Stacey Djou, chief legal counsel, Public Utilities Commission, told me today that on July 16, 2008 Helco and Heco filed a waiver to suspend competitive bidding on the HuHonua Bioenergy Project. The PUC cannot disclose anything about the filing, and will rule on it once they receive a Statement of Position from the Consumer Advocate, with in the Department of Consumer Avocacy, 808-586-2800
link
We are concerned citizens who endorse sustainable energy goals, but not at the expense of the health of our children, not at the expense of our agricultural industries, and not at the expense of more pollution to our island. Pepeekeo residents reside within 1.7 miles from the plant, and this poses a significant health risk from pollutants, creates a nuisance from noise, and a safety issue from excessive traffic.
Upcoming Meetings
- HuHonua, 8/13/08
- Jay Ignacio, Helco 8/14/08
- Tues 8/5/08 7pm Susan's
- Mayor Kim Thurs 7/31/2008 1:30 pm
- Wed 7/16/08 7pm Susan's
About Me
- Elaine
- Local environmental activist.
Honoring HCPC Workers
- 1889-1946 Plantation Archives
- 2000 Baptista, Former HCPC Employee
- 2001 De Coito, Retired Heavy-Equip Operator
- 2001 Hasegawa, Ret Service Truck Driver HCPC
- 2001 Hiramoto, Ret Laborer HCPC
- 2001 Salas, Cane Truck Driver HCPC
- 2002 Barlongo, Ret Tractor Operator HCPC
- 2002 Cambra - Former Heavy Equip Operator
- 2002 Carvalho, Retired HCPC Truck Driver
- 2002 Fujii, Ret Garage Supervisor HCPC
- 2002 Fujitake, Ret Land Containment Emp HCPC
- 2002 Matsuoka, Ret Mechanic HCPC
- 2002 Panem - Former Crane Operator
- 2002 Sakuda, Ret Cane Truck Driver HCPC
- 2002 Santiago, Ret Cane Truck Driver HCPC
- 2002 Tsujii - Ret Boiler Room Crew Chief HCPC
- 2002 Tsunoda, Former Harvesting Supervisor
- 2003 Alicuben - Former Power Mower Operator
- 2003 Deriza, Ret Heavy Equip Operator HCPC
- 2003 Inaba, Ret Electrician HCPC
- 2003 Jose, Ret HCPC Employee
- 2003 Kawakami, Ret Flume Foreman HCPC
- 2003 Lyons, Ret Harvesting Supervisor HCPC
- 2003 Namauu, Former Heavy Equip Operator HCPC
- 2003 Paiva, Ret Construction Supervisor HCPC
- 2003 Tavares, Former HCPC Employee
- 2004 Adviento, Retired HCPC Employee
- 2004 Cabasa, Ret HCPC Crane Operator
- 2004 Carvalho, Ret HCPC Truck Control Coordinator
- 2004 DeMello, Ret Scale Clerk HCPC
- 2004 Raymond, Former HCPC Shift Superintendent
- 2005 Acoba, Retired Plant Electrician
- 2005 Collins, Former HCPC Cane Truck Driver
- 2005 Company Hopes to Restart Plant
- 2005 Kubo, Ret HCPC Garage Warehouse Supervisor
- 2005 Lapenia - HCPC Former Whse Clerk
- 2005 Murai, Ret. Factory Supervisor
- 2005 Sakuma - Ret. Millworker HCPC
- 2005 Shin - Former HCPC Truck Driver
- 2005 Vierra - Forrmer HCPC Cane Truck Driver
- 2006 Amaral - Retired Heavy Equipment Operator
- 2006 Koyanagi, Ret Mill Worker HCPC
- 2006 Navidad, Ret HCPC Mill Crew Chief Operator
- 2006 Oyama, Ret HCPC Employee
- 2006 Shimasaki, Ret HCPC Truck Driver
- 2006 Shishido, Ret HCPC Employee
- 2006 Sison, Ret HCPC Mechanic
- 2007 Camero Ret HCPC Mechanic Supervisor
- 2007 Maja, Ret HCPC Employee
- 2007 Okaji, Ret Cane Truck Driver HCPC
- 2007 Quiocho, Retired HCPC Employee
- 2008 Austria - Former Heavy Equipment Operator
- 2008 Forbes, Ret Harvesting Superintendent HCPC
- 2008 Hiura, Ret HCPC Employee
- 2008 Pacheco - Former HCPC Welder
3 comments:
I spoke with Katherine Awakuni, legal counsel at Consumer Advocate for this PUC waiver. She says that the purpose of the waiver is to continue negotiations with HuHonua that started prior to 12/8/2006, when the PUC adopted a negotiation framework. If the waiver is denied, then HELCO and HECO will not be able to continue their negotiations. She says that HuHonua has a NUG on file, and even though the SMA permit requires a new assessment, it does not preclude HELCO from pursuing negotiations, unless the waiver is denied.
She says she views HuHonua in a different standing as Hamakua Bioenergy for many of the same reasons as are on this blog. She was not aware that parent company MuniMae was delisted at the NYSE.
She has visited the plant and was aware of the plant's operating history and the sale of the farm and residential lots.
She recommended that we send a copy of our petition and a letter to both the PUC and her. She confirmed that the PUC will not rule until her "statement of position" is filed and that she is waiting responses for further information from the utilities.
August 5, 2008
Chair Carlito Caliboso
Commissioner John Cole
Commissioner Leslie Kondo
Public Utilities Commission
465 South King Street, Room 103
Honolulu, Hawaii 96813
RE: July 16, 2008 Application to Waive Competitive Bidding for HuHonua Energy Project by Helco and Heco
We are writing you today to urge you to decline this waiver for the reasons outline below. Further, we enclose a copy of a petition signed by _____ residents living within a 50 mile radius of the proposed project location.
Misleading the Public about Energy Sources. Dan KenKnight, president of HuHonua, stated in a public meeting that they have adequate sources of biomass to operate the plant without the use of coal, except in emergencies. However, Tradewinds LLC has secured contracts for 15,000 acres of eucalyptus and we believe there is not sufficient biomass available to sustain another operation.
Misleading the Public about Financial Backing. Mark Higgins, VP Finance for a division of the parent company Municipal Mortgage and Equity stated in a public meeting that their financing would come through the parent company. At the time he stated this, the parent company had been delisted from the NYSE in Feb 2008 for failing to submit audited financial statements. Class action lawsuits have been filed against the company officers for making false and misleading statements about their financial condition and future prospects. When asked about the risks to financing his project from a parent company embroiled in lawsuits, Mr. Higgins replied that these lawsuits have no impact on their project. We do not believe this is credible, as the financial status of the company and its prospects are the heart of the lawsuit.
Misleading the Public about Current Activities. Dan KenKnight stated in a public meeting that HuHonua was conducting various cleanup and repair activities at the location. However, the people hired for that work tell us that they are paid by Continental Pacific, the lessor of the equipment and the owner of the land. We question whether HuHonua is simply a speculator’s shell business that may operate if it receives a contract from Helco.
Misleading the Public about Job Creation. In 2004, Dan KenKnight, president of Oahu Ethanol, represented to Oahu residents that he would build an ethanol plant thus creating new jobs. That plant was delayed two times in 2007 and is still not operational. Mr. KenKnight has made similar job creation promises to our local community, convincing some that his project will be good for the local economy, but others do not believe him because he has unfilled job promises on Oahu.
Cheapest Method Wastes More Resources. HuHonua’s plan is to use the existing steam boiler, approximately 35 years old, to produce steam energy from burning wood chips. According to the US Department of Energy, this type of biomass plant is only 20% efficient. The US DOE says that gasification biomass plants are 60% efficient (or, 3 times more efficient than steam); requiring different equipment and substantially more capital. So, their method would use the same amount of biomass as a gasification plant and create only 1/3 the electricity and create 3 times the amount of greenhouse gases. We fundamentally object to this plan because it has no long term consideration of our island’s natural resources or today’s more efficient biomass plant technology.
Legal Question. We understand that the PUC’s ruling for the competitive bidding framework went into effect on 12/8/2006 and applies to negotiations beginning as of that date. However, HuHonua registered as a local business in 4/8/2008. Hawaii Ethanol submitted its change of ownership form to the Clean Air Branch on 11/30/2007. Since their activities began after the ruling date, shouldn’t the ruling apply to them? It doesn’t make sense to us that they are applying for a waiver when their activities with our state began after the ruling date.
Helco Contradicts the Need for Bioenergy. In its own factsheet entitled “Fuel Oil Use in Hawaii” Helco says that its plants use the residual oil which is left over after refining gasoline and other products. Thus, if the state’s overall use of oil declines, then Helco’s quantity of residual oil will decline as well. Helco further states “generating electricity from non-oil sources will not eliminate the need to import oil to Hawaii.” Why is a bioenergy project necessary at this time?
Many Hoops to Go. At the county level, in order to operate a biomass plant in that location, HuHonua must submit a new application for SMA permit and an EIS, according to Chris Yuen, planning director. He confirmed that the planning commission would hold a public hearing. Second, at the state level, the clean air branch requires an amended application for the use of biomass. HuHonua has not submitted any of these documents at this time. Further, a community effort in 2005-6 resulted in the state Department of Health’s denial of a prior operator’s application for permit, and we have more people this year behind our effort, as evidenced by the enclosed petition.
Land Use Concern. The SMA permit was issued in 1975 for the purpose of running a coal plant to power the sugar mill operation in Pepeekeo. Helco purchased power from this location during a single five year contract period, ending 12/31/2004. The surrounding area was subdivided and sold off as 105 small farm and residential lots beginning in 2003. Representations were made to some purchasers that the plant would be dismantled and other uses found for the site. This raises the question of whether the plant should be operational at all. Further, in a 2006 meeting, Warren Lee, president of Helco, explained that Helco had no need for an east Hawaii plant because the increased demand was coming from west Hawaii.
Conclusion. We are community activists who can cite sources for the facts mentioned above. We have concluded that there is no need for an energy plant at this location, the equipment is old and inefficient, the officers of HuHonua lack credibility in all of their statements to the community, and the parent company’s future prospects are doubtful. We urge you to deny this request of waiver for competitive bidding.
Mahalo and thank you for taking the time to consider the issues we present here. Should you wish to discuss any of them, please feel free to call Elaine Munro at 808-989-0894.
Aloha,
___________________________ __________________________
___________________________ __________________________
___________________________ __________________________
___________________________ __________________________
CC:
Katherine Awakuni, Consumer Advocate
Division of Consumer Affairs
335 Merchant St, Room 326
Honolulu, HI 96813
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