Category Archives: Government

Government, Mauna Kea

The TMT Hearing Crowd

Richard Ha writes:

Lots of folks turned out before the state Board of Land and Natural Resources on Tuesday morning for the final hearing for a Thirty Meter Telescope construction permit. Plenty folks for and plenty against.

As Patrick Kahawaiola‘a said, “It’s about the process. If you do not participate, you cannot grumble.” People were very respectful of each other.

There was an overflow crowd. This is what it looked like outside.

Here’s what it looked like just prior to the start of the hearing.

Since everyone contributed to the process, we must aloha each other, no matter on which side of the issue we happen to be on.

Government, Lowering Electric Rates

HECO Withdraws Rate Increase Request & More

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Richard Ha writes:

Governor Neil Abercrombie issued a press release yesterday, announcing that Hawaiian Electric Company is withdrawing its rate increase request for the Big Island:

State Reaches Settlement with Hawaiian Electric Company

HONOLULU –As island families and businesses continue to face high energy prices, Gov. Neil Abercrombie today announced a settlement between the State of Hawaii and the Hawaiian Electric Company, Inc. (HECO) that will result in the withdrawal of a rate increase request for Hawaii Island and a significant reduction in taxpayer dollars requested to cover project costs.

Subject to approval by the Public Utilities Commission (PUC), the formal settlement filed with the PUC on Jan. 28 outlines an agreement between the state Department of Commerce and Consumer Affairs’ Division of Consumer Advocacy (DCA) and HECO, including its subsidiaries, Maui Electric Co., Ltd. (MECO) and Hawaii Electric Light Company, Inc. (HELCO), which serve Maui County and Hawaii Island, respectively.

“With high oil prices driving up electricity and other costs throughout our economy, we have to take action to help Hawaii’s families and businesses who are struggling to make ends meet,” Gov. Neil Abercrombie said. “While this settlement will help in the short-term, we remain committed to pursuing long-term solutions toward clean energy alternatives.”

 As part of the settlement, HELCO will withdraw its request for a 4.2 percent or $19.8 million rate increase in 2013.

HECO and its subsidiaries will also reduce by $40 million the amount being sought for improvements to two major projects –the 110-megawatt biofuel generating station at Campbell Industrial Park and a new customer information system. 

In addition, HECO will also delay filing a 2014 rate case that was originally scheduled to be filed this year under the current regulatory framework for reviewing its rates 

DCA Executive Director Jeffrey Ono said: “This settlement will benefit consumers and help reduce the ever-increasing cost of electricity.”

Around five months ago, the steering committee of the Big Island Community Coalition formed, in order to advocate for Big Island rate payers to have the lowest electricity rates in the state.

It submitted this Op Ed to Hawai‘i’s newspaper.

HELCO & YOUR BILL: WHAT’S WRONG WITH THIS PICTURE?

By Noelani Kalipi 

Hawaii Electric Light Co. is applying to raise Big Island electricity rates by 4.2 percent — shortly after its parent company announced impressive profits that were 70 percent higher than last year.

What’s wrong with this picture?

…The proposed HELCO rate increase, coming at a time of record profits, does not sit right with us.

We understand the regulatory system, which is rate-based. Our concern is that we continue to see requests for rate increases at the same time that we read about record profits for the utility.

While we understand the fiduciary duty to maximize profits for the shareholders, we believe the utility’s responsibility to the rate payer is just as important. As part of good corporate business, it should benefit both by investing its profits into a sustainable grid.

The Big Island is one of the few places on the planet where we have robust, renewable energy resources that can be harnessed effectively to provide firm, reliable, low cost electricity for our residents.

One example is geothermal, which costs about half the price of oil. We also have solar, wind and hydroelectric. We have resources right here that can both lower our electricity costs and get us off of imported oils.

Lower rates would mean that when the grid needs repairs, or the cost of oil goes up again, it will not be such a punch-in-the-gut to our electric bills.

If HELCO is allowed to raise its rates by the requested 4.2 percent, plus raise rates again via the Aina Koa Pono project, and then the oil price goes up, that would be a triple whammy price hike on your electric bill…. 

Read the rest here

The steering committee is: Dave De Luz Jr., John E K Dill, Rockne Freitas, Michelle Galimba, Richard Ha, Wallace Ishibashi, Ku‘ulei Kealoha Cooper, D. Noelani Kalipi, Ka‘iu Kimura, Robert Lindsey, H M (Monty) Richards, Marcia Sakai, Kumu Lehua Veincent and William Walter.

Prior to that article, people expected that rising electricity rates were inevitable, and that they could do nothing about it. But the steering committee encouraged people to attend PUC hearings and write letters, and it has made a huge difference.

The Consumer Advocate noticed and told the Hawaii Tribune-Herald that the PUC meetings had some of the largest turnouts that he has seen. He said that if an equivalent number of letters came from O‘ahu, it would take two days just to read them all.

When people attended PUC hearings and wrote letters protesting the rate hikes, the thinking started to change.

Someone who has been reading about our efforts commented that they made him think of these words of Gandhi’s, which are pretty profound.

When we wrote that letter, this change was just a thought. Our thoughts became our actions. And our actions became our habits. Soon, our habits will become our values and our values will become our destiny.

It’s already started.

Biofuel, Government

NY Times: Fed Court Says Biofuels Quota Based on “Wishful Thinking”

Richard Ha writes:

Friday’s New York Times article Court Overturns E.P.A.’s Biofuels Mandate is very interesting.

Even more reason for the PUC to set aside the Big Island’s Aina Koa Pono biofuels project!

From the New York Times:

Published: January 25, 2013

WASHINGTON — A federal appeals court threw out a federal rule on renewable fuels on Friday, saying that a quota set by the Environmental Protection Agency for incorporating liquids made from woody crops and wastes into car and truck fuels was based on wishful thinking rather than realistic estimates of what could be achieved.

But actual production has been near zero.

While the mandate springs from a 2007 act of Congress meant to promote advanced biofuels to run cars and trucks, “we are not convinced that Congress meant for E.P.A. to let that intent color its work as a predictor, to
let the wish be father to the thought,” the court wrote….

Read the rest

Geothermal, Government, Peak Oil

My Testimony Against Resolution 42-18

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Richard Ha writes:

I testified before the County Council against Resolution 42-18. That’s the resolution that asks the Legislature to repeal Act 97, which allows geothermal resource zones in certain land classifications.

This was my testimony:

I think we can make things work to everyone’s satisfaction by amending Act 97, instead of repealing it.

I am testifying as a farmer who has attended five Association for the Study of Peak Oil (ASPO) conferences. Most of the time, I was the only person there from Hawai‘i.

The world has been using two to three times the amount of oil as it had been finding, for 30 years. Oil is a finite resource and there will be consequences. It’s not a matter of if. It is just a matter of when.

More Information can be found at the ASPO website.

A report done by an economic research team of the IMF was presented at the last ASPO conference.

They modeled five declining oil scenarios. They found that under declining oil scenarios of between one and four percent – when oil price exceeds $200 per barrel of oil – it could not be modeled. That would be uncharted waters.

The report said when two of three of the following conditions occur, then all bets are off.

  1. If the minimum amount of oil necessary to maintain infrastructure is not met
  2. If a minimum amount of oil necessary to maintain essential technology is not met
  3. Or if the relationship of supply to demand exceeds 1-1, and the oil price rises faster than supply

If two or more of these issues occur simultaneously, the results could be dramatic or even downright implausible. These words in an economic report are very worrisome, especially for us living out here on an island.

We on the Big Island could be in jeopardy from outside forces. Robert Rapier, an International energy expert, lives right here on the Big Island. I highly recommend that the County Council ask him to give a presentation.

I also recommend that we start to focus on solutions. Just saying no is not enough.

Alan Wong, Government, Tomatoes

First Tomatoes

Richard Ha writes:

When I went to pick up Professor Charles A.S. Hall and his wife Myrna at the airport Wednesday, I noticed a plane that looked like Air Force One. It reminded me that President Obama and his family are on O‘ahu for vacation.

Barack and Michelle Obama ate at Alan Wong’s, with friends, on Wednesday.

From the blog Obama Foodorama:

A long day of Hawaiian golf on Wednesday gave President Obama an appetite for dinner at what is regarded as his favorite island fine dining establishment: Alan Wong’s Restaurant in Honolulu. The chef himself told Obama Foodorama last month that he was expecting a visit from the President and First Lady Obama during their Christmas vacation.

“They’re adventurous eaters,” Wong said of the Obamas. The acclaimed chef, who sources locally and sustainably for his modern Hawaiian cuisine, cooked the special APEC Leaders Dinner the President and Mrs. Obama hosted in late November at the Hale Koa Hotel in Honolulu….

 Read the rest

Here’s a fun look at when Alan Wong and his chefs visited the farm and cooked for us one time.

Last Friday, the Obamas dined at Morimoto restaurant in Honolulu.

Before opening his Waikiki Restaurant, “Iron Chef” Masaharu Morimoto had visited us at Hamakua Springs.

Tomatoes from Hamakua Springs are on the menu at both Alan Wong’s and Morimoto. Tomatoes fit for a president!

Bananas, Big Island, Community, Government

Looking Back: RIP Senator Inouye

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Richard Ha writes:

Senator Dan Inouye had a direct influence on Hamakua Springs Country Farms, primarily through the Rural Economic Transition Assistance Hawaii (RETAH) program. That, in turn, allowed us to be part of the Big Island Community Coalition, where our mission is to achieve the lowest-cost electricity in the state.

We continue to follow Senator Inouye’s example: It is about all of us, not just a few of us.

Mahalo, Senator Inouye—Rest in Peace.

Let me tell you a story. Nearly 18 years ago, C. Brewer Executive John Cross let me use 10 acres at Pepe‘ekeo, rent free, to test grow bananas. It was not clear then whether or not bananas could be successfully farmed in the deep soil and heavy rainfall of the Hilo Coast.

Having farmed bananas in the rocks of Kapoho and Kea‘au, I had no experience pulling a plow or getting stuck in mud. Until then, the standard way of planting bananas was by the “mat” system. The idea was to plant 250 plants per acre. Then, after the first bunch was harvested, you let four plants grow up, thereby increasing the population to 1000 plants per acre.

We decided to plant 25 percent fewer plants, in straight rows, so sunlight could hit the ground. The idea was to mow the grass in the
middle aisles in order to get traction instead of getting stuck in the mud. On that 10 acres, I mowed the grass and pulled a plow during the week to mark the lines. Then every weekend for several months, Grandma (who was 71), June, Tracy, Kimo and I, plus our two grandkids, would plant the banana plants from our own tissue culture lab.

(UH Hilo Professor Mike Tanabe taught us how to do that. And, by the way, instead of having a drop in production, the bunch size became larger, which made banana farming at Pepe‘ekeo more efficient.)

Kimo would carry a bucket of lime and dropped a handful as a marker every so many steps. Tracy or June drove the truck, and Kapono, who was around 6 years old, sat in the back and dropped a plant by the lime marker. Using picks and shovels, the rest of us set the plants in the ground. Even Kimberly, who was around 3, had a pick. She dug a hole wherever she wanted. After all the plants were planted, we took buckets and fertilized them.

At the end of that year, we felt it would work. We had a small ceremony where Doc Buyers, C. Brewer’s Chairman of the Board, cut off the first bunch of bananas. Also present were Jim Andrasick, who was then President of C. Brewer, and later Chairman of the Board of Matson; Willy Tallett, Senior Vice President of Real Estate/Corporate Development, and John Cross, who later became President of Mauna Kea Agribusiness (the successor company of C. Brewer).

C. Brewer had tens of thousands of acres and we had 10 acres – but our dreams were huge! We did not feel awkward that this group of heavy-duty corporate people were in attendance. We knew where we were going and it felt very appropriate for them to be there.

Then, a few years later, Senator Inouye, the leader of the Democratic party, appointed Monty Richards, a staunch Republican, to administer the RETAH program. That helped us expand our production at a critical time. And again Senator Inouye demonstrated that it wasn’t about a few of us, but it was about all of us.

We are only one of the tens of thousands of people who were helped by Senator Inouye.

At this special time of year, we look back at times and people from long ago and we smile. We thank everyone who has helped us along the way.

If we can continue to grow food, and if we can help our workers have a better life for their children, those are our goals.

Happy Holidays, Everyone.

Government

County Resolution Must Include Effects Upon People

Richard Ha writes:

The Hawai‘i County Council Comittee on Agriculture Water and Energy Sustainability will meet on Tuesday at 11 a.m. to discuss a resolution put forward by the committee.

Comm. 25: A RESOLUTION TO ENSURE THE ADVANCEMENT OF PRINCIPLES OF  (Res. 19-13) SUSTAINABILITY IN COUNTY GOVERNMENT DECISIONS AFFECTING  NATURAL AND CULTURAL RESOURCES 

From Council Member Margaret Wille, dated December 4, 2012, transmitting the  above resolution, which resolves that all County-level government decisions be  consistent with specific sustainability principles and policies, as listed.

This resolution does not include effects on people, and it would be stronger if it included that component.

Rising electricity rates such as we’re seeing act like a giant regressive tax on folks who are on the lowest rungs of the economic ladder. Actually, it’s worse than that, because people who can leave the grid will do so, leaving behind the folks unable to leave who will then have to pay an increasing share of the cost to maintain the grid.

Somehow, we need to incorporate people into this resolution.

Community, Government, Lowering Electric Rates

Bill Walter Tells PUC No to 4.2% HELCO Increase

Richard Ha writes:

Here is Bill Walter’s testimony against HELCO’s proposed 4.2 percent rate increase, which he submitted to the PUC. Tomorrow (Friday, November 30, 2012) is the deadline for all testimony against this rate increase, as well as the proposed Aina Koa Pono project. You can email your testimony to: hawaii.puc@hawaii.gov.

It’s in the interest of the utility, as well as in the interest of the people, that we all seek lower electricity rates.

To: hawaii.puc@hawaii.gov
Subject: HELCO RATE INCREASE OF 4.2% – Docket 2012 – 0099

Commissioners,

Thank you for the opportunity to write you on this subject. At some point, the questions before you on various rate increases proposed by HELCO/HECO are simple:

•How much is enough? and

•When do we draw the line on increases?

We understand that while the questions are essentially fairly simple, finding answers can seem very difficult. Those wanting the rates to increase run through myriad statistics, data, logic and come up with apparently compelling reason. These answers come in an age old context of how we, as a society that is primarily market based, handle a monopoly supplier of an essential ingredient of our modern life. Over the generations the solution has typically revolved around ensuring a reasonable return on company (hence, stockholder) assets while providing a level of service that ensures quality to the community. While in a general case over the last 75 years that may have been reasonable, we suggest questioning that – at least for this community at this time. Please note the following:

• As it is, Hawaii Island rate payers pay four times the US national average for electric power. We pay a 25% premium compared to Oahu – today.

• Hawaii Island residents include among the most economically challenged in the State of Hawaii. While certainly not the only reason, the high cost of power works to keep our residents economically challenged. Why?

The cost of operating any business with more than a marginal energy input on the Island experiences higher energy costs than competition from most other locations. When you add to this the cost of getting our product to market (or the market to our product in the case of tourism) the competitive hurdle can become prohibitive to overcome. This increase will only add to that hurdle.

• Because of the integral nature of electric power to our way of life, the cost of electricity is little different in effect from the most regressive of taxes. If you look at this simile several issues jump at you:

In the last four years governments across the country have been highly reticent to raise taxes understanding the negative impact higher taxes would have on the economy and on those most economically challenged. This relates back to the point above – namely that higher electric power costs have a depressing affect on the economy of the Island of Hawaii, at their current level.

Local governments – including ours here on the Island of Hawaii – have taken extraordinary steps to reduce the cost of government services while retaining government service levels. On this island that has included furloughs of County workers, layoffs, employment freezes, job sharing, looking for efficiencies that allow for reduced expenses across the board, reductions in executive staff salaries, suspension or reduction in non essential services – and the list goes on. It is common place to hear of businesses on this island taking similar – and in some cases more radical steps to reduce expenses. It is uncomfortable, but notable that we have heard of no such steps taken by our utilities in order to try to pass on to the community reduced costs that may be helpful in these difficult times. In fact, what we have heard is like this – requests for higher prices. Somehow that difference is hard to take.

•The long term reality is that power generation is moving to dis-integration much as phone service has rapidly moved in that direction. It would be wise for both the Commission and the companies to ask if it is not time to consider this coming dis-integration. The only way for the current system to survive in the long run is to be in a price reduction, not price increase mode. The cost of standalone competition is inexorably being reduced. Sooner than later only those who cannot afford to get off the grid will have departed it – how will that work and will the commission have been a part of that scenario?

So my short answer to these questions is that “enough is already enough” and the line needs to be drawn now – for the survival both of the island economy and for the survival of the utility.

My personal response has been to join the Big Island Community Coalition looking for ways to reduce power costs. I am becoming proactive in this direction. We ask that the commission and, indeed, HELCO/HECO become proactive in this direction as well. Better that we spend our efforts looking for cost reducing solutions than for cost increasing reasons.

Thank you for your consideration.

Bill Walter

Related articles
How Much HECO Is Spending On Those Ads, & More PUC Testimony
The Big ‘Aina Koa Pono’ Risk
What if Aina Koa Pono’s Projections Are Wrong?
Graphic Opposition to Aina Koa Pono & 4.2% HELCO Rate Increase
Geothermal, Government

More Opposition to Bill 292

Richard Ha writes:

There’s more testimony against Hawaii County Bill 292 re: Geothermal Drilling Restrictions.

The Geothermal Resources Council’s testimony:


November 6, 2012

Hawaii County Council
c/o Office of the County Clerk
County of Hawaii
25 Aupuni Street

Hilo, Hawaii 96720

Re: Opposition to County of Hawaii Bill No. 292, Geothermal Drilling Restrictions

Dear Hawaii County Council Members:

The Geothermal Resources Council, as a representative of numerous geothermal
educational institutions and development companies hereby expresses its concerns about
Bill No. 292. The drilling restrictions in this Bill would inhibit and could ultimately
prohibit the further development of geothermal on the Big Island.
Screen Shot 2012-11-09 at 12.21.47 PM

Developing geothermal power will help Hawaii reach its goals of energy independence and minimizing global warming emissions. Indigenous geothermal development and operation will help Hawaii reach these goals. Local jobs will be created to develop,
construct and operate these geothermal plants.

We have reviewed the testimony of one of our member companies, GeothermEx. The Geothermal Resource Council agrees with this expert’s conclusion that project risk and cost will be dramatically increased if the Bill is approved.


Noise issues have been addressed for over 30 years at other drill sites all over the world. Drilling has always been allowed without 12 hour daily curtailments. We join with the opposition to this Bill.

Please oppose Bill No. 292

Best Regards.

Steve Ponder
Interim Executive Director 

About the Geothermal Resources Council:

The Geothermal Resources Council (GRC) is a tax-exempt, nonprofit organization, educational association 501(c) organization. Formed in 1970, the GRC was incorporated in the state of Washington in 1972, and in California in 1981.

With members in over 40 countries, the GRC is a professional educational association for the international geothermal community.

Goals:

▪Encourage worldwide development of geothermal resources through the collection and timely distribution of data and technological information.

▪Promote research, exploration and development of geothermal energy in ways compatible with the environment.

▪Serve as a public forum for the world geothermal community, providing transfer of objective and unbiased information on the nature of geothermal resources and techniques of geothermal development.

▪Cooperate with national and international academic institutions, industry and government agencies to encourage economically and environmentally sound development and utilization of geothermal resources. Read more about the organization

Community, Geothermal, Government

County Council Vote: No Override of Mayor Kenoi’s Geothermal Bills Veto

Richard Ha writes:

The community attended the County Council meeting in force yesterday, many people wearing these buttons:

Buttons

The County Council voted NOT to override Mayor Billy Kenoi’s veto of the geothermal bills 256 & 257. This is the outcome we were hoping for.

The meeting started at 8 a.m. and about 85 people – an amazing number – testified. The meeting went all day and into the evening, and did not adjourn until 8 p.m.

There has been a real change in the dynamics of the geothermal discussion. The people who came from Leilani Estates were so passionate and determined. And they were so rational, and easily understood, and they really impressed me. They changed the tone of the conversation and struck a chord for rational discussion.

They are solid people who work everyday and have families to take care of. They were not involved until they learned this hearing was taking place and they didn’t know a thing about it. When they realized what was happening, it didn’t take any time at all for them to get organized. You could see they were determined to take their community back. It was just great.

And for the first time, Puna Geothermal employees jumped up and spoke up from their point of view, saying things like, “I wouldn’t be working for a company that wasn’t doing the right thing,” and “I’ve worked here for 23 years, and my babies are fine and healthy,” and “We’ve never known anyone at the plant that ever got hurt.”

Others testified, too, people who were not affiliated with either the Leilani Estates group or the Puna Geothermal group. I’d not heard this group join the conversation before. In general, this was a larger geothermal conversation than usual, with a more representative group of Puna folks expressing themselves.

Petra Wiesenbauer, of Leilani Estates, was one of the people involved in getting out the word to the Leilani Estates community (as were Jan Kama and Loren Avedon). Petra attended yesterday’s County Council meeting, and I asked for her take on it:

“We would like to thank everyone for their support and input. Together we were strong. Thank you also to Fred Blas, Don Ikeda, J Yoshimoto and Fresh Onishi, who voted against the override.

“I had expected a circus, but it was civil. I know a lot of the Pahoa folks and the anti-geothermal people. For the most part, we could look each other in the eye. I had several people that I talked to and we agreed that it was okay to have different opinions, and the main thing is that we respect each other as people.  

“I am very relieved that we persevered, but I also feel like we need to do some mending in the community. This is where I don’t have this triumphant feeling. The rift from this in the community is quite big and will take some time to mend. There will be big resentments, and this polarization could have been totally avoided, had the council done a better job in drafting/amending these bills. We could have all worked together on this – maybe I am too optimistic, as there are also some real radicals that won’t be reasoned with.

“I feel that most people on our side brought professionalism, common sense and also an urge to put the facts out. Although I am sure the ‘opposition’ would say the same about their position. Overall, I feel that there is work to be done, now that the immediate threat has been removed.

The Big Island Chronicle wrote about the County Council meeting here.