Hawaii County Approves Nighttime Drilling Ban

by Peter Sur (Tribune-Herald)

Puna Geothermal Venture must stop nighttime geothermal drilling, the County Council said, sending a bill to Mayor Billy Kenoi’s desk.

The vote was 5-2, with councilmen Fred Blas and Donald Ikeda excused. Council members Brenda Ford, Pete Hoffmann, Angel Pilago, Brittany Smart and Chairman Dominic Yagong all voted in favor of it, with council members Dennis Onishi and J Yoshimoto opposed.

But the final test will be approval of the mayor, because supporters of Yagong’s bill did not have the six votes needed to overcome a potential veto.

The vote came around 6:25 p.m., when lawmakers were so weary that at one point the chairman addressed Ikeda as “Mr. Amendment.”

Yagong was referring to an amendment that Ikeda had introduced that would have exempted geothermal drilling operations from additional regulations prior to the expiration of PGV’s current permit. That amendment was defeated by a vote of 5-3, with Ikeda joining Onishi and Yoshimoto in support.

With a few notable exceptions, most of the public testimony was in favor of the measure that prohibits exploratory and production geothermal drilling from 7 p.m. to 7 a.m. when it’s done within a mile of a residence.

The bill is targeted at the only geothermal production well in Hawaii, Puna Geothermal Venture. People living nearby have complained about the constant noise emanating from the plant.

“The noise impact is real. It affects people here,” said Tom Travis.

PGV plant manager Michael L. Kaleikini submitted testimony against the bill. He cited several concerns, chief among them that “stopping drilling at night will not eliminate the sound produced from mandatory equipment that must run for the entirety of drilling,” Kaleikini said in written testimony. “Quite simply, the bill will not accomplish its purpose.”

“Passing Bill 292 is not consistent with safe drilling practices, will not serve to substantially reduce noise, and will greatly increase costs to ratepayers,” Kaleikini wrote. “Geothermal power has the potential to provide the most inexpensive renewable energy on the Big Island. Bill 292 would severely compromise this potential.”

Since the plant began, PGV has drilled no less than 10 wells without being forced to curtail evening drilling, Kaleikini said. Since receiving its most recent development permit, PGV has drilled seven wells.

The last drilling of a well ended in July and took 120 days; prior to that a well that was drilled in early 2010 took 90 days, Kaleikini said.

Source: West Hawaii Today

HELCO Drafts RFP to Expand Geothermal on Hawaii Island

The electric utility on Hawaii island published Friday the first draft of a plan to add 50 megawatts of geothermal power to the island's electric grid.

Hawaii Electric Light Co. will seek public comment on the draft to help guide renewable energy developers as they prepare their bids to supply geothermal power to HELCO. A final draft of the document is scheduled to be completed by January, and selection of the winning bidder or bidders is expected by July or August.

An existing 38-megawatt geothermal plant on Hawaii island already accounts for about 20 percent of the island's peak electrical load. An additional 50 megawatts would push the amount of geothermal generation to nearly 50 percent of peak load.

"This project combines our efforts to increase renewable resources on our island with a commitment to reduce costs for consumers," HELCO President Jay Igna­­cio said.

HELCO customers pay among the highest electricity rates in the state.

HELCO plans to conduct a technical conference webi­nar next month to allow prospective bidders to ask questions and provide comments on the draft document, known as a request for proposals, or RFP.

The contracted price HELCO will pay developers for the geothermal energy will not be linked to the cost of oil, as is the case with many of the other renewable energy projects on Hawaii island.

"This is incredibly important for ratepayers on the Big Island," said Lt. Gov. Brian Schatz. "This will help stabilize prices. What people on the Big Island need is clean, affordable energy, and that's the purpose of this RFP."

One of the keys to making the plan work is engaging the community, he added. "We are working hard to have it done right, respecting the environment and the culture," Schatz said.

Bringing another 50 megawatts of geothermal power online will pave the way for the eventual retirement of fossil fuel-burning electrical generators on Hawaii island, he said.

More than 40 percent of the electricity consumed on Hawaii island is generated from renewable resources, the highest percentage of any island in the state. Besides geothermal, Hawaii island has hydroelectric, wind and distributed solar power generation.

SOURCE: Star Advertiser (11/10/2012)

Public Protest Too Much For PLDC?

 on digg

By Dave Smith

A protest over the Public Land Development Corporation. Photo courtesy Hawaii News Now.

It looks like it will be try, … again for the Public Land Development Corporation.

The controversial new state agency designed to increase revenues from state lands using public-private partnerships is continuing its efforts to establish its administrative rules.

Following statewide hearings in August, the agency revised the guidelines and added a strategic plan.

The PLDC’s five-member board met on Thursday and voted to take the amended rules to public hearing.

However, only one of those is planned, on Nov. 13, and that will be on Oahu.

Lloyd Haraguchi, the PLDC’s executive director, was not available for comment on why other islands were not included in the schedule.

According to a statement from the PLDC, even though state law required only one hearing be held, the agency’s board of directors in August took the “extra step” of holding hearings statewide. The reason, it said, was to familiarize the public with the new state entity.

Now the PLDC says it will hold an additional public hearing on the amended rules, as required by law.

The rules can be viewed at hawaii.gov/dlnr/pldc, and “any member of the public may submit advance testimony via email or USPS mail by Tuesday, November 13,” the agency said.

“The PLDC remains committed to transparency, and its newly adopted strategic plan, project flowchart and rule amendments show that opportunities for public comment actually expand under the PLDC for potential projects,” the statement said.

But one can’t help but wonder if the primary reason for not taking the revised rules on the road is that the PLDC – and its director – have had their fill of the rough reception they received across the state.

The first time the agency took the draft rules out for public hearings, it encountered large and hostile crowds.

And recent public protests across the state drew hundreds of participants.

Sierra Club Chapter Director Robert Harris described the PLDC’s decision to hold only one public hearing a “new low” for the agency. He went on to say that Haraguchi was “insulting thousands of neighbor island residents by excluding them from the process.”

Much of the criticism has centered on a section of state law exempting the PLDC from “land use, zoning, and construction standards for subdivisions, development, and improvement of land.”

The mission of the PLDC has been called everything from a land-grab, to anti-democratic, to Nazi-ism.

Despite the revision of rules and addition of a strategic plan, county councils on the neighbor islands are all expected to unanimously pass resolutions seeking to abolish the Public Land Development Corp.

Nor did the changes soothe those testifying when the Hawaii County Council overwhelmingly approved its version of a resolution urging Gov. Neil Abercrombie to repeal Section 171C of Hawaii Revised Statutes — also known as Act 55, the law that created the PLDC.

A harried Lloyd Haraguchi tries to convince the Hawaii County Council not to vote in favor of a resolution calling for the dissolution of his agency. Photo by Dave Smith.

And Haraguchi, who appeared before the council to defend his agency, has not been spared the ire, as some of the public testimony as well as some private comments have been aimed at the agency’s appointed director.

At the Oct. 3 council meeting he was called “evil,” among other things, by Puna resident Aurora Martinovich, a frequent geothermal protester.

Following the council vote, she was observed following Haraguchi as he walked to his car in a parking lot a half-block away, obviously giving him a piece of her mind.

At one point Martinovich’s comments prompted Haraguchi to pull out his phone and call the police.

While she wouldn’t name names, a Hawaii Police Department spokeswoman has confirmed that a call for assistance was made at the time and place of the confrontation between Martinovich and Haraguchi, but when officers arrived, the caller declined to initiate a criminal complaint.

Although PLDC staff has acknowledged that a police report was generated, Haraguchi has refused to discuss it.

Council to Hold Hearing for Nighttime Geothermal Drilling Ban

By TOM CALLIS
Stephens Media
tcallis@hawaiitribune-herald.com

A proposal to prohibit geothermal drilling at night ran into a snag Wednesday when the Hawaii County Council opted to hold a public hearing on the issue rather than take a final vote.

Hilo Councilman Donald Ikeda proposed the hearing, approved in a 5-3 vote, citing confusion over whether the nighttime ban would apply to Puna Geothermal Venture. Council members Fred Blas, Brenda Ford and Pete Hoffmann voted no.

The hearing, to be held in Puna on a yet-to-be-determined date, would follow two bill readings by the council and a positive recommendation from the council’s Agriculture, Water and Energy Sustainability Committee. Public testimony was taken at the three previous meetings, sometimes at length, from supporters of the ban as well as PGV representatives.

Ikeda said the hearing would allow PGV to better explain what it does to limit noise during drilling, as well as its “vested rights.” He also mentioned what he saw as a disconnect between some of the testifiers and how PGV runs its 38-megawatt plant, the only geothermal facility in the state.

“I don’t like to be the only dissenting vote, look like I don’t support the people,” Ikeda said before proposing the hearing. “I do, but I also believe Puna Geothermal has rights, too.”

A few council members said they believe the county’s legal staff determined that the bill couldn’t affect drilling at PGV since it already has a permit from the Windward Planning Commission for future drilling, and questioned the need for a hearing.

“I think I heard the Corporation Counsel clearly indicate it can’t be retroactive,” Hoffmann said.

“Therefore, I don’t see PGV related to this issue at all.”

Hilo Councilman Dennis Onishi said he had the same interpretation.

“I think people could misinterpret what could happen,” he said.

Hilo Councilman J Yoshimoto suggested the council adopt an amendment stating the bill doesn’t apply to PGV.

Council Chairman Dominic Yagong, who introduced the bill, said an amendment is not necessary, leading to it being dropped during discussion.

“I think the (executive) session we went through was quite clear,” he said. “I don’t think there is any confusion there.”

Deputy Corporation Counsel William Brilhante said he couldn’t comment on whether the bill would apply to PGV, citing potential liability.

Either way, the bill would still apply to new geothermal operations.

Brilhante said enforcement would be up to the county Planning Department.

Planning Director Bobby Jean Leithead Todd couldn’t be immediately reached for comment.

The bill was prompted by drilling at PGV earlier this year that some nearby residents said was too disruptive and caused them to lose sleep.

PGV Plant Manager Mike Kaleikini told the council he received about 45 complaints during drilling, lasting from March 1 to July 7.

That’s up from the four complaints during drilling in 2010, which he said was a few decibels louder.

Kaleikini said the plant uses insulation and a barrier wall to reduce noise.

It’s also considering adding another wall, he said.

Hawaiian Volcanos Observatory Scientists Say Geothermal Drilling Won't Cause Sinking

Kilauea Volcanic Rift Zones subside whether or not they host geothermal developments

Recently, Hawaiian Volcano Observatory scientist’s have been asked if Hawaii Island’s geothermal development causes subsidence of the ground surface, as has been observed at U.S. mainland geothermal areas, such as those in California– Coso, Geysers, the Imperial Valley, and Casa Diablo in the Mammoth Lakes area.

The largest of these mainland developments is heated by magma reservoirs that supplied eruptions through non-volcanic rock layers. The magma, thousands of years old, still heats groundwater within California’s sedimentary basins, where, fluid withdrawal during geothermal energy production can reduce pressure within the subsurface rock formations. When this happens, the ground surface subsides.

The highest subsidence rates are measured at the Geysers Geothermal Field within the Clear Lake Volcanic Field in northern California. The 78 square kilometer (30 sq mi) developed area produces 1,500 megawatts (MW) of electricity from a vapor-dominated reservoir within fractured sandstone that is capped by a zone of rock filled with geothermal minerals at the top and heated by magma below.

The Clear Lake volcanic field is one of several in California and Nevada that are monitored by HVO’s sister California Volcano Observatory (CalVO; http://volcanoes.usgs.gov/observatories/calvo/). CalVO also monitors the Long Valley caldera, in which the Casa Diablo geothermal development (40 MW) is located; the Salton Buttes volcano, which includes the Imperial Valley geothermal field (>300 MW); and the Coso Volcanic Field, where a 270 MW geothermal development is located.

As volcanic activity waxes and wanes, each of these areas exhibits its own deformation and seismicity. For example, the Long Valley caldera has experienced several episodes of heightened unrest, including earthquake swarms, ground uplift, and volcanic gas emissions during the past several decades. Thus, CalVO watches this area closely. The subsidence related to geothermal development must be documented carefully to separate the effects of volcanic activity from those due to drilling and energy production.

PLDC - Public Land Develompent Corp to Consider Rule Changes October 11

by Dave Smith

The Public Land Development Corp. will meet Oct. 11 in Honolulu to consider the approval of a strategic plan as well as some changes to its draft administrative rules.

The controversial new agency issued a statement Saturday night saying that it was posting notice of its next board meeting early – “well before the six-day notice” required by the state’s Sunshine Law — to give the public “ample time” to submit comments on the plan and rule amendments.

The statement said the proposed amendments to the PLDC’s operating rules will reflect the strategic plan and address concerns raised at public hearings held by PLDC Executive Director Lloyd Haraguchi on the draft rules across the state.

Testimony at the August hearing on the Big Island and elsewhere in the state was was overwhelmingly critical of the PLDC and its administrative rules.

Gov. Neil Abercrombie, who in 2011 signed Act 55, the state law authorizing the PLDC, was a recipient of some that ire on Kauai on Aug. 19. Although the agency’s public hearing there wasn’t scheduled until later in the month, Abercrombie, who had brought his cabinet for a talk-story session, was heckled and booed over the PLDC and its enabling legislation.

Part of the reason for Abercrombie’s treatment on Kauai could be attributed to comments he made several days earlier calling critics of the agency the “usual suspects” who took advantage of the hearings to create “conspiratorial hysteria.”

Some critics of the PLDC have called for the abolishment of Act 55. Those include Hawaii County Councilwoman Brenda Ford, who has introduced a non-binding resolution urging the Legislature to disband the PLDC.

Ford’s resolution will be taken up at a council meeting Wednesday in Hilo.

The PLDC was created, its backers say, to create public-private partnerships to generate badly needed revenues for the state Department of Land and Natural Resources from what they call underutilized state lands. Abercrombie has said that the public corporation has the ability to reduce government bureaucracy.

Critics of the agency have railed against vague wording in the draft administrative rules as well as the law exempting the agency from some state environmental laws as well as county zoning and subdivison regulations.

The backlash at public hearings also prompted Big Island state Sen. Malama Solomon to propose creation of a strategic plan to help dispel what she called “so much misinformation” about the corporation’s mission.

In Saturday’s statement, Kalbert Young, director of the state Department of Budget and Finance and the chairman of the PLDC’s Board of Directors, said the proposed changes will address “the issues – and many misconceptions – that have been raised” in public hearings.

“We have heard the concerns of the community, and the PLDC board will now consider adoption of a strategic plan to better define what the PLDC can and cannot do,” Young said.

The draft strategic plan is available on its website listing for items accompanying the agenda for the Sept. 20 meeting.

According to the agenda for the Oct. 11 meeting, proposed changes to the draft administrative rules include removal of a section which called for the agency’s delegation of authority to its administrator “as it deems reasonable and proper” to effectively carry out Act 55.

Another proposed change include deleting of a section requiring 20 days advance notice for public testimony on meeting agendas and a requirement that the agency maintain a list of persons requesting notification of board meetings.

A proposed addition would limit testimony at PLDC meetings to subjects on the agenda and allow its administrator to limit the amount of time allowed each testifier.

The amendments include removal of the words “development” and “developer,” which in some cases are replaced by “project” and “project partner,” respectively.

The Oct. 11 meeting agenda and proposed changes to administrative rules is available at http://hawaii.gov/dlnr/pldc/meetings.

Testimony can be submitted by email to Joy Kimura at joy.y.kimura@hawaii.gov or faxed to 808-587-0390.

Source: Big Island Now

Lowering the Balance of Power? HELCO Wants to Renegotiate its Power Purchase Agreements with Renewable Energy Providers

HILO — Hawaii Electric Light Co. wants to renegotiate its power purchase agreements with renewable energy providers.

Earlier this week, the County Council approved by a 9-0 vote a resolution urging HELCO to renegotiate its contracts based on the price of energy production rather than “avoided cost,” which ties the cost of producing renewable energy to the price of oil on the market.

“We are in agreement with the resolution,” said HELCO President Jay Ignacio on Friday. He testified in favor of the renegotiated contracts when the resolution came before a County Council committee.

Councilman J Yoshimoto said the idea for the resolution came out of a discussion about general energy issues with HELCO officials earlier in the year.

Last December, the Public Utilities Commission approved an amended purchase power agreement between HELCO and PGV to purchase an additional 8 megawatts of power that would expand production to 38 megawatts and provide monthly savings of between $1.60 and $1.90 per customer through 2025.

Those savings struck a lot of people as not enough, given Hawaii Island’s reliance on imported fuel for energy.

“The savings that resulted out of the recent negotiations that HELCO had with PGV were minimal,” Yoshimoto said. That’s why he wrote the resolution to “ask both parties to go back to the negotiating table. That’s the bottom line.”

Ignacio was hopeful PGV was looking to renegotiate at least one of its contracts.

“They (PGV) have approached us and asked to renegotiate the part of the contract governing the first 25 megawatts, and they recognize the problem,” Ignacio said. “We have sent invitations to all the other power producers inviting them to come back and negotiate the energy contracts.”

As stated in the resolution, HELCO will provide the County Council an update on the status of its efforts at its meeting Oct. 17 at the West Hawaii Civic Center. This update will include whether PGV “was amenable to lowering the price rates for payers and the amount of the new negotiated price, if one has been agreed upon.”

Yoshimoto said he was hopeful the negotiations result in savings.

Ignacio, interviewed separately, agreed.

“I do hope so,” the HELCO president said. “From the electric utility’s perspective, we want to get lower cost contracts so we can pass the savings on to consumers.”

“The only assurance that we have is that they negotiate in good faith,” Yoshimoto said.

Hawaii County residents pay some of the highest costs per kilowatt in the nation.

While the Legislature has passed a law mandating that future energy contracts be decoupled from the price of oil, that doesn’t help the existing long-term contracts, some of which are for 20 or 30 years, that rely on the avoided-cost model.

HELCO also has purchase power agreements with two wind farm firms, Apollo Energy Corp./Tawhiri Power LLC and enXco/Hawi Renewable Development; and hydroelectric plant Wailuku Holding Co.

Source - Hawaii Tribune Herald

Kenoi, Kim Outline Differences at Friendly Mayor's Race Forum

HILO, BIG ISLAND (HawaiiNewsNow) -
Billy Kenoi and Harry Kim have known each other for decades. Kim coached Kenoi when Kenoi was just eight years old. And Kenoi was Kim's executive assistant when Kim was mayor. So it was a friendly matchup when the two candidates for Hawaii County Mayor met Friday in a candidates forum at the University of Hawaii-Hilo.

One of the topics at the forum was what to do with the island's trash as the Hilo Landfill nears capacity. Mayor Kenoi pointed to Oahu's H-Power facility as something that Hawaii County can emulate.

"They (Oahu) have four times as much trash as we do, over a thousand tons. They generate over 50 megawatts of energy that powers over 40,000 homes, and they do it for a cost of 91 dollars per ton," said Kenoi.

"Whether waste to energy will be the solution here, I don't know," said former mayor Kim. "It may be something we'll pursue, but we will pursue alternatives besides a landfill."

Perhaps the most pointed disagreement between the two had to do with Community Development Planning on the Big Island, a program started by Kim when he was mayor.

"By law, government will work with the public to determine their lifestyle and the future of their land," said Kim. "I think it's very important that we do this, by ordinance, by law. I was not happy with this administration not fully embracing it."

Kenoi countered that his administration has started even more community development plans several Big Island districts. But, he added, "Community development plans are important because they give the community meaningful input. But they do not supersede community services that everybody expects every day."

Both candidates also came out in support of geothermal energy, but with close government oversight.

"I am here to support geothermal," said Kim. "I am here to tell you we must do it safely like California does it. We must enforce rules and regulations and not depend on the private industry to tell you what the situation is in regards to public safety."

"Currently we have 38 megawatts being produced," said Kenoi about Puna Geothermal Venture's plant. "A lot of fear and questions are going around that there will be a thousand megawatts and industrialization of Puna. And the politics of fear is the worst politics of all."

Copyright 2012 Hawaii News Now. All rights reserved.

Governor Urges Plan for Hawaii Public Land Agency

By Associated Press

HONOLULU (AP) - The governor is urging a newly formed Hawaii public land Agency to adopt a plan defining its priorities and scope in an effort to address public criticism.

Critics say the Public Land Development Corp. would favor development because of its broad exemption from zoning laws. The agency was created by the State Legislature to allow for private development on state land.

The Honolulu Star-Advertiser reported Friday Governor Neil Abercrombie wrote to the corporation's board that adopting a strategic plan would show they are listening to the public's concerns.

The plan would make it clear the corporation has to comply with the state's environmental review and other laws.

Corporation board Chairman Kalbert Young says the board wants to wait until next month's meeting before deciding how to proceed.

Geothermal Drilling Bill Heads to Council

By ERIN MILLER
Stephens Media

The sound of Puna Geothermal Venture’s turbines is akin to a train or jet engine running all the time, Pahoa resident Paul Kuykendall told a Hawaii County Council committee Tuesday morning.

“Even the coquis are preferable to the industrial sound coming from the plant,” he said, during testimony in front of the Agriculture, Water and Energy Sustainability Committee. And the drilling that took place earlier this year was even louder, Kuykendall said.

Council Chairman Dominic Yagong introduced Bill 292 to limit geothermal drilling to daytime hours, from 7 a.m.-7 p.m. The committee sent the bill to the full council with a positive recommendation.

Hilo Councilmen Donald Ikeda and Dennis Onishi provided the only dissenting votes.

PGV Manager Mike Kaleikini said the plant has been operating within its noise limits. He testified against the bill, noting that even if drilling were halted at night, some of the equipment would have to stay running, generating noise even if nothing was being drilled. “To limit drilling to daytime hours only, the drilling process itself could be prolonged as much as two to three times longer,” he added.

Kuykendall, who testified just after Kaleikini, said he would prefer a longer drilling period, if it meant quieter nights.

About 15 people testified in support of the bill.

South Kona Councilwoman Brenda Ford said the bill may be the result of Yagong’s experiences hearing the geothermal drilling at PGV, but the bill isn’t specific to that company.

“There’s going to be geothermal drilling in Kona,” Ford said. “Everything going on in Puna that’s a detriment to the community is going to go on in Kona around Hualalai. It is a generic policy issue that this council has the legal right and obligation to pass to protect the public.”

Ikeda questioned Deputy Corporation Counsel William Brilhante on whether the measure oversteps the county’s authority. Brilhante said PGV historically has complied with state and county limitations on noise levels. He was concerned about the council making changes to the county charter that conflict with PGV’s permitting conditions and requirements.

“This proposed bill is saying, ‘You know what? We don’t care what that permit does. We don’t care historically what has been done,’” he said. “’We’re going to make you comply with more requirements that are stricter than what was required under the original permit.’”

Planning Director Bobby Jean Leithead Todd submitted a letter Tuesday morning to the committee expressing similar concerns, North Kona Councilman Angel Pilago said.

Yoshimoto asked for a formal opinion from corporation counsel on the bill, but voted to advance the measure to the full council with a favorable recommendation.

More than a dozen people testified, their testimony expanding on the drilling noise issue to sound levels from daily plant operations.

Kaleikini said the plant can impose more mitigation measures to limit sounds.

Bob Ernst, testifying from Hilo, said he supported the bill because sound from the plant should not be intruding in nearby residents’ homes.

“Noise pollution is not pono,” Ernst said.

Email Erin Miller at emiller@westhawaiitoday.com.

Geothermal Talk at Hawaii Volcanoes National Park Sept. 25

Harnessing geothermal energy from Kilauea will be the focus of a talk on September 25 at Hawaii Volcanoes National Park. Photo courtesy of Hawaii Volcanoes National Park.
by Denise Laitinen

“Developing Energy from an Active Volcano” will be the focus of a talk at the Hawaii Volcanoes National Park in the Kilauea Visitor Center Auditorium on Tuesday, September 25, at 7 p.m.

The lecture, which is part of the Park’s monthly After Dark in the Park program series, is free but park fees may apply.

Hawaii Volcanoes Observatory scientists Jim Kauahikaua, Frank Trusdell, Wes Thelen, and Jeff Sutton will present a brief history of geothermal development in Hawaii and a description of the location and nature of the hydrothermal system.

The most attractive area for power development is Kilauea’s lower east rift zone. The scientists will address the volcano and seismic hazards on Kilauea and the effects of geothermal development, plus the volcanic gas emissions from the hydrothermal system and their potential hazards.

For more information, contact Jessica Ferracane, Hawaii Volcanoes National Park Public Affairs, 808-985-6018.

Council Tries to Bring Down Cost of Power

Posted on September 5th, 2012
by Dave Smith

A County Council resolution urging Hawaii Electric Light Co. to seek lower power costs from renewable energy providers — hopefully to be passed on to consumers — brought out enthusiastic supporters today.

The measure introduced by Hilo Councilman J Yoshimoto asks HELCO to renegotiate its contracts with independent power producers to “de-link” the power from avoided cost, or what it would have cost to generate the power with fossil fuels.

The concept of avoided cost was established by the Public Utility Regulatory Policies Act of 1978 as an incentive for development of sources of renewable energy. The federal law contained a provision that states could opt out of the program, which Hawaii did in 2006.

Currently, only 13 megawatts of the renewable-source electricity HELCO buys is not tied to avoided cost. That includes a contract recently established for an 8-megawatt expansion of Puna Geothermal Venture and a renegotiated price for 5 megawatts of the 30 megawatts already being provided by PGV.

HELCO President Jay Ignacio responds to questions about the utility’s electrical rates. Photo by Dave Smith.
HELCO has declined to reveal its specific power costs, but the company’s president, Jay Ignacio, told Big Island Now that the impact on residential power bills from the new contracts would be negligible.

According to Yoshimoto’s resolution, which passed unanimously, HELCO estimates that PGV’s 8-megawatt expansion under the lowered cost will reduce a typical residential electricity bill by $1.67 in 2015.

Earlier this year HELCO officials signed another de-linked contract, this one with Hu Honua Bioenergy to provide 21.5 megawatts to be generated by the burning of biomass at the former Hilo Coast Processing Co. sugar mill in Pepeekeo. Hu Honua isn’t expected to begin producing power until 2014 at the earliest.

During a meeting of the council’s Committee on Agriculture, Water & Energy Sustainability that ran well into the night, all of the testimony was in support of Yoshimoto’s resolution, although most of those speaking said it did not go far enough.

Kuulei Cooper of Pohoiki testified that the resolution would be “only a suggestion” and didn’t go far enough to break what she called HELCO’s “egregious monopoly.”

Wallace Ishibashi, a negotiator for the International Longshore and Warehouse Union, told council members that electricity prices must come down. He said it affects workers because their employers pay so much for power.

HELCO’s residential rates, currently about 43 cents per kilowatt hour, are often the highest in the nation.

“This is too much,” Ishibashi said. “They’re not going to take it anymore.”

Mililani Trask, a principal in Indigenous Consultants, an organization seeking to develop geothermal energy sources to benefit indigenous peoples, described the previous contract between Hawaiian Electric Co. and Ormat Technologies, owner of PGV, as “price-fixing.”

Trask suggested requiring that the resolution be amended to require that HELCO report back on its efforts to renegotiate contracts.

Yoshimoto later noted that while the Public Utilities Commission approved the 8-megawatt and 5-megawatt deals, it criticized HELCO and PGV for failing to extend the de-linking to the remaining 25 megawatts.

He said the PUC seemed resigned to the result, but the public need not be, and he hoped his resolution would encourage it to speak out.

“I think change starts with the people,” he said.

Yoshimoto noted that rates are established by contracts over which the council has no power. But, he said, just because the companies can make their own deals, that “doesn’t make it right.”

Yoshimoto’s resolution notes that HELCO contracts with three other companies providing power from wind and hydroelectric facilities remain based on avoided costs.

Councilwoman Brenda Ford expressed doubt that reducing the cost of power to HELCO would translate into much in the way of lower consumer bills.

Independent producers using both renewable resources and oil currently produce about 130 megawatts to HELCO, representing a little under half of the utility’s total power capacity.

HELCO President Jay Ignacio told council members that his company doesn’t make any profit from independent power producers. He said HELCO makes profits on its investments including utility infrastructure.

Ignacio said he is agreement with the resolution and his company has already attempted to renegotiate existing contracts. He said HELCO is currently in talks with PGV at that company’s request.

“That’s good news,” Yoshimoto said. He asked if any details could be provided, but Ignacio said the process has to be confidential.

Ignacio said the existing contract with PGV for the remaining 25 megawatts expires in 2027, and existing contracts with other renewable energy producers run for either 20 or 30 years.

In addition to the roughly 40 megawatts that HELCO obtains from geothermal, wind and hydroelectric power, the utility receives about 17 megawatts in solar power, most from homes or businesses that use net metering to reduce their individual energy bills.

Ignacio said HELCO’s efforts to obtain power from producers such as Hu Honua, as well as its current plan to obtain another 50 megawatts from geothermal, is designed to reduce HELCO’s dependence on oil and its volatile pricing. Increases in the price of oil can raise electricity bills through PUC-approved surcharges.

“If we can drive that down, that will really help our customers out,” he said.

Council Chairman Dominic Yagong successfully introduced an amendment to the resolution similar to Trask’s suggestion which asked that HELCO appear before the council at its Oct. 17 meeting to report on its progress in renegotiating with PGV.

Ignacio said his company would be willing to provide the update, but would still have to maintain confidentiality.

“I’m not sure what we can share with you,” he said. He also noted that the recent 8-megawatt contract took three years to negotiate.

Any contract changes must be approved by the PUC.

HELCO recently asked the PUC to approve a 4.2% rate increase it says is needed to pay for a variety of renewable energy projects including forecasting systems for wind and computerized models to analyze the addition of more solar power into its grid.

If approved, the hike would add $8.32 to a typical 500 kilowatt-hour monthly electric bill.

Public Gets Chance to Comment on Clean Energy EIS

(Honolulu Civil Beat) The programmatic environmental impact statement being conducted by the U.S. Department of Energy and state energy office has been expanded from just Big Wind to look at a range of energy sources.

The public will have a chance to comment on the proposed PEIS at upcoming scoping meetings throughout the islands.

From the Hawaii Clean Energy Programmatic EIS website:

DOE’s proposed action is to develop guidance that it can use in making decisions about future funding decisions and other actions to support Hawai‘i in achieving the goal established in the HCEI. The Hawai‘i Clean Energy PEIS will analyze, at a programmatic level, the potential environmental impacts of clean energy activities and technologies in the following clean energy categories: (1) Energy Efficiency, (2) Distributed Renewables, (3) Utility-Scale Renewables, (4) Alternative Transportation Fuels and Modes, and (5) Electrical Transmission and Distribution.

The meetings will be held at the following locations and times:

Oahu: September 11, 5:00 p.m. - 8:30 p.m.
McKinley High School, 1039 S. King Street, Honolulu, HI, 96814

Kauai: September 12, 5:30 p.m. - 9:00 p.m.
War Memorial Convention Hall, 4191 Hardy St., Lihue, HI 96766

Big Island: September 13, 5:00 p.m. - 8:30 p.m.
Kealakehe High School, 74-5000 Puohulihuli St., Kailua-Kona, HI 96740

Big Island: September 14, 5:00 p.m. - 8:30 p.m.
Hilo High School, 556 Waianuenue Avenue, Hilo, HI,96720

Maui: September 17, 5:30 p.m. - 9:00 p.m.
Pomaika‘i Elementary School, 4650 South Kamehameha Avenue, Kahului

Lanai: September 18, 5:00 p.m. - 8:30 p.m.
Lanai High and Elementary School, 555 Fraser Avenue, Lāna‘i City, HI

Molokai: September 19, 5:30 p.m. - 9:00 p.m.
Mitchell Pauole Community Center, 90 Ainoa Street,Kaunakakai, HI

Oahu: September 20, 5:00 p.m. - 8:30 p.m.
James B. Castle High School, 45-386 Kaneohe Bay Drive,Kaneohe, HI

More information is available online: http://www.hawaiicleanenergypeis.com

Malu 'Aina: Shut Down Ormat (PGV) an Israeli Company

There is a worldwide movement to Boycott, Divest and Sanction (BDS) Israel for its treatment of Palestinians, similar to that applied to South Africa during the apartheid era.

Ormat, which owns Puna Geothermal Venture (PGV), is an Israeli company.

Hawaii should join the global BDS movement and Boycott and Divest from the Israeli Company – Ormat!

Malu ‘Aina Center For Non-violent Education & Action P.O. Box AB Ola’a (Kurtistown) Hawai’i 96760 Phone 808-966-7622 Email ja@malu-aina.orgwww.malu-aina.org

Geothermal Bills Still Alive

By TOM CALLIS

Tribune-Herald staff writer

After being vetoed last week, two geothermal bills will get another chance Thursday as the Hawaii County Council votes on whether to override Mayor Billy Kenoi’s administrative dismissal.

Both bills were the product of renewed opposition to Puna’s geothermal plant and questions over the safety of the technology.

The legislation partially re-purposes the county’s geothermal royalties fund to allow it to cover public safety programs related to the plant, and mandates an emergency response plan for existing and future plants

In his veto message, Kenoi said the bills are unnecessary since it would duplicate the purpose of another geothermal fund and because the Big Island’s incident command system would cover a geothermal disaster. He also expressed concern with one of the bills preventing the county from selling homes it acquires through the geothermal relocation program.

County Council Chairman Dominic Yagong, who introduced the bills, said the move snubs the dozens of Puna residents who have called on the county to do more to ensure the nearly 20-year-old plant has no impact on health and safety.

He called the veto political (Yagong is one of Kenoi’s main challengers in this year’s election) and expects a large turnout of bill supporters at the meeting. Six votes are needed to overturn a veto.

“I truly believe that these bills were correct and we’re going to do our darnedest to make sure we do have our six votes,” Yagong said.

Kenoi did not return a request for comment by press time.

Recent council meetings have turned into marathon public comment sessions with Puna residents, both for and against the bills, speaking for hours to the council.

Pele Defense Fund President Palikapu Dedman said his group stands by the bills and will make its support known inside and outside the council chambers.

Dedman said PDF members will join geothermal opponents in testifying before the council and picketing that same day outside the county’s Hilo offices and possibly and state Department of Health building on Kamehameha Avenue.

“We’re bringing all that we can,” he said, adding that group members will also present Kenoi with a list of their concerns.

Dedman said he hopes to see at least 100 people picketing.

Thursday’s meeting will be held in Kailua-Kona, but those unable to make the trip can still speak to the council via videofeeds in Pahoa, Hilo and Waimea.

Dedman said he expects a lot of geothermal opponents and other supporters of the bills to testify from the windward side.

After spending hours testifying in past meetings, he doesn’t expect too many of them to be happy.

“After all those hours and days of testimony … with one stroke of the pen he shuts everybody off,” Dedman said. “That’s pretty bad.”

The geothermal bills aren’t the only legislation Yagong is seeking to revive.

The council will also consider on Thursday overriding Kenoi’s veto of a bill that Yagong introduced requiring the county to make payments into a county retiree benefits account.

Kenoi called the bill “ill-conceived” and “fiscally irresponsible.”

The county is deferring the payments, which the administration says prevents the county’s fund balance from being drawn down to unacceptable levels that would threaten its bond rating.

Email Tom Callis at tcallis@hawaiitribune-herald.com.

ORMAT Signs EPC Contract With ENEL for Cove Fort

Ormat Technologies signs EPC contract valued at $61.4 million with Enel Green Power North America for its Cove Fort geothermal power plant project in southern Utah.

Reported earlier here, Ormat Technologies, Inc. “announced today that its wholly owned subsidiary, Ormat Nevada Inc., concluded and signed the $61.4 million engineering, procurement and construction (EPC) contract with Enel Green Power North America. Under the EPC contract, Ormat will provide two air-cooled Ormat Energy Converters at Enel’s Cove Fort geothermal power plant project in southern Utah.

The parties have entered into an interim agreement in the amount of approximately $9 million to ensure timely completion of the project in April 2012. Now that the full EPC contract has been executed, Ormat’s product backlog announced May 8, 2012 increased by an additional $52 million to a total of approximately $260 million, most of which is expected to be recognized as revenues through 2013.

“This development will incorporate Ormat’s low-operating-cost design and our consistent project completion standards,” said Yoram Bronicki, president and COO of Ormat. “We’ve had great success in deploying similar equipment to a myriad of projects worldwide and we intend to continue reinforcing this track record in established and new markets.”

Source: Ormat release via Marketwatch

Asia Pacific Clean Energy Summit and Expo 2012

The 2012 Asia Pacific Clean Energy Summit and Expo will be held at the Hawai‘i Convention Center, August 13 - 15.

The event is the preeminent meeting place for international leaders and energy experts at the forefront of the clean energy movement. Securing energy independence and developing a clean energy industry that promotes the vitality of our planet are two reasons why it is critical to reaffirm already established partnerships and build new ones throughout the Asia-Pacific region and the world. The Asia Pacific Clean Energy Summit and Expo provides a forum for the high-level global networking necessary to advance this emerging clean energy culture. Read our 2011 attendee testimonials at right.

For more info, visit: Asia Pacific Clean Energy Website

Mayor Vetoes Geothermal Bills

By PETER SUR
Tribune-Herald staff writer

A pair of bills relating to geothermal energy have died on Mayor Billy Kenoi’s desk, unless the County Council can engineer an override of the veto. Both bills generated tremendous public testimony prior to their passage by the County Council last month. Kenoi’s veto messages described both as unnecessary legislation.

One bill would have required the county Civil Defense Agency to prepare an emergency response and evacuation plan for geothermal facilities and to submit it to the County Council for approval by Aug. 1. The bill is aimed at people living near Puna Geothermal Venture. The bill would have allowed the administration to ask for a 90-day extension to write the plan.

Kenoi’s veto message for the Civil Defense bill states that first responders already have a plan for all emergency situations, including geothermal, based on the Federal Emergency Management Agency-developed incident command system.

“Since effective plans are already in place, there is no need for a new plan,” Kenoi wrote.
Council Chairman Dominic Yagong, who introduced both bills, said he was disappointed with the mayor’s action.

“In my estimation, that’s playing politics with people’s lives,” he said.

Councilwoman Brenda Ford said residents of lower Puna should have an idea of what to do in the event of a geothermal mishap.

“The community needs a plan on what to do, and they need guidance from the county on how to respond to a disaster,” he said. “You know, Plan A, Plan B, Plan C. That has not occurred, and I am supportive of that type of community evacuation plan being designed by the county and delivered to all the residents so that they know what to do.”

Ford said the county uses its incident command system “beautifully,” but “the average citizen hasn’t a clue what to do.”

A community evacuation plan would help in that situation, she said.

The other vetoed bill, which would affect people in lower Puna, would have renamed the Geothermal Relocation and Community Benefits Program to the Geothermal Relocation and Public Safety Program, although it’s popularly known as the “geothermal royalties” fund.

This bill would have redirected money from the community benefits program into uses that relate to public health and safety, including air quality monitoring and a public notification system. It would also have made eligible for relocation all homes within a mile of Puna Geothermal Venture.

“The thought that the county would not let us use money to determine what is making these people ill is the most egregious, lack of concern and compassion I have ever heard of,” Ford said. “These people are not making up these illnesses.

“Now, I do not know what is causing it,” Ford said. “They’ve got problems and nobody’s looking at it. … They’ve got very unusual illnesses.

Kenoi’s message to the council says the bill duplicates the purpose of the $2.1 million Geothermal Asset Fund, which is dedicated to funding public health and safety mitigation measures.

Kenoi also wrote that a “significant number” of people who have seen community benefits from PGV would like to see those benefits continue. But Ford said there were “far more people” who supported the bill than opposed it. She pegged the number of supporters at 60 to 70 percent of those who testified.

Kenoi wrote that the bill would result in lower tax revenues for Hawaii County by acquiring and holding homes from people who wish to be relocated, and liability issues that would arise from those vacant homes.

“It would be irresponsible for me to sign (the bill) into law due to its legal and technical flaws and because it is unnecessary,” Kenoi wrote.
But his critics think otherwise.

“Is he saying that health studies are inappropriate? Is he saying that the people of Puna are making these stories up?” Yagong asked.

Kenoi said that’s not the issue.

“The goals of protecting public health, safety and doing a thorough, comprehensive health study, we can already achieve through existing legislation and authority,” he said, and said the county was going to conduct a “thorough, open, transparent and community-involved study with health care professionals, independent researchers who have already inquired. … We’ll go to the community to address those goals.”

“We don’t believe this legislation is based on good science, good authority,” Kenoi wrote. “There’s too much ambiguity, and the first hurdle in signing any piece of legislation is a good law. And unfortunately this legislation has too many flaws.”

The County Council approved the evacuation plan bill by a 7-2 vote and the relocation and public safety bill by a 6-3 vote. Yagong has not indicated whether he would call for a veto override.

Email Peter Sur at psur@hawaiitribune-herald.com.

Source: Hawaii Tribune Hearld

Early Industry Practices Brought to Light at Recent Hawaii County Council Hearing

Mililani Trask Brings Light to Early Hawaii Utilities Industry

Monday, July 2, 2012 - Hilo, Hawaii

Mililani Trask addresses the Hawaii County Committee on Agriculture, Water, and Energy Sustainability. Near the end of her presentation, she has brought to the Council Member's attention a few archived documents of early Industry between the utility companies here in Hawaii.

Hawaiian Electric Industries Inc. (HEI) of Honolulu, and Ormat Energy Systems Inc. of Sparks, Nev., Monday announced the execution of a Memorandum of Understanding to jointly develop geothermal power plants on the island of Hawaii. The parties said they hope to enter into a final partnership agreement by the end of October. Under the terms of the Memorandum of Understanding, Ormat will sell 50 percent of its subsidiary Puna Geothermal Ventures (PGV) to HEI subsidiary Hawaiian Electric Renewable Systems (HERS). Ormat will continue to be the managing partner for geothermal projects to be developed by the partnership.
 
PGV is the first company to receive necessary government approvals to develop a commercial geothermal energy plant in Hawaii. A 25 megawatt plant is expected to be operational by the end of 1990. PGV has a contract to sell electricity produced by the plant to Hawaii Electric Light Co., which serves the island of Hawaii. In addition to PGV's 500 acre power plant site, PGV has surface rights on another 10,000 acres in the Puna district of the island, with mineral lease rights on 4,500 of those acres. A small experimental geothermal power plant owned by the State of Hawaii has been generated in this area since 1982.
 
Hezy Ram, president of Ormat Energy Systems said: "We see a great deal of synergy in joining forces with HEI. Ormat brings 25 years of worldwide leadership in developing pollution-free power plants utilizing locally available heat sources, as well as the track record of developing and operating nine geothermal power plants, with two more under construction. "HERS, on the other hand, is uniquely positioned to assist the partnership in all matters pertaining to doing business in Hawaii."
 
HEI President C. Dudley Pratt, Jr. said HEI "is pleased to be an active participant in the development of geothermal energy in Hawaii. Ormat has an excellent record of environmental protection wherever it has built geothermal energy plants. HEI is committed to being a leader in renewable energy development in the state, and our agreement with Ormat supports this goal."
 
HEI's other renewable energy projects in Hawaii are windfarms on the island of Hawaii and Oahu. The Oahu facility includes the world's largest horizontal axis wind turbine now in operation, the Boeing MOD-5B.

Download Document: HERE

Volcano Watch: Can Geothermal Energy Development be Balanced with Volcanic Hazards in Hawaii?

(Volcano Watch is a weekly article written by scientists at the U.S. Geological Survey’s Hawaiian Volcano Observatory.)

Puna Geothermal Venture. Hawaii 24/7 File Photo

For decades, the State of Hawaii has been trying to reduce our dependence on fossil fuels. Energy from Hawai`i geothermal resources is but one of several alternate energy sources that have been explored.

In Hawai`i, geothermal resources depend on volcanic heat. Magma, stored in rift zones, heats groundwater which can be tapped by drilling. It is then pumped to the surface where its heat is extracted to drive electrical generators.

It makes sense that the most attractive geothermal target in the State of Hawaii is also the most active volcano—Kilauea. The nearly continuous supply of magma to Kilauea pumps heat into the geothermal resource, but it also fuels eruptions that could threaten structures on the volcano.

To make clear where future lava flows are most likely, Hawaiian Volcano Observatory (HVO) scientists published Lava-Flow Hazard Zone Maps as early as 1974, designating the summits and rift zones of Kilauea and Mauna Loa volcanoes as the most hazardous. For Kilauea, the summit and rift zones of the volcano also have the highest geothermal potential, so the Lava-Flow Hazard Map closely resembles the geothermal resource map.

Geothermal resources definitely exist on Kilauea, as established by the HGP-A pilot project in the 1970s. The Puna Geothermal Venture commercial power facility has produced 30 Megawatts (MW) from Kilauea’s heat, 20 percent of the annual electrical usage of the Island of Hawai`i, since 1993.

The most recent study in 2005 suggests that the potential of the Kilauea resource, excluding areas within national parks and state reserves, could be between 250 and 600 MW. Development of geothermal resources may also be possible on volcanoes with less frequent eruptions than Kilauea, such as Hualalai, Haleakala, or Mauna Kea.

If a resource of this size exists and is fully developed, the power generated from it would far exceed the need for electricity on the Island of Hawai`i. Therefore, the State of Hawaii is proposing the use of an undersea cable to link the islands between Hawai`i, the potential major energy producer, and O`ahu, the major energy consumer.

But what about the risk posed by volcanic eruptions? In a 1994 USGS publication (pubs.usgs.gov/of/1994/0553/rep…, HVO scientists estimated a high probability of eruptions from Kilauea’s lower east rift zone within any 50-year period. The publication also found a significant likelihood of lava inundation along the cable pathways linking the proposed Kilauea geothermal developments to the Honolulu energy grid, because the cable would have to pass across the northeast flank of Mauna Loa, Hawai`i’s other very active volcano.

These threats are real. In the last 200 years, eruptions have occurred three times in the lower east rift zone of Kilauea and six times on the northeast flank of Mauna Loa. The possibility of an eruption in the geothermal resource or state-wide cable path within any 50-year period is between 60 and 90 percent.

The effect of an eruption within a geothermal power development could be severe, and the site could be deeply buried by lava.

The power generated by the geothermal facility would be lost—possibly for weeks, months, or even years. The 1840, 1955, and 1960 eruptions in lower Puna continued for weeks to months. Power generation and transmission could not resume until after the eruption ceased, and it was safe to re-enter the area and re-establish the facilities and the cables carrying electricity away from the site.

With enough lead time before the eruption, however, much of the power-generation equipment might be moved offsite and saved for future use.

The effects of an eruption would be more profound as the geothermal power development increased in size. If a 500-MW power generation facility were developed within the lower east rift zone of Kilauea and power exported to O`ahu and Maui, a volcanic disruption would have state-wide effects.

As a community, we should explore all options in our quest for inexpensive, reliable electricity. There are down sides to the utilization of any energy source, and we must balance the negatives with the positives when making choices. This includes balancing the considerable benefits of geothermal resource development with the inherent volcanic risk of such development on active volcanoes.