Tag Archives: UHERO

Food Security, Geothermal, Lowering Electric Rates

One Cost of Paradise: Food Insecurity

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Richard Ha writes:

The high cost of Paradise is making us less and less food secure.

From the Economic Research Organization at the University of Hawaii:

An Insight on the Cost of Paradise

Posted July 3, 2013 | 

Whether visitors or residents in Hawai‘i, we are all aware of the high cost of living in paradise. One major contributing factor is the cost of energy. Households in Hawai‘i pay 4 times more than the average US household and nearly 7 times the households in Utah, where the residential energy cost is the cheapest in the nation.* While the US average for April 2013 hovered at 12 cents/kwh, Hawai‘i paid 37 cents/kwh for electricity in the residential sector.** … Read the rest here

Hawai‘i uses oil for more than 70 percent of its electricity, while the U.S. mainland uses oil for only 2 percent of its electricity. Any
food product from the mainland that uses lots of electricity in its processing has an increasing advantage over Hawai‘i food producers and manufacturers.

The U.S. mainland is both our supplier and our competitor. The mainland’s use of cheap natural gas versus our usage of expensive feedstock for electricity production makes all the difference. It’s all about cost. There is no free lunch. Subsidies are not free.

Agriculture and energy are inextricably tied together. Energy helps us do work. Since no one in the world has found a solution for liquid transportation fuel, we need to look to electricity.

On the Big Island, we do have a solution. Geothermal is the cheapest way to generate electricity. And with the throwaway electricity at night, we can generate ammonia, which is a nitrogen fertilizer as well as a hydrogen source. And when we generate cheap electricity, we can run electric vehicles as an alternative to using liquid fuel.

Stable cost for fertilizer for farmers, low-cost electricity for the rubbah slippah folks, clean transportation and a low walk around cost for tourists. We can have the best of all worlds.

Not no can! CAN!

Government, Lowering Electric Rates

Farmer: “I’m Tired of Defending My Life’s Work”

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Richard Ha writes:

Yesterday I testified before the Hawai‘i County Council. I was testifying against Act 79, which would prohibit GMOs not already growing on the Big Island.

Note: We do not grow any GMO on our farm.

But the point I was wanting to make is that farming used to be an honorable profession where you could make a living. Now farmers are losing money right and left, wondering whether they will continue to farm, and they are not encouraging their children to do so.

If we farmers are going to survive, we are going to need access to the most modern techniques and technologies. This Act would cut off our ability to use modified crops that are resistent to disease, if needed. It would mean foregoing potential help, like when the banana industry faced a virus 15 years ago. At that time, they started working on genetically modified techniques that would have helped the banana industry greatly, though ultimately it didn’t happen.

Genetic modification also saved the papaya industry here in Hawai‘i; without the Rainbow papaya, we would no longer have a papaya industry at all.

Jason Moniz also testified yesterday. He was representing the Hamakua Farm Bureau and requested the bill be killed, saying it threatens the “well-being” of farmers and ranchers.

“Frankly, I’m sick and tired of having to defend my life’s work,” he said.

This feeling is increasingly being discussed at dinner tables in the farming community. They are asking themselves, “Is it worth it” to continue farming?

What will happen when all our farmers get out of the business?

My testimony:

My name is Richard Ha, and I’m representing Hamakua Springs
Country Farms. 

Hamakua Springs Country Farms is a 600-acre, fee simple,
diversified Ag farm. We have produced multi-millions of pounds of fruits and vegetables over the years. We have 70 workers who work with us and have more than 30 years of experience in producing food 

1. Farmers are being pitted against each other. This is not good. We need all farmers to help provide food for an uncertain future.

2. Farmers have been losing ground, not gaining ground. Even if you give farmers free rent, it is not guaranteed that they will make money. A UHERO report shows that ag, as a percentage of GDP, has been steadily declining. Food security depends on farmers farming. If the farmers made money, they would farm.

3. Farmers are right now making plans to quit and sell their lands. They cannot tell their children with a clear conscience to carry on, when all they see is conflict and no support. 

Here is a solution. Cheaper electricity can give us a competitive edge. The mainland uses oil for only two percent of its electricity
generation. We use it for more than 70 percent. That is why farmers have a hard time doing value-added. Any food manufactured on the mainland with electricity embedded in it has a competitive edge over us. 

Seventy nine percent of the students at the Pahoa School complex take advantage of the free/reduced lunch program, and qualification is determined by family income. That means the Pahoa area has the lowest family income in the state! Pahoa is number one in the state. Ka‘u is second, and Kea‘au is third.

Our electricity rates have been higher than Oahu’s for as long as anyone can remember. That means less of our education dollar is going to actually teaching Big Island students. Yet, education is the best predictor of family income.

If we could lower and stabilize our electricity cost, farmers,
distributors and retailers would have lower refrigeration costs. Food costs would go down. Farmers could manufacture value-added food products and increase their income stream. Lower cost electricity means people would have extra spending money to support local farmers. More of our education dollar would go to kids’ education, thereby increasing his/her chance of gaining a higher family income. 

Two-thirds of the economy is made of consumer spending. If the people had extra money, they would spend it. Businesses would benefit and there would be more jobs.

There is no free lunch. Let’s concentrate on finding out where we can give ourselves a competitive advantage and go do it. We need to look at the bigger picture. Not “no can.” CAN!

Geothermal

Testimony to OHA Supporting Geothermal

Richard Ha writes:

OHA is contemplating investing in geothermal. I am in favor of that, for the reasons that I mention below.

I sent the following testimony to OHA:

***

Subject:  OHA testimony re: Huena Power Co/IDG

April 17, 2013

Office of Hawaiian Affairs
711 Kapiolani St.
Honolulu, HI  96813

Aloha Chair Machado and Board members of OHA:

The Geothermal working group report, which Wallace Ishibashi and I co-chaired, recommended that geothermal be the primary base power for the Big Island. OHA was represented on the working group by trustee Robert Lindsey.

I believe that OHA should participate in geothermal development because it is an income source for OHA to provide services to the Hawaiian people. And it can influence the course of our people’s history.

Geothermal-generated electricity is proven technology, affordable and environmentally benign. The Big Island is expected to be over the “hot spot” for 500,000 to a million years so its price is expected to be stable.

The Pahoa School Complex in Puna, at 89%, has the highest number of students in the State who participate in the free/reduced school lunch program. Participation is related to family income. The Big Island has had electricity rates 25% higher than O‘ahu’s for as long as anyone can remember. So a large portion of the school budget, that should go to education, goes instead to pay for electricity. Yet the best predictor of family income is education. A lower electricity rate, generated by geothermal, will have a direct effect on education. And if OHA, through its influence, emphasizes education in the community, there will be even more positive results.

Rising electricity rates act like a giant regressive tax. The folks on the lowest rungs of the economic ladder are affected disproportionately. Those who can leave the grid, leave. Those who cannot leave end up paying more for the grid. Too often those folks will be Hawaiians.

Hawaiians should be able to live in their own land. Yet there are more Hawaiians living outside of the State, because they needed to move elsewhere to find jobs to raise their families. Exporting our children is the same as losing our land. OHA is in a position to drive the agenda so Hawaiians can afford to live at home.

During the development of the Geothermal Working Group report, Rockne Freitas arranged a meeting with Carl Bonham, Executive Director of the University of Hawai‘i Economic Research Organization (UHERO), and some staff.

I asked Dr. Bonham two key questions: “Is it fair to say that if the Big Island were to rely on geothermal energy for its primary base power as oil prices rises, shouldn’t we become more competitive to the rest of the world?” He said that was fair to say.

I asked: “Then is it fair to say that our standard of living would rise?” He said: “Yes.”

I am a farmer on the Hamakua coast with family ties — Kamahele — in lower Puna. I farmed bananas at Koa‘e in the late 70s and early 80s. I have been to five Association for the Study of Peak Oil (ASPO) conferences. I went to learn and to position my business for the future. I found that the world has been using two and three times the amount of oil than it has been finding for more than 30 years and that trend continues. The price of oil has quadrupled in the last 10 years.

Until the first ASPO conference, I was just minding my own business, being a banana farmer. But what I learned became my kuleana. I did not ask for it.

Until last year, when Kamehameha Schools sent Giorgio Calderone and Jason Jeremiah and Noe Kalipi went to the conference, I was the only person from Hawai‘i to attend. The subjects were always data driven and conclusions could be duplicated.

We have the resources here to dodge the bullet. We need to drive a clear agenda for the benefit of all the people, not just a few.

One of the controversial issues in the Puna district is H2S gas. I went to Iceland and sat in the Blue Lagoon, where a geothermal plant within a quarter mile emits geothermal steam into the atmosphere. Millions of tourists visit the Blue Lagoon for health purposes.

There are small geothermal wells within the city that are used to heat the residences and businesses. If you did not know what to look for, you wouldn’t even know they were there. I walked by and touched the walls.

A long term study of the effects of H2S on people who suffer from asthma was just completed. It was done in Rotorua. They found no correlation of asthma to daily ambient H2S levels of 20,000 parts per billion over a three-year period. The study indicated that there might be a beneficial effect because it relaxes the smooth muscles. See link above.

The human nose can detect levels of H2S at incredibly low levels: 5 parts per billion. The Department of Health requires reporting when levels exceed 25 parts per billion. The Rotorua study was done for three years at average levels that were 20,000 parts per billion. OSHA allows geothermal plant workers to work in a 10,000 parts per billion environment for 8 hours per day without a mask.

Wallace Ishibashi and I went to the Philippines with the delegation that Mayor Kenoi put together. We visited a geothermal plant that sat on a volcano that last erupted 100,000 years ago. Mauna Kea last erupted 4,000 years ago. We may have more resources than we know.

The Phillipines and Hawai‘i started geothermal exploration at the same time. They now have in excess of 1,200MW, while we have 38MW. We are so far behind them, a supposedly Third World country, that it is embarrassing.

OHA is in a unique position to be able to influence the future. It is as if we are getting ready to duplicate that first voyage from the south so many years ago. It’s not whether or not we are going. It’s who should go, and what should we put in the canoes? Mai‘a maoli? Popoulu? What else?

Richard Ha
President, Mauna Kea Banana Company

I am a member of the Hawaii Clean Energy Steering Committee, Board of Agriculture and farmer for 35 years.