Category Archives: Current Affairs

Current Affairs

‘Why Has Human Progress Ground to a Halt?’

I look back at the amazing flumes and the ditches that the sugar plantations built, and I wonder if those could even get built nowadays. We’d have a really hard time. I don’t know if we could.

Today we spend our time more time thinking of the reasons we can’t do projects like that than than actually doing them. It’s not the education of our people, it’s our attitudes. Too much “no can,” or excuses. Too much talking and not enough doing. We’ve become risk averse.

Rory Flynn wrote an editorial at Farmers & Friends called Progress and Progressives in Hawai‘i that’s a great read. It talks about how we are no longer innovative and excited about progress and big transformational change in our society.

He quotes Peter Thiel, a hedge fund manager and the co-founder of PayPal: “We wanted flying cars; we got 140 characters (Twitter).”

And he discusses our situation here in Hawai‘i:

We have niche opportunities to excel despite our far-flung geography and high cost of living. International collaboration in astronomy is one. Seed crop R&D is another. Renewable energy is one more giant niche opportunity – solar, wind, geothermal and ocean thermal conversion.

 So what are we doing? We have declared war on two of the most promising sectors of our economy, the Thirty Meter Telescope and seed companies. What good does this do us? Well, it allows us to flex the emotion-laden muscles of sovereignty and aloha ‘aina. Meanwhile, our best educated youth depart for jobs on the U.S. mainland. And, in August, onlinedegrees.com declared Hawai‘i the worst state in the nation for graduates to move into post-college careers due to “relatively low employment opportunities” and the nation’s “most expensive housing market.”

Not so long ago, progressives in Hawai‘i believed in progress. They thought that innovation boosted the human prospect. Call it the “Burns Years,” post-statehood. There was a lively sense that Hawai‘i’s people could accomplish great things as they shed the plantation era yoke of “subtle inferiority.” As equality took root, an easygoing collaborative style blossomed. It tasked the Democratic Party to develop a new, diversified economy. It gave us raucous entertainments at Territorial Tavern, spirited conversations at Columbia Inn and policy wonk breakfasts at Washington Place. People might disagree – and often did – but it was understood that bad blood was bad manners. People knew when to say, “Eh, no act, brah.”

There’s a lot more – see what Boeing and Germany have to do with it, too.

The take away is that it’s really about trust, community, honor, all of us and not a few of us, and not, no can. CAN!

Current Affairs, Hawaii Island Energy Cooperative

Community Listening Sessions: The PUC Wants To Hear

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This is probably the last chance in this generation to have a say in how our electric utility is run.

The PUC is going to travel around the state in September holding “community listening sessions.” They want to know what we think about the HEI/NextEra merger application.

Here on the Big Island, we want to ask the PUC to consider a co-op model, similar to the Kauai Island Energy Cooperative.

The reason I say it’s probably our only opportunity is because you have to have a willing seller to put such a plan into place, and in the absense of something earth-shattering, this probably won’t come up again in our lifetime. It’s speak up now, or miss our chance.

It’s definitely in our best interest to show up at these PUC meetings and ask them to consider our co-op model: the Hawaii Island Energy Cooperative. Otherwise we miss our chance to make a change for the better.

If you are not clear on what a co-op model would look like, it’s really very simple: We’re only suggesting a change in the business model of how the electric utility operates, and that means three essential differences from how things operate now.

Some people will say we don’t have enough qualified people. Well, let’s say we didn’t change any of the employees running Hawaiian Electric, but only changed the business model. There goes that argument. There is no argument.

Essentially, there would just be three differences.

1)    The co-op would be an investor-owned, non-profit utility that does not pay taxes, and the money we save would go straight back to the people.

2)    The co-op would be a non-profit model that existed to do what the people want. People would elect the board of directors, and if people were not happy with the board of directors, they could fire them by not electing them again.

3)    People always wonder if the co-op would have enough money. The National Rural Electric Cooperative Association, or NRECA, which is made up of 900 co-ops in the United States, owns its own finance company; its own bank. Its whole objective is to manage co-ops. That’s why they are called co-ops—they cooperate with each other. They have plenty of money.

It’s not any more complicated than that. The big question here is which business model will work best for the people in terms of managing our utility. This is not rocket science.

It’s important that we show up and speak up when the PUC asks us to. Attend the meetings next month — I’ll post when and where they are — and ask the PUC to consider the co-op. Ask them to consider what’s really best for the people of the Big Island.

Current Affairs, Geothermal, Hawaii Island Energy Cooperative, Lowering Electric Rates, Mauna Kea, Peak Oil, Renewable Energy Sources, Science, Sustainability

Is Our Culture Falling Backward?

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This editorial ran in the Hawaii Tribune-Herald today. In case you didn’t see it, I’ll run what we sent them here.

***

The purpose of the Big Island Community Coalition is to work towards reduced electrical energy costs on the Island of Hawaii – where we pay up to four times the national average for our power.  We are particularly sensitive to electric power rates as very high rates serve essentially as a regressive tax on our population while greatly reducing the probability of generating jobs in any sector that is dependent on electricity.

There are occasions when events are so alarming that groups such as ours feel compelled to move beyond our primary task.  This is such a time.

We have observed with increasing alarm as our community has taken steps that inexorably blunt the forward movement of our economy and even move us backwards.  These include:

  1. Anti-Geothermal activists encouraged County government to ban nighttime drilling, effectively stopping expansion of a major source of renewable and inexpensive electric power beyond already-existing permits.This action was taken despite the existing plant meeting all applicable noise standards.  It appears that government officials took this action without first going to the site to verify that the noise was disruptive.  Once they did go to the site, some years later, government found that the noise was less than other environmental sounds (i.e., coqui frogs) and essentially no more than typical background noise.
  2. Anti-GMO activists lobbied to stop any new GMO products from being grown on the island – despite the fact that the vast majority of scientific, peer-reviewed studies found such products to be as safe, and in some cases more nutritious, as their non-GMO counterparts.  Legislation even prohibited GMO flowers – not consumed by anyone – from being grown on the island.  Thus family farmers lost the most effective new tools needed to reduce pesticide and herbicide usage while increasing productivity needed to keep their farms competitive.
  3. Now we have anti-Thirty Meter Telescope (TMT) activists taking steps to stop construction of the most advanced telescope in the world.  If successful in stopping TMT, despite its sponsors following every legal requirement over a seven-year period, we will lose our world leading advantage in understanding the universe.

All of these actions share similar characteristics:

  • The arguments used to justify such actions are consistently anti-scientific.
  • “Anti” groups often obscure the lack of scientific evidence to support their position by using emotional pleas intended to incite fear.
  • The only “win” for many of these groups is to completely stop, thereby making them completely unwilling to consider any facts that refute their position or to make any reasonable compromise.
  • Long-term consequences are significant both culturally and economically.

Cultures that survive and thrive embrace new technologies carefully, thoughtfully and steadily.  Cultures and economies that thrive are innovative beccause they generate ideas and solutions, solve problems and take calculated but careful risks.

Cultures that fall backwards are those that fear advancement, fear change and cling to a mythicized view of yesteryear.  The net result is loss of their brightest and most hard working youth.  Those youth that remain find fewer and fewer jobs – those jobs having greatly diminished economic value and lower wages.  The downward spiral becomes inexorable.

As we look to tomorrow, we need to ask ourselves whether we wish to give our children the exciting and invigorating job market typified by Silicon Valley or a job market that is much closer to the poorer regions of third world countries.  It is up to us to point one way or another.  Driving TMT out will be one more major step to cultural and economic poverty.

Signed,

Big Island Community Coalition

Richard Ha, President,

David DeLuz Jr., Rockne Freitas, Michelle Galimba, Wallace Ishibashi, Noe Kalipi, H.R “Monty” Richards, William Walter.

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

Aren’t the Falling Oil Prices Great?

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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

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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. NexEra.jpg

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.

Community, Current Affairs

Farmers & Friends, a New Publication

Richard Ha writes:

This is a sample of a new publication, "Farmers & Friends," that we are planning to launch. Several of us put together this publication to tell stories about what farmers do. 

We don't want to engage in "pro-" this or that. We just want to tell interesting, farm-related stories.

Screen Shot 2014-08-16 at 5.58.15 PM

From our mission statement:

Farming is an endlessly fascinating subject and a challenging vocation. Agriculture is also a corner‐stone of any successful civilization. That was true of Hawai‘i in ancient times and remains true today. We are an island society steeped in agricultural traditions. To sustain that legacy, and to continue the transition to diversified agriculture, we must respect our roots and embrace new knowledge. That’s our mission.

It is apparent to us that the working farmers of Hawaii need a voice. Real farmers respect science and ground truth. They learn by doing. They are naturally pragmatic and open-minded. As a rule farmers and people in business are too busy to engage in long-winded arguments or public anger. They are usually caught up in the next learning curve and have a story to tell about it. That's a voice worth hearing. 

Current Affairs, Food Security, Science

‘What if GMOs are the Only Option?’

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Richard Ha writes:

Universities in the public sector are supposed to do things in the interest of the public. One example here is that the University of Hawai‘i developed the Rainbow papaya. How come Hawai‘i County passed a bill banning all new GMOs? In the larger view, are we going to be able to feed all the people in the world without new biotech crops?

In the following video, scientists from Cornell, the Pulitzer Prize-winning New York Times writer Amy Harmon, and local boy/father of Rainbow papayas Dennis Gonsalves discuss the anti-GMO phenomenon.

The title is "Modifying the Future of Food: What If GMOs Are the Only Option?, Cornell Reunion 2014."

I have looked at this issue from all angles. If I were not convinced that it was safe, I would not have participated in a lawsuit challenging the anti-GMO bill on the Big Island. An overwhelming majority of farmers and ranchers on the Big Island, like the people on the panel, are very concerned that the correct story is not being told. 

 

Big Island, Current Affairs, Food Safety Certification, Food Security, Geothermal, Government, Hydroelectric, Hydrogen, Peak Oil, Renewable Energy Sources, Science, Sustainability

Preparing for Climate Change, The Overview

Richard Ha writes:

I was asked to talk this morning at the Hawai‘i State Association of Counties 2014 Annual Conference, which was held in Waikiki. I spoke on the panel called Preparing for Climate Change. Here’s what I said.

***

Aloha everyone. Thanks for inviting me.

Food security has to do with farmers farming. If the farmers make money, the farmers will farm!

The Hawaiian side of our family is Kamahele, from lower Puna. All the Kamaheles are related. The Okinawa side of our family is Higa. The Korean side of our family is the Ha name. It’s about all of us in Hawaii. Not just a few of us!

I write an ag and energy blog Hahaha.hamakuasprings.com. It stands for three generations of us.

What is the difference between climate and weather? Neil DeGrasse Tyson, on Cosmos, describes it like the guy strolling down the beach with his dog. The dog running back and forth is the weather. The guy walking along the beach is climate.

Background: 35 years farming, more than 100 million pounds of fruits and vegetables. We farm 600 fee-simple acres which the family and 70 workers farm. Not having any money, we started out by trading chicken manure for banana keiki and went on to become the largest banana farm in the U.S. We were green farmers early. In 1992, we were first banana farm in the world certified Eco-OK by the Rainforest Alliance. In 2008, we were one of six national finalists for the Patrick Madden SARE award. We were one of the first farms in Hawai‘i to be food-safety certified.

When we needed to find a solution for a disease problem, we took a class in tissue culture and tried to culture the plants in our back bedroom. But there was too much contamination, from cat hair maybe. So we made our own tissue culture lab. We have our own hydroelectric plant, which provides all our electricity. Our trucks and tractors operate with fuel from Hawai‘i biodiesel.

My pop told me that, “Get a thousand reasons why no can.” I’m only looking for the one reason why CAN.

As we stroll along the climate change beach, there are two things that we notice.

The first is energy. Without energy, work stops. Petroleum products are finite and costs will rise. Farmers’ costs will rise and farmers’ customers’ costs will rise. How can we dodge the bullet?

I attended five Peak Oil conferences. The world has been using twice and three times as much oil as we have been finding. So the price is going to keep on going up. It will increase farmers’ costs and will increase the farmers’ customers’ costs. We need to do something that will help all of us, not just a few of us. Something that can help future generations cope.

That something is hydrogen. The geothermal plant can be curtailed at 70 MW per day. That’s throwing away 70 MW of electricity every night. The new eucalyptus chip plant Hu Honua can be curtailed by 10 MW for ten hours per night. The key to hydrogen is electricity cost. On the mainland it is made from natural gas. Here it can be made from running electricity through water. We are throwing away lots of electricity at night. We know that oil and gas prices will be steadily going up in the future. Hydrogen from our renewable resources will become more and more attractive as oil and gas prices rise. At some point we will have an advantage to the rest of the world. And as a bonus, hydrogen combined with nitrogen in the air will produce nitrogen fertilizer.

You may be interested to know the inside scoop about the lawsuit that Big Island farmers brought against the County.

Why? Clarity: Farmers are law-abiding citizens and we play by the rules. We thought that the Feds and the State had jurisdiction. We want clarity about the rules of the game.

Equal treatment: Only Big Island farmers are prohibited from using biotech solutions that all our competitors can use. How is that equal? It’s discriminatory against local farmers.

When the law was first proposed, they wanted to ban all GMOs. We asked what are papaya farmers supposed to do? They said, we can help them get new jobs, to transition. We were speechless. It was as if they were just another commodity. So farmers and ranchers got together and ran a convoy around the County building in protest. Then they said they would give the Rainbow papaya farmers a break. I was there when the papaya farmers had a vote to accept the grandfather clause for Rainbow papayas. There were a lot of young, second- and third-generation farmers there in the room.

In the end, the papaya farmers said, We are not going to abandon our friends who supported us when we needed help. That is not who we are. Then they voted unanimously to reject the offer. I was there and being a Vietnam vet, where the unspoken rule was we all come back or no one comes back, I could not have been prouder of the papaya farmers. That explains why the Big Island farmers are tight. Old-fashioned values. The rubbah slippah folks absolutely get all of this.

So who are these farmers? I am one. I don’t grow GMOs. It isn’t about me. I’ll make 70 this year and, like almost all the farmers, have never sued anyone. But there comes a time when you have to stand up for what is right.

The group we formed, Hawaii Farmers and Ranchers United, grows more than 90 percent of the farm value on the Big Island.

This is about food security. The GMO portion of food security is small. This is not about large corporations. It is about local farmers. It is not about organics; we need everybody. But organics only supply 4 percent of the national food supply and maybe 1 percent of Hawai‘i’s. Our organic farmers are not threatened by modern farming. Hawaii organic farmers are threatened by mainland, industrial-scale organic farms. That is why there are hardly any locally grown organics in the retail stores. It’s about cost of production. Also, on the mainland winter kills off the bad bugs and weeds and the organic farmers can outrun the bugs through the early part of summer. Hawai‘i farmers don’t have winter to help us.

Most importantly, this is about pro-science and anti-science. That is why farmers are stepping up. We know that science is self-correcting. It gives us a solid frame of reference. You don’t end up fooling yourself. In all of Hawai‘i’s history, now is no time to be fooling ourselves.

My pop told me that there were a thousand reasons why No Can. He said, look for the one reason why Can! He said to look for two solutions to every problem and one more, just in case.

He would pound the dinner table and dishes would bounce in the air and he would point in the air and say, “Not no can. CAN!”

We can have a better world for future generations. It’s all common sense and attitude.

***

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

What Monterey Shale Oil?

Richard Ha writes:

The U.S. Energy Information Administration (EIA) made a dramatic announcement recently: it is revising its estimate of the Monterey Shale Oil supply downward by 96 percent.

Ninety-six percent is a lot.

Especially when you consider that the Monterey Shale Oil supply presented two-thirds of the United States’s oil reserves. It was estimated that we had 100 years of oil reserves left in this country altogether, but now that we know 66 percent of it doesn’t exist, there must be only 34 percent, or 34 years, of oil reserves remaining in the U.S.

However, the cost we would have to pay for oil companies to retrieve it would exceed what it would cost them to do so. In other words, if we consumers were willing to pay $1 million/barrel, all of those 34 years’ worth of oil could probably be recovered. But if we the people can only pay $150/barrel, we might only see ten years’ worth drilled. Hmm.

Those of us who attend Association for the Study of Peak Oil conferences (I’ve attended five now, the only person from the Big Island to do so) have known that the claim that the U.S. has a 100-year supply of oil was way overestimated. We are never going to be Saudi America.

Kurt Cobb writes about this at Resource Insights:

The great imaginary California oil boom: Over before it started

Sunday, May 25, 2014

It turns out that the oil industry has been pulling our collective leg. 

The pending 96 percent reduction in estimated deep shale oil resources in California revealed last week in the Los Angeles Times calls into question the oil industry's premise of a decades-long revival in U.S. oil production and the already implausible predictions of American energy independence. The reduction also appears to bolster the view of long-time skeptics that the U.S. shale oil boom–now centered in North Dakota and Texas–will likely be short-lived, petering out by the end of this decade. (I've been expressing my skepticism in writing about resource claims made for both shale gas and oil since 2008.)

California has been abuzz for the past couple of years about the prospect of vast new oil wealth supposedly ready for the taking in the Monterey Shale thousands of feet below the state. The U.S. Energy Information Administration (EIA) had previously estimated that 15.4 billion barrels were technically recoverable, basing the number on a report from a contractor who relied heavily on oil industry presentations rather than independent data.

The California economy was supposed to benefit from 2.8 million new jobs by 2020. The state was also supposed to gain $220 billion in additional income and $24 billion in additional tax revenues in that year alone, according to a study from the University of Southern California that relied heavily on industry funding.

But that was before the revelation by the Times that the EIA will reduce its estimate of technically recoverable oil in California's Monterey Shale by 96 percent–almost a complete wipeout–after taking a close look at actual data for wells drilled there already. The agency now believes that only about 600 million barrels are recoverable using existing technology. The 600 million barrels still sound like a lot, but those barrels would last the United States all of 40 days at the current rate of consumption….

Read the rest

We need to take a step back and reevaluate where we are and what we need to do. As I’ve been saying for years now, we need to get on with geothermal. For the Big Island, the path we need to take is clear.

A byproduct of the oil operations is natural gas, and it would be helpful if natural gas prices rose to help with the costs of development.

It’s kind of like curtailed electricity. If it could be sold at any price, it would help lower the bid price of geothermal and wind operations and would result in lower electricity costs for the rubbah slippah folks.

If curtailed electricity could be bought at a cheap enough price, it could also enable a hydrogen storage option. Then we could get a hydrogen fuel cell option for various motors. And we could look at converting hydrogen to ammonia, so we would have nitrogen fertilizer to help with our food security. 

Current Affairs, Government

Listen To My Hawaii Public Radio Conversation

Richard Ha writes:

I was on Hawaii Public Radio this morning. Beth-Ann Koslovich invited me onto her radio program “The Conversation.” Here’s how she introduced it, and you can listen to the audio below:

“It might be an understatement to call the battle over GMOs contentious. Given the vitriol from both sides and now the Kauai lawsuit to defend the ordinance calling for disclosure of pesticide use and genetically modified crops …plus  the ongoing question about what consumers have a right to know about their food…well….the conversation often gets ugly and sometimes, violent…. Which is why non GMO farmer Richard Ha says he’s glad a judge temporarily stopped GMO crop registration in Hawaii County last Friday Richard Ha joined the show from his farm on the Big Island.”

Listen here.