RONALD REAGAN ON BIG GOVERNMENT “Government is not the solution to our problems, government is the problem.” “Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if stops moving, subsidize it.” “The nine most terrifying words in the English language are, “I’m from the government and I’m here to help.” - From the Reagan Ranch Center, Santa Barbara, California, USA

1. Clif Hasegawa <clifhasegawa@gmail.com>
Coconut Wireless – Hawaii Gas Manager Kyle Ginoza is a Maui Superstar by
Anthony Pignataro. Maui Time - Vol. 20 - Issue 06 - July 21, 2016.
Clif Hasegawa <clifhasegawa@gmail.com>
Mon, Jul 25, 2016 at 8:18 AM
To: Tommy Russo <tommy@mauitime.com>, anthony@mauitime.com
Cc: “Mayor Alan Arakawa” <alan.arakawa@mauicounty.gov>, “Council Member Gladys Baisa”
<Gladys.Baisa@mauicounty.us>, “Council Member Robert Carroll” <Robert.Carroll@mauicounty.us>,
“Council Member Elle Cochran” <Elle.Cochran@mauicounty.us>, “Council Member Don Couch”
<Don.Couch@mauicounty.us>, “ Council Member Stacy Crivello” <Stacy.Crivello@mauicounty.us>, “
Council Member Don Guzman” <Don.Guzman@mauicounty.us>, “Council Member Riki Hokama”
<Riki.Hokama@mauicounty.us>, "Council Member Michael P. Victorino"
<Michael.Victorino@mauicounty.us>, “Council Member Mike White” <Mike.White@mauicounty.us>,
Maui Tomorrow <Webmaster@maui-tomorrow.org>, Albert Perez
<director.mauitomorrow@gmail.com>, Wendy Osher <wendy@mauinow.com>, Debra Lordan
<debra.lordan@gmail.com>, “Sierra Club of Hawaii” <hawaii.chapter@sierraclub.org>
LETTER TO THE PUBLISHER AND EDITOR – MAUI TIME
Mr. Tommy Russo, Publisher
Mr. Anthony Pignataro, Editor
RE: Commentary on Coconut Wireless – Hawaii Gas Manager Kyle
Ginoza is a Maui Superstar. By Anthony Pignataro. Maui Time Vol.
20 Issue 06. July 21, 2016.
Dear Mr. Russo and Mr. Pignataro,
Mr. Doug McLeod, former Energy Commissioner for the County of Maui,
stated that establishing fixed sources of energy, biomass, hydroelectric is
immediately and necessary to ensure energy security particularly with the
deactivation and decommissioning of the Maui Electric Company, Ltd.
(MECO) Kahului Power Plant (firm power), the cessation of sugar
cultivation, closure of Hawaiian Commercial & Sugar Company (HC&S)
and the termination of the MECO Power Purchase Agreement with HC&S
for firm energy from its biomass facility.

2. To help mitigate the effects of reserve capacity shortfalls MECO has
installed temporary distributed generators at substations or other sites,
implemented additional load management and other demand reduction
measures, and pursued efforts to improve the availability of generating
units.
To minimize reserve capacity shortfalls sufficient firm energy generating
capacity needs to be added to the system. Additionally, please refer to
Attachment, Energy Resources – Firm vs Intermittent – Letter to Governor
Ige and Lieutenant Governor Tsutsui – December 4, 2014.
The County of Maui Waste-to-Energy needs to be revisited in view of
MECO plan to retire the Kahului Power Plant (firm energy), the closure of
HC&S and loss of the biomass plant (firm energy), the anticipated
development of a geothermal plant on Maui by 2024, and the extensive
projected use of LNG in the MECO Preferred Plan, now unavailable.
LNG is opposed by Governor Ige http://www.staradvertiser.com/breaking-news/gov-david-ige-
opposes-use-of-liquefied-natural-gas-2/
The Governor has stated,
“I think LNG as a transition is an unnecessary diversion of resources. LNG
is still a fossil fuel and if we are committed to 100 percent renewable
energy, we would make the investment of time and capital. The community
would be better off not getting diverted and being focused on 100 percent
renewable energy because that goal in and of itself is consuming and will
require us to make investments that are better for the long run.”
Source: Pacific Business News. http://www.bizjournals.com/pacific/blog/2015/12/lng-is-a-diversion-
from-renewable-energy-focus-gov.htm
HECO withdrew its request to the PUC for LNG contract approval on July
19, 2016. Source: Star Advertiser
http://www.staradvertiser.com/business/business-breaking/hawaiian-electric-withdraws-request-for-approval-of-lng-
contract/
The County of Maui Waste-to-Energy Project is an available viable near
term solution. The following from the HECO letter to Hawaii Public
Utilities Commission from Joseph Viola, Vice President, Regulatory Affairs,
August 26, 2014 on Docket No. 2011-0092 is further confirmation of the
need for a firm energy source and that time is of the essence.

3. In planning and operating the power system, care must be taken to ensure
that under any circumstances, the system remains operable following the
largest single potential loss of energy. This largest possible loss might be
due to a trip of a particular generating plant or the loss of critical
interconnection equipment. This requirement is known as the single largest
contingency criteria and is included as a requirement within TPL-001. The
system is able to withstand the loss of the largest single contingency
through the implementation of contingency reserve.
Contingency reserve can be provided through resources that respond
immediately and automatically to system imbalances. This can include
resources such as conventional generation with governor’s response,
energy storage, or through “fast-acting” demand response.
The amount of legacy DG-PV on the Maui Electric system on
Maui Island should not exceed 10 MW. Quantities in excess of 10
MW can result in excessive load shedding and the potential for
system collapse. Improved relaying and communications are assumed to
be installed in 2015 to help mitigate the potential for this consequence.
Years 2017 and 2019 represent significant changes to the Maui Electric
system with the addition of substantial amounts of DG-PV and the
permanent retirement of the four generating units at Kahului Power Plant.
The security constraints for years after 2016 assume that the utility will
have the capability to install an energy storage system to meet the
criteria. Note: Underdevelopment, not ready to be placed on-line.
Implementation of this Preferred Plan would safely transform the electric
systems of Maui, Lanai, and Molokai, and achieve unprecedented levels of
renewable energy production. The electric systems of the future would be
balanced portfolio of renewable energy resources, thermal generation,
energy storage, and demand response.
The Preferred Plan for the island of Maui reduces “must-run” generation,
increases variable renewable energy, and uses firm renewable sources
to help stabilize the grid.

4. To move to a future with substantial variable renewable energy, the
physical design of the system must be able to operate safely and reliably.
The current generation fleet of Maui Electric is comprised of:
 Four (4) Steam Units: located at the Kahului Power Plant, these units
provide firm generation, regulating reserve, system inertia, voltage
support to central Maui, contribute to system security. These units
use an industrial fuel oil that is lower cost than diesel.
 Two (2) Dual Train Combined Cycle units: located at the Maalaea
Power Plant, these units are the most efficient generating resources
on the island. These units provide firm generation, regulating
reserve, system inertia. These units can start and provide generation
in a relatively short time period.
 Fifteen (15) Internal Combustion Diesel Engines: located at the
Maalaea Power Plant, these units provide firm generation and
regulating reserve. These units can start and provide firm generation
in a relatively short time period. Five of these units (X1, X2, M1, M2,
and M3) are quick starting units that can be used for emergency and
transition unit to starting a larger diesel unit.
 Two (2) Internal Combustion Diesel Engines: located in Hana, these
units provide firm generation and primarily provide support to the
Hana area during transmission maintenance and system disturbance.
 Eight (8) Internal Combustion Diesel Engines: located in Lanai –
Miki Basin. These units can start and provide firm generation in a
relatively short time period.
 Nine (9) Internal Combustion Diesel Engines: located in Molokai–
Palaau. These units can start and provide firm generation in a
relatively short time period.
 1 Combustion Turbine Engine: located in Molokai–Palaau. This unit
provides firm generation and peaking load capability.

5. THE PREFERRED PLAN FOR MAUI
“DG-PV continues to increase from 2015 through 2030. DG-PV resources
can possibly be obtained through either customer rooftop or larger-scale
community solar projects.
“In 2017, Maalaea Units M14, M16, M17, and M19 combustion turbines are
converted to use LNG.
“Kahului Unit 3, Kahului Unit 4, one dual-train combined cycle and one
single-train combined cycle units are designated as “must run” for system
security.
“In 2019, Kahului Power Plant is decommissioned and ten megawatts
(MW) of wind is added to the system. Two LNG fired 8.14 MW internal
combustion engines (ICE) are installed at Waena as cycling units. Three
ULSD [Ultra Low Sulfur Diesel] -fired 8.14 MW ICE are installed in South
Maui for contingency and capacity purposes. One dual-train combined
cycle and one single-train combined cycle units are designated as must run
with a 20 MW regulating-reserve energy storage system for system
security. Notes, supplied: 1. Wind is not a firm energy resource] 2. HECO
Award on Request For Proposal issued in 2015 for ULSD, Biodiesel (B99)
and/or Biodiesel Fuel Blend (B20) is pending PUC
approval. https://www.hawaiianelectric.com/clean-energy-hawaii/request-for-proposals---fuels-supply/request-for-
proposals---interisland-fuels-supply
“In 2024, a 25 MW geothermal plant is installed. Two ICE units would be
relocated from South Maui to Waena, converted to LNG, and operated as
cycling units. One dual train combined cycle unit and a new geothermal
plant are designated as must run with a 20 MW regulating-reserve energy
storage system for system security.”
[Emphasis and Clarification Supplied]
Source: HECO. http://files.hawaii.gov/puc/1_Dkt%202011-0092%202014-08-
26%20MECO%20PSIP%20Report.pdf

6. The attached correspondence with Mr. Kyle Ginoza and Mayor Alan
Arakawa are provided for your review and evaluation.
I am certain after your evaluation of the information presented and in
view of recent events that you will conclude that the County of Maui
Waste-to-Energy Facility needs to be revisited and be given the highest
priority consideration.
Your endorsement and support is sincerely appreciated.
Thank you very much
Aloha
V/R
Electronically Signed
Clifton M. Hasegawa
Attachments
CM ANAERGIA - Letter to Mayor Alan Arakawa - Anaergia - December 11,
2014.pdf 321K
CM ANAERGIA - Kyle Ginoza - CMH letter 12-15-14.pdf
201K
CM ANAERGIA - Letter to Mayor Alan Arakawa - MAUI - December 17,
2014.pdf
331K
CM ANAERGIA - Presentation For Alan Arakawa, Mayor, County of Maui and
Sharon Suzuki, President, Maui Electric Company.pdf
214K
ENERGY RESOURCES - FIRM vs INTERMITTENT - Letter to Governor Ige
and Lieutenant Governor Tsutsui - December 4, 2014.pdf 514K

7. Clifton M. Hasegawa
President and CEO
Clifton M. Hasegawa & Associates, LLC
1044 Kilani Avenue 12
Wahiawa, Hawaii 96786-2243
Telephone: 808.633.2532
Direct: 808.498.8408
Email: clifhasegawa@gmail.com
LinkedIn: https://www.linkedin.com/in/cliftonhasegawa
DELIVERED VIA EMAIL
December 4, 2014
The Honorable David Ige
Governor, State of Hawaii
The Honorable Shan Tsutsui
Lieutenant Governor, State of Hawaii
RE: Electricity – Rates & Energy Security
Dear Governor Ige and Lieutenant Governor Tsutsui,
Hawaii is the most fossil fuel dependent state in the Nation, nearly 95% of
the state's energy is from imported crude oil, Hawai'i pays the highest electricity
prices in the Nation.
Finding achievable solutions: immediate, near term, short term and long
term is critical to maintaining and growing Hawaii’s economy.
Foundationally, there are 2 areas of concern, cost to the consumer and
providing for energy security.
The introduction of sustainable intermittent renewable energy sources to
minimize reliance on fossil fuel has peaked to the point installation of
photovoltaic systems for homes has been placed on hold until, on Oahu, until
Hawaiian Electric Company provides needed upgrades for the utility grid.
Intermittent renewable energy sources are in place and are being
researched in Hawaii are: a. Sun - photovoltaic (PV), b. Wind – turbines (Big and
Small), c. Ocean – tidal, d. Algae

8. Energy Security is based on firm dispatachable power.
Hawaiian Electric Company (HECO) and its subsidiaries, HELCO –
(Hawaii Electric Light Company) and MECO – (Maui Electric Company, Ltd.),
Kauai Island Utility Cooperative (KIUC), the Office of Naval Research (ONR),
The Hawaii Natural Energy Institute - University of Hawaii (NREL), the Maui
Economic Development Board, Inc. (MEDB), the Hawaii Renewable Energy
Development Venture (HREDV), New Energy and Industrial Technology
Development Organization (NEDO), and the State of Hawaii are working to find
a reliable means of energy storage (battery backup) to meet the challenges of
over-generation and extremes in variability to maintain grid reliability, in
particular, frequency control. Please refer to Attachment 1 -- Hawaii Department
of Business, Economic Development and Tourism (DEBEDT) – Energy Storage
Projects 2013. The utilization of energy storage does not change the character of
intermittent (dispatachable power) to firm dispatachable power.
Firm dispatachable power sources in Hawaii are: Biomass facilities (City
& County of Honolulu), hydropower (Maui, Big Island, and Kauai), geothermal
and fuel burning generators (coal, fossil fuel) – Oahu, Maui County, Kauai, and
the Big Island.
Hawaiian Electric Company as a means of minimizing reliance on fossil
fuel for its generating plants has initiated the shut down and decommissioning of
its power plants on all islands. This initiative creates a gap in production of firm
dispatachable power and in turn a negative on energy security. The use of
lowsulfur and biofuel minimizes contribution to global warming.
Hawaiian Electric Company should, as an interim measure, integrate more use of
low-sulfur and biofuel to keep its generating plants on-line. Hawaiian Electric
Company has announced that it will seek the use of Liquefied Natural Gas
(LNG). Two studies are material and relevant. Given the length of these studies
and the size limitations imposed by The Capitol Hawaii Server, web addresses
for these studies are provided.
 December 2012. Liquefied Natural Gas for Hawaii: Policy, Economic, and
Technical Questions, A Study prepared for Hawaii Natural Energy
Institute by FACTS Global Energy. (250 pages) Source:
http://www.hawaiigas.com/media/1222/lng_for_hawaii-policy_economic_tech_questions.pdf

9.  October 5, 2012. LNG Imports to Hawaii – Commercial & Economic
Viability Study, prepared for Hawaiian Electric Company by Galway
Energy Advisors LLC. (130 pages) Source:
https://www.hawaiianelectric.com/vcmcontent/IntegratedResource/IRP/PDF/IRP-2013-App-N-LNG-Imports-
Study-062813-Filed.pdf
“Given the existing renewable costs compared to the existing conventional
power system, there are many opportunities for renewable energy to
provide net value to Hawaii. These are primarily driven by the high cost
of petroleum fuels used in electric generation. In a future liquefied
natural gas (LNG) scenario, renewables still appear to be a lower cost
option in many cases. The analysis also shows that biofuel approaches are
higher cost than wind, solar, and hydroelectric, and that biofuels are more
costly than conventional power generation.”
Source: Hawaii Public Utilities Commission. Final Report, January 2014.
Evaluation of Hawaii’s Renewable Energy Policy and Procurement.
http://puc.hawaii.gov/wp-content/uploads/2013/04/HIPUC-Final-Report-January-2014-
Revision.pdf
Recommendations by Galway Energy Advisors LLC to Hawaiian Electric
Company:
 HECO should establish contact with the U.S. Navy to test the viability of
 using Pearl Harbor as a site for a floating LNG terminal.
 Commission detailed siting studies to assess viability of offshore buoy
 based options. Estimate cost $0.5 to $1 Million and timing is 3-6 months.
 Develop regulatory and permitting strategy through informal
 consultations with federal and state regulatory authorities.
 Develop detailed commercial and business structure for LNG importation.
 Hold informal consultations with vendors and supplier.
[Emphasis Supplied]
Source: Integrated Resource Plan Report — 2013. Page 91.
https://www.hawaiianelectric.com/vcmcontent/IntegratedResource/IRP/PDF/IRP-2013-App-N-LNG-Imports-
Study-062813-Filed.pdf

10. Respectfully, I recommend the Director, Department of Business,
Economic Development and Tourism (DBEDT) the State of Hawaii Energy
Resources Coordinator (ERC); the State Energy Administrator, Hawaii State
Energy Office; and the Director for Transportation (DOT) and Deputy Director-
Harbors Division (HIDOT) is appointed to lead the development of the LNG
Terminal Facility for Hawaii and work with the United States Navy to create,
strengthen and improve energy security. The State Energy Administrator, I
recommend, be appointed as the Team Leader.
Navy in Hawaii Energy Goals
“Navy Region Hawaii and MIDPAC energy goals are aligned with SECNAV,
CNO and CNIC energy security goals:
 Ensure energy security as a strategic imperative
 Reduce energy consumption by 50% by 2020
 Achieve 50% renewable energy by 2020
 Comply with federal mandates and executive orders
Future: Explore feasibility of a liquefied natural gas terminal in Pearl Harbor”
[Emphasis Supplied]
As a further consideration and locating the LNG Terminal Facility at Pearl
Harbor that governmental wheeling be revisited and explored. Wheeling allows
a private energy producer to sell energy directly to an energy consumer,
bypassing the electric company. This is appropriate where the utility curtails
input of power into its grid or during peak and non-peak intervals to feed into
the grid.
Governmental Wheeling was first filed with the Hawaii Public Utilities
Commission on July 17, 2007. (PUC Docket Number 2007- 0176). This docket
and information on wheeling is no longer available on the PUC website.
Residential roof-top photovoltaic (PV) installation is residential wheeling.
Senate Bill 703 S.D. 1 (2011) - Governmental Wheeling. “Requires the
public utilities commission to adopt rules and issue orders relating to
intra-governmental wheeling and inter-governmental wheeling that

11. enable renewable energy producers operating on public lands to sell
electricity directly to governmental entities located on the same island.
Authorizes public utilities to charge a transmission and distribution fee
for both intra-governmental wheeling and inter-governmental wheeling.”
Status: Carried over from 2011 Regular Session to 2012 Regular Session.
SB 703 was not reintroduced in 2012 Regular Session. SB 703 died.
Source:
http://www.capitol.hawaii.gov/Archives/measure_indiv_Archives.aspx?billtype=SB&billnumber=703&year=
2012
Respectfully, I suggest that Kauai be selected to site a pilot project for
governmental wheeling. The Kauai Island Utility Cooperative (KIUC) grid is
robust and is well advanced of any in the State of Hawaii.
“Kauai has a long history using biomass to produce electricity. Until the
early 2000s, waste from harvested sugar cane was burned to create the
steam used to power generators, but with the closure of the plantations
came the end of creating energy from biomass.”
“In January 2011, KIUC announced an agreement to purchase power from
Green Energy Team, a partnership that proposed building a biomass-to energy
facility near Koloa. Construction on the plant began in January
2013. When finished in 2014, it will supply 11 percent of the islands
annual energy needs. The plant will have a capacity of 6.7 megawatts and
be fueled by biomass from several sources, including short-rotation trees
grown on about 2,000 acres and cleared invasive tree species.
The majority partner on the project is Standardkessel, a German company
that is the world leader in biomass generation technology. Once
operational, the plant will create 39 permanent jobs and dozens of jobs for
local contractors and suppliers.”
Source: Kauai County. http://website.kiuc.coop/content/biomass
“Today [March 12, 2014], Arumuganathaswami and Natyam Rajanatha
made a short trip to visit the site of the Island's new biomass plant which
is under construction outside of Lihue. The plant is the work of Green
Energy Team, a company that has cultivated several parcels of land next
to the monastery's own Himalayan Acres where we are growing hardwood
and specimen trees. Green Energy is growing fields of eucalyptus trees
which are meant to fuel the plant. Green Energy stated: “When finished in
2014, it will supply 11 percent of the island's annual energy needs.

12. “The plant will have a capacity of 6.7 megawatts and be fueled by biomass from
several sources, including short-rotation trees grown on about 2,000 acres
and the use of cleared invasive tree species.””
Source: Kauai Aadheenam. http://www.himalayanacademy.com/blog/taka/2014/03/12/a-newpower-
plant-on-kauai/
“[T]he National Renewable Energy Laboratory (NREL) and the Naval Facilities
Engineering Command (NAVFAC) spent two years collaborating on
demonstrations that tested market-ready energy efficiency measures, renewable
energy generation, and energy systems integration.”
“One such technology—an energy management system—was identified as a
promising method for reducing energy use and costs, and can contribute to
increasing energy security.”
“The energy management system for the Pacific Missile Range Facility was
installed to improve utilization of existing photovoltaic systems.”
[Emphasis and Clarification Supplied]
Source: National Renewable Energy Laboratory. Energy Management System
Lowers U.S. Navy Energy Costs Through PV System Interconnection.
http://www.nrel.gov/docs/fy14osti/61271.pdf
Connecting the energy management system to a fixed dispatachable
energy source as biomass will strengthen and improve the energy security level
at the Pacific Missile Range at Barking Sands, Kauai.
Thank you for the opportunity to share my thoughts with you.
Respectfully submitted,
Electronically Signed
Clifton M. Hasegawa
Enclosure: DEBEDT – Energy Storage Projects 2013