Ka`u News Briefs Jan. 10, 2013

Humpback whales will be studied in an EIS on Hawaiian sanctuary waters.
Photo by Geoff Grow, National Marine Sanctuaries.

KA`U IS A DROUGHT DISASTER AREA, proclaimed the U.S. Department of Agriculture yesterday. Ka`u is included with other parts of the island that led to Hawai`i County becoming one of 597 counties in 14 states nationwide named as drought disaster areas. This is the seventh consecutive year that the Big Island has suffered this distinction, following a minimum of eight consecutive weeks of severe drought measured by the U.S. Drought Monitor.
      Dianne Ley, director of the USDA’s Farm Service Agency in Hawai`i, said the most damaging droughts are in Ka`u, North Kona and South Kohala.
      Those interested in low-interest emergency loans can contact Miki Miyasato, manager of the USDA Farm Service Agency Farm Loan Programs on this island. She said this morning that she works with Ka`u Coffee farmers and ranchers on operating loans. She said that the interest rate is low for the operating loans as well as the emergency loans. Her office is in Hilo, and she can be contacted at 933-8344. Interested persons can also go to usda.gov/drought.

Extreme drought is shown at South Point, with a band of severe drought
inland and moderate drought through the rest of Ka`u, in the most
recent U.S. Drought map.

      U.S. Secretary of Agriculture Tom Vilsack promised to “partner with producers to see them through longer-term recovery, while taking the swift actions needed to help farmers and ranchers prepare their land and operations for the upcoming planting season.” He said he will go to Congress to “encourage passage of a Food, Farm and Jobs bill that gives rural America the long-term certainty they need, including a strong and defensible safety net.”
      The USDA has authorized up to $5 million in grants to evaluate and demonstrate ag practices to help farmers and ranchers adapt to drought and put $14 million into the Emergency Conservation Program to help farmers and ranchers rehabilitate farmland and implement water conservation.

CONCERNING THE `AINA KOA PONO proposal, the Public Utilities Commission this week published responses to questions asked by the state Consumer Advocate, Hawai`i County, the Department of Business, Economic Development & Tourism, and Life of the Land. The questions concern the proposed contract for `Aina Koa Pono to annually sell, at a fixed price for 20 years, 16 million gallons of diesel that would be manufactured at a refinery off Wood Valley Road above Pahala. The fuel, produced in 27 microwave units, would be sold to Hawai`i Electric Light and Hawaiian Electric Companies, with most of it trucked up Hwy 11 to a power plant in Kona. It would mean higher electric bills on O`ahu and the Big Island.
      The state Department of Business, Economic Development & Tourism asked HELCO and HECO for clarification on their statement that “the fixed Biodiesel price, with a nominal escalation provision, is reasonable and is projected to fall below the price of petroleum diesel during the term of the Biodiesel Supply Contract.’ DBEDT asked the utilities to provide analysis and justification for how AKP arrived at this contract’s price per gallon of biodiesel supplied compared with the price in the contract that was previously denied.

     HELCO and HECO replied that, “according to AKP, pricing for AKP’s biodiesel was based on a per gallon price that would provide a reasonable rate of return to project investors so as to attract the necessary project financing. Following AECOM’s work and testing at the demonstration plant, AKP was able to receive more concrete numbers regarding the output of the process. The test results were better than expected, which allowed AKP to adjust the price downward and still provide a reasonable return to project investors.”
      DBEDT also asked the companies to provide analysis and justification for how AKP arrived at the annual escalator. The companies’ response is confidential and available only to the Public Utilities Commission, parties and participants in the docket.
      When DBEDT asked if alternatives were considered in the pricing and escalator formulas, the companies responded that “much of the negotiations following the denial of the first AKP contract centered around lowering the initial fixed per gallon price of AKP’s biodiesel.” HELCO and HECO said “alternatives in the pricing and annual escalator were not negotiable, according to AKP.”
      DBEDT asked the utilities to provide the cost per gallon to produce the biodiesel and the approximate rate of return earned on each gallon of biodiesel, but, according to HELCO and HECO, “AKP is not willing to share their proprietary information regarding the cost per gallon to produce the biodiesel and the approximate rate of return earned on each gallon of biodiesel.”
      Regarding the companies’ statement in the contract that “utilizing biofuel in existing generating units is expected to achieve cleaner air emissions and facilitate compliance with new and revised environmental regulations,” DBEDT asked, “How will AKP’s biofuels contribute to meeting air emissions in compliance with Mercury and Air Toxics Standards and National Ambient Air Quality Standards or other environmental regulations? The companies replied, “AKP’s biodiesel will meet current environmental regulations applicable to the Keahole Power Plant and will also meet the maximum 15 ppm sulfur requirements to comply with upcoming May 2013 Reciprocating Internal Combustion Engines National Emission Standards for Hazardous Air Pollutants requirements.” They also said Keahole Power Plant is already in compliance with National Ambient Air Quality Standards, and that Mercury and Air Toxics Standards do not apply to the units at Keahole.
      The companies also stated that there are no additional costs to achieve environmental compliance at Keahole using AKP’s biodiesel.

      DBEDT asked the utilities to provide the total and cost to the ratepayer for HELCO to achieve air emissions in compliance with Mercury and Air Toxics Standards and National Ambient Air Quality Standards or other environmental regulations without AKP’s biofuel. The utilities said the approximate total cost to install air emissions equipment this year is $250,000. “Operating Keahole Power Plant with AKP biodiesel does not offset any cost of environmental compliance associated with fossil diesel,” the utilities said, “because the infrastructure changes required for Keahole Power Plant to achieve compliance … will have been completed by May 2013.” They also said no infrastructure changes are required for Keahole Power Plant’s compliance to Mercury and Air Toxics Standards or National Ambient Air Quality Standards.
      DBEDT asked the companies to provide assumptions and sources for data regarding the Incremental Cost of Biodiesel Supply Contract and to provide the incremental cost of the Biodiesel Supply Contract for each year of the Contract. The companies’ responses to these requests are confidential. Complete responses to the DBEDT’s questions are online at puc.hawaii.gov. Docket number is 2012-0185.


HAWAIIAN ISLANDS HUMPBACK WHALE NATIONAL MARINE SANCTUARY will be studied for an Environmental Impact Statement. According to a notice filed with the state Office of Environmental Quality Control, the EIS will involve revising a management plan completed for the sanctuary in 1992 and previously revised in 2002.

Humpback whales will be studied in a new EIS for the National
Marine Sanctuary in Hawai`i.

The state Department of Land & Natural Resources and the federal National Oceanic & Atmospheric Administration co-manage the sanctuary and have been hosting public meetings on the new management plan over the past two years. The public can weigh in on the plan for an EIS. Recommendations for the new managment plan already include education about entanglement of whales in fishing  lines and other debris, as well as management of ocean-going vessels and their speeds around whales, to include the military, cruise ships, and fishing, tour and family recreational boats. The state of Hawai`i has jurisdiction over the nearshore jurisdiction over the nearshore waters with submerged lands and other resources. The notice regarding the EIS was filed by William Aila, Jr., chair of the DLNR. Comments may be emailed to dlnrsanctuary@hawaii.gov or sent to: Sanctuary Management, Department of Land & Natural Resources, Hawaiian Islands Humpback Whale National Marine Sanctuary, 1151 Punchbowl St., Room 330, Honolulu, HI 96813 or faxed to 808-587-0115. 

HAWAIIAN ISLANDS HUMPBACK WHALE National Marine Sanctuary is seeking volunteers in Ka`u for its 2013 Sanctuary Ocean Count. The project offers the community a chance to monitor humpback whales and provide important population and distribution information. Site leaders and general volunteers are needed for events on Jan. 26, Feb. 23 and March 30. For more information and to register, visit hawaiihumpbackwhale.noaa.gov.

Cleaning up Kamilo Beach is on the agenda this Saturday.
Photo from Hawai`i Wildlife Fund

RESIDENTS LOOKING for more community involvement and to spend more time at the beach caRESIDENTS LOOKING for more community involvement and to spend more time at the beach caWai`ohinuWai`ohinu Park to carpool to Kamilo Point. Sign up with Megan Lamson at 769-7629 or kahakai.cleanups@gmail.com.

FRIENDS OF HAWAI`I VOLCANOES NATIONAL PARK offers its Sunday Walk in the Park on Jan. 13 from 1 p.m. to 3 p.m. Nick Shema leads this easy to moderate 3.5-mile round-trip walk exploring the summit area of the park. Free to members, and memberships are available at event. Call 985-7373 or email admin@fhvnp.org. Park entrance fees apply.
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.