Ka`u News Briefs Feb. 3, 2011

Pacific Biodiesel founders Kelly and Bob King want tax breaks for small biodiesel companies
which use only local feedstock. They have a waste-free biodiesel plant opening at
Shipman Industrial in Kea`au.

`AINA KOA PONO asked the state Legislature yesterday to support a 15 percent tax credit for building a refinery here in Pahala. Chris Eldridge, who also owns American Mattress stores around the state, is an `Aina Koa Pono partner. His testimony for yesterday’s hearing describes former sugar lands, now largely used by the cattle industry between Pahala and Na`alehu, as “fallow,” and says that using land for a biofuels farm and factory would help fend off a rise in fuel prices statewide. “Building agriculturally based biofuel refineries in Hawai`i has the potential to reinvigorate Hawai`i’s struggling agriculture industry while also helping to meet the renewable energy goals of Hawai`i’s Clean Energy Initiative,” said Eldridge.

THE NUMBER OF JOBS projected for the proposed biofuels refinery and farm here in Ka`u was increased in the testimony that asks for the 15 percent tax credit. Eldridge said that in addition to 300 construction jobs over two years to build the refinery in Pahala, `Aina Koa Pono now projects 150 to 200 jobs created for the 20 to 30 years that the biofuel refinery would be in operation.

HE ALSO SUGGESTED that the tax break bill be amended to provide tax credits within 60 days after the refinery becomes operational. “We cannot emphasize enough the need for these incentives to attract private capital to invest in these projects for Hawai`i. We have found that, because of the lack of commercial biofuel projects already constructed, private capital is reluctant to invest in these type plants. This legislation will assist greatly in attracting private capital to Hawai`i so we can become energy self-sufficient,” said Eldridge.

THE TAX FOUNDATION of HAWAI`I gave its analysis of giving biofuel refineries tax credits. It pointed out that each biofuel refinery could get up to $60 million in tax credits, a loss in tax revenues to the state should the refineries become successful. “While the idea of providing a tax credit to encourage such activities may have been acceptable a few years ago when the economy was on a roll and advocates could point to credits like those to encourage construction and renovation activities, what lawmakers and administrators have learned in the past few months is that unbridled tax incentives, where there is no accountability or limits on how much in credits can be claimed, are indeed irresponsible as the cost of these credits go far beyond what was ever contemplated.”
     The Tax Foundation testified that the proposal “verifies what has been said about legislators latching onto the fad of the month without doing very serious research.” The Tax Foundation pointed to tax credits already set up for ethanol, saying that after the credits were enacted, it was learned that ethanol production demands more energy to produce than using traditional petroleum and that it directed the feedstock away from traditional uses – food.

PACIFIC BIODIESEL supported the legislation for tax incentives but requested that the tax break be given also to smaller locally sustainable businesses. The legislation would provide the tax breaks only for those businesses producing at least 10 million gallons of biofuel a year, cutting out small companies. Pacific Biodiesel also asked that any company getting the tax break be required to use only locally grown feedstock, rather than being allowed to import it. 

     The legislation will be taken up again by the Senate committees on Economic Development & Technology, and Energy & Environment next Tuesday, Feb. 8 at the state capitol.

THE `AINA KOA PROJECT is the subject of a Frequently Asked Questions document being provided by the county Planning Department to help the community understand plans for a refinery in Pahala and a biofuels farm between Pahala and Na`alehu. Here are some of the questions that have been coming into the county Planning Department:
     In what State land use districts and County zoning are biofuel production facilities permitted? State land use law permits biofuel production, biofuel processing facilities, and agricultural to energy facilities and associated operational infrastructure in the State agricultural district, the planning department says. The planners consider biofuel production activities “agricultural products processing, major” and permitted on parcels zoned agricultural and general industrial. The refinery would require plan approval.
     `Aina Koa Pono has indicated that the facility can process solid waste into biofuel. Would that be permitted? Dumping, disposal, incineration, or reduction of refuse or waste matter is only permitted in the general industrial zone. To process waste to energy on Ag land would require either a change or a special permit. A General Plan amendment may also be required. A special permit would require approval of the Planning Commission. On parcels larger than 15 acres outside the State urban district, a change of zone or special permit would also require approval by the State Land Use Commission. The only general industrial zoned land in all of Ka`u is makai of Maile Street between Pahala Plantation House and KAHU radio at the old sugar mill site.

Is the biofuels project consistent with the Ka‘ū Community Development Plan? Though the Ka‘ū CDP is still being drafted, the planning department document says, the CDP Steering Committee has adopted values, priorities, and objectives. According to the planning department, based on the information available, the project seems consistent with the community’s desire to preserve agriculture and open space, develop renewable energy, and increase economic opportunity. “Questions remain, however, about other potential community benefits and impacts related to crop management, construction logistics, road improvements, pollution mitigation, safety, the biofuel production technology, job availability, workforce development, impacts on local businesses, and community benefits agreements.”

Miss Peaberry 2010 with her escort.

The Miss Ka`u Coffee, Little Miss Ka`u Coffee and Miss Ka`u Peaberry 2011 pageants have been set for Saturday, April 23 at the Ka`u High School gym. Candidates will soon be selling tickets and approaching business to ask for support.

Ka`u News Briefs Feb. 2, 2011

Pasha starts shipping in and out of Hawai`i, including Hilo to San Diego on Feb. 15.

PASHA HAWAI`I TRANSPORT LINES starts shipping from Hilo to San Diego and from other islands to Hilo on Feb. 15.  Jean Anne is the name of the cargo ship that will sail from Honolulu to Kahului, then to Hilo every two weeks before heading back to San Diego. Pasha is taking reservations for the new service at pashahawaii.com. The Public Utilities Commission approved the interisland service in September and Young Brothers objected and plans to appeal the decision to the Intermediate Court of Appeals.

BAY CLINIC, INC. announced yesterday that it will pioneer a Patient-Centered Health Care Home at its Na`alehu and other service centers to emphasize communication and personal attention to radically improve the patient experience.  The program is set to increase access to care, promote higher quality and lower costs, reduce medical errors and improve satisfaction of both patients and their providers.

       “Putting this model into practice is both innovative and necessary,” explained Paul Strauss, Bay Clinic CEO. “Gone are the days when a patient of Bay Clinic does not know who his or her provider is. We want to go back to the days of the old style ‘family doctor’ where we have a relationship with each of our patients, and we know them and their extended families.  It’s the personal relationship that people have with their health care provider that helps in the healing and health promotion process, and more importantly, building mutual trust,” he said.

       Bay Clinic staffers have been assigned to Patient Centered Health Care Teams that are physician-led and include a nurse practitioner or physician assistant, a nurse, a care coordinator, a patient services representative and a behavioral health specialist.  Each team is collectively responsible for managing the same panel of patients, who in turn benefit from a greater continuity of care.  This structure results in comprehensive, continuous and coordinated care while strengthening the personal relationship between the patient and the team. 

HAWAIIAN ELECTRIC CO. is calling out for more biodiesel to be produced. An additional three to seven million gallons is needed for the 110-megawatt Campbell Estate Industrial Park generating station on O`ahu, according to news release yesterday. HECO’s request also calls for 250,000 gallons a year for an eight-megawatt emergency power facility at Honolulu Airport.

      HECO’s statement said the electric company prefers locally produced biodiesel, but that bidders can propose biodiesel made outside of Hawaii or a combination of locally produced biodiesel and biodiesel manufactured outside Hawaii. Prospective bidders can find out more information on HECO's website. The deadline for proposals is March 15. The only contract that HECO has for local biodiesel is with Aina Koa Pono which plans a refinery and energy farm in Ka`u, with the factory being in Pahala. A public meeting on the project will be Monday, Feb. 21 at Pahala Community Center at 6 p.m., sponsored by the Ka`u Chamber of Commerce

Keani Mello-Waiwaiole & Ciara Muller

KA`U HIGH GIRLS WRESTLING is raising money to help fund a trip to the state championships on O`ahu. Keani Mello is going to states for sure and her sister Elena will battle for a slot this weekend at the BIIF championships. The Wrestling Booster Club is promoting a kalua pig sale with $8 tickets, with a pick up on Feb. 9. Tickets are available at the B&E 76 Station in Na`alehu.

IN SPORTS, YESTERDAY, Kamehameha took down Kaʻū in boys basketball . JV lost to the Warriors 62-46. Donald Garo put up 15 points and Greg Javar followed wIth 14. Varsity lost 66-30. Callen Koi and DJ Ramones both scored a high of eight points. 

JV Softball also winded up for their first game against Keaʻau, but lost 11 to 7. Shaylin Navarro hit a homerun and was 3 for 3 and  Pili Kailiawa went 2 for three. Janessa Jara served as pitcher.

Melinda Eder won second place.

O Ka`u Kakou will meet at the old Aspen Center, tonight, February 2, at 6:30 pm.  The community group recently hosted the Keiki Fishing tournament. OKK reports that 256 keiki registered to fish and OKK fed about 550 people.  The community group has scheduled a road cleanup for Saturday, February 12, at 7:30 a.m. with volunteers meeting at the Punalu’u tennis court parking lot.  Breakfast will be served after the clean up.

Ka`u News Briefs Feb. 1, 2011

Volcano community leader Betsy Mitchell is working with the county and youth
to re-open Volcano Skate Park. She is seen here in a parade with Mayor Billy Kenoi.

A VOLCANO SKATE PARK meeting last night drew skateboarders, Cooper Center park caretakers, farmers market-goers, and the county to talk about the problems of safety, noise and uncivilized behavior. The park is closed until issues can be resolved. According to Volcano community leader Betsy Mitchell, the county and Cooper Center Council agreed last night to keep the skate park open if a volunteer committee could be formed to oversee safety, conduct and maintenance. A hui of young people formed immediately and will make a presentation to Cooper Center and the county. “It was very inspiring to see the young people organize themselves and agree to make a plan to keep the skate park safe and secure,” Mitchell said.
     There are petition drives and images posted on the Internet by Damir A. Kouliev in support of re-opening Volcano Skate Park.

THE MILITARY IS A POTENTIAL CUSTOMER for biofuels planned for production in such places as Ka`u, where `Aina Koa Pono is planning to grow feedstock for a biofuels refinery it plans to build in Pahala. According to Pacific Business News, the Marine Corps Base in Kaneohe plans to be off the state electric grid by 2015, with all vehicles at base facilities becoming gasoline-free. Vehicles run on biofuel are also expected at the Pohakuloa Training area on the Big Island, as the Department of Defense is a leader in developing renewable energy.

     `Aina Koa Pono has a contract to sell biofuels from its proposed factory in Pahala to Hawaiian Electric but is also interested in the possibility of selling fuel to run vehicles and for other applications.
     `Aina Koa Pono will make a presentation on Monday, Feb. 21 at 6 p.m. at Pahala Community Center. The company promises 300 construction jobs and 100 permanent jobs in the field and factory. The public meeting is sponsored by the Ka`u Chamber of Commerce.

HAWAI`I ELECTRIC LIGHT company workers will stay on the job, as a tentative labor agreement was reached late last night. Parent company HECO, which owns the electric company on this island, as well as Maui, Lana`i, Moloka`i and O`ahu, averted a strike deadline last night, and the agreement will be sent for a vote by the membership of the International Brotherhood of Electrical Workers Local 1260. The union represents more than half of HECO’s employees.

THE STATE SENATE yesterday approved procedures that would allow the governor to make appointments to the school board without an advisory panel to make recommendations. The state House is considering a measure that would require an advisory board to choose and interview candidates to pass on to the governor for his final selection. This moves closer to the public mandate approved by the electorate last year, setting up a governor-appointed school board to replace the elected school board.

THE U.S. ARMY may be paring back its plans to expand its in-flight training area at Pohakuloa Training Area along Saddle Road. According to a Jason Armstrong story in the Hawai`i Tribune-Herald, both the Mauna Kea Management Board and Hawai`i Volcanoes National Park are concerned about multiple landing zones for helicopters planned for 8,000- to 12,000-feet elevation on both Mauna Loa and Mauna Kea. His story says the park is worried about upsetting wildlife and creating noise that would disturb nature and visitors. The Mauna Kea board wrote that the military was planning to expand the Army’s Pohakuloa Training Area by 44,000 acres and would be impacting state land. A military spokesman said the Army’s Environmental Assessment, released in December, poorly portrayed what the Army intends to do. The Army is preparing a full Programic Environmental Impact Statement.
     The EIS will cover an Infantry Platoon Battle Course and an Infantry Platoon Battle area, with Shoothouse and Military Operations on Urban Terrain facility. The modernized Pohakuloa Training Area would be used by three active Army brigades – U.S. Army Reserve, National Guard and Marine Corps – as military units deployed to combat operations overseas redeploy back to their home station in Hawai`i. The military EA states that training has changed over the last decade, and infrastructure at Pohakuloa must accommodate the new doctrine standards.
     Comments are being accepted through Feb. 7 and can be mailed to PTA PEAS, P.O. Box 514, Honolulu, HI 96809.

GRANTS TO SHARE 50 PERCENT of the cost of irrigation and water projects are available from the federal Bureau of Reclamation. County and state agencies and other water delivery authorities are eligible. Projects should seek to conserve and use water more efficiently, increase the use of renewable energy, protect endangered species, or facilitate water markets. Projects are selected through a competitive process, and the focus is on projects that can be completed within 24 months that will help sustainable water supplies in the western United States. See usbr.gov/watersmart/grants.html or call Tim McConnell at the Rural Development office in Hilo at 933-8313.