Category Archives: Government

Current Affairs, Government, Renewable Energy Sources

Electric Car Plant Coming to Oahu

Did you see this article in the Honolulu Advertiser on Friday?

Hawaii chosen as manufacturing site for electric mini-cars
S. Korea automaker to build, sell vehicles here, bringing up to 400 jobs

By Greg Wiles
Advertiser Staff Writer

A South Korea-based company has committed to build a $200 million assembly plant on O’ahu that would turn out two-seat electric cars and other vehicles and employ as many as 400 people.

CT&T Co. said it has narrowed its search to four sites on which to build a 100,000-square-foot plant from which it would also sell its elfin vehicles, which are mostly targeted at short jaunts on city and neighborhood streets.

The company and state officials announced the plans yesterday flanked by a dozen of the cars at the state Capitol. Later they signed an agreement pledging to cooperate on meeting each other’s goals….(Click here to read more)

Geothermal, Government

Supporting the Geothermal Resolution Through the Political Process

I don’t see myself as a political person; rather, I try to concentrate on specific issues that can be fixed. So it was very unusual for me to be attending the Democratic party’s pre-County convention meeting.

I went to support my friends’ resolution on geothermal, in hopes it will be accepted into the Democratic party platform at the State convention.

The meeting was held Saturday at Waimea Middle School, and 54 people were present from all over the island. I knew a handful of people there.

There was a procedure and format to follow in order to get a resolution before the group, and now I understand why that was necessary. Many resolutions were submitted and they all had to be in a certain format so the group could evaluate each in an efficient manner. The resolutions were submitted by email, one page maximum. At the meeting, each resolution was projected on a screen for discussion and approval/disapproval.

Before the meeting started, a person submitting a smart grid resolution asked if we could combine the smart grid and the geothermal resolution.  He was very passionate and forceful about the smart grid, and we tried to explain that maybe the objectives were not the same. Finally, we agreed to disagree.

There were resolutions to do with early childhood education, sustainable agriculture, medical marijuana, Democratic candidates needing to be party members, etc.

As I understand it, there will be a County Democratic party meeting, where we will go and support the resolutions that are forwarded. Then they go to the State convention, where the County resolutions are submitted to the State Democratic party organization for approval.

Very interesting!

Biofuel, Government, Renewable Energy Sources

Dept. of Ag & Dept. of Navy on Biofuels

I attended a U.S. Department of Agriculture/Department of
Navy forum yesterday called the Hawaii Renewable Energy and BioEnergy Industry Forum.

Goal of the sessions are to provide information to the public on the development of a biofuels industry in Hawaii, potentially utilizing the purchasing power of the USN as a “pull” for production.

This hearing was held at the Officers Club of the U.S. Marine Corps Air Station at Kane‘ohe. It was a high-level meeting, where
speaker after high-level speaker emphasized how committed they are to supporting biofuel production in Hawai‘i.

The Navy folks emphasized that they would commit to
converting most of their fossil fuel J8 and J5 jetfuel and their ship fuel to biofuels because it is a national security issue.  Someone said that by the time a gallon of fuel gets to the front lines in Iraq or Afganhistan, the gallon cost $40. And that gallon sometimes comes from people who do not even like us. They emphasized how serious this situation was. They said that they would commit to buying from local sources – big numbers in the millions of gallons.

Speaker after speaker talked about the commitment to make
things happen. From 9 a.m. to noon, everyone talked about how they were committed to cellulosic ethanol as well as biomass to liquid. The objective was to get the kind of biofuel that could fuel fighter jets and war ships. The USDA talked about programs that would help farmers get financing, etc.

Toward the end of the day, someone asked about the price a refiner could expect to get and the speaker said about $1.95 per gallon. I thought: $1.95 times 42 gallons in a barrel equals $82 per barrel. That is pretty near what it costs in the market today. This sounded to me like oil prices need to go much higher to get this industry up and running. Right now, there isn’t any stage 2 or 3 biofuel on the market that I know of.

There were just two small and three large farmers in the audience. None of us farmers are going to run out to see how we start growing biofuels. In total, there were nearly 300 people present. It was larger than I had expected. But no one had an answer as to how much the farmer could expect to get paid.

It feels like something is going to happen, though. The government wants biofuels to be the solution. So it seems to me that they need
to figure out what it will take to get farmers to produce feed stock for the biofuels.

Tim O’Connell, Assistant to the State Director of Rural Development with the U.S. Department of Agriculture, helped organize this forum. In closing remarks, he said he detected a tension in the room between the desire to produce biofuels and the price at which this would happen.

I’ve said before: If the farmer makes money, the farmer will farm. It is not easy to see just how farmers will make money in this scenario.

Geothermal, Government

Testifying for Geothermal Resolution

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I went to O‘ahu on Thursday to testify for the geothermal
resolution.

SENATE CONCURRENT RESOLUTION 99–REQUESTING THE ESTABLISHMENT OF A WORKING GROUP TO ANALYZE THE POTENTIAL DEVELOPMENT OF GEOTHERMAL ENERGY AS THE PRIMARY ENERGY SOURCE TO MEET THE BASELOAD DEMAND FOR ELECTRICITY ON THE BIG ISLAND.

I strongly support Senate Concurrent Resolution 99.

Together with our workers and family, we farm 600 acres of diversified ag crops at Pepe‘ekeo. We have more than 25 years of farming experience.

I was the only person from Hawai‘i to attend the Peak Oil
conference in October of 2007 and again this past October (2009). For several years, I have been following energy issues very closely.

The world is not running out of oil; we are running out of cheap oil. According to the International Energy Association, the official
world barrel counters, world oil supply is declining at the rate of about 4 million barrels per day every year. Saudi Arabia puts out nearly 10 million barrels per day, so every 2 and a years or so, we need to find the equivalent of a Saudi Arabia.

We have maybe 6 million barrels per day of spare capacity now. But it will be used up in a year and a half or sooner, as the world
economy improves, so we do not have too much time to get off oil. And many reputable folks and institutions feel like it is 30 years maximum before the oil-exporting countries will no longer export oil.

On the Big Island we have a proven technology resource that makes cheap electricity—geothermal. One of the things I learned at the Peak Oil conference is the concept of Energy Return on Investment (EROI): the energy it takes to get energy. In the 1930s, the energy in one barrel of oil would help you get 100 barrels of oil. In the 1970s, that one barrel of oil could get you 30 barrels of oil, and now it will only get you about 10 barrels.

Clearly this trend is not good. It’s estimated that it takes a minimum of 3 to 1 (3 barrels of energy gotten by using one barrel) to maintain our present society. After that, we will have to leave it in the ground.

Geothermal on the other hand is 10 to 1 and will stay steady for centuries. EROI must be taken into consideration when evaluating energy projects.

The EROI for biofuels is less than 2 to 1. That is less than the minimum amount of 3 to 1 that we need to maintain our present society.

What about biofuels? Here is how a farmer views growing biofuels. There are 286 pounds in a barrel of oil. At $80 per barrel, that is equal to 28 cents per pound. Say the farmer needs to squeeze four pounds of stuff to make 1 pound of liquid. That farmer can expect no more than 7 cents per pound to grow the stuff, no matter what the stuff is. Lose money. More better plant cucumbers.

Say the farmer needs to make four times that, 28 cents, to break even. Then the price of oil needs to be 4 x $80, or $320 per pound.

By contrast, a Scientific American article points out that geothermal breaks even at $57 per barrel.

SCR 99 is about looking at the feasibility of geothermal for base power.  Of the three main base power sources, oil price is now $80
but everyone knows it will keep on rising. Locally grown biofuels will be expensive and their EROI is not good.

But geothermal is cheap and its EROI is favorable and stable.  Its EROI will stay steady and it will be cheap for centuries.

And of the base power sources, only geothermal is a resource for the Hawaiian community – right now, $600,000 goes to the Office of Hawaiian Affairs every year.

The main reason we need to put geothermal on line is because it is the folks on the lowest rung of the economic ladder whose lights will be turned off first. And when they benefit,  everyone will. People will have discretionary income and businesses will
flourish. Folks will have jobs and be able to raise their families.

If the most defenseless among us are safe, we are all safe.

Click here to read other supporters’ testimony for this
bill.

Biofuel, Government, Renewable Energy Sources

USDA & Navy To Meet About Hawai‘i Energy Initiative

On April 6, 2010, there will be an all-day forum about the Memorandum of Understanding between the U.S. Navy and the U.S. Department of Agriculture.

WASHINGTON, March 18, 2010 – The U. S. Department of Agriculture and the Department of Navy are co-hosting an all day forum in Hawaii on April 6, 2010, to share information about a recently announced collaborative energy opportunity. Among those providing remarks are
Agriculture Deputy Secretary Kathleen A. Merrigan and Jackalyne Pfannenstiel, assistant secretary of the Navy for installations and environment. The program is taking place on the Marine Corps Base-Hawaii in the Kaneohe Bay Officers Club.

Earlier this year, Secretary of the Navy Ray Mabus and Secretary of Agriculture Tom Vilsack signed a Memorandum of Understanding (MOU) to support President Obama’s initiative to reduce energy consumption derived from fossil fuels and increase energy production from renewable energy sources. This energy initiative in Hawaii is a direct result of that MOU.

Hawaii has been selected as the location for the initial collaboration between USDA and the Navy because Hawaii’s energy costs are among the highest in the nation and imported oil supplies 90 percent of the State’s energy. A viable agricultural sector in Hawaii can enhance Hawaii’s energy security, and energy projects like those anticipated by the Navy’s needs can help rural economies.

There may be some job opportunities associated with growing biofuels to supply the U.S. Navy.

We need to go into this with our eyes wide open, though. It will probably be expensive, or else it will be highly subsidized. Right now, biofuel does not make money on its own.

Two years ago there was a discussion about biofuels, and farmers decided then, “No sense lose money.” Here is how the economics look from a farmer’s point of view:

A barrel of oil consists of 42 gallons, and each gallon weighs approximately 6.8 pounds. Therefore, each barrel of oil weighs 286 pounds. At $80 per barrel, each pound of that oil is worth 28 cents.

Say it takes four pounds of stuff in order to squeeze out one pound of liquid. Then the farmer can expect to get no more than 7 cents per pound for the stuff. No sense, lose money.

If the farmer wanted to get 28 cents per pound to grow the stuff, then the price of oil would have to be 4 times $80 —or $320 per barrel.

There was an article in the Honolulu Star-Bulletin about the plant jatropha. In the article, the farmer said it takes 100 pounds of jatropha to make 1 gallon of biodiesel. At $80 oil, this translates to 2 cents per pound. To make just 5 cents per pound, oil would need to be $400 per barrel. If the farmer wanted 10 cents per pound, oil would need to be at $800 per barrel to give the proper price signal.

So the oil resulting from farmer-grown biofuels would either be very expensive or highly subsidized. I don’t have a problem with that, if the Navy will use all the biofuel for fuel. It would result in jobs, and that’s fine.

But we just cannot allow biofuels to find their way into HELCO’s oil-fired plants. None of us want higher electricity rates, especially when we have a stable source of geothermal power here. It’s as if we had Niagara Falls and cheap, abundant hydropower, but were asked to instead use expensive or highly subsidized biofuels to make our electricity.

I know there is lots of research going on around advanced biofuels. And that’s good. We can integrate new developments when they become proven technology. Wishing and hoping is not an energy policy.

The world has changed and we must be street-smart about what we do. We need to ask:

•    How much going cost?
•    Who going make money?
•    What is effect on future generations?

Food Safety Certification, Government

Nominated to the Board of Agriculture

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Richard Ha
Re: Nomination to the Board of Agriculture

Dear Mr. Ha:

Congratulations on being nominated by Governor Linda Lingle to the Board of Agriculture. To assist the Senate with its confirmation process, I am requesting that the following information be submitted to my office:

A written statement that addresses the following questions:

Why do you wish to be a member of the Board of Agriculture?

I am very interested in food security for Hawaii and I hope to be able to make a contribution toward that goal.

How do you perceive the role and responsibilities of a member of the Board of Agriculture?

I see the role of a member of the Board of Agriculture as making responsible decisions on agriculture matters, taking a broad societal view of things. I specifically see the role as an opportunity to help make Hawaii more food secure.

I am an advocate for all kinds of farmers–large and small, organic and conventional, on all islands, all elevations, wet side and dry. Although we may be considered large farmers, I think it is very dangerous for food security to depend on a few very large farms.

Given your understanding of the role and responsibilities of a member of the Board of Agriculture, why do you believe that you are qualified for the position? Please include a brief statement of your skills, expertise, or knowledge that would aid in your decision-making ability as a member of the Board of Agriculture.

After getting a degree in accounting at the UH, I started growing bananas nearly 30 years ago. We had no money so we traded chicken manure for banana pulapula. Eventually, we became the largest banana grower in the state and bought 600 acres of fee simple land. The things that failed along the way could fill a museum. This experience was very valuable. I have a very high respect for wise old small farmers. And, like them, I try not to talk too much.

What do you hope to accomplish during your term of service?

I hope to bring awareness that Food Security involves farmers farming. And that if farmers make money, then farmers will farm. This is not complicated.

Name three qualities that best describe you and that would make you stand out. How would these qualities benefit the Board of Agriculture?

  1. I see myself as a bridge between the “shiny shoe” folks and the “rubbah slippah” folks.
  2. I have the ability to see a desired goal in the future and can stay focused on that goal.
  3. There are a thousand reasons why no can. I try to look for the one reason why CAN!! Keep it simple, keep it focused and no give up.

Name one previous experience that would make you stand out. How would this benefit the Board of Agriculture?

I helped with the Thirty Meter Telescope decision to site the telescope on Mauna Kea. I was able to talk to folks on all sides of the issue. I learned from Patrick Kahawaiola‘a that the process was most important. I thought that, that being the case, then everyone contributing to the process made for a better final product. That means we need to aloha everyone who contributed input, whether or not we agree with the position.

Two or three years ago, I told Kumu Lehua Veincent, Principal of Keaukaha Elementary School, that the Thirty Meter Telescopes wanted to come to the Big Island. I suggested that as a start we ask them for a good faith offer. I told Kumu, “How about we ask them for five full ride scholarships for Keaukaha kids, to the best schools in the nation?” Kumu looked up at me and simply said: “And what about the rest?” I could feel my ears getting hot. I felt pretty stupid. Indeed, what about the rest.

These two lessons, “the process” and “what about the rest?” are principles I hold very close to me. And I think that this approach will benefit the Board of Agriculture.

Can you foresee any possible conflicts of interests that could arise during your service on the Board of Agriculture? How would you overcome any possible conflicts of interest?

I do not see conflicts of interest at this point. However, I will quickly recuse myself if I do.

Your prompt response in providing the above information will ensure that the Senate confirmation process can proceed in a timely manner. Thank you.

Sincerely,

Senator Clayton Hee
Chair, Senate Committee on Water, Land, Agriculture, and Hawaiian Affairs

Geothermal, Government

The Hawaii Clean Energy Initiative Steering Committee and Me

Because of my agriculture background and my interest in energy matters, I was invited to become a member of the Hawaii Clean Energy Initiative Steering Committee. I am hopeful that this committee will be able to make significant governmental recommendations.

I believe in implementing proven technology. I believe in Research and Development. But I also realize that “hoping” is not an energy policy.

I believe in implementing processes that result in the lowest cost to rate payers. To the extent that this results in a competitive advantage to Hawai‘i, it will encourage businesses to flourish. On the Big Island, geothermal is clearly the low cost solution for the electrical utility. We must find ways to make it happen.  Not, no can. CAN!

The Hawaii Clean Energy Initiative (HCEI) was launched on January 28, 2008 with the signing of a Memorandum of Understanding.

The goal: To put Hawai‘i on a path to supply 70 percent of its energy needs with clean energy by 2030.

“…The Department of Energy will help Hawaii lead America in utilizing clean, renewable energy technologies.” – Governor Lingle

“Hawaii’s success will serve as an integrated model and demonstration test bed for the United States and other island communities globally…” – Assistant Secretary Karsner

Eating Locally, Education, Food Security, Government, Schools

Update on Punahou Class’ ‘Project Citizen’

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Do you remember the 8th grade class at Punahou School in Honolulu, which wrote to Richard about its class project?

From the email Richard received back in November:

My name is L.T. [name removed]. I’m a 14 year old. I’m a 8th grade Punahou School student. Wanda Adams from the Honolulu Advertiser, recommended you to me to answer some questions on a project my class is doing. The project is called project citizen, we choose a problem in our community, research the problem, and then as a class act on the problem. The problem my class chose is that many local farms are struggling because Hawaii is too dependent on imports from the mainland and around the world. Wanda Adams told me that you know a lot about this topic. I have some questions for you about this it if you won’t mind answering….

Richard recently emailed again to see how they’re doing. Here’s their exchange.

Hi L.:

How is your class doing with project citizen? I have told a fair number of folks about what your class is doing. Reaction is overwhelmingly favorable. People find it inspiring.

Aloha,
Richard

Dear Richard,  

So far, my class has made a lot of progress. My class has come up with a public policy of trying to urge the State to not have an excise tax for Hawaii’s local farmers. And our civic action (something my class is going to do) is hand out wristbands to people to remind them to buy local and, have them sign a contract to pledge that they will try to buy local as much as possible.

My class has contacted a few of Hawaii’s Senate members and House of representatives members to try to get them to pass SB1179, a bill that is similar to our public policy which we want to have as a bill in the 2010 Legislative Secession. SB1179, (National Farm to School program) is a bill that relates to our class project. If passed the National Farm to School program will be taught in all of Hawaii’s public schools, and will teach students about how important local farming is, it will encourage students to eat a healthy diet, and it will have the public school cafeterias provide as much local foods to the children for meals that are bought from local farmers.

If you would want to know more about this bill, here’s the link. I hope this bill or our proposed public policy bill will get passed through Hawaii’s Legislature this year.

Thanks,
L.

Government, Peak Oil

Did Middle Class Decline Because Of Peak Oil?

The business section of yesterday’s Honolulu Advertiser had an article called TARP panel’s chief could lead new consumer agency.

It’s about Elizabeth Warren, a Harvard University law professor who is head of the Congressional Oversight Panel for the Troubled Asset Relief Program (TARP).

I once wrote here about Warren’s speech “The coming collapse of the middle class.” (That video of her speech is very interesting and well worth watching. She is one of my heroes).

When I first heard it, I thought: How coincidental that the U.S. hit its peak oil production in 1970, the same time period she used as an example of when the American middle class was strong. In 1970, the Energy Return on Investment was 30 barrels return from one barrel of energy used to obtain it. Today that ratio is 10 to 1 or so.

Could the decline in our middle class be related to our decrease in net energy? Could it be that technology is not beating the decline in net energy? And we have to make up for it by working twice as hard? Just asking.

Some of Elizabeth Warren’s points, from our previous post:

In the 1970s, a married couple with two kids had one parent in the workforce and saved 11 percent of their income. To get into the middle class, their kids needed to get a high school diploma and to be willing to work hard. That 12 years of education that their children needed, to get into the middle class, was free.

Warren says that the most important thing that happened in the first two-thirds of the 20th century was that women entered the work force.

In the 2000’s, a similar married couple with two kids must have two people in the work force – because, she says using numbers adjusted for inflation, median mortgage payments in 2005 are 76 percent higher than they were in 1970. Health insurance – in a healthy family with employee-sponsored health insurance – costs the family 74 percent more. Childcare costs have increased 100 percent, and as compared to the 1970s family a 2000s family has the expense of a second car because of that second person in the workforce, and because of that second income their tax rate is up by 25 percent.

In comparable dollars, the 2005 family is actually spending much less on clothes, food, appliances and cars than the 1970s family did; it’s the non-flexible, big ticket and important expenses that have increased so dramatically and that require that second income.

So a comparable married couple with two kids in 2005 has no savings (compared to the 1970s couple, who saved 11 percent of their earnings), and 15 percent of their income is in credit card debt as they try to keep up.

To launch their kids into the middle class requires 16 years of schooling, and the 2005 family has to pay  for the first two years (preschool) and the last four years (college) themselves.

Government

Crisis re: Plant Quarantine Inspectors, and a Solution

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The Hawai‘i Department of Agriculture will keep 22 of the 50 Plant Quarantine Inspector positions it proposed eliminating during its August “Reduction in Force” announcement.

From the Department of Agriculture press release:

The rescission of the 22 notices will allow the department to further support core inspection services at all ports statewide; however, inspection capacity will still be significantly decreased from current levels.

It is unacceptable to simply let food crops into Hawai‘i without being inspected, using the excuse that we cannot afford the inspection.

“The department continues to look for alternative sources of funding,” said Sandra Lee Kunimoto, Chairperson of the Hawai`i Board of Agriculture.  “In addition, we are working on increasing coordination of inspection services to make the most efficient use of our work force and minimize the disruption to our important agricultural, food and shipping industries.”
We should charge importing companies the cost of inspection. It is definitely not fair to expect farmers to pay for the inspection of foreign-grown produce, by way of taxation.