Leading change means bringing people with you to a better state than any of you could have envisaged alone. ~ A.J. Sheppard An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage. ~ Jack Welch Changes are inevitable and not always controllable. What can be controlled is how you manage, react to and work through the change process. ~ Kelly A. Morgan

1. Clifton M. Hasegawa
President and CEO
Clifton M. Hasegawa & Associates, LLC
1322 Lower Main Street A5 Wailuku, Hawaii 96793
Telephone: (808) 419-5481
Email: clifhasegawa@gmail.com
LinkedIn: https://www.linkedin.com/in/cliftonhasegawa
July 3, 2018
HAWAII PUBLIC UTILITIES COMMISSION
The Honorable Randall Y. Iwase, Chairman
The Honorable James P. Griffin, Commissioner
The Honorable Jennifer Potter, Commissioner
Re: Public Comment. PUC Docket No. 2017-0363, Supplement IV
Dear Chairman Iwase, Commissioner Griffen and Commissioner Potter,
The Public Trust requires, if not mandates, that the Commission's decision in
Docket No. 2017-0363 be overarching and encompassing to ensure all ocean and
waterborne carriers operating in the State of Hawaii are measured by and under the
same performance standards and metrics established by the Commission.
The submittals for your consideration have addressed the economics and
operational requirements for rates and ratemaking, jurisdiction and authority of the
Commission.
The mission of the Commission provides “the goals and future needs of the
State in the most economically, operationally, and environmentally sound manner.”
Hawaii Public Utilities Commission
Mission Statement
The Commission's mission is to provide effective, proactive, and informed
oversight of all regulated entities to ensure that they operate at a high level of
performance so as to serve the public fairly, efficiently, safely, and reliably,
while addressing the goals and future needs of the State in the most
economically, operationally, and environmentally sound manner, and
affording the opportunity for regulated entities to achieve and maintain
commercial viability. [Emphasis Supplied]

2. Mitigating the threats and impacts of invasive species and to effectively
implement the Hawaii's interagency biosecurity plan. Preventing and controlling
the introduction of invasive species are high priority concerns.
State of Hawaii
Twenty-Ninth Legislature 2018
S.B. 2399 S.D. 2 H.B. 1
Relating to Invasive Species Program Administration
http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2399&year=2018
The legislature reaffirms that the invasion of Hawaii by insects, disease-
bearing organisms, snakes, weeds, and other pests is a severe threat to
Hawaii's economy and natural environment and to the health and lifestyle of
Hawaii's people. The legislature finds that action is needed to improve the
State's programs to mitigate the threats and impacts of invasive species
and to effectively implement the Hawaii interagency biosecurity plan.
[Emphasis Supplied]
Improved biosecurity and invasive species management are central goals of
the Governor's sustainable Hawaii initiative, the department of agriculture’s
new Hawaii interagency biosecurity plan, and the Aloha+ Challenge adopted
by the legislature in 2014.
_______________________
Invasive species change ecosystems and the economic services that
ecosystems provide. Policy decisions must weigh anticipated costs and
benefits before a new species becomes introduced (prevention), actual
costs and benefits of any mitigating actions once a species has become
established compared to anticipated costs and benefits of accommodating the
change (control), and the comparative advantages of preventing and/or
controlling one set of ecosystem changes over another (relative risk
analysis/damage assessment). Optimal policy regarding invasive species will
minimize the expected damages and costs of control within an ecosystem.
[Emphasis Supplied]
Source: Prevention, Eradication, and Containment of Invasive Species: Illustrations from
Hawaii. Brooks Kaiser, Adjunct Faculty Member, Department of Economics University of
Hawaii; Basharat A. Pitafi, Assistant Professor, Southern Illinois University; James
Roumasset, Professor, Department of Economics University of Hawaii.
http://www.uhero.hawaii.edu/assets/ARER05-34.pdf
_______________________

3. Pasha Hawaii News
Pacific Maritime Trade With Hawaii
Monday, April 3, 2017
Article courtesy of Pacific Maritime Magazine
By Mark Edward Nero
https://www.pashahawaii.com/news-media/news/465/pacific-maritime-trade-hawaii
Although the combined population of the Hawaiian Islands is relatively small
compared to most US states at about 1.5 million residents, the number has
grown more than five percent since 2010, and is expected to rise by just under
a percent annually between now and 2040, according to state data.
And with population growth comes an expanded focus on infrastructure. Since
more than 80 percent of all goods consumed by Hawaii residents are imported,
it stands to figure that the 10 commercial ports that make up the Aloha State's
harbor system play an important role in sustaining the island's residents and
visitors.
Especially since of the aforementioned 80-plus percent of all imported
goods consumed by Hawaii residents and its visitors, nearly 99 percent
flows through the Port Hawaii commercial harbor system.
[Emphasis Supplied]
The importance of seaports to the state of Hawaii was particularly evident in mid-
December when the Hawaii Department of Transportation's harbors division kicked
off the initial construction phase of a state harbor modernization plan..
_______________________
The environmental, biosecurity, and establishment of the proactive, mitigation
and control measures by the Commission are highlighted in an excerpt from an article
published in The American Shipper.
[C]argo originating in China is stuffed in containers only when it
nears the port, and on the other side of the Pacific Ocean over
90 percent of containers arriving in Los Angeles/Long Beach
are destined for the inland, but half of these are opened,
destuffed and transloaded in the port area itself.
Source: Uncertain outlook for container shipping. Study says physical infrastructure of
container shipping is unlikely to change. By Chris Dupin. The American Shipper. June
21, 2018, accessed July 3, 2018 https://www.americanshipper.com/main/full/uncertain-outlook-for-
container-shipping-71758.aspx

4. MATSON CHINA LONG BEACH EXPRESS
MATSON HAWAII SERVICE
DEDICATED NEIGHBOR ISLAND FLEET
Matson's frequent, reliable schedules extend to each of the major ports of
Hawaii's Neighbor Islands: Kahului, Maui; Nawiliwili, Kauai; and Hilo and
Kawaihae on the Big Island of Hawaii. Service is also available to the islands of
Molokai and Lanai.
Source: Matson. https://www.matson.com/matnav/services/hawaii.html

5. PASHA
Pasha Hawaii provides a full complement of ocean and intermodal services
between the U.S. Mainland and Hawaii. With the deployment of Marjorie C as
new tonnage and the addition of four vessels through our acquisition of
Horizon Lines' Hawaii trade-lane business, Pasha Hawaii has made significant
investments to support the growth in the Hawaii market.
Two Weekly Los Angeles Departures
Weekly departures from Los Angeles on Wednesdays and Saturdays with
quick 4-day transits offer flexibility and ample capacity for time sensitive cargos
to Oahu and the Neighbor Islands. Operating from our Los Angeles port facility
located at West Basin Container Terminal, we provide a predominately
wheeled operation and exclusive truck lanes to speed clients through the
terminal.
One Weekly Oakland Departure
Our Wednesday departure to Honolulu with connections to Neighbor Islands
supports key refrigerated, grocery and agribusiness markets sourcing from
Northern California.
Pacific Northwest served via Intermodal Service
Pacific Northwest and interior U.S. shipments are served via intermodal
connections over the ports of Los Angeles and Oakland. Pasha Hawaii utilizes
vendor partners to provide equipment at 17 key interior hubs including Atlanta,
Chicago, Dallas and Kansas City.
Shipping Containers to Hawaii’s Neighbor Islands made easy with Pasha
Hawaii:
Pasha Hawaii’s frequent, reliable schedules extend to each of the major ports
of Hawaii's Neighbor Islands. We provide container shipping services to the
following Hawaiian Islands:
Honolulu – Island of Oahu
Hilo – Island of Hawaii
Kawaihae – Island of Hawaii
Kahului – Island of Maui
Nawiliwili – Island of Kauai
Kaunakakai – Island of Molokai
Kaumalapau – Island of Lanai
Source: Pasha https://www.pashahawaii.com/services/containers/container-shipping-overview

6. Environmental compliance and enforcement provisions are set forth in
Hawaii Revised statutes for electric utility companies, electric power generation
and electric power generators.
There are no equivalent or comparable provisions for environmental
compliance and enforcement for water carriers, waterborne carriers and ocean-
transportation carriers.
Specifically,
HAWAII PUBLIC UTILITIES COMMISSION
1. General Authority and Obligations
The Hawaii Public Utilities Commission (“Commission”) either through rule or
order must set performance, safety, and reliability requirements and establish
qualifications for exemption from a requirement to install additional controls for
renewable energy systems of ten kilowatts or less owned by customer
generators.
The Hawaii Legislature has capped the total capacity at fifty kilowatts for all
eligible customer-generators operating a net metering system from solar, wind
turbine, or hydroelectric facility. However the Commission has the authority to
increase the maximum allowable capacity.
2. Certification, Siting, and Compliance
When making a determination regarding the siting of power lines of 138kV or
greater, the Commission must evaluate the electromagnetic exposure and the
impact of the line on conservation, and on other natural
resource and public recreation areas.
3. State NEPA Statute
Hawaii has enacted a mini-NEPA provision for the purpose of “establish[ing] a
system of environmental review which will ensure that environmental concerns
are given appropriate consideration in decision making along with economic and
technical considerations.” As a body of state government, the Commission is
subject to the requirements of the provision which include environmental
assessments and environmental impact statements for certain actions.

7. 4. Resource Planning, Conservation Programs, and Environmental Externalities
The policy of the state of Hawaii, as provided for in the State Planning Act, is to
promote renewable energy sources, to conserve energy, and to consider
environmental concerns in the development or expansion of power systems.
Utilities are required to conduct net energy metering. The Commission has the
power to review and amend net metering contracts and rate structures.
The Commission may direct any publicly-owned electric utility company to
acquire electricity generated from non-fossil fuel resources.
5. Restructuring Provisions
The Commission is to oversee the implementation of the state renewable portfolio
standard for electric utility companies’ renewable portfolios.
Source: Dworkin, et al., The Environmental Duties of Public Utility Commissions.
Vermont Journal of Environmental Law. Vermont Law School, South Royalton, VT
http://vjel.vermontlaw.edu/files/2013/07/Revisiting-the-Environmental-Duties-of-Public-Utility.pdf
_______________________
THE HAWAII PUBLIC UTILITIES COMMISSION
EVOLVING ROLE AND RESPONSIBILITIES
Ensuring waterborne and ocean carriers operate at a high level of performance
to serve the public fairly, efficiently, safely, and reliably
and
Addressing the goals and future needs of the State in the most
economically, operationally, and environmentally sound manner
The Commission's leadership role is to prevent incursions of invasive species
and contaminants from entering Hawaii though and by waterborne and ocean going
commerce through entry points at Hawaii's ports and harbors.
The Commission role will augment and strengthen the inspection and control
policies and procedures of the U.S. Department of Homeland Security, Customs and
Border Protection (CBP).
U.S. Customs and Border Protection (CBP) established Import Safety as a
Priority Trade Issue (PTI) since 2007 in order to prevent unsafe products from
entering the U.S. commerce. https://www.cbp.gov/sites/default/files/documents/import_safety_2.pdf

8. Global Travel and Trade
One in five food items is now imported. We can now have fresh strawberries
when it’s 20 degrees below zero. American consumers demand fresh limes and
blueberries all year round. In fact, during the winter months in the United States,
nearly 80 percent of the fresh fruits and vegetables on our tables come from other
countries.
With the ever-increasing amount of trade, new pest pathways are discovered,
and the agricultural risks to the United States grow. The threat to crops and
livestock is real. CPB https://www.cbp.gov/border-security/protecting-agriculture
__________
Carrier Conveyance : Contamination
Carrier conveyances, such as ocean containers, aircraft, rail cars, and
commercial trucks, are pathways by which invasive plant and animal pests and
diseases might be introduced into the United States. [Emphasis Supplied]
CPB https://www.cbp.gov/sites/default/files/assets/documents/2018-Feb/Web%20Version%20Carrier
%20Conveyance%20Contaminant%20Trade%20Outreach_March%202016.v.2.pdf
_______________________________________________________
The Hawaii Interagency Biosecurity Management Plan 2017 to 2027 does
not address shipping container conveyance and container contamination. This
is an area for development and implementation by the Commission.
Specifically,
DLNR detects and controls invasive species in natural areas, controls invasive
algae, and regulates ballast water. Gaps: lack of authority to regulate
invasive organisms attached to ship hulls and lack of capacity to detect and
control invasive algae, weeds, and predators in our waters and forests.
(http://dlnr.hawaii.gov)
Source: Office of the Governor. https://governor.hawaii.gov/wp-content/uploads/2016/09/Biosecurity-
Draft-Plan-Executive-Summary_FINAL.pdf
_______________________________________________________
Hawaii Revised Statutes are of limited application as coverage extends only
to commercial passenger vessels and not to water carriers under the jurisdiction
and authority of the Commission. Specifically,

9. Hawaii Revised Statutes
Title 19. Health
342D. Water Pollution
Part VI. Discharges from Commercial Passenger Vessels
[Emphasis Supplied]
“Commercial passenger vessel"” means a vessel that carries passengers for
hire.
The term does not include a vessel:
(1) Authorized to carry fewer than fifty passengers;
(2) That does not provide overnight accommodations for at least fifty
passengers for hire, determined with reference to the number of lower
berths and based on an average of two persons per cabin; or
(3) Operated by the United States or a foreign government.
“Discharge” means any release, however caused, from a commercial
passenger vessel, and includes any escape, disposal, spilling, leaking,
pumping, emitting, or emptying.
“Hazardous substance” has the same meaning as defined in section 342D-
38.
“Hazardous waste” has the same meaning as defined in section 342J-2.
“Marine waters of the State” means those waters between the shoreline
of the State and any point three nautical miles from the shoreline of the
State. [Emphasis Supplied]
“Offloading” means the removal of a hazardous substance, hazardous waste,
or nonhazardous solid waste from a commercial passenger vessel onto or
into a controlled storage, processing, or disposal facility or treatment works.
“Other wastewater” means sewage that is stored in or transferred to a ballast
tank or other holding area on the vessel that may not be customarily used for
storing sewage.
HAWAII – VESSEL BIOFOULING – VESSEL DISCHARGES

10. The introduction of aquatic invasive species (AIS) associated with global shipping
has been identified as a significant threat to ocean and coastal ecosystems.
There are two main vectors for AIS introduction: ballast water and vessel
biofouling. Vessel biofouling is broadly defined as the attachment of organisms to
the submerged portions of ships, boats, and other mobile maritime structures.
While both the United States Coast Guard (USCG) and United States
Environmental Protection Agency (EPA) currently regulate ballast water, the
control of AIS via vessel biofouling remains largely voluntary.
Biofouling of vessels – including large commercial ships and smaller recreational
craft – is as important as ballast water in its contribution to marine introductions
globally (Hewitt & Campbell, 2010) and is the most important vector in Hawaii’s
marine invasion history (Eldredge & Carlton, 2002).
Up to 78% of the introduced and cryptogenic marine species in the state have
been brought to the island by, or in conjunction with, vessel biofouling (Davidson
& Ruiz, 2014). It is the dominant vector for the introduction of non-native species
into Hawaii's marine ecosystems, some of which can cause major ecological and
economic damage. Therefore, critical attention to the biofouling vector is
warranted and must be addressed in any effective biosecurity system.
Several agencies work together to manage and enforce ballast rules and are
working towards creating rules to reduce the risk of introduction via biofouling.
The Hawaii Department of Health (HDOH), through Section 401 Water Quality
Certification (WQC) under the Clean Water Act (CWA), the EPA’s Vessel General
Permits (VGP), and state law, oversees twenty-seven vessel discharges that
affect state water quality standards, especially at harbors and ports. [Emphasis
Supplied]
Only one of these effluents is ballast water, though the others are pollutants that
additionally impact Hawaii's water quality standards. The Coast Guard and the
Hawaii Department of Natural Resources, Division of Aquatic Resources (DAR)
operate and enforce ballast water rules and management programs. DAR has
been working for four years conducting risk assessment and risk mitigation
studies to create a biofouling standard and draft regulations, all of which should
be completed by the end of 2016.
Source: Hawaii Coordinating Group on Alien Pest Species (CGAPS) Vessel Incidental
Discharge Act Legal Analysis. Provided by Kevin Richardson, CGAPS Legal Fellow 6/1/15;
Updated by Andrew Porter, CGAPS Legal Fellow 5/23/16
http://www.cgaps.org/wp-content/uploads/CGAPS-VIDA-Legal-Analysis-Updated-052316.pdf

11. Vessel hull inspection and water quality sampling are critical and and significant
parts in preventing and controlling the introduction of invasive species.
DOH CLEAN WATER BRANCH – HONOLULU HARBOR
Sampling Site: Sand Island Point No. 1
http://health.hawaii.gov/cwb/files/2013/06/SampleSite_Oahu164.pdf
Sampling Site: Sand Island Point No. 2
http://health.hawaii.gov/cwb/files/2013/06/SampleSite_Oahu165.pdf
Sampling Site: Sand Island Point No. 3
http://health.hawaii.gov/cwb/files/2013/06/SampleSite_Oahu166.pdf
Notes, Supplied
DOH Clean Water Branch Sampling Sites No. 1, No. 2, and No. 3 for
Honolulu Harbor are located on the outer shoreline of Sand Island,
adjacent to the Recreation areas.
The inside channel of Honolulu Harbor where the commercial
container terminals are located have no DOH monitoring sites.
Honolulu Harbor commercial container terminal area and
channel are unmonitored.
Keep Our Ocean Environment Clean
Commercial Vessels Which Port In Honolulu Shall Be Held Accountable
To serve the public fairly, efficiently, safely, and reliably and to meet the goals
and future needs of the State economically, operationally, and in an environmentally
sound manner the Commission is mandated to transform and evolve.
Thank you very much
Aloha
Respectfully,
Clifton M. Hasegawa