lived pretty close to the old ways with a lot of remnants from the past. His red and green house had stones from down the beach under the pillars, and lumber over the dirt floors. He built beds on those floors and then had five or six lauhala mats on the beds instead of mattresses; old style. There was a redwood water tank.

He listened to the County extension folks, and I learned from that, too – to pay attention to the people who know something.

But one of the most important things I learned was that your business, big or small, is a success if it supports your particular situation.

Education, Mauna Kea

TMT Launches Scholarships, Grant Funds for STEM Students

November 14, 2014 Richard Ha

Richard Ha writes:

This is terrific.

As we’ve been talking about all this time, the Thirty Meter Telescope (TMT) people are giving a million dollars per year for Science, Technology, Engineering and Math (STEM) education. That’s more than $50 million altogether through the life of the TMT project, and all that money stays on this island for the education of our Big Island keiki.

They’re calling it the THINK fund: The Hawai‘i Island New Knowledge fund.

I wrote a 2010 blog post that explains how TMT President Henry Yang came to understand that keiki education was the lowest common denominator that folks on all sides of the TMT issue could agree upon. That is what led to the THINK fund.

This fund benefits all Big Island keiki, and all Native Hawaiian students will have an additional opportunity for scholarships and grants, as well.

The details:

TMT Launches The Hawaii Island New Knowledge (THINK) Fund

$1 Million Annually to Benefit Hawaii Island Students Pursuing STEM Disciplines

Hilo, Hawaii (November 13, 2014) – The Thirty Meter Telescope (TMT) has launched THINK (The Hawaii Island New Knowledge) Fund to better prepare Hawaii Island students to master STEM (Science, Technology, Engineering and Math) and to become the workforce for higher paying science and technology jobs in Hawaii’s 21^st century economy. TMT’s founding gift of $1 million marks the beginning of the construction phase of astronomy’s next-generation telescope on Mauna Kea, Hawaii.

TMT’s THINK Fund initiative benefits Hawaii Island students pursuing STEM endeavors with an annual contribution of $1 million over its existing 19-year Mauna Kea sublease with the University of Hawaii-Hilo. Two Hawaii foundations were selected by TMT, Hawaii Community Foundation and Pauahi Foundation, to administer THINK Fund distribution in scholarship and grant making platforms. The two independent foundations are defining their award criteria and decision-making process.

“During our numerous meetings, TMT and the community discussed how to collaborate to fulfill the shared dream of building the world’s most advanced telescope. The idea for the THINK Fund to invest in the education of students in the STEM field was germinated,” said Henry Yang, Chair of the TMT International Observatory Board. “With the launch of the THINK Fund, we are embarking on two transformational adventures – exploring the frontiers of the universe and providing educational opportunities for Hawaii’s students, both now and for future generations.”

The Thirty Meter Telescope initiated dialogue on the formation of THINK Fund in 2008 by asking a group of community volunteers to outline the mission, vision, purpose and implementation strategy of an education fund benefitting Hawaii Island students. The Organizing Committee that developed TMT’s THINK Fund structure was comprised of Hawaii Island residents.

“After years of THINK Fund planning and reflection, the aspirations of dedicated community members are being realized with TMT’s first annual $1 million contribution, set in motion by the start of our construction phase,” said TMT Community Affairs Manager Sandra Dawson. “As a mother of two teachers, I am so pleased with the THINK Fund’s potential to furnish Hawaii Island students with an easier path to reach for the stars. TMT’s THINK Fund initiative will not only help Hawaii Island students with the tools to excel in STEM areas and the channels to get into college, it can also provide students with the means to get through college.”

The Organizing Committee determined that scholarships, grant making and the establishment of an endowment would ensure the sustainability of improving educational opportunities for Hawaii Island students in STEM disciplines. It further recognized that an emphasis be given to improving opportunities for STEM education for Native Hawaiian students, not as an exclusive preference, but focusing on addressing the needs of Hawaii’s host culture.

TMT’s annual $1 million contribution allocates $750,000 to THINK Fund at the Hawaii Community Foundation and $250,000 to THINK Fund at the Pauahi Foundation. The foundations will administer their respective THINK Funds independently and will have autonomy in administering grant funds, determining scholarship recipients, and the selection and governance of Advisory Committees.

THINK Fund at the Hawaii Community Foundation

Grants are available by application to THINK Fund at Hawaii Community Foundation beginning November 20^th and will support a variety of Hawaii Island STEM student activities in and after-school, internship programs and teacher-generated STEM classroom projects. Scholarships will support current and future STEM teachers on Hawaii Island as well as students pursuing STEM degrees and training. Scholarship applications will be available online on December 1^st,2014.

“For the past 98 years, Hawaii Community Foundation has had the privilege of serving our island communities across the state,” said Kelvin Taketa, president and CEO of the Hawaii Community Foundation. “We’re honored to be the stewards of the THINK Fund at HCF that will support STEM education on Hawaii Island for generations to come.”

Advisory Committee members of THINK Fund at the Hawaii Community Foundation are Laurie Ainslie, Roberta Chu, Mary Correa, Kaeo Duarte, Hiapo Perreira, Doug Simons and Barry Taniguchi. The Advisory Committee, facilitated by Hawaii Community Foundation staff, will assist with strategy development, review grant proposals, make grant decisions and encourage STEM education for Hawaii Island.

THINK Fund at the Hawaii Community Foundation is open to all Hawaii Island students including Native Hawaiians, teachers with STEM classroom projects and organizations providing STEM and internship programs that directly benefit Hawaii Island. Learn more and apply at www.hawaiicommunityfoundation.org.

The Hawaii Island office of Hawaii Community Foundation is located in Waimea.

THINK Fund at the Pauahi Foundation

Scholarship Programs will be the initial focus of THINK Fund at the Pauahi Foundation. Grant making is being considered for the future.

“With Hawaii Island having the second largest population of Native Hawaiians in the state of Hawaii, our partnership with TMT provides much-needed financial support for Hawaiian learners from Hawaii Island to pursue educational opportunities in STEM,” said Hawaii Island resident and Pauahi Foundation Executive Director Keawe Liu.

Advisory committee members of THINK Fund at the Pauahi Foundation are Roberta Chu, Kaeo Duarte, Leinaala Enos, David Kaapu, Bob Lindsey, Gail Makuakane-Lundin and Maile Wong.

THINK Fund at the Pauahi Foundation is open to all Hawaii Island students with a preference given to applicants of Hawaiian ancestry to the extent permitted by law. Scholarship applications will be available online on February 4, 2015 at www.pauahi.org.

THINK Fund Collaboration

THINK Fund was designed as an initiative to encourage and attract other funders who align with the mission and goal to improve STEM education and strengthen Hawaii Island’s workforce, and TMT is serving as the founding member of the THINK Fund initiative. The vision of this collaborative approach is to bring together the island community with funders in a partnership that strives to help Hawaii Island students long term.

What’s Next For TMT?

Construction activities in Hawaii include site preparation and grading.

Offsite work has begun in earnest as well. In China, partners are designing the telescope’s fully articulated main science steering mirror system and developing the laser guide star system. Japan has produced over sixty special zero thermal-expansion glass mirror blanks for the main mirror and is designing the telescope structure in detail. Fabricating the mirror support system is ongoing in India. The adaptive optics facility is in final design and the enclosure is ready for construction in Canada. The primary mirror and mirror control system is in final design in California.

The advancement of TMT to this stage of imminent on-site construction has been made possible by the support of the Gordon and Betty Moore Foundation. The foundation has spent $141 million to date to fund the design, development, and construction phases of TMT.

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Peak Oil

‘Peak Cheap Oil’ & Slaves in the Basement

November 9, 2014 Richard Ha 1 Comment

Richard Ha writes:

Have you looked at the free Crash Course series I’ve been posting? It's from Chris Martenson's blog Peak Prosperity and it's excellent. This chapter by Adam Taggart is on “Peak Cheap Oil,” and you can watch the current video (19:30) or read this chapter.

Here’s a random bit I pulled from it, but it’s all this interesting:

In order to understand why oil is so important to our economy and our daily lives, we have to understand something about what it does for us.

We value any source of energy because we can harness it to do work for us. For example, every time you turn on a 100-watt light bulb, it is the same as if you had a fit human being in the basement pedaling as hard as they could to keep that bulb lit.

That is how much energy a single 100-watt light bulb uses. In the background while you run water, take hot showers, and vacuum the floor, it is as if your house is employing the services of at least 50 such extremely fit bike riders.

This “energy slave count” if you will, exceeds that of some kings in times past. It can therefore truly be said that we are all living like kings. Although we may not appreciate that because it all seems so ordinary that we take it for granted.

And how much ‘work’ is embodied in a gallon of gasoline, our most favorite substance of them all? Well, if you put a single gallon in a car, drove it until it ran out, and then turned around and pushed the car home you’d find out.

It turns out that a gallon of gas has the equivalent energy of 500 hours of hard human labor, or 12-and-a-half 40 hour work weeks.

So how much is a gallon of gas worth? $4 $10? If you wanted to pay this poor man $15 an hour to push your car home then we might value a gallon of gas at $7,500.

Here’s another example. It has been calculated that the amount of food that average North America citizen consumes in year requires the equivalent of 400 gallons of petroleum to produce and ship. At $4/gallon that works out to $1600 of your yearly food bill is spent on fuel, which doesn’t sound too extreme.

However, when we consider that those 400 gallons represent the energy equivalent of 100 humans working year round at 40 hours a week, then it takes on an entirely different meaning.

This puts your diet well out of the reach of most kings of times past. Just to put this in context, as it is currently configured, food production and distribution uses fully 2/3rds of our domestic oil production. This is one reason why a cessation of imports would be, shall we say, disruptive….

How easily could we replace the role of oil in our style of consumer-led, growth-based economy? Not very.

We currently use oil mainly for transportation, sitting at right around 70% of all oil consumption. The next biggest block is for industrial purposes followed by residential which means heating oil….

Biofuels and coal could potentially fill some of these functions but certainly not without a massive reinvestment program and not anytime soon….

Mostly hidden from us in plain sight is Key Concept #10: The amount of work that oil performs in service to the average person is equivalent to having hundreds of slaves….

The next key concept of the crash course is that oil is a magical substance of finite supply but of unlimited importance. This cannot be overstated.

Transitioning from one fuel source to another is a devilishly expensive proposition posing enormous challenges with respect to cost, scale and time.

Our species transitioned over many decades from wood to coal because coal was a better fuel source.

And we transitioned over several decades from coal to oil for the same reason. In both cases this happened because the new fuel source was plentiful, cheap, and higher-yielding in terms of energy output per unit of weight compared to the older fuel.

Nobody has been able to advance any candidates as our next source of transportation energy that is better than oil on all three counts.

A common pushback to this point is a firm belief many people hold that new technological breakthroughs will ride to our rescue here.

I’ll explain in a future chapter why this is very likely to prove a false hope.

All I’ll do here is remind you that technology is not a source of energy – it may well help us to better exploit our existing energy sources by extracting them more easily, or consuming them more efficiently – but technology can’t create energy for us.

Read the rest

Hawaii is no longer isolated from the rest of the world, and it’s important we know what’s going on out there. This isn’t rocket science, and there are going to be winners and losers.

We know that two-thirds of our economy is made up of consumer spending – so how about we set a goal of increasing the discretionary income of the rubbah slippah folks?

We can do this by advocating for cheaper electricity, and for affordable locally grown food close to home.

The Big Island’s electricity rates have been 25 percent higher than Oahu’s for as long as anyone can remember. And yet we “curtail,” or throw away, many megawatts of electricity every day.

Geothermally-generated electricity costs half that of oil, and the Big Island will be sitting over the “hot spot” for 500,000 to a million years. The flanks of Maunakea could hold as much geothermal heat as the entire East Rift. The Department of Hawaiian Home Lands (DHHL) sits on top of a large portion of that geothermal heat. If the DHHL chooses to act decisively, it could improve its beneficiaries’ lives, as well as the rest of ours, in unimagined ways.

The Big Island Community Coalition fights for lower cost electricity. Here is a Huffington Post article about one of its successes.

From a risk assessment point of view, the rising oil price is much more dangerous than perceived GMO dangers. Trillions of meals have been served without one negative incident that can be attributed to GMOs.

The reason we see so many young people hitchhiking nowadays is not because of environmental protest. It’s because of lack of jobs! The average age of farmers is getting older every year and it’s because young farmers are having a tough time making money.

Lower electricity rates will give farmers’ customers more discretionary income to support the farmers. Technology that helps farmers to farm will lower farmers’ costs. The effect of banning GMOs is to force farmers to rely more on oil for the production of food. We should know that this is a dangerous path and will not help future generations.

If we agree on our final destination, we can get ourselves to a place where our future generations are winners, and not losers.

Big Island, Community, Food Security, Hamakua Coast, Sustainability, Where We Live

Guest Post: First Hilo-Hamakua Meeting on Agr & Food Security

November 5, 2014 Richard Ha

I asked Dr. Bruce Mathews, interim dean of the College of Agriculture, Forestry and Natural Resource Management (CAFNRM) at the University of Hawai‘i at Hilo (UHH), to write a guest post about speaking at the first of our community meetings on agriculture and food security.

Dr. Mathews writes:

Mahalo for inviting me to present an overview of Hawaii’s soil resource base for agriculture from the pre-European contact era to the present during the first part of HHCDC Symposia Series on Agriculture and Food Security.

I found that the speakers during the first session provided a solid overview of the current realities facing our local agriculture from all perspectives (resources, new precision technologies, economics, policies, etc.). I appreciated the candid discussions regarding the growth constraints faced by many crop sectors as long as there is strong import competition from continental-based operations (CBOs) and heavy dependence on imported energy and nutrient inputs for our farms.

At the end of my talk I shared a bit about my concerns regarding what I called sustainability madness and ecological imperialism. Many people are very concerned about local use of agricultural chemicals (mainly synthetic biocides such as pesticides, herbicides, etc.) and GMOs, yet the majority in Hawaii consume foods every day that are imported from CBOs where synthetic biocides and (or) GMOs were used in their production.

No doubt there is quite a bit of not in my back yard (NIMBY) ecological imperialism/ecological hypocrisy going on here and this has implications for local society as a whole.

On the other side of the coin, the best genetic manipulations in the world won’t work for long to support economic yields if we cultivate soils depleted of nutrients, organic matter, and beneficial microbial and faunal balance. The problems of climate change such as drought will only be magnified in such soils.

Yesterday I met with a group of current and former UH Hilo College of Agriculture, Forestry, and Natural Resource Management (CAFNRM) students who had leased some land with relatively good soil to farm but recently gave up the lease after raising several different truck crops. Some of the dilemmas that they mentioned facing were the lack of viable organic options to control certain pests, time and labor needed to control weeds when herbicides were not used, security challenges, etc. Obviously, they could not sell much of what did not grow well without effective pest and weed control. There is some zealous Garden of Eden like idealism that permeates the thinking of many until they have faced the reality of actually trying to farm in Hawai‘i.

I hope that my talk also brought to light that with increasing population and cropping intensification Native Hawaiians in the pre-European contact era indeed faced challenges and threats to sustainability despite far fewer constraints posed by invasive species.

Finally, I trust human ingenuity and integrated approaches to solve the challenges we currently face. In contrast to the polarized, advocacy-based discussions seen at some recent agricultural meetings, the dialogue at the first session of this symposia was surprisingly well-received, cordial, deep, and meaningful.

The challenges that agriculture faces in Hawaii demand an open and understanding approach based on the best scientific and verifiable on-farm evidence available so that we can best self-correct as a society for a more sustainable future.

I look forward to attending the 2^nd and 3^rd sessions of the symposia series.

The three-part symposium is being hosted by the Hilo Hamakua Community Development Corporation, and, as Dr. Mathews mentioned, the first one went well.

The next two meetings are November 5th and November 13th; both are from 6-8 p.m., in the Laupahoehoe Community Public Charter School Bandroom.

The meetings are open to the public; please come if you’re interested. Read more here.

Peak Oil

The Declining Oil Price

November 3, 2014 Richard Ha 3 Comments

Richard Ha writes:

From a 40,000-foot view, a declining oil price is good for the U.S. and Hawai‘i in the short run because it gives us time to adapt.

A lower oil price makes oil-exporting countries vulnerable if they cannot maintain their domestic budgets and take care of their people in the manner in which they have become accustomed.

From PeakOil.com:

Financial reserves of oil-producing countries vulnerable to depletion

A specialized economist said that the financial reserves and surpluses of oil-producing countries are vulnerable to depletion in the event of continuing decline of global oil prices and with the pace of public spending remaining around the current high levels.

Professor of economics at the College of Administrative Sciences, Kuwait University, Dr. Mohammed Al-Saqqa said in an interview with Kuwait News Agency (KUNA) on Sunday that the economies of oil-producing countries (including Kuwait) are facing a real challenge represented in the growth of public spending without “control” to high levels amid the decline witnessed in oil prices in global markets approaching the level of USD 80 per barrel (bd).

Read the rest

The world works on net energy plus technology to extend that net energy. When that net energy starts to decline, there are going to be winners and losers.

The GMO debate going on all around us is a big distraction from the real danger, which is declining net energy!