Pushing for Lower Electricity Rates Even Though Hydroelectric System Pending

Richard Ha writes:

Nearly 15 years ago we made the decision to diversify our farm, and we chose to move to Pepe‘ekeo because that area gets lots of free water. How much? One inch of rain falling on one acre equals 27,500 gallons of water, and it rains about 140 inches per year at Pepe‘ekeo. That means 3,850,000 gallons fall per acre.

In an average year, about 2.3 billion gallons of rain fall on our 600-acre farm. We are constantly looking for ways to maximize this resource.

When the price of oil started rising, around five years ago, that got our attention. We decided to see what we could do about generating electricity by utilizing the flume, built by the former plantation. It took us awhile, but we are close to generating all the electricity our farm needs and at an affordable, stable price.

Someone asked me why I work toward lowering electricity rates when I am about to have cheap hydro power. I responded by saying that 70 percent of our economy is made up of consumer spending. The lower electricity rates are, the more money consumers can spend to support local farmers. This helps us, and our workers, on several levels.

Our hydro system: We added a new section to the original sugar company flume system that starts close to a hundred yards further up. From this point, a heavy plastic pipe moves the water to a point 150 feet lower in elevation.

This water pipe goes into the steel container, where it turns a turbine and then reenters the original flume.

Waterpipe

Water exits the turbine through an opening in the concrete. Once this system is completed, it will stabilize our electricity cost no matter how high oil prices may rise.

Waterpipe

Looking Back: RIP Senator Inouye

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.

Navigating a New Energy Reality

Richard Ha writes:

Here in Hawai‘i, Robert Rapier is probably our foremost resource for energy knowledge, and I tell that to as many policy people as I can. He’s a good friend of mine.

Robert rapier

He has the important ability to break down complex issues so the average person understands it. He was the lead speaker on the second day of this year’s Association for the Study of Peak Oil (ASPO) conference.

Robert is fearless. He calls it like it is.

The 2011 ASPO conference video is still current and it makes common sense. In it, Robert talks about why field-grown biofuels are likely not a solution to our energy problems. The video is well worth watching:

Robert Rapier: Navigating a New Energy Reality – Concepts and Principles

Robert has three main tenets.

  1. We must transition from fossil fuel with urgency. For electricity, the Big Island’s best bet is geothermal and biomass-firewood.
  2. We need to develop systems with a much lower fossil fuel dependency. That is why field-grown biofuel crops are such a problem. They depend on fossil fuels so much that their breakeven point moves further away as oil price rise. People who analyze field-grown biofuels call that “the receding horizon.
  3. We must take care of our topsoil.

It sounds simple, but there is a lot of deep thought behind what Robert says.

Read more detail about his three tenets here: Setting the Ethanol Record Straight

Food and energy are intimately intertwined. What solves our electricity problems are biomass and geothermal; both result in stable, low-cost electricity that is not tied to fossil fuel. Low-cost base power for electricity beats high cost electricity every time.

Things may change in the future. But for now we need to remember that proven technology is proven.

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.

Free UH Hilo Talk from Expert on the Economics of Energy

Richard Ha writes:

Professor Charles A.S. Hall will give a free lecture on “Peak Oil, EROI and Your Financial Future in Hawai‘i.” It will be at UH Hilo on Friday, January 4th at 6:30 p.m.

Professor Hall received the Matthew R Simmons/M. King Hubbert Award for excellence in education at the 2012 Association for the Study of Peak Oil (ASPO) conference, mostly for his work on Energy Return on Investment (EROI).

From UH Hilo Chancellor Donald Straney’s blog:

Dec.13, 2012

 


Charles A. S. Hall

The University of Hawai‘i at Hilo College of Agriculture, Forestry & Natural Resource Management and Chancellor Don Straney will sponsor a free public lecture on the economic impact of rising energy costs by New York State University Professor Charles A.S. Hall.

The address, “Peak Oil, EROI and Your Financial Future in Hawai‘i,” is scheduled for Friday, Jan. 4, 2013, at 6:30 p.m. in University Classroom Building room 100.

Hall, the author of Energy and the Wealth of Nations: Understanding the Biophysical Economy, will explain how high energy prices reduce discretionary incomes by using the concept of Energy Return on Investment (EROI).The lecture is free and open to the public. For more information, contact Alyson Kakugawa-Leong.

He will also speak on O‘ahu on January 10th; details of that free lecture to be announced.

You can read more about Professor Hall in this post Economics & a Hawaiian Way of Thinking.

Biomass To Electricity: A Fancy Way To Talk About Firewood

Richard Ha writes:

At last week’s PUC meeting in Hilo regarding the Hu Honua Bioenergy project slated for Pepe‘ekeo, few members of the public objected to the project.

The hearing was required because HELCO is proposing to relocate a switching station. The proposed site is on a 13-acre parcel that June and I own; they want to buy half of the property. We notified the community associations that this was taking place several months ago, and, as a consequence, I do not plan on submitting personal testimony to the PUC.

At the PUC meeting, the Kamehameha Schools (KS) representative talked about forest products as an industry. What is more practical and proven than using firewood to boil water? This is what we need; it’s practical.

This Big Island Video News video covers the meeting, and here are some things to especially note:

At the 3:00 minute mark, the KS representative expresses how this project could be the catalyst around which a forest industry could grow. Native trees, especially, take a longer time, and so a combination of native and non-native trees could make the forest industry viable.

As a scalable feedstock, trees work on the Hamakua Coast. They’ve been growing for 20 years. KS is crucial to making this big picture work.

Of course we won’t overdo it. Everyone knows what happened to Easter Island. We are talking about balance and proportion.

Early Hawaiians understood this; it’s why they sometimes had a kapu on fishing – in order to prevent overtaxing the resource.

At 6:50, David Tarnas presents Robert Rapier’s testimony. Robert was in Austin at the time, where he was lead speaker on the second day of the Association for the Study of Peak Oil conference. Giorgio Calderone and Jason Jeremiah, both from KS, and Noe Kalipi and I also attended that conference.

Robert lives in Waimea and we would love to claim him, but he is more of a national/international representative. He participates in the HECO Integrated Resource Planning process.

His testimony was that the Big Island needs a firm power alternative to oil, and that biomass and geothermal fit that description. His testimony is that the most efficient way to turn biomass (firewood) to electricity is to burn it.

At the 8:30 mark, Elaine Munro talks about the conflict between HECO’s fiduciary duty to the shareholders and the rate payer. She talks about the cost of capital and how the present model results in unnecessary higher costs to the rate payer. We all know that the model is broken.

Lynn Nakim, at 11:00 minutes, talks about environmental effects. Lynn is a neighbor of ours at Hamakua Springs. She uses solar panels for power.

At the 16:00 minute mark, a worker expresses his opinion. The money stays in Hawai‘i and provides jobs for Big Islanders, instead of being sent to foreign countries to pay foreign workers.

Making firm power electricity is mostly about making steam to turn a turbine. Burning wood to make steam is proven technology and will be cheaper and more stable than oil price in the long run.

From Big Island Video News:

HILO, Hawaii: The public expressed widespread support
for the Hu Honua Bioenergy project at Wednesday night’s Public Utilities Commission hearing in Hilo.

Hu Honua Bioenergy LLC is converting the former Hilo Coast
Power Company plant at Pepeekeo into a modern biomass energy facility. The 24-megawatt operation is expected to meet about 10 percent of the island’s electrical needs and about enough for 14,000 homes, once in operation.

Hu Honua has negotiated a power purchase agreement with
Hawaii Electric Light Company, which is subject to approval by the PUC. 
However, the hearing was triggered by the need to install transmission lines for the project, as explained by this HELCO engineer.

Nevertheless, the hearing created an opportunity for the public to share its views on the entire project.

Speaking in favor of the proposal, the growing forestry industry on the Hamakua Coast, where thousands of acres on the Hamakua Coast are occupied by Eucalyptus trees, ready for harvest….

Read the rest

Hawaii Contingent at the Peak Oil Conference

Richard Ha writes:

The most important thing about this year’s Association for the Study of Peak Oil (ASPO) conference was that we had a whole Hawai‘i contingent. I believe we made the point that Hawai‘i is serious.

Neil Hannahs, Senior Assets Manager for Kamehameha Schools (KS), is a visionary. Any thought about Kamehameha Schools being a slow-moving institution mired in inertia is not true in this area. In fact, KS is making major changes across a wide front.

I was especially pleased that Giorgio Calderone, Regional Asset Manager for KS, pointed out how impressive the academic rigour of the conference presentations was. I thought so too, and it was good to hear confirmation.

Big Island Community Coalition steering committee member Noe Kalipi is a smart, action-oriented young leader who knows what is going on. I cannot be happier that she made the decision to attend on her own.  Photo

Noe Kalipi and Giorgio Calderone. Not pictured: Jason Jeremiah, Kamehameha Schools Cultural Resource Manager.

I attended the first annual ASPO conference because my farm costs were rising, due to oil. I wanted to learn about oil so we could position our farm for the future. It was a matter of survival.

But by the second ASPO conference, it was apparent that this situation was bigger than me or Hamakua Springs farm. I learned that for the past 30 years, the world had been using two to three times as much oil as it had been finding—and there were going to be consequences.

More than just being talkers, we need to be doers. What can we do?

  1. There are a thousand reasons why no can. We must find the one reason why CAN!
  2. It is about cost! We need to find the lowest-cost, proven technology, environmentally responsible solution to our problem.
  3. It is about all of us—not just a few of us.
  4. The energy our society has available to use is what’s left over after energy is used to obtain the energy in the first place. Another way to phrase this: the net energy left over from the effort to get energy, minus the energy to get our food, equals our lifestyle.
  5. The Big Island Community Coalition’s goal – of lowering the Big Island’s electricity rates so they are lowest in the state – accomplishes our mission. This is the most important thing we can do.

View descriptions of this year’s conference topics.

Best Possible Odds & How To Determine Them

Richard Ha writes:

I just attended my fifth Association for the Study of Peak Oil (ASPO) conference, which was at the University of Texas at Austin. I attend these conferences in order to figure out how to give our farming operation the best possible odds of succeeding in this world of finite resources.

Determining this requires understanding the main drivers in the world energy situation, how it all affects the U.S., and then how it affects Hawai‘i’s unique situation. When we understand that, we can determine how we need to move our farm to be relevant in a rapidly changing future.

Presentations at the ASPO conference are data-driven. None of them are based on any predetermined philosophy. It’s all about adapting to physical change and resisting B.S. Good data and a little bit of common sense keeps everything in its proper perspective.

In one sense, this is like a chess game. There will be winners and losers. The rules of physical science determine how things operate. Warren Buffett once observed that nine women cannot each have a baby in one month.

But unlike in chess, not everything is clear.  As Robert Hirsch said about Saudi Arabian oil reserves on Friday, some of the information is unknowable, and in those situations we must operate on best available information.

This is when we must use common sense. Even small kids know that when you’re in a pasture picking guavas and you hear hoofbeats, you don’t gather and have a meeting. You run!

Stay tuned and I will be writing about what makes sense for us, living out in the middle of the Pacific, and on the Big Island in particular. 

The International Monetary Fund & Peak Oil

Richard Ha writes:

I’m at the Peak Oil Conference at the University of Texas at Austin right now.

Energy expert Kurt Cobb (you can always get to his blog, Resource Insights, from a link at right) writes for the Christian Science Monitor, among other outlets, which indicates how far the topics discussed at these ASPO conferences have moved toward the mainstream.

His article about this particular International Monetary Fund study shows some grim possibilities. We don’t have time to waste.

SUNDAY, NOVEMBER 11, 2012

Does the IMF believe we have a peak oil problem?

Does the International Monetary Fund (IMF) believe we have a peak oil problem? The precise answer is that the IMF is currently studying how constraints in world oil supplies might affect economies around the world in two so-called working papers, “The Future of Oil: Geology versus Technology” and “Oil and the World Economy: Some Possible Futures.”

We are admonished by the IMF that opinions expressed in working papers are “those of the author(s) and do not necessarily represent those of the IMF or IMF policy.” But the fact that the organization has produced two papers on the subject this year gives some indication of how seriously it is taking the issue….

Read the rest

Kurt Cobb also wrote the book Prelude, a novel about secrets, treachery and the arrival of Peak Oil.

Kurt cobb

This next picture is of Robert Rapier and me. Robert was the lead speaker on the second day of the conference.

Robert rapier & richard ha

These horse statues are at the conference center. The University of Texas at Austin is the home of the Longhorns. It has 65,000 students and is an expansive and impressive campus.

Horses