Ka`u News Briefs May 16, 2013

An energy consultant hired by the state Consumer Advocate cites benefits to be derived from `Aina Koa Pono's plan
to grow feedstock in Ka`u and use it to make biofuel at a refinery above Pahala. Photo from ainakoapono.com

THE SENATE JUDICIARY COMMITTEE has adopted an amendment by Sen. Mazie Hirono that could make it easier for Hong Kong tourists to visit Hawai`i. The amendment allows Hong Kong to be considered for the Visa Waiver Program.
      “This small change to the visa waiver system could have a big impact on Hawai`i’s economy,” said Hirono. “Right now, people in Hong Kong can visit more than 140 countries and territories without visas, but these potential Hawai`i tourists must still endure a time-consuming visa approval process in order to come to the United States. By fixing the visa waiver process for visitors from Hong Kong, we can make it easier for thousands of tourists from this region to come to Hawai`i.”



Sen. Mazie Hirono

      This measure adopted by the committee fixes a technical problem that prevents Hong Kong from joining the Visa Waiver Program. Under current law, only “countries” are eligible for the program. Hong Kong is not a sovereign country but is a self-governing region of China, so a special provision needs to be added to the law to make Hong Kong eligible.


      Lisa Simon, of the National Tour Association, said Hirono’s legislation would increase tourism from Hong Kong, both in Hawai`i and across the country.

 “We applaud Sen. Hirono’s leadership in presenting this legislation that would open the way for increased visitors from Hong Kong to the United States. NTA supports this bill and any other endeavors that serve to increase international visitation, particularly from sizeable Asia markets. We anticipate this legislation would have an immediate and profound impact on increased travel from Hong Kong, which would have a positive impact on our economy and jobs creation.”


      According to the Hawai`i Tourism Authority, Hong Kong visitors spent on average $230 for each day they stayed in Hawai`i, almost 20 percent more than the average visitor. Visitors from Hong Kong also tend to stay in Hawai`i longer than the average visitor.
      Hawai`i’s visitor industry has a long history of benefiting from more streamlined visa laws with Asian countries, according to a statement from Hirono’s office. Last October, Taiwan was added to the Visa Waiver Program. A few months later, Hawaiian Airlines announced plans for direct flights from Taipei to Honolulu in part because of the projected increase in demand from Taiwan’s participation in the waiver program.


      The legislation has received support from U.S. Chamber of Commerce, U.S. Travel Association, American Hotel and Lodging Association, National Association of Counties, National Retail Federation, International Franchise Association and National Tour Association.

THE PUBLIC UTILITIES COMMISSION has received responses to questions posed by Hawai`i County to the state Consumer Advocate regarding testimony on the proposed contract for `Aina Koa Pono to sell biofuel refined above Pahala from biomass grown in Ka`u to Hawai`i Electric Light Co.
      Hawai`i County asked the Consumer Advocate to explain why the proposed AKP price is not linked to fossil fuel prices, “when all justification given to this price in prior and current testimony compares the AKP price to current and forecast prices of petroleum and petroleum- derived diesel.”
      The Consumer Advocate replied that the AKP price is not tied to fossil fuels “in compliance with state policy to reduce dependence on fossil fuels, including its exposure to variations in fossil fuel prices. Mr. Hornby (an energy consultant hired by the Consumer Advocate) provided comparisons to fossil fuel prices to illustrate how the AKP project would help meet this state policy. The AKP contract represents a known future price path for fuel at the Keahole plant. This price will not change with changes in oil prices.

The Consumer Advocate hired James
Richard Hornby as a consultant.

      “Mr. Hornby states that in exchange for higher fuel costs relative to Reference Case forecasts, the utility companies and their customers will derive certain benefits, including reduced dependence on fossil fuels, reduced exposure to higher electricity prices when petroleum prices are higher than AKP prices, reduced exposure to petroleum price volatility, reduced air emissions, contribution to Renewable Portfolio Standards requirements, and diversification of resources to meet RPS requirements.
      Hawai`i County asked, “If reduced exposure to higher electricity prices when petroleum exceeds AKP prices is a consumer benefit as stated, then — by the same logic — is it not also the case that utility companies and their customers will suffer a penalty when petroleum prices are lower than AKP prices?”
      “Yes,” the Consumer Advocate replied. “Among its other benefits the AKP contract provides a hedge against diesel price risk. Like any hedge, in any given year the price of AKP biodiesel may be higher than the spot price of diesel or lower than the spot price of diesel. As a hedge, the AKP supply contributes to price stability and mitigates the financial risk associated with low probability, high price fluctuations in oil markets.”
      Hawai`i County asked, “If high, fixed long-term costs benefit consumers by avoiding price volatility, then why shouldn’t we extend this logic to all commodities considered vital to consumers and uniformly eliminate price volatility by fixing their prices at the highest possible levels conceivable under forecast conditions?”
      The Consumer Advocate responded, “First, the market for electricity is not competitive, whereas the market for food is competitive. Second, it should be noted that the proposed policy is not to set “high, fixed” prices.
      AKP was selected through a competitive bidding process to procure a source of biofuel for the Keahole units at a fixed price. Third, the companies are entering the AKP contract to comply with the state’s RPS. Fourth, the AKP project provides numerous benefits. Its value as a hedge is only one of those benefits. Finally, the electricity from the AKP biofuel would represent only 19 percent of HELCO’s annual requirements.”
      More testimony will be covered in future Ka`u News Briefs. All testimony is available at puc.hawaii.gov.

THE USDA NATIONAL AGRICULTURAL STATISTICS SERVICE is currently conducting the 2012 Census of Agriculture. All agricultural operations should have received their census forms in the mail by now. “It is very important that all operations be counted and their voices heard,” said research statistician Cheresa Coles. “Furthermore, this is a wonderful opportunity to capture Hawai`i County’s specific farm data. This will be the only time that county-level data will be published for the next five years for the state of Hawai`i.”
      Hawai`i farm policies are implemented from data collected in the Agricultural Census. The census can be completed by telephone, mail, online or a personal interview. The deadline is May 31, 2013.
      For more information or to get a form, contact Coles at 961-9496 or cheresa.coles@nass.usda.gov.

HAWAI`I POLICE DEPARTMENT REMINDS the public that they may participate in an anonymous Community Satisfaction Survey this month. The Internet survey is open until 4 p.m. Friday, May 31. It can be accessed at hawaiipolice.com. 

      The survey takes about five minutes to complete and is limited to one survey per computer. Participants will be able to enter detailed comments and suggestions at the end of the survey. The respondent’s IP address will not be stored in the survey results.
      The responses will be collected and compiled by an outside source. After the survey period, results will be posted on the Police Department’s website.

KA`U’S UPLINK ALL-STARS KIDS traveled to Hilo Intermediate School last Friday for a volleyball game and won two out three sets. Trini Marques was the coach, assisted by Tianna Moses. The captain was Chadwick Pajimola, with assistant captains Chloe Gan and Alysha Savella. Players included Chadwick Pajimola, Chloe Gan, Alysha Savella, Lomon Silk, Bem Bunglik, Jennifer Abalos, Rollie Flores, Augustine Sanchez and Calbert Joji. The most valuable player was Lomon Silk.

KAWCD meets at Royal Hawaiian Orchards field office this afternoon.
Photo by Julia Neal

KA`U AGRICULTURAL WATER COOPERATIVE DISTRICT meets today at 4 p.m. at Royal Hawaiian Orchards Field Office. The organization is restoring agricultural water from the old plantation system. Meetings are open to the public. For more information, call Jeff McCall at 928-6456. 

RESTAURANTS IN NA`ALEHU offer live entertainment this weekend. Tomorrow evening, Boni Narito performs at South Side Shaka’s. Call 929-7404.
      On Saturday, Back to the ‘50’s Trio keeps diners tapping their toes at Hana Hou. Call 929-9717.

SUPPORT OUR SPONSORS AT PAHALAPLANTATIONCOTTAGES.COM AND KAUCOFFEEMILL.COM. KA`U COFFEE MILL IS OPEN SEVEN DAYS A WEEK.

ALSO SEE KAUCALENDAR.COM AND FACEBOOK.COM/KAUCALENDAR.

Ka`u News Briefs May 15, 2013

The National Park Service has decided on methods to eradicate mouflon sheep and other non-native ungulates from
Hawai`i Volcanoes National Park. Photo from NPS

HAWAI`I VOLCANOES NATIONAL PARK has decided how it will control non-native ungulates in its plan to protect and restore native ecosystems. To achieve its population objective of zero non-native ungulates, or as low as practicable, in managed areas, the National Park Service will use the primarily lethal control techniques of direct reduction with firearms (ground shooting and aerial shooting). The NPS will use snaring primarily for the removal of feral pigs, particularly when they are at remnant levels, when densities are low; in rugged terrain or remote sites; or to remove pigs that have become accustomed to other removal techniques and learned to avoid them.

      The Record of Decision released yesterday by the park announced that it will allow volunteers to assist with the plan. “Based on past volunteer involvement, the majority of volunteer interest continues to be in participation with ground shooting efforts,” the document states. “Qualified volunteers will be used to assist with ground shooting operations and could be used for certain other non-native ungulate management activities (e.g., fence building, monitoring, baiting).” 

      According to the document, the NPS will retain a volunteer program for the following reasons:

• “It assists in removal of non-native ungulates in support of the plan. 
• “It furthers the purposes of the Volunteers in Parks Act and NPS Management Policies 2006 related to the use of volunteers by engaging the surrounding community and general public in stewardship of park resources as authorized agents of the NPS. 
• “It provides an opportunity to increase awareness of non-native ungulate adverse impacts and build support for the ungulate management program.” 

      To be eligible, qualified volunteers will be required to fill out a registration form and meet specific criteria, including the following:

• Obtaining a Hunter Education Certificate or card; 
• Presenting registration of the firearm to be used and a Hawai`i hunting license; 
• Providing their own transportation; and 
• Being able to spend a minimum of eight hours hiking over rough terrain.

Expanded fencing of Hawai`i Volcanoes National Park will lead to
recovery from damage by non-native ungulates, according to the
National Park Service. Photo from NPS

      The document states that the NPS could make adjustments to the volunteer program to improve the effectiveness of the program and that “current NPS practice dictates that the use of qualified volunteers for lethal removal of wildlife in accordance with an approved management plan is not a recreational activity, does not involve the principles of fair chase, and does not allow volunteers to keep any part of the animal, including the meat.” It also says, “The NPS will salvage and donate meat when possible, following all applicable public health and government property guidelines.” 

      It also states that non-lethal techniques of control could be considered.
      The complete Record of Decision is available at http://parkplanning.nps.gov/havo_ecosystem_rod.

YESTERDAY’S PUBLIC MEETING on Mayor Billy Kenoi’s proposed property tax increases drew seven testifiers islandwide. Residents viewed the Hilo meeting from Ocean View Community Center and other remote teleconferencing sites in Kona, Pahoa and Waimea.
      While no one at Ocean View Community Center offered testimony, all of those testifying from other locations opposed the proposed increases. In Hilo, Marie Correa said property taxes should be “fair and equitable. How can you take a tax system that is broke and add 10 percent more?” Another testifier in Hilo cited “examples of disparity” in the system where exemptions on properties are more that 50 percent of their assessed values.
      A resident in Waimea suggested that the county try to collect overdue taxes as a way to increase revenue. Gretchen Lambeth, a real estate agent in Kona, said that raising taxes will hurt sales, noting that inventory of lower prices houses has been depleted.
      Ka`u’s Council member Brenda Ford, who opposes tax hikes, said she’s getting a lot of emails from constituents also in opposition, pointing out the west side of the island was hardest hit by the 2010 tax increases, according to Nancy Cook Lauer, of Stephens Media. “West Hawai`i also has fewer exemptions because homes tend to be newer and residents younger,” Ford said. See more at hawaiitribune-herald.com.
      The County Council is scheduled to vote on the tax hike and proposed budget May 30.

THE PUBLIC UTILITIES COMMISSION has received responses to questions posed by Hawai`i County to the state Consumer Advocate regarding testimony on the proposed contract for `Aina Koa Pono to sell biofuel refined above Pahala from biomass grown in Ka`u to Hawai`i Electric Light Co. 

      “The Division of Consumer Advocacy accepts that the higher price of biodiesel is good for consumers and asserts that spreading the additional cost over a wider customer base by including HECO is beneficial public policy,” Hawai`i County states. “Please explain the direct benefit to consumers and positive impact on their economic well-being from paying the Biofuels Surcharge—whether they are HECO or HELCO ratepayers.”
      The Consumer Advocate replied, “It is unfair for O`ahu customers to rely upon the renewable energy resources from the neighbor islands, so that the HECO companies can meet the Renewable Portfolio Standards goals, but not have to pay for some portion of it. Another direct benefit occurs when biodiesel prices are less than ultra low sulfur diesel prices, which would mean that customers would actually see a potential downward adjustment in the adjustment clause.
      “The proposal to have O`ahu shoulder the burden of incremental costs when the biodiesel is higher than diesel was offered in recognition of the larger customer base on O`ahu and the relative impact on spreading that incremental cost differential to O`ahu only and to a combined O`ahu/Hawai`i customer base…. In the absence of this contract, there is a possibility that HECO may be assessed penalties and, if such penalty is assessed, whether HECO’s ratepayers would either be directly affected by those penalties (i.e., those penalties included in the cost of service when determining rates) or indirectly affected (i.e., if not included in the cost of service, the cost of capital increased because of the financial markets perceiving a greater risk associated with the HECO companies due to the inability to recover such penalties from customers).

      “The proposed contract results from the state’s energy policy seeking to transition to a clean energy future. It has been generally recognized that the transition to alternative sources of energy would result in immediate and near-term increases in utility bills but that, over time, as petroleum prices continue to increase, ratepayer benefits would be reaped through more stable, fixed pricing associated with alternative fuel and energy sources. 

      “The Consumer Advocate acknowledges the concerns being raised and, for those very reasons, have supported the need for programs such as the on-bill financing to facilitate the creation of measures that low-income customers can use to reduce the impact of the transition to a clean energy industry.
      “Due to the energy policy seeking a transition to a clean energy economy, additional costs are being incurred, but those costs represent an investment in the future that, if properly made, should result in long-term benefits that should outweigh the immediate and near-term increases that may occur.
      “The Consumer Advocate contends that the analysis in this proceeding should consider available alternatives. While the state is considering the feasibility of natural gas, it is not currently available, and the implication that recent structural declines in natural gas should be considered as an alternative does not seem appropriate. The Consumer Advocate is not aware of any proposals that were more cost effective than AKP's proposal. Further, the Consumer Advocate contends that historically the ... forecast for petroleum underestimated the price increases.
      “County of Hawai`i appears to imply that Hawai`i should continue to rely upon petroleum as the fuel source for much of Hawai`i’s generation. This is contrary to the state’s energy policy and the statutory RPS requirements. The reduction in Hawai`i’s dependence on imported petroleum is one of the main tenets of the ... legislation.
      More testimony will be covered in future Ka`u News Briefs. All testimony is available at puc.hawaii.gov.

KAWCD is restoring ag water from the old plantation system.

HULA HALAU KE `OLU MAKANI O MAUNA LOA performs this evening at 6:30 p.m. at Kilauea Visitor Center Auditorium in Hawai`i Volcanoes National Park. The halau has participated in many competitions, festivals and other events throughout the state of Hawai`i, the U.S. mainland and Japan. Its goal is to perpetuate the Hawaiian culture, protocol and history through song and dance and instill confidence, respect and responsibility in the dancers. Free; park entrance fees apply. 

KA`U AGRICULTURAL WATER COOPERATIVE DISTRICT meets tomorrow at 4 p.m. at Royal Hawaiian Orchards Field Office. The organization is restoring agricultural water from the old plantation system. Meetings are open to the public. For more information, call Jeff McCall at 928-6456.

SUPPORT OUR SPONSORS AT PAHALAPLANTATIONCOTTAGES.COM AND KAUCOFFEEMILL.COM. KA`U COFFEE MILL IS OPEN SEVEN DAYS A WEEK.

ALSO SEE KAUCALENDAR.COM AND FACEBOOK.COM/KAUCALENDAR.

Ka`u News Briefs May 14, 2013

The Public Utilities Commission has received responses from the state Consumer Advocate to questions posed by Life
of the Land regarding the proposed contract for `Aina Koa Pono to sell biofuel to HELCO that would be refined above
Pahala from feedstock grown in Ka`u. Photo by Julia Neal

A GROUP OF OPPONENTS to the Thirty Meter Telescope has filed an appeal regarding last month’s approval of a land use permit by the Board of Land and Natural Resources. University of Hawai`i – Hilo “has admitted that the TMT will have adverse, significant and substantial impact on the natural and cultural resources,” Kealoha Pisciotta told Colin M. Stewart, of Hawai`i Tribune-Herald. “The rules are clear in that regard. A project may not have that impact. They should have been denied the permit. That’s why we need to seek justice in the court.”
      Pisciotta is spokesperson for appellants including Kahea: The Hawaiian Environmental Alliance, Mauna Kea Anaina Hou, Clarence Kukauakahi Ching, the Flores-Case Ohana, Deborah J. Ward, and Paul K. Neves.
      According to the story, Sandra Dawson, TMT Manager of Hawai`i Community Affairs, said that she didn’t see any grounds for an appeal “that opponents might use to slow or halt the project.”

      See more at hawaiitribune-herald.com.

THE PUBLIC UTILITIES COMMISSION has received responses to questions posed by Life of the Land to the state Consumer Advocate regarding the proposed contract for `Aina Koa Pono to sell biofuel refined above Pahala from biomass grown in Ka`u to Hawai`i Electric Light Co. 

      “The land slated to be used for biofuel production is former sugar cane land that is currently not being used for food or ranching,” said the Consumer Advocate in response to Life of the Land’s questions: “How many existing leases exist for land owned by the Edmund Olson Trust that is slated for biofuel production. How many of these leases are currently in (a) food production? (b) ranching? (c) other diversified agricultural production?”
      Life of the Land also asked how many of the lessees the Consumer Advocate talked with and to document the date and contact person for each discussion. The Consumer Advocate replied that he did not have any discussions with lessees.

Hawai`i state Consumer Advocate
Jeffrey Ono

      Life of the Land asked the Consumer Advocate about Hawaiian Electric Co. and HELCO saying that “both AKP-1 and AKP-2 are reasonable and in the public interest even though there is a $100M differential in the pricing. ‘Does the Consumer Advocate believe that two widely different ratepayer impact proposals could both be reasonable and in the public interest?’” 

      “The Consumer Advocate contends that the different proposals could be found reasonable,” was the response.
      “Does the Consumer Advocate believe that HECO/HELCO conducted adequate due diligence?” Life of the Land asked.
      The Consumer Advocate replied, “Given the nature of the contract terms and conditions, such as where HECO/HELCO would not be burdened with purchasing fuel that did not meet specifications or was not produced, the level of due diligence appears adequate.”
      Life of the Land asked, “Does the Consumer Advocate believe that AKP management and owners have strong biofuel experience? Please document your response.”
      “The Consumer Advocate believes that AKP management and owners are relying upon resources that should allow the project, if approved, to achieve success. AKP is relying upon the expertise of AECOM. AECOM reported to the Consumer Advocate that its pilot project has been successful. AKP intends to build a mobile unit that will be able to demonstrate that this technology is viable.”
      This and other testimony is available at puc.hawaii.gov.

REINSTATING COUNTY COUNCIL’S discretionary funds is part of the proposed $4.3 million budget for the Council during the upcoming fiscal year. The budget proposes to provide $100,000 to each of the nine Council members that could be used for unbudgeted projects in their districts. Such funds were eliminated from the Council budget four years ago.

PROPOSED PROPERTY TAX INCREASES are the subject of a public meeting today at 5 p.m. The meeting takes place at Hilo Council chambers, with videoconferencing available at Ocean View Community Center. Mayor Billy Kenoi proposes raising property taxes by 10 percent.

Ka`u residents can offer testimony at tonight's meeting on proposed
property tax increases and at tomorrow's County Council meeting
from Ocean View Community Center.

      The mayor’s revised $394.3 million budget is a 7.9 percent increase over this year’s budget. The budget allows for the ending of county worker furloughs that led to backlogs in processing permits for the public and put many county projects on hold. 

      Ka`u Council member Brenda Ford has expressed opposition to the tax increase. “There are some tax increases I could support,” Ford said. “A property tax increase is not one of them,’” according to an article by Nancy Cook Lauer. See more at www.hawaiitribune-herald.com.
      The Council is scheduled to vote on the budget at a special meeting on May 30.

KA`U RESIDENTS ARE URGED TO PARTICIPATE in tomorrow’s County Council meeting from Ocean View Community Center’s remote videoconferencing site, which Hawai`i County Council is considering closing down due to lack of use. The meeting begins at 9 a.m. at Council chambers in Hilo.
      Agenda is available at hawaiicounty.gov.

DR. JADELYN MONIZ-NAKAMURA DISCUSSES fossilized human footprints in the Ka`u Desert at this evening’s After Dark in the Park program. Research suggests the story behind the footprints may be more complex than originally thought. The footprints found in ash layers were believed to have been created in 1790 by the army of the Hawaiian Chief Keoua on their way back from battle. While in the area, Kilauea erupted, sending suffocating ash down on one group. Others made it out alive, leaving their footprints in the then-wet ash. The ash dried, forever memorializing this event – or did it?
      The program begins at 7 p.m. 
at Kilauea Visitor Center Auditorium in Hawai`i Volcanoes National Park. $2 donations support park programs.

HAWA`I ISLAND NETWORK OF ARTISTS holds a wrap-up meeting tomorrow from 5:30 p.m. to 7 p.m. at Volcano Art Center’s Ni`aulani Campus in Volcano Village. This is a final opportunity to learn about VAC’s HINA Project and be included in this research study. The project aims to encourage and support a greater awareness of Hawai`i Island artists and the economic impact of this creative workforce. See more at www.HINArtists.org.

Members of Hula Halau Ke `Olu Makani O Mauna Loa

AN EVENING OF HULA AND MUSIC with Hula Halau Ke `Olu Makani O Mauna Loa takes place tomorrow from 6:30 p.m. to 8 p.m. at Kilauea Visitor Center Auditorium in Hawai`i Volcanoes National Park. The halau has participated in many competitions, festivals and other events throughout the state of Hawai`i, the U.S. mainland as well as Japan. Its goal is to perpetuate the Hawaiian culture, protocol and history through song and dance, and instill confidence, respect and responsibility in the dancers. Free; park entrance fees apply.

THE NEXT KA`U AGRICULTURAL WATER COOPERATIVE DISTRICT meeting is scheduled for Thursday at 4 p.m. at Royal Hawaiian Orchards Field Office. The organization is restoring agricultural water from the old plantation system. Meetings are open to the public. For more information, call Jeff McCall at 928-6456.

HAWAI`I COUNTY POLICE DEPARTMENT will hold a community meeting in Ka`u a week from today on Tuesday, May 21 from noon to 2 p.m. at Na`alehu Community Center.
      The purpose of the meeting is to allow the public to meet the Police Department’s command staff and to discuss concerns with the police chief and commanders who oversee police operations in Ka`u.
      The Ka`u event continues the district community meetings, which are rotated throughout the eight police districts on the Big Island. To aid police commanders in focusing on specific concerns, it is requested that participation be limited to persons who live or work in the Ka`u District.
      Those interested in participating but unable to attend may call Captain Andrew Burian at 939-2520, stop by the Ka`u police station in Na`alehu or e-mail their concerns or comments to copsysop@hawaiipolice.com.

SUPPORT OUR SPONSORS AT PAHALAPLANTATIONCOTTAGES.COM AND KAUCOFFEEMILL.COM. KA`U COFFEE MILL IS OPEN SEVEN DAYS A WEEK.

ALSO SEE KAUCALENDAR.COM AND FACEBOOK.COM/KAUCALENDAR.